Aeria Inc. (3758) AI Stock Analysis

• Market Cap: ¥6.20B
• Dividend Yield: 1.7%
• Average Volume (3M): 53.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -11.94%
• EPS Growth: 37.14%
• Country: JP
• Employees: 484
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 3.38
• Shares Outstanding: 21,249,428
• 10 Day Avg. Volume: 41,940
• 30 Day Avg. Volume: 53,280
• PEG Ratio: 0.03
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -13.89
• 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: ¥274.00
• Price Target Upside: -7.74% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: ¥274.00 ▼(-7.74% Downside)

Aeria Inc. is facing significant financial and operational challenges, with declining revenues, negative cash flows, and bearish technical indicators. The stock appears overvalued given its current financial performance, and there are no recent earnings call insights or corporate events to offset these concerns.

Aeria Inc. Business Overview & Revenue Model

Company Description

Aeria Inc. (3758) is a Japanese company primarily engaged in the content and media business. The company operates in sectors such as online games, e-commerce, and digital marketing. Aeria Inc. develops and distributes a variety of online and mobile games, including massively multiplayer online role-playing games (MMORPGs) and casual games, catering to a broad audience in the Asian market.

How the Company Makes Money

Aeria Inc. generates revenue through several key streams. The primary source of income is its online gaming division, where the company earns money through in-game purchases, subscriptions, and advertising within its games. Additionally, Aeria Inc. may partner with other gaming companies for joint ventures or licensing deals, which can provide supplementary revenue. The company's e-commerce platform contributes to earnings through sales of digital goods and merchandise related to its gaming franchises. Furthermore, Aeria Inc.'s digital marketing services offer promotional and advertising solutions, adding another revenue layer by serving clients seeking to enhance their market reach.

Aeria Inc. Financial Statement Overview

Summary

Aeria Inc. faces significant financial challenges, marked by declining revenues and profitability, increased leverage, and negative cash flows. Despite a strong cash position, the company's operational inefficiencies and financial pressures highlight the need for strategic restructuring to improve financial health and sustainability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.91B	19.16B	22.67B	20.59B	21.54B	25.70B
Gross Profit	6.41B	6.19B	6.74B	7.22B	9.00B	10.00B
EBITDA	531.75M	-60.00M	1.04B	1.05B	1.24B	-3.15B
Net Income	-194.00M	-739.00M	480.00M	172.00M	586.00M	-4.52B
Balance Sheet
Total Assets	20.12B	20.26B	21.14B	20.37B	19.24B	19.39B
Cash, Cash Equivalents and Short-Term Investments	8.31B	8.31B	8.76B	9.46B	9.72B	8.34B
Total Debt	7.57B	7.45B	7.01B	5.80B	4.91B	5.46B
Total Liabilities	11.41B	11.68B	11.46B	11.08B	10.09B	10.56B
Stockholders Equity	8.52B	8.39B	9.53B	9.14B	9.02B	8.58B
Cash Flow
Free Cash Flow	0.00	-396.00M	-2.01B	-1.33B	1.88B	-338.00M
Operating Cash Flow	0.00	-327.00M	-1.98B	-1.08B	2.05B	-192.00M
Investing Cash Flow	0.00	-464.00M	168.00M	-51.00M	159.00M	-71.00M
Financing Cash Flow	0.00	20.00M	1.10B	867.00M	-864.00M	-1.60B

Aeria Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 297.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3758, the sentiment is Negative. The current price of 297 is below the 20-day moving average (MA) of 298.20, below the 50-day MA of 320.38, and above the 200-day MA of 275.08, indicating a neutral trend. The MACD of -8.94 indicates Positive momentum. The RSI at 37.79 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3758.

Aeria Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3851	51 Neutral	¥4.23B	―	―	0.60%	-5.41%	-151.67%
3656	50 Neutral	¥14.00B	―	―	―	-12.70%	-78.58%
3760	49 Neutral	¥5.50B	22.05	―	1.19%	4.29%	-123.59%
3810	45 Neutral	¥10.01B	―	―	―	-15.04%	25.50%
3672	41 Neutral	¥2.72B	―	―	―	-23.41%	5.92%
3758	41 Neutral	¥6.20B	―	―	1.70%	-11.94%	37.14%