Voltage Incorporation (3639) AI Stock Analysis

• Market Cap: ¥1.59B
• Dividend Yield: N/A
• Average Volume (3M): 70.72K
• Price to Earnings (P/E): 50.5
• Beta (1Y): 0.41
• Revenue Growth: -17.76%
• EPS Growth: -15.23%
• Country: JP
• Employees: 165
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): N/A
• Shares Outstanding: 6,602,675
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: ¥240.00 ▼(-8.40% Downside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

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

Low leverage / strong balance sheet

A very low debt-to-equity ratio (0.046) and a healthy equity ratio give Voltage durable financial flexibility. This reduces refinancing risk, supports funding for R&D or product investment, and allows the company to withstand cyclical downturns without jeopardizing operations.

High gross profit margin

A gross margin above 50% indicates structural pricing power or low direct costs in its gaming/multimedia business. That margin base provides room to invest in product development and marketing while still allowing operating improvements to translate into sustainable operating cash generation over the medium term.

Improved cash generation

The material swing to positive free cash flow and an operating-cash-flow-to-net-income ratio of 3.12 signal higher quality earnings and stronger cash conversion. Durable cash generation enhances the company's ability to self-fund capex, reduce leverage, or invest in growth initiatives.

Negative Factors

Declining revenue trend

A multi-year decline in revenue (recently down 8.55% and Fundamentals showing -15.84% growth) is a structural concern. Persistent top-line contraction erodes scale, limits operating leverage benefits, and makes it harder to fund R&D or marketing without impairing margins or cash reserves.

Very low net profit margin

Despite strong gross margins, a net margin of 0.47% shows the company struggles to convert revenue into bottom-line profits. This constrains retained earnings, limits reinvestment capacity, and leaves the business exposed to cost inflation or revenue shocks over the medium term.

Weak returns and collapsing EPS

A more than 100% decline in EPS and an ROE of only 0.61% reflect weak profitability and poor shareholder returns. These metrics indicate earnings volatility and limited ability to generate returns from equity, reducing the company's long-term capacity to attract capital or reward shareholders.

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.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.82B	3.46B	4.26B	5.39B	6.90B
Gross Profit	1.48B	1.83B	2.44B	3.15B	4.53B
EBITDA	68.87M	51.38M	2.67M	-363.10M	200.41M
Net Income	13.31M	5.27M	-39.15M	-412.17M	163.21M
Balance Sheet
Total Assets	2.79B	2.84B	2.96B	3.06B	3.51B
Cash, Cash Equivalents and Short-Term Investments	1.33B	1.38B	1.45B	1.47B	1.84B
Total Debt	101.69M	105.68M	139.68M	143.67M	147.67M
Total Liabilities	598.08M	665.14M	793.11M	870.26M	875.34M
Stockholders Equity	2.20B	2.18B	2.16B	2.19B	2.64B
Cash Flow
Free Cash Flow	20.64M	0.00	71.03M	-181.03M	157.90M
Operating Cash Flow	41.56M	0.00	112.03M	-125.49M	232.58M
Investing Cash Flow	-1.83M	-79.00M	-139.06M	-204.50M	-259.29M
Financing Cash Flow	-4.02M	-34.00M	-4.03M	-55.10M	329.69M

Voltage Incorporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 262.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 262 is above the 20-day moving average (MA) of 245.95, above the 50-day MA of 259.24, and below the 200-day MA of 270.73, indicating a bearish trend. The MACD of -4.23 indicates Negative momentum. The RSI at 41.81 is Neutral, neither overbought nor oversold. The STOCH value of 68.25 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
3911	62 Neutral	¥9.57B	9.63	―	―	11.15%	―
3928	61 Neutral	¥2.49B	10.49	―	―	-10.80%	-64.63%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3656	52 Neutral	¥29.86B	-5.14	―	―	-14.71%	-38.87%
4175	48 Neutral	¥10.91B	137.85	―	―	16.70%	87.76%
3639	47 Neutral	¥1.59B	50.51	―	―	-17.76%	-15.23%
3903	46 Neutral	¥17.21B	9.33	―	―	-37.68%	―