Voltage Incorporation (3639) AI Stock Analysis

• Market Cap: ¥1.78B
• Dividend Yield: N/A
• Average Volume (3M): 70.72K
• Price to Earnings (P/E): 132.9
• Beta (1Y): 0.51
• Revenue Growth: -17.76%
• EPS Growth: -15.23%
• Country: JP
• Employees: 165
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -7.91
• Shares Outstanding: 6,578,975
• 10 Day Avg. Volume: 40,500
• 30 Day Avg. Volume: 70,716
• PEG Ratio: 0.84
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.60
• P/FCF Ratio: 82.16
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: ¥276.00 ▲(0.73% Upside)

Voltage Incorporation's overall stock score is primarily influenced by its mixed financial performance and bearish technical indicators. The high P/E ratio suggests overvaluation, and the lack of dividend yield further detracts from its appeal. The absence of earnings call data and corporate events means these factors do not impact the score.

Positive Factors

Strong Balance Sheet

Voltage Incorporation's low leverage and strong equity position provide financial stability, enabling the company to invest in growth opportunities and weather economic downturns effectively.

Cash Flow Improvement

The substantial improvement in free cash flow indicates strong cash generation capabilities, allowing Voltage Incorporation to fund operations, invest in new projects, and reduce reliance on external financing.

Operational Improvements

The positive shift in EBIT and EBITDA margins reflects operational improvements, suggesting enhanced efficiency and potential for better profitability in the future.

Negative Factors

Declining Revenues

The consistent decline in revenues poses a challenge to growth and market position, potentially limiting the company's ability to expand and compete effectively in the long term.

Low Profitability

Low profitability suggests difficulties in cost management and pricing power, which could hinder the company's ability to reinvest in business development and innovation.

Historical Cash Flow Volatility

Volatile cash flows can lead to unpredictability in financial planning and strain liquidity, potentially impacting the company's ability to meet its financial obligations consistently.

Voltage Incorporation Business Overview & Revenue Model

Company Description

Voltage Incorporation plans, designs, develops, produces, and operates mobile content in Japan and internationally. It also plans, manufactures, and sells event merchandise, videos, movies, and music using intellectual property content; and content using VR and AR technologies, as well as manages a digital comic book store, and produces and sells original label works. The company was founded in 1999 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Voltage Incorporation generates revenue through multiple streams, primarily by selling its proprietary energy management systems and solutions to businesses and consumers. Key revenue sources include direct sales of energy storage units and smart meters, as well as subscription-based services for software that helps clients optimize energy usage. Additionally, the company benefits from strategic partnerships with utility companies and government agencies, which facilitate project funding and expand market reach. These collaborations often result in joint ventures aimed at large-scale renewable energy projects, further enhancing the company's earnings potential.

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: Negative
• Last Price: 274.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Negative. The current price of 274 is above the 20-day moving average (MA) of 267.40, below the 50-day MA of 282.06, and above the 200-day MA of 265.25, indicating a neutral trend. The MACD of -2.40 indicates Negative momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 38.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3639.

Voltage Incorporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3928	65 Neutral	¥1.96B	14.96	―	―	-10.80%	-64.63%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3907	58 Neutral	¥2.44B	7.78	―	1.26%	2.33%	―
3639	47 Neutral	¥1.78B	132.94	―	―	-17.76%	-15.23%
3664	42 Neutral	¥4.23B	-5.85	―	―	-9.66%	-55.87%
3672	41 Neutral	¥3.98B	-3.75	―	―	-17.60%	37.30%
3667	37 Underperform	¥3.31B	-3.14	―	―	-22.21%	32.20%