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KLab Inc. (JP:3656)
:3656
Japanese Market

KLab Inc. (3656) AI Stock Analysis

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JP

KLab Inc.

(3656)

Rating:41Neutral
Price Target:
¥102.00
▼(-4.67%Downside)
KLab Inc.'s stock score is primarily impacted by its poor financial performance, characterized by declining revenues and negative cash flows. The technical analysis suggests weak momentum with bearish indicators. The valuation is also unfavorable due to a negative P/E ratio, which further weighs down the overall score.

KLab Inc. (3656) vs. iShares MSCI Japan ETF (EWJ)

KLab Inc. Business Overview & Revenue Model

Company DescriptionKLab Inc. is a Japanese company specialized in the development of mobile games and online entertainment content. Established in 2000, the company operates primarily in the digital entertainment sector, creating and distributing a variety of gaming applications for smartphones and tablets. KLab focuses on delivering engaging and interactive gaming experiences, often collaborating with prominent content creators and intellectual property holders to produce games based on popular franchises.
How the Company Makes MoneyKLab Inc. generates revenue primarily through the development and distribution of mobile games. The company's games are typically free-to-play, utilizing a freemium model where players can download and play games at no cost, but are offered in-game purchases for virtual goods, additional content, or enhanced features. This microtransaction model is a significant revenue stream. Additionally, KLab often collaborates with well-known franchises and brands, which can drive game popularity and player engagement, thereby increasing in-game purchases. The company may also engage in partnerships and licensing agreements with other entertainment and media companies to expand its reach and bolster its revenue through shared projects and co-promotions.

KLab Inc. Financial Statement Overview

Summary
KLab Inc. faces substantial financial challenges, with declining revenues, persistent losses, and negative cash flows. Despite a strong equity base, the company's operational losses and cash flow issues pose significant risks.
Income Statement
35
Negative
KLab Inc. has experienced a significant decline in total revenue over the past five years, from JPY 33.95 billion in 2020 to JPY 8.31 billion in 2024. The company has also faced persistent losses, with negative net income and EBIT margins, indicating challenges in achieving profitability. The gross profit margin has decreased significantly from 20.6% in 2020 to 13.6% in 2024, reflecting cost pressures and declining sales efficiency.
Balance Sheet
60
Neutral
The company's balance sheet shows a relatively strong equity position, with a debt-to-equity ratio of 0.21 in 2024, which indicates moderate leverage. However, equity has decreased over the years, reflecting accumulated losses. The equity ratio remains healthy at 65.7%, suggesting a strong capital structure despite the financial challenges.
Cash Flow
30
Negative
KLab Inc. has been generating negative free cash flow consistently, with significant operating cash outflows and no substantial capital expenditures to offset these losses. The operating cash flow to net income ratio remains below 1, indicating a lack of cash flow generation relative to reported losses. The free cash flow to net income ratio also highlights the inability to convert income into cash flow, signaling liquidity concerns.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
8.31B10.72B16.88B23.90B33.95B
Gross Profit
1.13B1.75B3.02B2.72B6.99B
EBIT
-1.34B-1.22B-59.50M-1.11B2.15B
EBITDA
-1.94B-1.21B-33.52M-1.92B2.89B
Net Income Common Stockholders
-2.78B-1.82B-541.92M-3.47B767.18M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.61B2.21B6.02B4.75B8.62B
Total Assets
15.78B17.75B20.86B18.71B23.49B
Total Debt
2.22B3.18B3.51B1.00B1.75B
Net Debt
615.00M966.07M-2.51B-2.81B-6.37B
Total Liabilities
5.41B6.05B7.71B5.90B6.91B
Stockholders Equity
10.37B11.71B13.15B12.81B16.58B
Cash FlowFree Cash Flow
-2.06B-4.36B-2.84B-2.73B3.03B
Operating Cash Flow
-138.22M-1.53B-186.97M-1.28B3.98B
Investing Cash Flow
-1.05B-2.33B-1.36B-1.93B-2.34B
Financing Cash Flow
555.11M-66.94M3.54B-1.04B318.34M

KLab Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price107.00
Price Trends
50DMA
119.80
Negative
100DMA
133.92
Negative
200DMA
159.03
Negative
Market Momentum
MACD
-1.55
Negative
RSI
38.86
Neutral
STOCH
24.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3656, the sentiment is Negative. The current price of 107 is below the 20-day moving average (MA) of 114.50, below the 50-day MA of 119.80, and below the 200-day MA of 159.03, indicating a bearish trend. The MACD of -1.55 indicates Negative momentum. The RSI at 38.86 is Neutral, neither overbought nor oversold. The STOCH value of 24.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3656.

KLab Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
¥11.65B21.59
1.76%-21.03%-42.64%
61
Neutral
$14.60B5.95-4.32%3.69%2.76%-30.49%
56
Neutral
¥15.42B
29.41%-1104.58%
53
Neutral
¥5.55B
1.88%-9.05%-27.30%
48
Neutral
¥25.24B
-12.61%-314.92%
47
Neutral
¥11.86B32.27
<0.01%
41
Neutral
¥6.00B
-11.13%28.02%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3656
KLab Inc.
107.00
-116.00
-52.02%
JP:3723
Nihon Falcom Corporation
1,133.00
5.23
0.46%
JP:3758
Aeria Inc.
266.00
-17.22
-6.08%
JP:3793
Drecom Co., Ltd.
533.00
-185.00
-25.77%
JP:3903
gumi, Inc.
510.00
169.00
49.56%
JP:3911
Aiming, Inc.
254.00
29.00
12.89%

KLab Inc. Corporate Events

KLab Inc. Reports May 2025 Stock Acquisition Rights Exercise Status
Jun 2, 2025

KLab Inc. announced the exercise status of its 20th series of Stock Acquisition Rights for May 2025, with 2,150,000 shares delivered and 21,500 rights exercised, representing 18.08% of the total issued. This development reflects the company’s strategic financial maneuvers to enhance its capital structure, potentially impacting its market positioning and shareholder value.

KLab Inc. Completes Large-Scale Exercise of Stock Acquisition Rights
May 22, 2025

KLab Inc. announced the large-scale exercise of its 20th series of Stock Acquisition Rights, which began earlier this month and concluded on May 22, 2025. This exercise involved the issuance of 1,550,000 new shares, representing 13.04% of the total stock acquisition rights issued. The move is part of KLab’s strategic financial operations, potentially impacting its market position and shareholder value.

KLab Inc. Reports Q1 FY2025 Financial Results with Increased Revenue Amid Losses
May 15, 2025

KLab Inc. reported its financial results for the first quarter of FY2025, showing a slight increase in revenue compared to the previous year, despite ongoing losses. The company’s revenue for the quarter was 1,635 million yen, a 3.4% increase from the same period last year, but it still faced an operating loss of 288 million yen. The financial results indicate a challenging period for KLab Inc., with implications for its market positioning and stakeholder confidence, as the company continues to navigate financial difficulties without disclosing future performance forecasts.

KLab Inc. Announces Voluntary Retirement Offering Amid Financial Restructuring
May 15, 2025

KLab Inc. has announced a voluntary retirement offering as part of its strategy to optimize its workforce and address ongoing financial challenges. The company aims to restructure its cost structure and focus on reliable business areas to improve cash flow and business performance. The expenses related to this offering will be recorded as an extraordinary loss in the fiscal year ending December 2025.

KLab Inc. Reports Foreign Exchange Loss in Q1 2025
May 15, 2025

KLab Inc. announced a foreign exchange loss of 116 million yen recorded as non-operating expenses in the first quarter of the fiscal year. This loss resulted from the settlement of foreign currency-denominated receivables and payables and valuation changes based on the period-end exchange rate, impacting the company’s financial results for the fiscal year ending December 2025.

KLab Inc. Reports April 2025 Stock Acquisition Rights Exercise
May 1, 2025

KLab Inc. announced the exercise status for its 20th series of Stock Acquisition Rights for April 2025, revealing that 25,000 rights were exercised, accounting for 21.03% of the total issued. This exercise resulted in the delivery of 2,500,000 shares, impacting the company’s stock structure and potentially influencing its market positioning and stakeholder interests.

KLab Inc. Reports March 2025 Stock Acquisition Rights Exercise Status
Apr 1, 2025

KLab Inc. announced the monthly exercise status of its 20th series of Stock Acquisition Rights for March 2025, with 1,330,000 shares delivered and 13,300 rights exercised, representing 11.19% of the total issued. This exercise reflects the company’s ongoing financial strategies and impacts its stock management, potentially influencing investor confidence and market positioning.

KLab Inc. Strives for Market Compliance with New Game Releases
Mar 28, 2025

KLab Inc. announced its progress on meeting the Tokyo Stock Exchange Prime Market’s listing maintenance criteria, revealing it has not yet met the market capitalization requirement. The company is focusing on enhancing corporate value and stock price by launching new titles, including EA SPORTS FC ™ TACTICAL, despite a delay in its release. The founder, Tetsuya Sanada, has resumed his role as Representative Director and President, aiming to drive the company towards profitability and compliance by the fiscal year ending December 2026.

KLab Inc. Announces Leadership Changes Following Shareholders Meeting
Mar 27, 2025

KLab Inc. announced changes in its leadership following the 25th General Shareholders Meeting. Tetsuya Sanada has been appointed as the new Representative Director and President, replacing Hidekatsu Morita, who was not reappointed. This change reflects a shift in the company’s management structure, potentially impacting its strategic direction.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.