V-cube (3681) AI Stock Analysis

• Market Cap: €4.22B
• Dividend Yield: N/A
• Average Volume (3M): 93.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: -7.16%
• EPS Growth: 71.43%
• Country: JP
• Employees: 372
• Sector: Technology
• Sector Strength: 93
• Industry: Software - Application
• EPS (TTM): -8.40
• Shares Outstanding: 26,343,900
• 10 Day Avg. Volume: 82,710
• 30 Day Avg. Volume: 93,416
• PEG Ratio: 0.12
• Price to Book (P/B): 3.47
• 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: €175.77
• Price Target Upside: 8.50% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 42 Neutral
• Price Target: ¥157.00 ▼(-3.09%Downside)

The most significant factor impacting the score is the company's weak financial performance, characterized by declining revenues and high leverage. Technical analysis also indicates bearish trends, contributing to a negative outlook. The poor valuation further exacerbates concerns, as the company struggles with profitability. No earnings call or corporate events data were available to influence the score.

V-cube Business Overview & Revenue Model

Company Description

V-cube, Inc. is a leading provider of web-based visual communication services, primarily operating in the technology and telecommunication sectors. The company specializes in developing and delivering high-quality video conferencing systems and solutions designed to enhance remote communication capabilities for businesses and educational institutions. With a focus on innovation and user-friendly interfaces, V-cube aims to facilitate seamless connectivity and collaboration through its cutting-edge video conferencing platforms.

How the Company Makes Money

V-cube generates revenue primarily through the sale and subscription of its video conferencing solutions. The company's revenue model includes licensing fees for its software, subscription-based access for its cloud services, and sales of hardware required for the video conferencing systems. Additionally, V-cube partners with various educational and corporate institutions, providing customized solutions that meet specific communication needs, further driving its earnings. The company also explores opportunities in international markets, expanding its customer base and increasing its revenue potential.

V-cube Financial Statement Overview

Summary

V-cube, Inc. faces significant financial challenges with declining revenues and profitability issues. The balance sheet shows high leverage and negative equity, raising concerns about financial stability. The cash flow statement reveals resilience in operating cash flow, but volatility in free cash flow suggests underlying operational challenges. Overall, the company needs to address its declining financial performance and leverage to improve its financial health.

Income Statement

V-cube, Inc. has experienced declining revenue over the past years, dropping from ¥12.2 billion in 2022 to ¥10.5 billion in 2024. The company has faced significant profitability challenges, evidenced by negative net profit margins in recent years, with a net income loss of ¥1.4 billion in 2024. Margins have also deteriorated, with the EBIT and EBITDA margins turning negative in 2023 and remaining low in 2024. While gross profit margins have remained relatively stable, the overall income statement performance suggests the company is struggling to maintain profitability.

Balance Sheet

The balance sheet of V-cube, Inc. reveals financial instability, with stockholders' equity turning negative in 2024. The debt-to-equity ratio is concerning due to negative equity, indicating high leverage. Total debt remains significantly high compared to the company’s assets, suggesting potential liquidity issues. These factors demonstrate a weak financial position and may pose risks to the company's long-term sustainability.

Cash Flow

Despite operating cash flow remaining positive, V-cube, Inc. has experienced volatility in free cash flow, recovering from negative figures in previous years to a positive ¥671 million in 2024. However, the operating cash flow to net income ratio is impacted by negative net income. The company's ability to generate cash from operations is a positive sign, but the fluctuations in free cash flow indicate potential challenges in managing capital expenditures and financing activities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.46B	11.08B	12.23B	11.49B	8.28B
Gross Profit	3.95B	4.64B	5.42B	5.31B	3.87B
EBITDA	287.18M	-2.76B	1.44B	1.93B	1.89B
Net Income	-1.42B	-5.62B	120.38M	1.32B	1.14B
Balance Sheet
Total Assets	10.48B	12.33B	16.89B	15.26B	10.03B
Cash, Cash Equivalents and Short-Term Investments	1.01B	1.39B	1.70B	1.82B	2.77B
Total Debt	7.89B	8.66B	7.89B	7.48B	3.49B
Total Liabilities	10.46B	11.58B	10.90B	10.16B	6.21B
Stockholders Equity	-121.81M	630.32M	5.90B	5.05B	3.79B
Cash Flow
Free Cash Flow	671.00M	-1.15B	-414.09M	-25.91M	1.09B
Operating Cash Flow	815.79M	990.96M	1.83B	2.09B	1.98B
Investing Cash Flow	-473.13M	-1.92B	-2.40B	-5.97B	-935.46M
Financing Cash Flow	-759.60M	562.40M	290.31M	2.83B	950.76M

V-cube Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 162.00
• 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:3681, the sentiment is Negative. The current price of 162 is below the 20-day moving average (MA) of 165.60, below the 50-day MA of 167.14, and below the 200-day MA of 195.97, indicating a bearish trend. The MACD of -1.18 indicates Negative momentum. The RSI at 44.78 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3681.

V-cube Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3933	81 Outperform	¥5.66B	13.02		1.61%	49.23%	21.56%
3921	81 Outperform	¥23.90B	15.46		3.04%	13.73%	61.79%
3841	77 Outperform	¥5.12B	23.79		3.07%	14.90%	-1.40%
Sector *	63 Neutral	$34.26B	5.43	-11.67%	1.85%	5.30%	-18.55%
3936	50 Neutral	¥7.47B	―		―	25.06%	-60.67%
3681	42 Neutral	€4.22B	―	-144.02%	―	-7.16%	71.43%

V-cube Corporate Events

V-cube Considers Deconsolidation of U.S. Subsidiary TEN Holdings

V-cube, Inc. has announced a strategic move to potentially deconsolidate its U.S. subsidiary, TEN Holdings, Inc., by entering into a Stock Purchase Agreement with Lincoln Park Capital Fund, LLC. This agreement, which is contingent upon SEC approval, may alter V-cube’s voting rights in TEN and could lead to its exclusion from V-cube’s consolidated financial statements, reflecting a significant shift in the company’s operational strategy.

V-cube to Reorganize U.S. Subsidiary TEN Holdings

V-cube, Inc. has decided to reorganize its U.S. subsidiary, TEN Holdings, Inc., due to its unstable business performance. By narrowing its scope of consolidation, V-cube aims to stabilize its domestic operations and drive growth, while TEN will remain an equity-method affiliate to assess its potential contributions to the group’s overall growth.

V-cube Revises 2025 Financial Forecasts Amid Strategic Adjustments

V-cube, Inc. has revised its financial forecasts for the fiscal year ending December 31, 2025, due to foreign exchange losses recorded in the first quarter. The company anticipates lower net sales and profits compared to previous forecasts, partly due to the exclusion of TEN Holdings, Inc. from its consolidation scope following TEN’s listing on the Nasdaq Stock Market. This decision reflects strategic adjustments in V-cube’s operations and could impact its market positioning and stakeholder interests.

V-cube, Inc. Reports Progress in Meeting Listing Criteria with Positive Net Assets

V-cube, Inc. announced progress in meeting the listing maintenance criteria for the Tokyo Stock Exchange’s Prime Market, following a period of negative net assets. The company’s financial results for the first quarter of 2025 show a narrowing net loss, supported by gains from the sale of investment securities. After a capital raise through its subsidiary TEN’s IPO, V-cube’s net assets have returned to positive, and the company is focused on maintaining financial soundness and profitability throughout the year.

V-cube Reports Decline in Q1 2025 Financial Performance

V-cube, Inc. reported a significant decline in its financial performance for the first quarter ended March 31, 2025, with net sales dropping by 12.8% and a substantial decrease in adjusted EBITDA by 70.5%. The company faced an operating loss of 714 million yen and an ordinary loss of 755 million yen, reflecting challenges in maintaining profitability. Despite these setbacks, V-cube’s capital adequacy ratio improved to 5.9% from a negative position in the previous quarter, indicating some recovery in financial stability.

V-cube Delays Q1 Financial Results Announcement

V-cube, Inc. has announced a postponement of its financial results for the first quarter of the fiscal year ending December 2025 due to an extended audit process at its subsidiary, TEN, which is listed on NASDAQ. The company plans to release the results on May 20, 2025, and has assured stakeholders of prompt updates should there be any further changes or disclosures required.