Axel Mark Inc. (3624) AI Stock Analysis

• Market Cap: ¥1.69B
• Dividend Yield: N/A
• Average Volume (3M): 364.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -38.55%
• EPS Growth: -33.56%
• Country: JP
• Employees: 48
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -14.39
• Shares Outstanding: 19,874,600
• 10 Day Avg. Volume: 413,790
• 30 Day Avg. Volume: 364,363
• PEG Ratio: -0.01
• Price to Book (P/B): 3.10
• Price to Sales (P/S): 0.91
• P/FCF Ratio: -4.27
• 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: 41 Neutral
• Price Target: ¥88.00 ▼(-20.72% Downside)

Axel Mark Inc.'s overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues, negative profitability, and cash flow challenges. The technical analysis indicates a bearish trend, further weighing down the score. The valuation is unattractive due to the negative P/E ratio and lack of dividend yield.

Positive Factors

Debt Management

Improved debt management indicates better financial discipline, reducing financial risk and potentially enhancing long-term stability.

Strategic Partnerships

Strategic partnerships enhance service offerings and client access, supporting revenue growth and competitive positioning over the long term.

Service Diversification

Diversified services in digital marketing enhance resilience against market shifts and broaden revenue streams, supporting sustainable growth.

Negative Factors

Revenue Decline

Significant revenue decline indicates challenges in market demand or competitive pressures, potentially impacting future financial performance.

Profitability Issues

Persistent profitability issues reflect operational inefficiencies and market challenges, threatening long-term financial health and investor confidence.

Cash Flow Challenges

Negative cash flows indicate difficulties in sustaining operations and investing in growth, posing risks to financial stability and strategic initiatives.

Axel Mark Inc. Business Overview & Revenue Model

Company Description

Axel Mark Inc. (3624) is a technology-driven company specializing in innovative marketing solutions and digital advertising services. Operating primarily in the digital marketing sector, Axel Mark Inc. provides a range of services including data analytics, search engine optimization (SEO), and targeted advertising campaigns designed to enhance brand visibility and customer engagement for its clients. The company focuses on leveraging cutting-edge technology to optimize marketing strategies for businesses across various industries.

How the Company Makes Money

Axel Mark Inc. generates revenue primarily through its digital advertising services, which include performance-based marketing, where clients pay based on results such as clicks or conversions. Key revenue streams include monthly service fees for ongoing marketing management, one-time project fees for specific campaigns, and commissions from sales generated through their advertising efforts. The company also benefits from strategic partnerships with tech platforms and data analytics firms, enabling them to offer enhanced services and access to broader client bases, thus contributing to their overall earnings.

Axel Mark Inc. Financial Statement Overview

Summary

Axel Mark Inc. faces significant financial challenges, with declining revenues and increasing losses. The balance sheet shows increasing leverage and weak equity, while negative cash flows highlight operational struggles. The company needs to address its structural inefficiencies and improve profitability to stabilize its financial position.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	973.57M	1.58B	2.14B	2.67B	2.66B
Gross Profit	104.78M	89.25M	221.57M	318.16M	315.77M
EBITDA	-757.88M	-371.17M	-94.22M	-91.66M	85.04M
Net Income	-763.13M	-388.57M	-102.42M	-100.63M	74.62M
Balance Sheet
Total Assets	1.33B	925.05M	1.42B	1.56B	1.71B
Cash, Cash Equivalents and Short-Term Investments	919.15M	510.93M	906.04M	1.24B	1.14B
Total Debt	376.50M	356.65M	356.65M	378.94M	713.29M
Total Liabilities	520.92M	457.94M	568.38M	625.38M	1.02B
Stockholders Equity	804.71M	467.11M	854.09M	935.13M	691.87M
Cash Flow
Free Cash Flow	-486.46M	-339.29M	-275.32M	93.53M	-13.59M
Operating Cash Flow	-466.60M	-288.00M	-172.86M	93.53M	-13.59M
Investing Cash Flow	-233.74M	-108.31M	-162.21M	7.46M	89.13M
Financing Cash Flow	1.11B	1.20M	1.01M	500.00K	812.12M

Axel Mark Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 111.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3624, the sentiment is Neutral. The current price of 111 is above the 20-day moving average (MA) of 82.20, above the 50-day MA of 92.12, and above the 200-day MA of 105.59, indicating a neutral trend. The MACD of -2.23 indicates Negative momentum. The RSI at 49.00 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3624.

Axel Mark Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3961	67 Neutral	¥2.27B	-62.54	―	―	-12.06%	-184.14%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4059	50 Neutral	¥1.55B	106.88	―	―	-3.54%	―
7138	49 Neutral	¥4.55B	-6.69	―	―	-17.90%	-26.75%
3624	41 Neutral	¥1.69B	-1.74	―	―	-38.55%	-33.56%
6579	40 Neutral	¥1.16B	-7.13	―	―	-11.68%	-66.76%