Image Information Inc (3803) AI Stock Analysis

• Market Cap: ¥1.41B
• Dividend Yield: N/A
• Average Volume (3M): 517.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: 39.34%
• EPS Growth: -765.51%
• Country: JP
• Employees: 54
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -59.58
• Shares Outstanding: 2,080,000
• 10 Day Avg. Volume: 101,160
• 30 Day Avg. Volume: 517,020
• PEG Ratio: -0.34
• Price to Book (P/B): 3.34
• Price to Sales (P/S): 1.47
• P/FCF Ratio: -110.81
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥499.00 ▼(-1.58% Downside)

The overall stock score for Image Information Inc is primarily influenced by its financial performance challenges, particularly in profitability and cash flow. The technical analysis provides some positive momentum, but concerns over valuation due to a negative P/E ratio weigh heavily on the score. The absence of earnings call insights and corporate events means these factors do not contribute to the overall evaluation.

Positive Factors

Revenue Growth

The company has shown a strong revenue growth rate of nearly 35%, indicating successful market expansion and product adoption, which is a positive sign for its long-term business prospects.

Strong Equity Position

A strong equity position with low leverage provides financial stability, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Positive Operating Cash Flow

Achieving positive operating cash flow indicates the company's core business operations are generating sufficient cash, which is crucial for sustaining operations and funding future growth.

Negative Factors

Profitability Challenges

Negative net profit margins and declining revenue highlight profitability challenges, which could hinder the company's ability to reinvest in its business and compete effectively.

Cash Flow Volatility

Volatile cash flows, especially negative operating and free cash flows, suggest liquidity challenges that may impact the company's ability to meet its financial obligations and invest in growth.

Operational Inefficiencies

Negative EBIT and EBITDA margins indicate operational inefficiencies, which could affect the company's ability to improve profitability and achieve sustainable long-term growth.

Image Information Inc Business Overview & Revenue Model

Company Description

Image Information Inc. provides business integration services in Japan. It develops and offers a platform that enables companies and organizations to integrate various IT consulting-based services and functions in their business models. The company trades in IT equipment and software; and develops packaged software. In addition, it provides medical and anti-aging related services, as well as involved in payment processing services. The company serves the finance and manufacturing, shopping mall, and other sectors. Image Information Inc. was incorporated in 1975 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Image Information Inc generates revenue through a combination of software licensing, subscription services, and professional service fees. The company licenses its proprietary imaging software to businesses and institutions requiring advanced image processing capabilities. Recurring revenue is also generated through subscription models for ongoing access to software updates and cloud-based image management platforms. Additionally, Image Information Inc offers consulting and customization services to tailor its solutions to specific customer needs, further contributing to its revenue streams. Strategic partnerships with industry leaders and integration of its technology into third-party systems also play a significant role in its financial performance.

Image Information Inc Financial Statement Overview

Summary

Image Information Inc faces significant financial challenges, notably in profitability and cash generation. The income statement highlights negative net profit margins and declining revenue, while the cash flow statement shows liquidity issues. However, the balance sheet presents a strong equity position with low leverage, offering some financial stability.

Income Statement

Image Information Inc's income statement reflects a challenging period with a negative net profit margin and declining revenue over the recent years. The gross profit margin is positive but has decreased over time, indicating potential cost management issues. The EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet of Image Information Inc shows a strong equity position with a low debt-to-equity ratio, indicating financial stability. The equity ratio remains solid, suggesting a robust asset base backed by equity. However, declining stockholders' equity over the years may pose a risk if not addressed.

Cash Flow

The cash flow statement reveals volatility, with negative operating and free cash flows in recent periods, suggesting liquidity challenges. However, the company had positive operating cash flow in 2024, indicating potential for improvement. The free cash flow to net income ratio is concerning, reflecting cash generation issues relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	720.35M	646.06M	527.91M	546.14M	928.83M	684.95M
Gross Profit	152.32M	138.07M	149.19M	177.00M	160.11M	146.32M
EBITDA	-102.60M	-8.80M	-1.03M	58.10M	25.65M	151.09M
Net Income	-107.28M	-36.57M	-20.73M	50.56M	6.42M	144.88M
Balance Sheet
Total Assets	677.00M	614.39M	627.90M	706.89M	767.52M	799.75M
Cash, Cash Equivalents and Short-Term Investments	360.00M	275.44M	363.16M	454.91M	504.97M	321.46M
Total Debt	52.00M	3.60M	0.00	106.66M	140.00M	140.00M
Total Liabilities	391.00M	306.29M	291.06M	348.12M	429.99M	452.87M
Stockholders Equity	262.00M	284.14M	336.84M	358.77M	337.53M	346.88M
Cash Flow
Free Cash Flow	0.00	-8.55M	-20.81M	-82.34M	168.22M	-220.53M
Operating Cash Flow	0.00	-7.53M	39.15M	-46.20M	189.04M	-219.45M
Investing Cash Flow	0.00	-44.69M	-24.24M	29.47M	-5.53M	137.09M
Financing Cash Flow	0.00	-39.82M	-106.66M	-33.34M	0.00	120.00M

Image Information Inc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 507.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3803, the sentiment is Negative. The current price of 507 is below the 20-day moving average (MA) of 622.90, below the 50-day MA of 730.28, and below the 200-day MA of 711.75, indicating a bearish trend. The MACD of -65.21 indicates Negative momentum. The RSI at 38.05 is Neutral, neither overbought nor oversold. The STOCH value of 10.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3803.

Image Information Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3803	56 Neutral	¥1.41B	-13.16	―	―	39.34%	-765.51%
3634	54 Neutral	¥1.73B	―	―	0.40%	6.81%	62.28%
9240	51 Neutral	¥2.53B	71.68	―	―	1.37%	-78.02%
4316	44 Neutral	¥3.36B	-17.26	―	―	11.96%	-453.36%