Voltage Incorporation (3639) AI Stock Analysis

• Market Cap: ¥1.84B
• Dividend Yield: N/A
• Average Volume (3M): 95.79K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.55
• Revenue Growth: -19.71%
• EPS Growth: N/A
• Country: JP
• Employees: 165
• Sector: Communication Services
• Sector Strength: 75
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.48
• Shares Outstanding: 6,518,975
• 10 Day Avg. Volume: 35,770
• 30 Day Avg. Volume: 95,786
• PEG Ratio: -0.67
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥248.00
• Price Target Upside: -13.59% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: ¥292.00 ▲(1.74%Upside)

The overall stock score reflects a challenging financial performance with declining revenues and low profitability, partially offset by strong technical indicators. While the balance sheet is solid, cash flow issues remain a concern. The high P/E ratio indicates potential overvaluation, and the absence of a dividend yield further impacts the valuation score.

Voltage Incorporation Business Overview & Revenue Model

Company Description

Voltage Incorporation (3639) is a dynamic company operating in the entertainment and interactive media sector. The company specializes in the development and distribution of mobile applications, with a strong focus on interactive story-based games. Voltage Incorporation is renowned for its compelling visual novel games that captivate a global audience, offering immersive experiences across various genres including romance, adventure, and fantasy.

How the Company Makes Money

Voltage Incorporation primarily generates revenue through in-app purchases and subscription models within its mobile applications. The company offers free-to-play games that entice users to make microtransactions for premium content, such as exclusive storylines, character customization, and virtual goods that enhance the gaming experience. Another significant revenue stream is advertising, where Voltage Incorporation partners with ad networks to display targeted ads within its games. The company's strategic partnerships with app stores and digital platforms also contribute to its earnings, ensuring broad distribution and visibility of its applications. Additionally, Voltage Incorporation may engage in licensing agreements to expand its brand reach and monetize its intellectual properties across different media channels.

Voltage Incorporation Financial Statement Overview

Summary

Voltage Incorporation faces challenges in maintaining growth and profitability, as evidenced by declining revenues and low profit margins. The balance sheet is a strong point with low leverage and high equity, but cash flow issues pose a risk to liquidity and operational stability. Improvement in operational efficiency and cash generation is crucial for future growth.

Income Statement

Voltage Incorporation's income statement shows a declining trend in revenue and profitability. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of 53.6%, which is reasonable, but the net profit margin of 3.5% suggests limited profitability. Revenue has been decreasing over the past years, indicating challenges in sustaining growth. The EBIT and EBITDA margins are low at 0.1% and 5.3% respectively, reflecting operational inefficiencies.

Balance Sheet

The balance sheet of Voltage Incorporation appears stable with a strong equity position. The debt-to-equity ratio is low at 0.05, indicating minimal leverage, which reduces financial risk. The equity ratio is high at 76.0%, suggesting a solid capital structure. Return on Equity (ROE) is modest, reflecting the company's struggle to generate substantial returns for shareholders.

Cash Flow

The cash flow statement highlights significant challenges, with negative operating cash flow in the latest periods, indicating issues with cash generation from operations. The free cash flow is also negative, reflecting potential liquidity concerns. The lack of free cash flow growth and the operating cash flow to net income ratio of 0 suggest inefficiencies in converting earnings into cash.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	3.46B	4.26B	5.39B	6.90B	6.59B
Gross Profit	1.83B	2.44B	3.15B	4.53B	4.22B
EBITDA	51.38M	2.67M	-363.10M	200.41M	-72.00M
Net Income	5.27M	-39.15M	-412.17M	163.21M	-160.75M
Balance Sheet
Total Assets	2.84B	2.95B	3.06B	3.51B	3.00B
Cash, Cash Equivalents and Short-Term Investments	1.38B	1.45B	1.47B	1.84B	1.53B
Total Debt	105.68M	139.68M	143.67M	147.67M	0.00
Total Liabilities	661.18M	791.83M	870.26M	875.35M	719.24M
Stockholders Equity	2.18B	2.16B	2.19B	2.64B	2.29B
Cash Flow
Free Cash Flow	-417.98M	71.03M	-181.03M	157.90M	-263.69M
Operating Cash Flow	-389.21M	112.03M	-125.49M	232.58M	-223.64M
Investing Cash Flow	-79.00M	-139.06M	-204.50M	-259.29M	-32.15M
Financing Cash Flow	-34.00M	-4.03M	-55.10M	329.69M	441.03M

Voltage Incorporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 287.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3639, the sentiment is Positive. The current price of 287 is above the 20-day moving average (MA) of 269.40, above the 50-day MA of 261.38, and above the 200-day MA of 240.63, indicating a bullish trend. The MACD of 5.97 indicates Negative momentum. The RSI at 61.18 is Neutral, neither overbought nor oversold. The STOCH value of 85.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3639.

Voltage Incorporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3907	74 Outperform	¥2.64B	9.66		―	1.02%	3129.12%
3928	66 Neutral	¥2.20B	11.36		―	0.08%	43.63%
3639	63 Neutral	¥1.84B	28.38		―	-19.71%	―
Sector *	55 Neutral	HK$68.06B	-1.45	-3.62%	5.66%	-4.08%	-17.07%
3664	54 Neutral	¥3.82B	―		―	-14.79%	-53.16%
3667	48 Neutral	¥3.82B	―		―	-8.79%	49.62%
3672	41 Neutral	¥3.27B	―		―	-22.25%	-14.77%