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Morpho, Inc. (JP:3653)
:3653
Japanese Market

Morpho, Inc. (3653) AI Stock Analysis

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JP

Morpho, Inc.

(3653)

Rating:78Outperform
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. (3653) vs. iShares MSCI Japan ETF (EWJ)

Morpho, Inc. Business Overview & Revenue Model

Company DescriptionMorpho, 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 MoneyMorpho, 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
88
Very Positive
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
95
Very Positive
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
86
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.22B3.30B2.38B2.00B1.73B2.07B
Gross Profit1.93B1.90B1.36B952.07M866.53M1.44B
EBITDA347.01M326.88M-226.63M-473.41M-734.07M-214.81M
Net Income298.07M301.48M-300.18M-668.39M-793.42M-652.16M
Balance Sheet
Total Assets3.92B4.26B3.71B3.86B4.55B5.39B
Cash, Cash Equivalents and Short-Term Investments2.72B2.94B2.71B3.06B3.39B4.44B
Total Debt0.000.0036.25M12.84M21.95M1.06M
Total Liabilities595.00M621.77M558.59M460.63M400.45M282.33M
Stockholders Equity3.33B3.64B3.15B3.40B4.15B5.10B
Cash Flow
Free Cash Flow0.0065.73M-365.22M-477.78M-694.79M-176.87M
Operating Cash Flow0.00207.18M-267.62M-415.53M-653.58M-62.55M
Investing Cash Flow0.00-140.72M-92.50M161.38M-175.87M-275.11M
Financing Cash Flow0.00131.83M-16.21M-176.43M-257.00M767.00K

Morpho, Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1177.00
Price Trends
50DMA
1154.30
Positive
100DMA
1191.75
Negative
200DMA
1369.88
Negative
Market Momentum
MACD
14.02
Negative
RSI
53.15
Neutral
STOCH
43.19
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥5.69B13.17
1.57%49.23%21.56%
81
Outperform
¥5.87B12.67
1.17%15.30%14.43%
78
Outperform
¥6.39B22.71
29.19%
77
Outperform
¥5.64B31.31
17.25%
74
Outperform
¥3.63B17.46
1.76%-0.64%-36.11%
63
Neutral
$33.76B6.14-11.84%1.84%5.29%-18.23%
58
Neutral
¥4.72B49.27
51.83%-62.04%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3653
Morpho, Inc.
1,179.00
-586.00
-33.20%
JP:3933
CHIeru Co., Ltd.
762.00
157.12
25.98%
JP:4372
YMIRLINK,Inc.
1,525.00
260.50
20.60%
JP:4379
Photosynth inc.
365.00
-13.00
-3.44%
JP:4446
Link-U Group Inc.
344.00
-232.00
-40.28%
JP:4447
PBsystems, Inc.
563.00
-34.80
-5.82%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 01, 2025