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

• Market Cap: ¥7.85B
• Dividend Yield: 1.74%
• Average Volume (3M): 23.54K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.78
• Revenue Growth: 15.48%
• EPS Growth: 126.64%
• Country: JP
• Employees: 170
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 10.75
• Shares Outstanding: 5,578,150
• 10 Day Avg. Volume: 14,610
• 30 Day Avg. Volume: 23,543
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,570.00
• Price Target Upside: 9.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ¥1,570.00 ▲(9.18% Upside)

CRI Middleware Co., Ltd. scores well due to its strong financial performance, characterized by robust profitability and a solid balance sheet. However, technical indicators suggest a lack of bullish momentum, and cash flow volatility poses a risk. The reasonable valuation and dividend yield provide some support, but the absence of earnings call insights limits the overall score.

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

Company Description

CRI Middleware Co., Ltd. (3698) is a leading technology company based in Japan, specializing in the development and provision of audio and video middleware solutions. The company primarily serves the gaming industry by offering cutting-edge audio and video compression software that enhances the multimedia experience of video games. CRI Middleware's core products include CRIWARE, a suite of middleware tools designed for game developers to integrate advanced audio and video features into their games, thereby improving user engagement and overall gaming experience.

How the Company Makes Money

CRI Middleware Co., Ltd. generates revenue through the licensing of its middleware solutions to game developers and publishers. These licenses allow developers to integrate CRIWARE's advanced audio and video capabilities into their games, enabling enhanced multimedia performance. The company charges licensing fees based on the scale and scope of the usage, which can vary depending on the project size and the specific tools utilized. Additionally, CRI Middleware may engage in strategic partnerships with major gaming companies to ensure widespread adoption of its technology. The company also earns income through ongoing support services and updates for its middleware products, providing clients with continuous improvements and technical assistance. This combination of licensing fees, partnerships, and support services constitutes the core revenue streams for CRI Middleware Co., Ltd.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.52B	3.17B	2.99B	2.84B	2.89B	2.35B
Gross Profit	2.04B	1.72B	1.73B	1.35B	1.46B	1.40B
EBITDA	714.14M	522.10M	471.42M	235.87M	413.06M	540.03M
Net Income	422.74M	304.47M	232.58M	-339.60M	199.70M	373.75M
Balance Sheet
Total Assets	5.75B	5.36B	5.16B	5.02B	5.53B	5.24B
Cash, Cash Equivalents and Short-Term Investments	3.93B	3.63B	3.49B	3.32B	3.89B	3.44B
Total Debt	1.00B	1.00B	1.00B	1.00B	1.00B	1.02B
Total Liabilities	1.80B	1.59B	1.61B	1.48B	1.57B	1.56B
Stockholders Equity	3.90B	3.74B	3.52B	3.51B	3.94B	3.67B
Cash Flow
Free Cash Flow	0.00	215.63M	330.20M	-409.44M	355.61M	332.41M
Operating Cash Flow	0.00	328.33M	495.42M	23.32M	546.15M	445.64M
Investing Cash Flow	0.00	-9.12M	-209.43M	-527.02M	-39.88M	-133.10M
Financing Cash Flow	0.00	-77.87M	-215.38M	-97.01M	32.07M	146.60M

CRI Middleware Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1438.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1438 is below the 20-day moving average (MA) of 1471.60, below the 50-day MA of 1495.28, and above the 200-day MA of 1148.58, indicating a neutral trend. The MACD of -11.24 indicates Positive momentum. The RSI at 43.15 is Neutral, neither overbought nor oversold. The STOCH value of 7.34 is Positive, 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
3907	74 Outperform	¥2.87B	10.54	5.00%	―	1.02%	3129.12%
3723	68 Neutral	¥15.72B	23.87	―	0.65%	1.15%	-8.55%
3698	67 Neutral	¥7.85B	16.18	―	1.74%	15.48%	126.64%
3758	54 Neutral	¥6.52B	-35.10	-8.81%	1.60%	-11.94%	37.14%
3911	54 Neutral	¥12.94B	9.10	-5.89%	―	4.13%	―
3903	53 Neutral	¥30.71B	8.82	12.16%	―	-39.08%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%