Ubiquitous AI Corporation (3858) AI Stock Analysis

• Market Cap: ¥3.54B
• Dividend Yield: N/A
• Average Volume (3M): 82.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: 4.78%
• EPS Growth: -234.94%
• Country: JP
• Employees: 194
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -12.71
• Shares Outstanding: 10,459,000
• 10 Day Avg. Volume: 134,160
• 30 Day Avg. Volume: 82,063
• PEG Ratio: 0.24
• Price to Book (P/B): 1.63
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 28.85
• 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: 70 Outperform
• Price Target: ¥385.00 ▲(6.06% Upside)
• Action: Upgraded Date: 11/14/25
• Date: Action: Upgraded 11/14/25

Ubiquitous AI Corporation's strong financial performance and positive technical indicators are the primary drivers of its stock score. However, the high P/E ratio suggests potential overvaluation, which tempers the overall score. The absence of earnings call data and corporate events does not impact the score due to their exclusion.

Positive Factors

Consistent Revenue Growth

The company has demonstrated sustained revenue growth year-over-year with a notable jump from 2024 to 2025 and a robust gross margin. This durable top-line expansion supports continued market share gains, recurring demand for infrastructure software, and funds product and R&D investment over the next 2–6 months.

Solid Balance Sheet / Low Leverage

A strong equity position and minimal debt lower financial risk and increase strategic optionality. Improved ROE and rising shareholders' equity provide capacity for acquisitions, R&D spending, and weathering cyclical downturns, supporting durable financial stability across quarters.

Positive Cash Generation

Improving operating cash flow and growing free cash flow, alongside a healthy FCF-to-net-income ratio, underpin the company’s ability to self-fund growth, invest in infrastructure, and maintain flexibility for strategic initiatives without relying on external financing over the medium term.

Negative Factors

Margin Volatility

Reported swings in EBIT and EBITDA margins indicate operational sensitivity to cost structure, pricing, or scale. Such variability impairs predictable profitability and complicates planning for sustained margin expansion, increasing execution risk as the company scales in a competitive infrastructure software market.

Severe EPS Volatility

Extremely negative EPS growth reflects large earnings swings or one-off impacts, signaling unstable bottom-line performance. Persistent EPS volatility undermines forecasting, may limit access to favorable financing, and risks investor confidence if earnings do not stabilize over subsequent reporting periods.

Fluctuating Free Cash Flow Drivers

Free cash flow has grown but past variability tied to capex cycles suggests FCF may be uneven. Irregular cash generation can constrain timing of investments, force external financing during heavy capex periods, and reduce resilience to adverse shocks across the medium term.

Ubiquitous AI Corporation Business Overview & Revenue Model

Company Description

Ubiquitous AI Corporation provides software products primarily in Japan and internationally. The company offers various products, including Ubiquitous Securus, an anti-tamper security solution for embedded devices; Ubiquitous TPM Security, a security software solution for trusted platform module; Edge Trust, a solution for enabling secure IoT services; Ubiquitous Network Framework, a TCP/IP stack-based middleware; Ubiquitous DTCP, a link protection middleware; and Ubiquitous HDCP, a software development kit optimized for HDCP implementation. It also provides Ubiquitous WPA/WPS/Wi-Fi Direct, a software development kit for developing the functionalities necessary for wireless LAN clients to acquire the Wi-Fi certification logo; Ubiquitous QuickBoot, a fast boot solution for Linux and Android; Ubiquitous DeviceSQL, a data management software for embedded systems; and Ubiquitous USB host platform. In addition, the company offers Ubiquitous Miracast Solution, a wireless environment software for remote display connection; Ubiquitous ECHONET Lite, a middleware software; Ubiquitous Wi-SMART, a middleware software; Ubiquitous TLS/SSL, a security protocol; TOPPERS-Pro Series, an RTOS solution package; and Ubiquitous DLNA SDK, a middleware software. Further, it imports and sells software products; and provides technical support and customize development services. The company was formerly known as Ubiquitous Corporation and changed its name to Ubiquitous AI Corporation in July 2018. Ubiquitous AI Corporation was incorporated in 2001 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Ubiquitous AI Corporation generates revenue primarily through a subscription-based model for its software solutions, allowing clients to access its AI platforms on a recurring basis. Key revenue streams include licensing fees for proprietary algorithms, consulting services for implementation and integration, and maintenance contracts for ongoing support. Additionally, the company has formed strategic partnerships with major tech firms and industry leaders, allowing it to expand its market reach and enhance its product offerings. These collaborations often involve joint ventures or co-development agreements that contribute to Ubiquitous AI's earnings, providing shared revenue opportunities through integrated solutions.

Ubiquitous AI Corporation Financial Statement Overview

Summary

Ubiquitous AI Corporation showcases strong financial health, characterized by impressive revenue growth, solid profitability, and a robust balance sheet with low leverage. The cash flow position is generally positive, although some historical volatility in cash generation exists. Overall, the company is well-positioned for sustainable growth in the software infrastructure industry.

Income Statement

Ubiquitous AI Corporation has demonstrated strong revenue growth with a significant increase from 2024 to 2025. The gross profit margin remains robust, indicating efficient cost management. The net profit margin has improved, reflecting enhanced profitability. However, historical volatility in EBIT and EBITDA margins suggests potential challenges in maintaining stable operational efficiency.

Balance Sheet

The balance sheet is solid, with a high equity ratio indicating a strong equity position and low leverage. The debt-to-equity ratio is minimal due to low total debt, which reduces financial risk. Return on equity has improved, showcasing better utilization of equity capital. The consistent increase in stockholders' equity strengthens the company's financial foundation.

Cash Flow

Operating cash flow remains positive and has shown improvement, aligning with net income growth. Free cash flow has grown, though fluctuations in previous years indicate variability in capital expenditures. The company demonstrates a healthy free cash flow to net income ratio, supporting its ability to generate cash relative to earnings.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.16B	4.14B	3.48B	1.94B	2.06B	1.91B
Gross Profit	1.71B	1.64B	1.44B	859.72M	989.09M	843.88M
EBITDA	206.97M	253.84M	227.29M	-65.95M	113.00M	29.78M
Net Income	49.37M	91.08M	32.90M	-148.18M	-39.70M	-426.80M
Balance Sheet
Total Assets	3.09B	3.46B	3.73B	2.82B	2.97B	2.81B
Cash, Cash Equivalents and Short-Term Investments	1.56B	1.35B	1.47B	1.51B	1.71B	1.63B
Total Debt	56.28M	65.41M	286.33M	0.00	0.00	0.00
Total Liabilities	832.41M	1.06B	1.40B	511.10M	532.46M	378.85M
Stockholders Equity	2.26B	2.40B	2.33B	2.31B	2.44B	2.43B
Cash Flow
Free Cash Flow	0.00	135.96M	166.49M	-166.19M	197.39M	-75.52M
Operating Cash Flow	0.00	137.88M	188.20M	-87.28M	221.54M	-24.88M
Investing Cash Flow	0.00	23.16M	11.72M	-104.31M	-149.19M	-80.64M
Financing Cash Flow	0.00	-220.91M	-318.87M	0.00	0.00	-68.00K

Ubiquitous AI Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 363.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3858, the sentiment is Negative. The current price of 363 is below the 20-day moving average (MA) of 371.85, below the 50-day MA of 380.64, and below the 200-day MA of 376.88, indicating a bearish trend. The MACD of -6.44 indicates Positive momentum. The RSI at 37.75 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3858.

Ubiquitous AI Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3858	70 Outperform	¥3.54B	-7.14	―	―	4.78%	-234.94%
3915	68 Neutral	¥20.68B	9.96	―	―	17.93%	91.21%
3993	68 Neutral	¥97.80B	29.14	8.26%	―	28.88%	27.51%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4434	61 Neutral	¥16.26B	8.71	―	―	―	―
4488	58 Neutral	¥8.46B	86.07	―	―	7.00%	-244.58%
4180	56 Neutral	¥78.59B	42.73	―	0.18%	25.88%	80.30%