Axel Mark Inc. (3624) AI Stock Analysis

• Market Cap: ¥1.95B
• Dividend Yield: N/A
• Average Volume (3M): 4.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: -44.27%
• EPS Growth: -355.12%
• Country: JP
• Employees: 48
• Sector: Communication Services
• Sector Strength: 83
• Industry: Internet Content & Information
• EPS (TTM): -21.11
• Shares Outstanding: 18,042,900
• 10 Day Avg. Volume: 1,043,870
• 30 Day Avg. Volume: 4,439,050
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: ¥161.00
• Price Target Upside: 45.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: ¥133.00 ▲(19.82%Upside)

Axel Mark Inc.'s overall stock score is primarily influenced by its poor financial performance, marked by declining revenues and increasing net losses. While technical analysis suggests some potential upward momentum, the stock's valuation remains unattractive due to its negative P/E ratio and lack of dividends. These factors overshadow the neutral to slightly positive technical indicators, resulting in a modest overall score.

Axel Mark Inc. Business Overview & Revenue Model

Company Description

Axel Mark Inc. (3624) is a Japanese company primarily engaged in the digital entertainment industry, particularly focusing on mobile game development and distribution. The company operates within the broader technology and entertainment sectors, leveraging its expertise to create engaging and innovative gaming experiences for mobile platforms. Axel Mark Inc. also engages in other digital content services, contributing to its diverse portfolio.

How the Company Makes Money

Axel Mark Inc. generates revenue primarily through the development and distribution of mobile games. The company monetizes its games via in-app purchases, where players can buy virtual goods, enhancements, or currency to enhance their gaming experience. Additionally, Axel Mark may use advertisement placements within its games as another revenue stream. The company might also earn income from partnerships or collaborations with other digital content providers or technology companies, though specific partnership details are not available. Axel Mark's success is driven by its ability to create popular and engaging content that attracts a wide user base, leading to higher potential for in-app purchases and advertising revenue.

Axel Mark Inc. Financial Statement Overview

Summary

Axel Mark Inc. is experiencing significant financial challenges, including declining revenues, increasing net losses, negative cash flows, and a deteriorating equity position. While there is some liquidity strength, overall financial performance indicates structural inefficiencies and operational struggles.

Income Statement

Axel Mark Inc. has faced declining total revenues over the past few years, with a significant drop from 2.67 billion in 2022 to 1.58 billion in 2024. The company is experiencing negative net income, with net losses increasing substantially. Gross profit margins have deteriorated over time, and EBIT margins have turned negative, indicating operational challenges. The income statement reflects declining profitability and revenue contraction, suggesting structural issues in the company's financial health.

Balance Sheet

The company's balance sheet shows a stable level of total debt but declining stockholders' equity, leading to an increasing debt-to-equity ratio. The equity ratio has decreased, reflecting a weaker capital structure. However, cash and short-term investments remain substantial compared to liabilities, which offers some financial flexibility. Despite some strengths in liquidity, overall leverage and declining equity present significant risks.

Cash Flow

Axel Mark Inc.'s cash flow statement reveals negative operating cash flows and free cash flows, indicating operational inefficiencies and the inability to generate cash from core operations. The free cash flow has deteriorated over time, and the ratios of operating and free cash flow to net income are unfavorable, highlighting cash generation issues. This cash flow situation poses a risk to the company's financial sustainability.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	1.58B	2.14B	2.67B	2.66B	2.78B
Gross Profit	89.25M	221.57M	318.16M	315.77M	-69.70M
EBITDA	-289.01M	-91.62M	-91.66M	85.04M	-787.86M
Net Income	-388.57M	-102.42M	-100.63M	74.62M	-825.00M
Balance Sheet
Total Assets	925.05M	1.42B	1.56B	1.71B	815.24M
Cash, Cash Equivalents and Short-Term Investments	510.93M	906.04M	1.24B	1.14B	400.95M
Total Debt	356.65M	356.65M	378.94M	713.29M	725.50M
Total Liabilities	457.94M	568.38M	625.38M	1.02B	988.00M
Stockholders Equity	467.11M	854.09M	935.13M	691.87M	-172.76M
Cash Flow
Free Cash Flow	-339.29M	-275.32M	93.53M	-13.59M	-660.06M
Operating Cash Flow	-288.00M	-172.86M	93.53M	-13.59M	-660.06M
Investing Cash Flow	-108.31M	-162.21M	7.46M	89.13M	-71.21M
Financing Cash Flow	1.20M	1.01M	500.00K	812.12M	-126.60M

Axel Mark Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 111.00
• 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:3624, the sentiment is Positive. The current price of 111 is below the 20-day moving average (MA) of 124.45, above the 50-day MA of 103.96, and below the 200-day MA of 129.13, indicating a bullish trend. The MACD of 1.60 indicates Positive momentum. The RSI at 59.90 is Neutral, neither overbought nor oversold. The STOCH value of 45.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3624.

Axel Mark Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	¥370.09B	13.55	2.24%	2.51%	5.32%	-18.27%
3961	61 Neutral	¥1.87B	7,348.84		―	-2.24%	-48.65%
6579	54 Neutral	¥1.39B	―		―	-21.87%	-289.18%
7138	54 Neutral	¥1.04B	―		―	-5.66%	-31.73%
3624	50 Neutral	¥1.95B	―		―	-44.27%	-355.12%
4059	49 Neutral	¥1.43B	―		―	-3.01%	81.40%
6048	46 Neutral	¥1.43B	―		―	-18.93%	9.04%