Adways, Inc. (2489) AI Stock Analysis

• Market Cap: ¥11.03B
• Dividend Yield: 1.05%
• Average Volume (3M): 110.03K
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.86
• Revenue Growth: -6.71%
• EPS Growth: -260.43%
• Country: JP
• Employees: 1,041
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -7.10
• Shares Outstanding: 42,006,000
• 10 Day Avg. Volume: 94,300
• 30 Day Avg. Volume: 110,030
• PEG Ratio: 0.16
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.91
• P/FCF Ratio: -31.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥285.00
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: ¥285.00 ▲(0.00% Upside)

Adways, Inc. faces significant financial challenges, with declining revenue and profitability, and negative cash flow trends. Technical indicators are bearish, indicating a downtrend. The valuation reflects concerns about profitability, despite a modest dividend yield. These factors collectively suggest a cautious outlook for the stock.

Adways, Inc. Business Overview & Revenue Model

Company Description

Adways, Inc. (2489) is a prominent player in the digital marketing and technology sector, specializing in delivering innovative advertising solutions through its proprietary platforms. The company focuses on enhancing user engagement and optimizing ad performance across various digital channels. Adways offers a range of products and services, including mobile marketing, social media advertising, and programmatic advertising, catering to clients from diverse industries looking to amplify their online presence.

How the Company Makes Money

Adways generates revenue primarily through its advertising solutions by charging clients for ad placements and services rendered. The company's revenue model is built around a combination of cost-per-click (CPC), cost-per-impression (CPM), and performance-based pricing structures, which allow advertisers to pay based on the effectiveness of their campaigns. Key revenue streams include transaction fees from ad placements on its platforms, subscription fees for access to premium features, and revenue-sharing agreements with partners. Additionally, strategic partnerships with major digital platforms and technology providers enhance Adways' market reach and capabilities, contributing significantly to its overall earnings.

Adways, Inc. Financial Statement Overview

Summary

Adways, Inc. is experiencing financial difficulties, with declining revenue and profitability, coupled with negative cash flow trends. While the company maintains a strong equity position with minimal debt, the negative return on equity and cash flow challenges pose significant risks. The company needs to address its operational inefficiencies and improve cash flow management to enhance financial stability.

Income Statement

Adways, Inc. has shown a decline in revenue growth with a negative rate of -6.21% in the latest year, indicating a contraction in sales. The gross profit margin remains strong at 81.61%, suggesting efficient cost management. However, the net profit margin has turned negative at -3.73%, reflecting a significant drop in profitability compared to the previous year. The EBIT and EBITDA margins have also decreased, highlighting challenges in operational efficiency.

Balance Sheet

The company's balance sheet shows a very low debt-to-equity ratio of 0.0002, indicating minimal leverage and a strong equity position. However, the return on equity has turned negative at -3.48%, suggesting inefficiencies in generating returns for shareholders. The equity ratio remains healthy, reflecting a stable financial structure.

Cash Flow

Adways, Inc. faces challenges in cash flow management, with a negative free cash flow growth rate of -455.89% and a high free cash flow to net income ratio of -1.99, indicating cash flow issues relative to earnings. The operating cash flow to net income ratio is low, suggesting limited cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2018	Dec 2017
Income Statement
Total Revenue	12.20B	12.68B	13.52B	13.42B	41.86B	41.50B
Gross Profit	9.97B	10.35B	10.95B	10.81B	7.23B	7.17B
EBITDA	-6.85M	402.47M	1.15B	-345.92M	524.88M	719.51M
Net Income	-727.00M	-473.46M	966.14M	2.54B	738.76M	9.98M
Balance Sheet
Total Assets	21.33B	22.88B	25.23B	27.78B	17.82B	17.92B
Cash, Cash Equivalents and Short-Term Investments	10.31B	10.04B	10.19B	12.86B	10.17B	9.49B
Total Debt	173.46M	3.22M	20.68M	0.00	0.00	0.00
Total Liabilities	7.68B	9.00B	10.63B	11.46B	6.30B	6.90B
Stockholders Equity	13.37B	13.61B	14.36B	16.03B	11.38B	10.90B
Cash Flow
Free Cash Flow	0.00	-370.82M	-66.71M	-44.71M	778.29M	794.29M
Operating Cash Flow	0.00	185.81M	592.35M	385.20M	947.37M	1.10B
Investing Cash Flow	0.00	155.94M	-95.22M	1.96B	-172.67M	188.96M
Financing Cash Flow	0.00	-236.44M	-2.86B	-1.91B	-100.01M	-156.71M

Adways, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 285.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2489, the sentiment is Negative. The current price of 285 is below the 20-day moving average (MA) of 305.55, below the 50-day MA of 304.92, and below the 200-day MA of 300.39, indicating a bearish trend. The MACD of -7.05 indicates Positive momentum. The RSI at 33.37 is Neutral, neither overbought nor oversold. The STOCH value of 26.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2489.

Adways, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6026	76 Outperform	―	―	―	―	-11.55%	-13.99%
6180	76 Outperform	¥9.77B	14.56	―	3.41%	4.74%	54.18%
6562	61 Neutral	¥15.05B	11.44	―	―	42.86%	12.93%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2489	45 Neutral	¥11.03B	23.14	―	1.05%	-6.71%	-260.43%
4436	41 Neutral	¥6.82B	―	―	5.38%	7.38%	-317.56%