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

• Market Cap: ¥5.94B
• Dividend Yield: 2.13%
• Average Volume (3M): 21.35K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.85
• Revenue Growth: 8.88%
• EPS Growth: 38.16%
• Country: JP
• Employees: 170
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 17.81
• Shares Outstanding: 5,578,150
• 10 Day Avg. Volume: 18,390
• 30 Day Avg. Volume: 21,349
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,245.00 ▲(13.39% Upside)

CRI Middleware Co., Ltd. scores well due to its solid financial performance and reasonable valuation. The company's strong profitability and efficient operations are significant strengths. However, technical indicators suggest potential bearish trends, which could pose risks. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for CRI Middleware's products, supporting long-term business expansion and market position.

Profitability

Enhanced profitability reflects efficient operations and cost management, contributing to sustainable financial health and competitive advantage.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility for future investments and growth opportunities.

Negative Factors

Free Cash Flow Volatility

Volatile free cash flow can hinder the company's ability to fund operations and growth consistently, posing a risk to long-term financial stability.

Recent Revenue Decline

A recent decline in revenue could indicate emerging challenges in market demand or competition, requiring strategic adjustments to sustain growth.

Cash Flow Management

Effective cash flow management is crucial for operational efficiency and investment capacity, with volatility posing a risk to financial planning.

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

Company Description

CRI Middleware Co., Ltd. provides audio and video solutions for the gaming industry. The company offers ADX, an audio middleware, which empowers sound designers and audio programmers; and Sofdec, a multi-platform movie playback system, including a high-compression video encoder and a versatile playback engine. Its audio and video solutions can be integrated with game engines and supports platforms, from all major consoles to mobile devices. The company was founded in 1983 and is based in Tokyo, Japan.

How the Company Makes Money

CRI Middleware generates revenue primarily through the licensing of its middleware products to game developers and publishers. The company charges fees based on the usage or sales of its software, which can be structured as one-time payments, royalties, or subscription models. Additionally, CRI Middleware may engage in strategic partnerships with gaming companies to provide tailored solutions, which can also contribute to its earnings. The growth of the gaming industry, particularly in mobile and online gaming, has been a significant factor driving demand for CRI Middleware's products, thus influencing its revenue streams.

CRI Middleware Co., Ltd. Financial Statement Overview

Summary

CRI Middleware Co., Ltd. exhibits strong financial health with robust profitability and a solid balance sheet. The company shows a consistent increase in revenue and margins, with a Gross Profit Margin of 55.2% and a Net Profit Margin of 11.3%. However, cash flow stability needs attention due to recent volatility.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.54B	3.45B	3.17B	2.99B	2.84B	2.89B
Gross Profit	2.14B	2.07B	1.72B	1.73B	1.35B	1.46B
EBITDA	798.91M	695.60M	522.10M	471.42M	235.87M	413.06M
Net Income	463.92M	420.71M	304.47M	232.58M	-339.60M	199.70M
Balance Sheet
Total Assets	5.77B	5.84B	5.36B	5.16B	5.02B	5.53B
Cash, Cash Equivalents and Short-Term Investments	4.19B	4.24B	3.63B	3.49B	3.32B	3.89B
Total Debt	1.00B	1.00B	1.00B	1.00B	1.00B	1.00B
Total Liabilities	1.78B	1.74B	1.59B	1.61B	1.48B	1.57B
Stockholders Equity	3.96B	4.06B	3.74B	3.52B	3.51B	3.94B
Cash Flow
Free Cash Flow	0.00	831.41M	215.63M	330.20M	-409.44M	355.61M
Operating Cash Flow	0.00	849.68M	328.33M	495.42M	23.32M	546.15M
Investing Cash Flow	0.00	-135.08M	-9.12M	-209.43M	-527.02M	-39.88M
Financing Cash Flow	0.00	-104.50M	-77.87M	-215.38M	-97.01M	32.07M

CRI Middleware Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1098.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1098 is below the 20-day moving average (MA) of 1130.30, below the 50-day MA of 1128.44, and below the 200-day MA of 1267.24, indicating a bearish trend. The MACD of -17.19 indicates Positive momentum. The RSI at 39.56 is Neutral, neither overbought nor oversold. The STOCH value of 29.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
3723	82 Outperform	¥16.96B	18.77	―	1.25%	3.50%	6.04%
3698	68 Neutral	¥5.94B	13.53	―	2.13%	8.88%	38.16%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3907	58 Neutral	¥2.20B	10.70	―	1.36%	2.33%	―
3911	48 Neutral	¥11.21B	6.20	―	―	11.15%	―
3758	46 Neutral	¥6.14B	-136.95	―	1.70%	-22.98%	83.75%
3903	46 Neutral	¥20.71B	6.93	―	―	-37.68%	―