Morpho, Inc. (3653) AI Stock Analysis

• Market Cap: ¥6.39B
• Dividend Yield: N/A
• Average Volume (3M): 20.35K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 1.00
• Revenue Growth: 29.19%
• EPS Growth: N/A
• Country: JP
• Employees: 162
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -13.29
• Shares Outstanding: 5,508,500
• 10 Day Avg. Volume: 16,010
• 30 Day Avg. Volume: 20,346
• PEG Ratio: 0.00
• Price to Book (P/B): 2.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.35
• 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. engages in the research, development, and licensing of artificial intelligence (AI) and image processing technologies in Japan, the United States, China, South Korea, Europe, and internationally. It offers image processing products, such as image stabilization and noise reduction; video stabilization; video generation; video processing software package; noise reduction in video; HDR image generation; DR-corrected image generation; panorama image generation for selfie photography; motion vector detection; photo effect filters library; image super resolution; frame interpolation; cinemagraph; and smooth camera switching for zooming. The company also provides AI products, that includes fast AI inference engine, image enhancement by AI Based segmentation and pixel filtering, pose estimation, bokeh image generation using dual cameras, image classification, object detection, single camera background blur, image segmentation, object tracking, automatic mask generation, automatic wipe generation, and training data for AI development. Its solutions are used in smart devices, automotives, semiconductors, medical products, digital media, and smart city. The company was incorporated in 2004 and is headquartered in Tokyo, Japan.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.22B	3.30B	2.38B	2.00B	1.73B	2.07B
Gross Profit	1.93B	1.90B	1.36B	952.07M	866.53M	1.44B
EBITDA	347.01M	326.88M	-226.63M	-473.41M	-734.07M	-214.81M
Net Income	298.07M	301.48M	-300.18M	-668.39M	-793.42M	-652.16M
Balance Sheet
Total Assets	3.92B	4.26B	3.71B	3.86B	4.55B	5.39B
Cash, Cash Equivalents and Short-Term Investments	2.72B	2.94B	2.71B	3.06B	3.39B	4.44B
Total Debt	0.00	0.00	36.25M	12.84M	21.95M	1.06M
Total Liabilities	595.00M	621.77M	558.59M	460.63M	400.45M	282.33M
Stockholders Equity	3.33B	3.64B	3.15B	3.40B	4.15B	5.10B
Cash Flow
Free Cash Flow	0.00	65.73M	-365.22M	-477.78M	-694.79M	-176.87M
Operating Cash Flow	0.00	207.18M	-267.62M	-415.53M	-653.58M	-62.55M
Investing Cash Flow	0.00	-140.72M	-92.50M	161.38M	-175.87M	-275.11M
Financing Cash Flow	0.00	131.83M	-16.21M	-176.43M	-257.00M	767.00K

Morpho, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1177.00
• 50DMA: Positive
• 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:3653, the sentiment is Neutral. The current price of 1177 is above the 20-day moving average (MA) of 1162.10, above the 50-day MA of 1154.30, and below the 200-day MA of 1369.88, indicating a neutral trend. The MACD of 14.02 indicates Negative momentum. The RSI at 53.15 is Neutral, neither overbought nor oversold. The STOCH value of 43.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3653.

Morpho, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3933	81 Outperform	¥5.69B	13.17		1.57%	49.23%	21.56%
4372	81 Outperform	¥5.87B	12.67		1.17%	15.30%	14.43%
3653	78 Outperform	¥6.39B	22.71		―	29.19%	―
4379	77 Outperform	¥5.64B	31.31		―	17.25%	―
4447	74 Outperform	¥3.63B	17.46		1.76%	-0.64%	-36.11%
Sector *	63 Neutral	$33.76B	6.14	-11.84%	1.84%	5.29%	-18.23%
4446	58 Neutral	¥4.72B	49.27		―	51.83%	-62.04%