AI FUSION CAPITAL GROUP CORP. (254A) AI Stock Analysis

• Market Cap: ¥10.02B
• Dividend Yield: N/A
• Average Volume (3M): 49.27K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.24
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 37
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -42.63
• Shares Outstanding: 9,702,600
• 10 Day Avg. Volume: 59,770
• 30 Day Avg. Volume: 49,270
• PEG Ratio: -0.60
• Price to Book (P/B): 3.99
• Price to Sales (P/S): 4.93
• P/FCF Ratio: -73.98
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ¥1,161.00 ▲(25.24% Upside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is held back primarily by weak cash-flow conversion in 2025 (negative operating and free cash flow) and increased leverage despite strong reported profitability. Technicals are supportive due to strong momentum and price above major moving averages, but overbought signals raise pullback risk. Valuation is also a drag because a negative P/E reduces clarity and no dividend yield is available.

Positive Factors

High operating margins

Very high operating and EBITDA margins in 2025 indicate the business can generate strong profitability from revenues. Durable margin levels support internal reinvestment, build resilience to cost shocks, and provide capacity to fund growth or deleveraging if cash conversion normalizes.

Solid equity base and ROE

A substantial equity base and mid-teens ROE provide a financial cushion and indicate efficient use of capital. This strengthens the firm's ability to absorb losses, support business continuity, and pursue strategic investments without immediate reliance on external financing.

Revenue rebound

A material top-line recovery signals restored demand or successful business initiatives. Sustained revenue growth is a prerequisite for durable margin retention and eventual cash-flow recovery, demonstrating operational capacity to scale the business versus the prior year.

Negative Factors

Negative operating & free cash flow

Operating and free cash flows turning negative despite reported profitability show earnings are not converting to cash. Over months this constrains liquidity, limits self-funding for investment or debt repayment, and raises the need for external financing or working-capital fixes.

Meaningful increase in leverage

A shift from near-zero debt to meaningful leverage increases fixed obligations and financial risk. Higher interest and principal commitments reduce strategic flexibility, amplify downside in stress scenarios, and heighten refinancing risk if cash generation remains weak.

Volatile earnings quality

Marked swings between operating and net outcomes and reliance on non‑operating items suggest earnings quality issues. Persistent volatility undermines forecasting, complicates capital-allocation decisions, and increases execution risk for multi‑quarter plans.

AI FUSION CAPITAL GROUP CORP. Business Overview & Revenue Model

Company Description

Ai Fusion Capital Group Corp.is principal investment firm specializing in companies that provide AI solutions and conventional venture investment. It is also engage in management and administration of the group companies that are in to Investment in venture companies and formation and administration of Investment Funds, and as well as all associated and related these businesses. Ai Fusion Capital Group Corp. was founded in October 1, 2024 and is headquartered in Tokyo, Japan.

AI FUSION CAPITAL GROUP CORP. Financial Statement Overview

Summary

Reported profitability rebounded strongly in 2025 with very high operating/EBITDA margins and a still-solid equity base, but quality is mixed due to volatile results, a meaningful shift to higher leverage (debt-to-equity ~0.71 after prior years with no debt), and a sharp deterioration in cash generation with negative operating and free cash flow in 2025.

Income Statement

Revenue rebounded strongly in 2025 (¥3.09B vs. ¥0.51B in 2024, +5.1% shown), and reported profitability improved sharply with very high operating margins in 2025 (about 46% EBIT margin and 49% EBITDA margin). However, results have been volatile: 2024 showed negative operating profit despite very high net profit margins (driven by items below operating profit), and prior years also show large swings between operating and net outcomes. Overall, the earnings profile looks capable but less predictable.

Balance Sheet

The balance sheet shows a solid equity base (¥3.82B in 2025) supporting ¥6.55B of assets, with returns on equity in a healthy range (about 17.5% in 2025 and higher in some prior years). Leverage increased meaningfully in 2025 with total debt rising to ¥2.70B (debt-to-equity ~0.71) after prior years showing no debt, which raises financial risk versus the company’s earlier capital structure.

Cash Flow

Cash generation weakened materially in 2025, with operating cash flow turning negative (−¥183M) and free cash flow also negative (−¥206M), alongside a steep deterioration versus the prior year. This is a notable disconnect from reported earnings in 2025 and suggests either working-capital pressure, timing effects, or lower cash conversion. Earlier years (2022–2023) showed positive operating and free cash flow, but the most recent trend is clearly adverse.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.09B	508.00M	562.00M	543.00M	857.00M
Gross Profit	1.36B	209.00M	265.00M	258.00M	181.00M
EBITDA	1.50B	-49.00M	54.00M	67.00M	-14.00M
Net Income	668.00M	1.08B	1.04B	143.00M	20.00M
Balance Sheet
Total Assets	6.55B	4.93B	4.05B	3.14B	3.20B
Cash, Cash Equivalents and Short-Term Investments	166.00M	3.93B	2.79B	2.19B	2.15B
Total Debt	3.28B	0.00	0.00	0.00	0.00
Total Liabilities	2.73B	362.00M	372.00M	395.00M	399.00M
Stockholders Equity	3.82B	4.57B	3.68B	2.75B	2.63B
Cash Flow
Free Cash Flow	-206.00M	-4.00M	189.00M	225.00M	263.00M
Operating Cash Flow	-183.00M	-4.00M	190.00M	228.00M	277.00M
Investing Cash Flow	939.00M	1.31B	399.00M	-42.00M	-12.00M
Financing Cash Flow	-1.18B	-196.00M	3.00M	-167.00M	-19.00M

AI FUSION CAPITAL GROUP CORP. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3772	69 Neutral	¥20.02B	169.87	―	1.85%	-40.77%	-91.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7345	61 Neutral	¥3.64B	14.05	―	0.62%	1.87%	51.81%
254A	54 Neutral	¥10.02B	-5.18	―	―	―	―
2134	50 Neutral	¥16.43B	-12.65	―	―	-21.88%	17.12%
8518	46 Neutral	¥4.41B	-4.99	4.15%	―	-6.60%	―