FLIGHT SOLUTIONS Inc. (3753) AI Stock Analysis

• Market Cap: ¥2.13B
• Dividend Yield: N/A
• Average Volume (3M): 60.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -2.29%
• EPS Growth: 31.48%
• Country: JP
• Employees: 111
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -12.00
• Shares Outstanding: 14,516,700
• 10 Day Avg. Volume: 65,060
• 30 Day Avg. Volume: 60,150
• PEG Ratio: -0.02
• Price to Book (P/B): 5.13
• Price to Sales (P/S): 0.84
• P/FCF Ratio: -18.14
• 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: 42 Neutral
• Price Target: ¥141.00 ▼(-9.62% Downside)
• Action: Reiterated Date: 11/21/25
• Date: Action: Reiterated 11/21/25

The overall stock score is primarily impacted by poor financial performance and technical analysis. The company's financial distress, indicated by declining profitability and cash flow issues, is a major concern. Additionally, technical indicators show bearish momentum, further weighing down the score. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield.

Positive Factors

Stable stockholders' equity

Stable stockholders' equity gives the firm a lasting capital buffer against continued losses, helping preserve solvency and creditor confidence over the medium term and providing room to execute restructuring or turnaround measures without immediate equity dilution.

Moderate equity ratio (33.4% in 2025)

An equity ratio around 33% indicates a moderate capital structure that can absorb shocks better than highly leveraged peers; this structural cushion supports ongoing operations and provides credibility when negotiating financing or supplier terms over the next several quarters.

Operating in Information Technology Services

Being in IT services exposes the company to durable structural demand for software, integration and managed services; this industry alignment supports opportunities for recurring contracts and long-term client relationships if the company can stabilize delivery and commercial execution.

Negative Factors

Sustained revenue decline

A >20% annual revenue decline is a structural red flag: shrinking top line undermines scale economics, reduces bargaining power with customers and suppliers, and limits resources available for product investment and sales capacity needed to restore growth.

Severely eroding gross margins

Sharp margin erosion over several years signals persistent pricing pressure or rising costs and weak operational leverage. Lower gross margins make profitable scaling harder, constraining the company's ability to fund SG&A and R&D while restoring competitiveness.

Negative free cash flow and weakening OCF

Consistent negative free cash flow and deteriorating operating cash flow create ongoing liquidity risk, limiting investment capacity and increasing refinancing pressure. This restricts strategic flexibility and raises the likelihood of external funding or asset sales.

FLIGHT SOLUTIONS Inc. Business Overview & Revenue Model

Company Description

FLIGHT SOLUTIONS Inc. primarily engages in the development and sale of electronic payment solutions in Japan. It operates through Consulting & Solutions Business, Service Business, and EC Solutions Business segments. The Consulting & Solutions Business segment offers system consulting, system development and maintenance, system development support solutions using cloud services, etc. for business companies mainly in the logistics and financial industries. The Service Business segment provides electronic payment solution under the name Incredist, for unmanned automatic payment machines. The EC Solutions Business segment offers EC-RiderB2B, an EC site construction package for Business-to-Business companies, as well as related consulting, system development, and maintenance solutions. The company was formerly known as Flight System Consulting Inc. and changed its name to FLIGHT SOLUTIONS Inc. in June 2013. FLIGHT SOLUTIONS Inc. was incorporated in 1988 and is headquartered in Tokyo, Japan.

FLIGHT SOLUTIONS Inc. Financial Statement Overview

Summary

FLIGHT SOLUTIONS Inc. faces several financial challenges, particularly in maintaining profitability and cash flow stability. Declining revenue and profitability, coupled with high leverage and cash flow issues, indicate potential financial distress.

Income Statement

The income statement reveals a concerning trend for FLIGHT SOLUTIONS Inc. with declining revenue and profitability. The gross profit margin has consistently decreased over the years, dropping significantly from 27.7% in 2020 to 12.1% in 2025. The company has also struggled with negative EBIT and net income margins in recent periods, indicating operational inefficiencies and financial distress. The revenue growth rate has been negative in recent years, reflecting a challenging market environment or declining competitiveness.

Balance Sheet

The balance sheet shows mixed results with some strengths and weaknesses. The debt-to-equity ratio has been relatively high, indicating significant leverage, which could pose risks if not managed properly. Stockholders' equity has remained stable, but the equity ratio has decreased from 31.1% in 2020 to 33.4% in 2025. The company's return on equity has turned negative recently, reflecting challenges in generating profits from shareholders' investments.

Cash Flow

The cash flow statement highlights cash generation challenges with negative free cash flow in recent years. The operating cash flow has fluctuated, showing a downward trend from positive levels in 2020 to negative in 2025. The free cash flow to net income ratio is negative, indicating that the company is not generating sufficient cash to cover its expenses and investments. This situation poses liquidity risks.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.21B	3.06B	1.69B	3.01B	3.25B	3.40B
Gross Profit	543.23M	375.58M	278.88M	768.05M	851.47M	379.25M
EBITDA	-103.70M	-102.02M	-78.47M	110.33M	187.31M	-240.50M
Net Income	-105.76M	-382.69M	-80.52M	41.29M	114.06M	-282.77M
Balance Sheet
Total Assets	1.66B	1.51B	1.65B	1.66B	1.79B	1.70B
Cash, Cash Equivalents and Short-Term Investments	550.44M	453.61M	546.78M	788.14M	676.24M	375.72M
Total Debt	782.14M	665.29M	782.14M	784.93M	644.15M	858.62M
Total Liabilities	1.20B	1.01B	1.22B	1.09B	1.26B	1.27B
Stockholders Equity	452.46M	503.91M	429.28M	569.44M	534.24M	428.66M
Cash Flow
Free Cash Flow	0.00	-142.62M	14.02M	93.88M	517.82M	-1.51B
Operating Cash Flow	0.00	-75.63M	62.50M	110.86M	552.87M	-1.49B
Investing Cash Flow	0.00	-349.33M	-297.94M	-127.63M	-39.49M	-35.11M
Financing Cash Flow	0.00	331.63M	-2.79M	133.38M	-214.47M	326.92M

FLIGHT SOLUTIONS Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 156.00
• 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:3753, the sentiment is Negative. The current price of 156 is above the 20-day moving average (MA) of 145.35, below the 50-day MA of 156.92, and below the 200-day MA of 190.69, indicating a neutral trend. The MACD of -2.37 indicates Negative momentum. The RSI at 48.02 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3753.

FLIGHT SOLUTIONS Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3908	68 Neutral	¥2.00B	33.06	―	―	-10.98%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6555	61 Neutral	¥1.87B	10.36	―	―	8.27%	-295.89%
4016	57 Neutral	¥1.96B	21.43	―	3.07%	2.07%	11.34%
4444	56 Neutral	¥1.85B	26.68	―	―	5.17%	-148.66%
5247	54 Neutral	¥1.86B	60.02	―	―	15.55%	-114.56%
3753	42 Neutral	¥2.13B	-3.25	―	―	-2.29%	31.48%