Morpho, Inc. (3653) AI Stock Analysis

• Market Cap: ¥6.70B
• Dividend Yield: N/A
• Average Volume (3M): 15.30K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.96
• Revenue Growth: 29.19%
• EPS Growth: N/A
• Country: JP
• Employees: 162
• Sector: Technology
• Sector Strength: 95
• Industry: Software - Application
• EPS (TTM): -13.29
• Shares Outstanding: 5,508,500
• 10 Day Avg. Volume: 17,700
• 30 Day Avg. Volume: 15,296
• PEG Ratio: -2.07
• Price to Book (P/B): 1.78
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ―

Morpho, Inc. showcases significant financial strength with a robust balance sheet, improved revenue and profit margins, and effective cash flow management. The technical indicators suggest mixed signals, with a risk of downtrend but some potential for recovery. The valuation is moderate for the industry, with room for growth. Overall, the company's strong financial performance is the most significant factor behind the stock's positive outlook.

Morpho, Inc. Business Overview & Revenue Model

Company Description

Morpho, Inc. (3653) is a technology company specializing in the development and provision of advanced image processing and recognition solutions. The company operates primarily in the sectors of mobile device technology, automotive, and security systems, offering innovative software and hardware products that enhance functionality and security features for a range of applications.

How the Company Makes Money

Morpho, Inc. generates revenue through the sale and licensing of its proprietary image processing and recognition technologies to various industries. Key revenue streams include licensing fees from mobile phone manufacturers and automotive companies for integrating Morpho's technologies into their products. The company also earns income from partnerships with security firms and government agencies that utilize its biometric and image recognition solutions for enhancing security protocols. Additionally, Morpho provides ongoing maintenance and support services, which contribute to its recurring revenue.

Morpho, Inc. Financial Statement Overview

Summary

Morpho, Inc. has achieved a remarkable financial recovery, shifting from losses to profitability over the last year. The company exhibits strong revenue growth, improved profit margins, and a solid balance sheet with no debt. Cash flow management has also improved significantly, positioning the company for sustainable future growth.

Income Statement

Morpho, Inc. has demonstrated a remarkable turnaround with a significant increase in revenue from ¥2,383 million to ¥3,301 million, representing a 38.3% growth rate. The gross profit margin remains healthy at 57.6%, and the net profit margin has improved from a negative position to 9.13%. The company has successfully transitioned from negative EBIT and EBITDA margins to positive 7.79% and 9.90%, respectively, highlighting improved operational efficiency.

Balance Sheet

The balance sheet of Morpho, Inc. is robust, with no debt and a strong equity position. The equity ratio stands at an impressive 85.43%, indicating financial stability and low leverage risk. The company's return on equity is solid at 8.28%, reflecting effective utilization of equity.

Cash Flow

Morpho, Inc. has shown a positive shift in cash flow management with free cash flow growing from a negative position to ¥65.72 million. The operating cash flow to net income ratio is 0.69, demonstrating efficient cash generation from operations relative to net income. This improvement indicates better cash handling and operational performance.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.30B	2.38B	2.00B	1.73B	2.07B
Gross Profit	1.90B	1.36B	952.07M	866.53M	1.44B
EBITDA	326.88M	-226.63M	-473.41M	-734.07M	-214.81M
Net Income	301.48M	-300.18M	-668.39M	-793.42M	-652.16M
Balance Sheet
Total Assets	4.26B	3.71B	3.86B	4.55B	5.39B
Cash, Cash Equivalents and Short-Term Investments	2.94B	2.71B	3.06B	3.39B	4.44B
Total Debt	0.00	36.25M	12.84M	21.95M	1.06M
Total Liabilities	621.77M	558.59M	460.63M	400.45M	282.33M
Stockholders Equity	3.64B	3.15B	3.40B	4.15B	5.10B
Cash Flow
Free Cash Flow	65.73M	-365.22M	-477.78M	-694.79M	-176.87M
Operating Cash Flow	207.18M	-267.62M	-415.53M	-653.58M	-62.55M
Investing Cash Flow	-140.72M	-92.50M	161.38M	-175.87M	-275.11M
Financing Cash Flow	131.83M	-16.21M	-176.43M	-257.00M	767.00K

Morpho, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1234.00
• 50DMA: Positive
• 100DMA: Positive
• 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:3653, the sentiment is Positive. The current price of 1234 is above the 20-day moving average (MA) of 1215.95, above the 50-day MA of 1171.40, and below the 200-day MA of 1335.59, indicating a neutral trend. The MACD of 23.87 indicates Negative momentum. The RSI at 59.97 is Neutral, neither overbought nor oversold. The STOCH value of 70.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3653.

Morpho, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6841	79 Outperform	¥1.05T	19.71	11.39%	1.47%	4.12%	-14.50%
3653	78 Outperform	¥6.70B	22.71		―	29.19%	―
7733	76 Outperform	$2.04T	17.57	15.47%	1.11%	6.53%	-46.94%
6758	74 Outperform	$22.03T	19.10	14.32%	0.55%	-0.49%	19.71%
4901	72 Outperform	¥3.79T	14.53	7.89%	1.91%	7.93%	7.10%
Sector *	69 Neutral	¥230.15B	14.83	7.55%	2.61%	9.28%	5.74%
7731	59 Neutral	¥457.78B	81.99	0.91%	3.38%	-0.27%	-81.19%