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Aeria Inc. (JP:3758)
:3758
Japanese Market

Aeria Inc. (3758) AI Stock Analysis

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JP

Aeria Inc.

(3758)

Rating:53Neutral
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. (3758) vs. iShares MSCI Japan ETF (EWJ)

Aeria Inc. Business Overview & Revenue Model

Company DescriptionAeria 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 MoneyAeria 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
40
Negative
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
60
Neutral
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
35
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue19.16B22.67B20.59B21.54B25.70B
Gross Profit6.19B6.74B7.22B9.00B10.00B
EBITDA-60.00M1.04B1.05B1.24B-3.15B
Net Income-739.00M480.00M172.00M586.00M-4.56B
Balance Sheet
Total Assets20.26B21.14B20.37B19.24B19.39B
Cash, Cash Equivalents and Short-Term Investments8.31B8.76B9.46B9.72B8.34B
Total Debt7.45B7.01B5.80B4.91B5.46B
Total Liabilities11.68B11.46B11.08B10.09B10.56B
Stockholders Equity8.39B9.53B9.14B9.02B8.58B
Cash Flow
Free Cash Flow-396.00M-2.01B-1.33B1.88B-338.00M
Operating Cash Flow-327.00M-1.98B-1.08B2.05B-192.00M
Investing Cash Flow-464.00M168.00M-51.00M159.00M-71.00M
Financing Cash Flow20.00M1.10B867.00M-864.00M-1.60B

Aeria Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price270.00
Price Trends
50DMA
264.60
Positive
100DMA
255.29
Positive
200DMA
254.30
Positive
Market Momentum
MACD
1.68
Positive
RSI
45.99
Neutral
STOCH
2.22
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
¥6.96B4.92
138.55%16.25%-27.48%
61
Neutral
$41.24B-0.79-14.21%3.80%2.39%-73.52%
58
Neutral
¥4.25B41.88
0.59%-0.75%-126.41%
53
Neutral
¥5.62B
1.86%-9.05%-27.30%
43
Neutral
¥5.42B
-17.67%26.46%
41
Neutral
¥6.66B
-11.13%28.02%
41
Neutral
¥2.64B
-22.25%-14.77%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3758
Aeria Inc.
269.00
-37.74
-12.30%
JP:3656
KLab Inc.
112.00
-123.00
-52.34%
JP:3672
AltPlus Inc.
70.00
-60.00
-46.15%
JP:3760
Cave Interactive Co., Ltd.
1,047.00
-367.52
-25.98%
JP:3810
CyberStep, Inc.
293.00
52.00
21.58%
JP:3851
Nippon Ichi Software, Inc.
839.00
-162.89
-16.26%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 05, 2025