MIRAI Corporation (3476) AI Stock Analysis

• Market Cap: ¥93.18B
• Dividend Yield: 5.22%
• Average Volume (3M): 4.11K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.20
• Revenue Growth: 79.23%
• EPS Growth: 8.31%
• Country: JP
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 1348.00
• Shares Outstanding: 1,907,440
• 10 Day Avg. Volume: 4,334
• 30 Day Avg. Volume: 4,114
• PEG Ratio: -2.83
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 6.27
• P/FCF Ratio: -10.28
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥56,579.00 ▲(13.61% Upside)

MIRAI Corporation's strong financial performance, characterized by robust revenue and profit growth, is the primary driver of its stock score. The positive technical indicators further support a bullish outlook, while the attractive dividend yield enhances its valuation appeal. However, potential risks from cash flow volatility and high debt levels warrant cautious monitoring.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability and expansion.

Profitability

High profitability margins reflect efficient cost management and strong operational performance, providing a buffer against market fluctuations.

Cash Generation

Strong cash generation supports liquidity and financial flexibility, enabling investment in growth opportunities and resilience in downturns.

Negative Factors

Debt Levels

High debt levels can limit financial flexibility and increase vulnerability to economic downturns, impacting long-term sustainability.

Free Cash Flow Volatility

Volatile free cash flow can strain liquidity and limit the ability to fund operations and growth, posing risks to financial stability.

Gross Profit Margin Decline

A declining gross profit margin may indicate rising costs or pricing pressures, potentially affecting profitability if not addressed.

MIRAI Corporation Business Overview & Revenue Model

Company Description

MIRAI Corporation (3476) is a leading technology firm based in Japan, specializing in the development and provision of advanced software solutions and IT services. The company operates primarily in the information technology sector, focusing on areas such as artificial intelligence, cloud computing, and data analytics. MIRAI Corporation is dedicated to enhancing business efficiencies through its innovative products, including enterprise software applications, system integration services, and consulting solutions tailored to various industries.

How the Company Makes Money

MIRAI Corporation generates revenue through multiple key streams, primarily by offering subscription-based software services, consulting fees, and system integration projects. The company's subscription model allows clients to access its software solutions on a recurring basis, providing a steady income flow. Additionally, MIRAI engages in long-term projects with businesses for custom software development and system integration, which are typically billed based on project milestones or deliverables. Significant partnerships with other technology firms and enterprises enhance its service offerings and expand its customer base, further contributing to its earnings. The company's focus on innovation and its ability to adapt to market demands also play a crucial role in sustaining its revenue growth.

MIRAI Corporation Financial Statement Overview

Summary

MIRAI Corporation exhibits strong financial health with robust revenue and profit growth, supported by efficient operations and a solid balance sheet. However, volatility in free cash flow and high debt levels suggest potential risk areas that need careful management.

Income Statement

MIRAI Corporation has demonstrated robust revenue growth with a consistent increase in total revenue over the years, including a 5.8% growth from 2023 to 2024. The gross profit margin in 2024 is 54.6%, indicating efficient cost management. The company maintains healthy profitability metrics with a net profit margin of 38.4% and an EBIT margin of 45.0% in 2024. EBITDA margin also remains strong at 56.8%. These metrics reflect strong operational performance, although a slight decrease in gross profit margin compared to 2022 suggests room for improvement.

Balance Sheet

MIRAI Corporation's balance sheet is solid with a debt-to-equity ratio of 1.05, indicating a balanced approach to leveraging. The equity ratio stands at 46.3%, showing a strong equity base relative to total assets. Return on equity is impressive at 53.2%, demonstrating efficient use of shareholder funds to generate profits. However, the high level of total debt poses potential risks if economic conditions were to worsen, necessitating cautious monitoring.

Cash Flow

The cash flow situation presents a mixed picture. The free cash flow has shown volatility, with a significant decline in 2024 resulting in negative free cash flow of -7.37 billion. Despite this, the operating cash flow to net income ratio remains positive at 1.38, highlighting strong cash generation relative to net income. The free cash flow to net income ratio is concerning at -1.59, indicating potential issues with liquidity if this trend continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.53B	12.09B	11.43B	10.94B	10.09B	10.82B
Gross Profit	3.74B	6.60B	5.08B	6.24B	5.76B	6.53B
EBITDA	7.05B	6.86B	6.57B	6.33B	5.85B	6.58B
Net Income	4.82B	4.64B	4.60B	4.57B	4.22B	4.97B
Balance Sheet
Total Assets	188.41B	188.23B	174.75B	172.79B	161.23B	159.22B
Cash, Cash Equivalents and Short-Term Investments	6.84B	3.39B	3.00B	4.51B	2.54B	3.26B
Total Debt	91.90B	91.90B	85.50B	84.00B	78.70B	75.70B
Total Liabilities	100.79B	100.98B	93.35B	91.76B	85.92B	83.79B
Stockholders Equity	87.62B	87.25B	81.39B	81.03B	75.31B	75.43B
Cash Flow
Free Cash Flow	-8.16B	-7.37B	1.56B	-3.95B	966.43M	-2.55B
Operating Cash Flow	14.16B	6.39B	12.78B	7.84B	11.67B	12.04B
Investing Cash Flow	-21.97B	-13.28B	-11.13B	-11.44B	-10.97B	-14.21B
Financing Cash Flow	7.37B	7.58B	-3.14B	5.86B	-1.47B	337.73M

MIRAI Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 49800.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3476, the sentiment is Positive. The current price of 49800 is above the 20-day moving average (MA) of 49707.50, above the 50-day MA of 48413.22, and above the 200-day MA of 43768.73, indicating a bullish trend. The MACD of 554.54 indicates Positive momentum. The RSI at 57.76 is Neutral, neither overbought nor oversold. The STOCH value of 43.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3476.

MIRAI Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3476	79 Outperform	¥93.18B	18.75	―	5.22%	79.23%	8.31%
3451	78 Outperform	¥55.34B	19.41	―	5.13%	3.63%	1.58%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%