KAYAC, Inc. (3904) AI Stock Analysis

• Market Cap: ¥6.93B
• Dividend Yield: 0.69%
• Average Volume (3M): 16.59K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.37
• Revenue Growth: 12.70%
• EPS Growth: 2207.66%
• Country: JP
• Employees: 612
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 18.30
• Shares Outstanding: 16,108,800
• 10 Day Avg. Volume: 14,260
• 30 Day Avg. Volume: 16,593
• PEG Ratio: -0.69
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.44
• P/FCF Ratio: -16.61
• 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: 75 Outperform
• Price Target: ¥675.00 ▲(19.26% Upside)

KAYAC, Inc. receives a score of 75, driven by strong technical indicators and reasonable valuation. However, financial performance challenges, including declining revenue and cash flow issues, temper the overall outlook. The stock's bullish momentum is a significant positive, but potential overbought conditions warrant caution.

Positive Factors

Business Model Strength

KAYAC's diversified revenue streams from online games, digital content, and web consulting provide a robust business model that can adapt to market changes.

Competitive Advantages

Strategic partnerships and collaborations enhance KAYAC's product offerings and market reach, strengthening its competitive position in the gaming industry.

Balance Sheet Health

A strong balance sheet with manageable debt levels provides financial stability and flexibility to invest in growth opportunities.

Negative Factors

Revenue Decline

The recent decline in revenue indicates potential challenges in maintaining growth, which could impact long-term financial performance.

Cash Flow Issues

Negative cash flows highlight inefficiencies in cash management, posing risks to operational sustainability and investment capacity.

Margin Sustainability

Decreasing net profit margins reflect reduced operational efficiency, which could hinder profitability and long-term growth potential.

KAYAC, Inc. Business Overview & Revenue Model

Company Description

KAYAC Inc. engages in the game-related business in Japan. It also operates a game community under the name Lobi; Tonamel, a tournament format where organizers manage their tournaments; and Pla-cole, a matching service for couples and wedding planners, as well as provides esports event planning and management, distribution, and production services under the Well Played name. In addition, the company offers home funeral, real estate, and trading services. KAYAC Inc. was founded in 1998 and is headquartered in Kamakura, Japan.

How the Company Makes Money

KAYAC generates revenue primarily through the sale of online games and digital content, including in-game purchases and subscriptions. Their revenue model includes monetization strategies such as microtransactions and advertising within their gaming platforms. Additionally, KAYAC earns income through web consulting services, where they assist businesses in developing and optimizing their online presence. Partnerships with other gaming companies and collaborations on joint projects further contribute to their earnings, providing access to new markets and enhancing their product offerings.

KAYAC, Inc. Financial Statement Overview

Summary

KAYAC, Inc. has shown strong revenue growth historically, but recent declines in revenue and profitability, along with negative cash flows, highlight operational challenges. The balance sheet remains strong with manageable debt levels.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.85B	16.73B	17.47B	16.50B	12.57B	8.75B
Gross Profit	9.94B	9.03B	9.23B	7.92B	5.93B	3.96B
EBITDA	999.45M	706.00M	1.30B	1.51B	1.59B	923.32M
Net Income	477.07M	149.05M	511.18M	779.84M	828.84M	505.21M
Balance Sheet
Total Assets	12.60B	12.88B	11.68B	10.98B	7.84B	7.02B
Cash, Cash Equivalents and Short-Term Investments	6.05B	4.96B	5.00B	4.13B	2.46B	2.51B
Total Debt	3.06B	3.27B	2.12B	2.34B	2.29B	2.77B
Total Liabilities	6.34B	6.85B	5.75B	5.64B	4.25B	4.39B
Stockholders Equity	5.84B	5.56B	5.46B	4.87B	3.31B	2.48B
Cash Flow
Free Cash Flow	0.00	-440.24M	974.02M	1.42B	352.09M	1.21B
Operating Cash Flow	0.00	-219.66M	1.12B	1.77B	489.66M	1.30B
Investing Cash Flow	0.00	-953.00M	-354.22M	-909.26M	13.41M	223.83M
Financing Cash Flow	0.00	930.46M	-35.63M	931.60M	-572.15M	-263.61M

KAYAC, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 566.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 566 is above the 20-day moving average (MA) of 485.05, above the 50-day MA of 465.36, and above the 200-day MA of 446.01, indicating a bullish trend. The MACD of 33.09 indicates Negative momentum. The RSI at 72.53 is Negative, neither overbought nor oversold. The STOCH value of 85.60 is Negative, 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
3904	75 Outperform	¥6.93B	14.52	―	0.69%	12.70%	2207.66%
6033	73 Outperform	¥7.27B	6.62	―	3.12%	3.71%	8.45%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3907	58 Neutral	¥2.44B	7.78	―	1.26%	2.33%	―
3656	51 Neutral	¥12.61B	-1.73	―	―	-14.71%	-38.87%
3851	51 Neutral	¥4.13B	-17.78	―	0.61%	-13.35%	-258.79%
3760	49 Neutral	¥5.24B	-11.62	―	1.29%	4.29%	-123.59%