KAYAC, Inc. (3904) AI Stock Analysis

• Market Cap: ¥7.04B
• Dividend Yield: 0.89%
• Average Volume (3M): 67.83K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.45
• Revenue Growth: 1.91%
• EPS Growth: 9.12%
• Country: JP
• Employees: 612
• Sector: Communication Services
• Sector Strength: 81
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 25.64
• Shares Outstanding: 16,108,800
• 10 Day Avg. Volume: 17,110
• 30 Day Avg. Volume: 67,826
• PEG Ratio: 0.13
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥518.00
• Price Target Upside: 18.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: ¥468.00 ▲(7.34%Upside)

KAYAC, Inc.'s stock score reflects mixed financial performance and technical indicators. While past financial growth is notable, recent declines in revenue, profitability, and cash flow are concerning. The stock is reasonably valued and offers a modest dividend yield. Technical indicators suggest a neutral to slightly bearish trend, necessitating close monitoring of potential recovery or further decline.

KAYAC, Inc. Business Overview & Revenue Model

Company Description

KAYAC, Inc. is a Japanese company primarily engaged in the digital entertainment sector. It specializes in developing and managing mobile games, web services, and other digital content. The company is known for its creative and innovative approach in the online entertainment industry, offering a wide array of products and services that cater to various consumer interests.

How the Company Makes Money

KAYAC, Inc. generates revenue through several key streams. The primary source of income is its mobile gaming segment, where the company earns money from in-app purchases and advertising. The company also offers web services and digital content that contribute to its revenue, including online platforms and applications. Additionally, KAYAC has strategic partnerships and collaborations that enhance its product offerings and expand its market reach, further contributing to its financial performance.

KAYAC, Inc. Financial Statement Overview

Summary

KAYAC, Inc. exhibits a mixed financial performance. While past years showed strong growth and profitability, recent financials highlight challenges, including declining revenue and profitability, as well as cash flow issues. Strengths include a robust equity base and controlled debt levels, but operational and cash flow inefficiencies need addressing for sustained growth.

Income Statement

KAYAC, Inc. has demonstrated consistent revenue growth over the past few years, with a notable increase from 2019 to 2023. However, recent figures for 2024 indicate a decline in total revenue. Gross profit margin remains healthy, though net profit margin has decreased significantly in the most recent year due to a sharp drop in net income. EBIT and EBITDA margins have also weakened, reflecting reduced operational efficiency.

Balance Sheet

The company's balance sheet shows strong equity growth, with stockholders' equity increasing steadily. The debt-to-equity ratio is manageable, indicating a balanced leverage. However, the rise in total debt in 2024 suggests potential future risks. The equity ratio remains robust, reflecting a strong asset base relative to liabilities.

Cash Flow

Cash flow analysis reveals a concerning trend with negative operating and free cash flows in 2024, contrasting with previous positive figures. The free cash flow to net income ratio has turned negative, indicating a need for better cash management. Despite this, past years have shown strong free cash flow generation and satisfactory operating cash flow to net income ratios.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.73B	17.47B	16.50B	12.57B	8.75B
Gross Profit	9.03B	9.23B	7.92B	5.93B	3.96B
EBITDA	706.00M	1.30B	1.51B	1.59B	923.32M
Net Income	149.05M	511.18M	779.84M	828.84M	505.21M
Balance Sheet
Total Assets	12.88B	11.68B	10.97B	7.84B	7.02B
Cash, Cash Equivalents and Short-Term Investments	4.96B	5.00B	4.13B	2.46B	2.51B
Total Debt	3.27B	2.12B	2.34B	2.29B	2.77B
Total Liabilities	6.85B	5.75B	5.63B	4.25B	4.39B
Stockholders Equity	5.56B	5.46B	4.87B	3.31B	2.48B
Cash Flow
Free Cash Flow	-440.24M	974.02M	1.42B	352.09M	1.21B
Operating Cash Flow	-219.66M	1.12B	1.77B	489.66M	1.30B
Investing Cash Flow	-953.00M	-354.22M	-909.26M	13.41M	223.83M
Financing Cash Flow	930.46M	-35.63M	931.60M	-572.15M	-263.61M

KAYAC, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 436.00
• 50DMA: Positive
• 100DMA: Positive
• 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:3904, the sentiment is Positive. The current price of 436 is below the 20-day moving average (MA) of 440.10, above the 50-day MA of 432.20, and below the 200-day MA of 461.21, indicating a neutral trend. The MACD of -1.53 indicates Positive momentum. The RSI at 51.19 is Neutral, neither overbought nor oversold. The STOCH value of 64.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3904.

KAYAC, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3760	81 Outperform	¥7.10B	5.02		0.94%	16.25%	-27.48%
6033	80 Outperform	¥6.80B	5.90		3.24%	10.95%	11.10%
3904	65 Neutral	¥7.04B	16.65		0.89%	1.91%	9.12%
Sector *	62 Neutral	$40.76B	-1.15	-12.05%	3.90%	2.03%	-69.70%
3907	60 Neutral	¥2.31B	8.80		―	-2.54%	-6.52%
3851	58 Neutral	¥4.26B	41.88		0.59%	-0.75%	-126.41%
3656	45 Neutral	¥6.84B	―		―	-11.13%	28.02%