Voltage Incorporation (3639) AI Stock Analysis

• Market Cap: ¥1.99B
• Dividend Yield: N/A
• Average Volume (3M): 78.85K
• Price to Earnings (P/E): 147.7
• Beta (1Y): 0.50
• Revenue Growth: -18.46%
• EPS Growth: 152.47%
• Country: JP
• Employees: 165
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 5.07
• Shares Outstanding: 6,578,975
• 10 Day Avg. Volume: 78,550
• 30 Day Avg. Volume: 78,853
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• 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: ¥288.00
• Price Target Upside: -5.88% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ¥288.00 ▼(-5.88% Downside)

The overall stock score is driven primarily by a strong balance sheet and positive technical trends. However, high valuation concerns and mixed financial performance, particularly in profitability and revenue growth, weigh down the 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 shows a mixed financial performance. The balance sheet is strong with low leverage, but the income statement reflects challenges in revenue growth and profitability. Cash flow has improved significantly, but historical volatility remains a concern.

Income Statement

Voltage Incorporation has experienced declining revenues over the past few years, with a notable decrease of 8.55% in the most recent year. The gross profit margin remains relatively strong at 52.3%, but the net profit margin is low at 0.47%, indicating challenges in converting revenue into profit. EBIT and EBITDA margins have improved from negative to positive, reflecting some operational improvements, but overall profitability remains a concern.

Balance Sheet

The company's balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.046, indicating low leverage and financial stability. The equity ratio is healthy, suggesting a solid capital structure. However, the return on equity is modest at 0.61%, reflecting limited profitability relative to shareholder investment.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow, with a growth rate of 'Infinity' due to a positive swing from negative values. The operating cash flow to net income ratio is 3.12, indicating strong cash generation relative to net income. However, historical volatility in cash flows presents a risk to financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.92B	2.82B	3.46B	4.26B	5.39B	6.90B
Gross Profit	1.55B	1.48B	1.83B	2.44B	3.15B	4.53B
EBITDA	109.17M	68.87M	51.38M	2.67M	-363.10M	200.41M
Net Income	65.13M	13.31M	5.27M	-39.15M	-412.17M	163.21M
Balance Sheet
Total Assets	2.78B	2.79B	2.84B	2.95B	3.06B	3.51B
Cash, Cash Equivalents and Short-Term Investments	1.34B	1.33B	1.38B	1.45B	1.47B	1.84B
Total Debt	102.68M	101.69M	105.68M	139.68M	143.67M	147.67M
Total Liabilities	633.90M	598.08M	661.18M	791.83M	870.26M	875.35M
Stockholders Equity	2.15B	2.20B	2.18B	2.16B	2.19B	2.64B
Cash Flow
Free Cash Flow	0.00	20.64M	-417.98M	71.03M	-181.03M	157.90M
Operating Cash Flow	0.00	41.56M	-389.21M	112.03M	-125.49M	232.58M
Investing Cash Flow	0.00	-1.83M	-79.00M	-139.06M	-204.50M	-259.29M
Financing Cash Flow	0.00	-4.02M	-34.00M	-4.03M	-55.10M	329.69M

Voltage Incorporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 306.00
• 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:3639, the sentiment is Positive. The current price of 306 is above the 20-day moving average (MA) of 301.95, above the 50-day MA of 291.46, and above the 200-day MA of 253.47, indicating a bullish trend. The MACD of 5.40 indicates Positive momentum. The RSI at 54.40 is Neutral, neither overbought nor oversold. The STOCH value of 57.89 is Neutral, 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	¥2.87B	10.54	5.00%	―	1.02%	3129.12%
3928	63 Neutral	¥2.15B	16.42	17.61%	―	-5.92%	-56.33%
3639	54 Neutral	¥1.99B	147.72	―	―	-18.46%	152.47%
3672	41 Neutral	¥3.03B	-4.30	―	―	-23.41%	5.92%
3664	41 Neutral	¥2.98B	-5.85	-53.49%	―	-13.75%	-90.76%
3667	41 Neutral	¥3.56B	-3.39	-99.35%	―	-12.26%	44.44%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%