CRI Middleware Co., Ltd. (3698) AI Stock Analysis

• Market Cap: ¥7.96B
• Dividend Yield: 1.37%
• Average Volume (3M): 68.87K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.79
• Revenue Growth: 15.97%
• EPS Growth: 78.23%
• Country: JP
• Employees: 170
• Sector: Communication Services
• Sector Strength: 82
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 32.49
• Shares Outstanding: 5,578,150
• 10 Day Avg. Volume: 42,440
• 30 Day Avg. Volume: 68,866
• PEG Ratio: 1.56
• Price to Book (P/B): 1.85
• 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: ¥1,652.00
• Price Target Upside: 13.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥1,652.00 ▲(13.31%Upside)

CRI Middleware Co., Ltd. displays a strong financial position and positive technical indicators, both of which significantly contribute to its overall score. While valuation is moderate, reflecting a fair market position, the absence of earnings call data and corporate events means these areas did not impact the score.

CRI Middleware Co., Ltd. Business Overview & Revenue Model

Company Description

CRI Middleware Co., Ltd. (3698) is a Japanese company specializing in audio and video solutions for the gaming and entertainment industries. The company develops and licenses middleware software products that enhance the multimedia capabilities of video games, mobile apps, and other digital content. Its core products include CRIWARE, a suite of audio and video tools designed to improve performance and quality in interactive applications.

How the Company Makes Money

CRI Middleware Co., Ltd. generates revenue primarily through the licensing of its middleware software products to game developers and entertainment companies. The company's key revenue streams include licensing fees from its CRIWARE suite, which consists of audio and video engines used in a variety of platforms such as consoles, PCs, and mobile devices. CRI Middleware also makes money by providing technical support and consulting services to its clients, ensuring the efficient integration and optimal performance of its products. Additionally, the company may engage in partnerships and collaborations with other technology firms to expand its market reach and enhance its product offerings.

CRI Middleware Co., Ltd. Financial Statement Overview

Summary

CRI Middleware Co., Ltd. demonstrates strong financial health with excellent profitability, a solid balance sheet, and effective cost management. The Income Statement shows robust revenue and margin growth. The Balance Sheet reflects a low Debt-to-Equity ratio and a high Equity Ratio, though there is a slight decline in cash position. Cash flow shows volatility, indicating the need for stable cash flow management.

Income Statement

CRI Middleware Co., Ltd. shows strong profitability with a consistent increase in revenue and margins. The Gross Profit Margin for TTM is approximately 55.2%, and the Net Profit Margin is 11.3%. Revenue has grown steadily, with a notable increase of 5.1% from the previous year. EBIT and EBITDA margins are also healthy, indicating efficient cost management and strong operating performance.

Balance Sheet

The company maintains a solid financial position with a low Debt-to-Equity Ratio of 0.27 and a high Equity Ratio of 67.8%. The Return on Equity (ROE) stands at 10.2%, reflecting efficient use of equity to generate profits. However, the cash position has slightly decreased, which could impact liquidity if not managed carefully.

Cash Flow

Cash flow analysis shows mixed results. The Free Cash Flow has been volatile with a recent decline. The Operating Cash Flow to Net Income Ratio is unavailable for TTM, indicating potential challenges in cash conversion. However, the company has previously demonstrated strong operational cash generation.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	3.17B	2.99B	2.84B	2.89B	2.35B
Gross Profit	1.72B	1.73B	1.35B	1.46B	1.40B
EBITDA	522.10M	469.00M	235.87M	413.06M	540.03M
Net Income	304.47M	232.58M	-339.60M	199.70M	373.75M
Balance Sheet
Total Assets	5.36B	5.16B	5.02B	5.53B	5.24B
Cash, Cash Equivalents and Short-Term Investments	3.63B	3.49B	3.32B	3.89B	3.44B
Total Debt	1.00B	1.00B	1.00B	1.00B	1.02B
Total Liabilities	1.59B	1.61B	1.48B	1.57B	1.56B
Stockholders Equity	3.74B	3.52B	3.51B	3.94B	3.67B
Cash Flow
Free Cash Flow	215.63M	330.20M	-409.44M	355.61M	332.41M
Operating Cash Flow	328.33M	495.42M	23.32M	546.15M	445.64M
Investing Cash Flow	-9.12M	-209.43M	-527.02M	-39.88M	-133.10M
Financing Cash Flow	-77.87M	-215.38M	-97.01M	32.07M	146.60M

CRI Middleware Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1458.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3698, the sentiment is Neutral. The current price of 1458 is above the 20-day moving average (MA) of 1425.80, above the 50-day MA of 1375.64, and above the 200-day MA of 955.00, indicating a neutral trend. The MACD of 15.93 indicates Positive momentum. The RSI at 49.24 is Neutral, neither overbought nor oversold. The STOCH value of 59.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3698.

CRI Middleware Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3698	79 Outperform	¥7.96B	17.99		1.37%	15.97%	78.23%
3907	74 Outperform	¥2.61B	9.46		―	1.02%	3129.12%
3723	68 Neutral	¥11.96B	22.16		1.73%	-21.03%	-42.64%
Sector *	61 Neutral	$41.05B	-1.44	-12.05%	3.94%	2.10%	-69.66%
3758	53 Neutral	¥5.89B	―		1.77%	-9.05%	-27.30%
3911	50 Neutral	¥11.44B	30.49		―	<0.01%	―
3903	48 Neutral	¥29.94B	16.32		―	-12.61%	-314.92%