Aeria Inc. (3758) AI Stock Analysis

• Market Cap: ¥5.62B
• Dividend Yield: 1.86%
• Average Volume (3M): 54.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -9.05%
• EPS Growth: -27.30%
• Country: JP
• Employees: 484
• Sector: Communication Services
• Sector Strength: 84
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 9.02
• Shares Outstanding: 21,249,428
• 10 Day Avg. Volume: 34,720
• 30 Day Avg. Volume: 54,043
• PEG Ratio: -0.71
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.51
• 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

• Rating: 53 Neutral
• Price Target: ¥277.00 ▲(2.59%Upside)

Aeria Inc. scores moderately low due to significant financial challenges, marked by declining revenues, profitability, and negative cash flows. While technical analysis shows positive momentum, valuation concerns with a negative P/E ratio and operational issues weigh heavily on the overall score.

Aeria Inc. Business Overview & Revenue Model

Company Description

Aeria Inc. (3758) is a Japanese company primarily engaged in the mobile gaming and online entertainment industry. The company develops, publishes, and operates a variety of digital games, including free-to-play mobile games and online browser games. Aeria Inc. also offers online advertising and digital content distribution services, leveraging its platforms to reach a broad audience in the gaming community.

How the Company Makes Money

Aeria Inc. makes money through several revenue streams. The primary source of income is from in-game purchases within its free-to-play mobile and online games, where players can buy virtual goods, enhancements, and other digital items. Additional revenue comes from advertising, where the company monetizes its gaming platforms through partnerships with advertisers, providing ad space and promotional opportunities. The company also earns from licensing agreements, distributing digital content, and collaborating with other game developers and publishers to expand its gaming portfolio and reach.

Aeria Inc. Financial Statement Overview

Summary

Aeria Inc. is facing significant financial challenges with declining revenues and profitability, increased leverage, and negative cash flows. Despite a strong cash position, operational inefficiencies and financial pressures are prominent. The income statement and cash flow scores are particularly low, reflecting these issues.

Income Statement

Aeria Inc. has experienced a significant decline in revenue from 2019 to 2024, with current figures showing a sharp drop in total revenue by approximately 32% since 2019. The gross profit margin has also decreased, indicating reduced profitability, while net profit margins have turned negative in recent years, with a significant net loss in 2024. The EBIT and EBITDA margins have deteriorated significantly, reflecting operational challenges and cost pressures.

Balance Sheet

The balance sheet shows moderate strength with a fair equity ratio and manageable debt levels. However, the debt-to-equity ratio has increased over the years, reflecting higher leverage, while the decline in stockholders' equity suggests potential financial constraints. The company maintains a strong cash position, which provides some buffer against volatility.

Cash Flow

The cash flow statement reveals significant challenges with consistent negative free cash flow over recent years. The operating cash flow ratio to net income is negative, indicating cash outflows in operations that are not adequately covered by earnings. Free cash flow remains severely negative, suggesting issues in generating cash from core operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.16B	22.67B	20.59B	21.54B	25.70B
Gross Profit	6.19B	6.74B	7.22B	9.00B	10.00B
EBITDA	-60.00M	1.04B	1.05B	1.24B	-3.15B
Net Income	-739.00M	480.00M	172.00M	586.00M	-4.56B
Balance Sheet
Total Assets	20.26B	21.14B	20.37B	19.24B	19.39B
Cash, Cash Equivalents and Short-Term Investments	8.31B	8.76B	9.46B	9.72B	8.34B
Total Debt	7.45B	7.01B	5.80B	4.91B	5.46B
Total Liabilities	11.68B	11.46B	11.08B	10.09B	10.56B
Stockholders Equity	8.39B	9.53B	9.14B	9.02B	8.58B
Cash Flow
Free Cash Flow	-396.00M	-2.01B	-1.33B	1.88B	-338.00M
Operating Cash Flow	-327.00M	-1.98B	-1.08B	2.05B	-192.00M
Investing Cash Flow	-464.00M	168.00M	-51.00M	159.00M	-71.00M
Financing Cash Flow	20.00M	1.10B	867.00M	-864.00M	-1.60B

Aeria Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 270.00
• 50DMA: Positive
• 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:3758, the sentiment is Positive. The current price of 270 is below the 20-day moving average (MA) of 276.55, above the 50-day MA of 264.60, and above the 200-day MA of 254.30, indicating a neutral trend. The MACD of 1.68 indicates Positive momentum. The RSI at 45.99 is Neutral, neither overbought nor oversold. The STOCH value of 2.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3758.

Aeria Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3760	81 Outperform	¥6.96B	4.92		138.55%	16.25%	-27.48%
Sector *	61 Neutral	$41.24B	-0.79	-14.21%	3.80%	2.39%	-73.52%
3851	58 Neutral	¥4.25B	41.88		0.59%	-0.75%	-126.41%
3758	53 Neutral	¥5.62B	―		1.86%	-9.05%	-27.30%
3810	43 Neutral	¥5.42B	―		―	-17.67%	26.46%
3656	41 Neutral	¥6.66B	―		―	-11.13%	28.02%
3672	41 Neutral	¥2.64B	―		―	-22.25%	-14.77%