Ubiquitous AI Corporation (3858) AI Stock Analysis

• Market Cap: ¥3.46B
• Dividend Yield: N/A
• Average Volume (3M): 82.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• 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): 1.64
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 29.43
• 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: 56 Neutral
• Price Target: ¥341.00 ▼(-6.06% Downside)
• Action: Downgraded Date: 03/24/26
• Date: Action: Downgraded 03/24/26

The score is driven primarily by improving financial performance and a strong, low-leverage balance sheet. Offsetting this, technical signals are bearish (price below key moving averages and negative MACD) and valuation is weakened by a negative P/E and lack of dividend yield data.

Positive Factors

Revenue growth & improving margins

Sustained top-line expansion alongside reported improvement in net and gross margins indicates durable demand for the company's software infrastructure offerings. Strong revenue growth with margin expansion supports reinvestment in R&D, scalable operating leverage, and longer-term profitability resilience across cycles.

Strong balance sheet, low leverage

A high equity ratio and minimal debt materially reduce financial risk and increase optionality for capex, M&A, or downturns. This capital structure supports flexible funding of growth initiatives, preserves credit capacity, and enhances resilience to industry shocks over the medium term.

Positive operating and free cash flow

Improving operating and free cash flow, and a healthy free cash flow to net income ratio, indicate the business converts earnings to cash reliably. This underpins sustainable investment, reduces reliance on external financing, and supports long-term financial flexibility and shareholder returns.

Negative Factors

Margin and operational volatility

Reported volatility in EBIT/EBITDA margins suggests underlying operational or mix instability—perhaps project concentration, pricing variability, or uneven cost absorption. Persistent margin swings complicate forecasting, capital allocation, and could pressure returns during slower demand periods.

Negative EPS growth

A very large negative EPS growth rate implies meaningful per-share earnings deterioration versus the prior period, which may reflect nonrecurring items, dilution, or profit volatility. Even with revenue gains, EPS instability can limit retained earnings growth and impair investor confidence in sustainable per-share returns.

Limited forward disclosure / guidance

Absence of formal guidance or substantive earnings-call highlights reduces visibility into management's outlook and planning assumptions. This lack of forward disclosure makes it harder for stakeholders to assess execution risk, model future cash flows, and evaluate management's commitment to transparency over 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.

Ubiquitous AI Corporation Financial Statement Overview

Summary

Financials show a meaningful turnaround with a return to positive net income and operating profit in the latest year and improved revenue growth. The balance sheet is a clear strength with low leverage and solid equity, but margins remain thin and both earnings and cash flow have been volatile across years, limiting the score.

Income Statement

Profitability has improved meaningfully versus the loss-making period in 2021–2023, with the latest annual period (2025-03-31) returning to positive net income and positive operating profit. Revenue growth accelerated (2024 to 2025), but margins remain thin (low net and operating profitability), and the business has shown notable volatility across years (profits in 2020, sharp losses in 2021 and 2023, then recovery). Overall: improving trajectory, but still modest profitability for the industry and a choppy earnings history.

Balance Sheet

The balance sheet looks conservatively financed with very low leverage: debt is small relative to equity in the latest period, and equity remains substantial. Return on equity has recovered to positive in the latest year after being negative in several prior years, indicating improving efficiency. Key watch-outs are the earlier stretch of losses (which can pressure equity over time) and the recent increase in debt from a previously debt-free position, though leverage is still very manageable.

Cash Flow

Cash generation has turned solid again: the latest year shows positive operating cash flow and positive free cash flow, with free cash flow broadly tracking net income (good earnings-to-cash quality). However, operating cash flow has been inconsistent over the cycle (negative in 2021 and 2023), and the cash conversion relative to revenue appears modest, suggesting the business is not consistently producing strong cash flow from sales. Overall: improved and supportive of the turnaround, but not yet stable across years.

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	1.65B	1.63B	1.37B	859.72M	989.09M	633.73M
EBITDA	219.47M	219.27M	165.98M	-41.66M	113.28M	29.37M
Net Income	43.07M	91.08M	32.90M	-148.18M	-39.70M	-426.80M
Balance Sheet
Total Assets	3.09B	3.45B	3.73B	2.82B	2.97B	2.84B
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	1.05B	1.40B	511.10M	532.46M	413.67M
Stockholders Equity	2.26B	2.40B	2.33B	2.31B	2.44B	2.43B
Cash Flow
Free Cash Flow	0.00	133.25M	183.75M	-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: Negative
• 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 above the 20-day moving average (MA) of 354.30, below the 50-day MA of 375.32, and below the 200-day MA of 373.77, indicating a bearish trend. The MACD of -7.07 indicates Negative momentum. The RSI at 44.42 is Neutral, neither overbought nor oversold. The STOCH value of 46.09 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
3915	68 Neutral	¥19.68B	9.96	―	―	17.93%	91.21%
3993	68 Neutral	¥86.63B	29.14	6.41%	―	28.88%	27.51%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4434	61 Neutral	¥15.36B	8.71	―	―	―	―
4488	57 Neutral	¥8.53B	86.07	―	―	7.00%	-244.58%
3858	56 Neutral	¥3.46B	-7.14	―	―	4.78%	-234.94%
4180	56 Neutral	¥69.88B	42.73	―	0.18%	25.88%	80.30%