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Akatsuki, Inc. (JP:3932)
:3932
Japanese Market
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Akatsuki, Inc. (3932) AI Stock Analysis

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JP:3932

Akatsuki, Inc.

(3932)

Rating:66Neutral
Price Target:
¥3,234.00
▲(13.00% Upside)
The overall stock score for Akatsuki, Inc. is primarily influenced by its strong balance sheet and improved profitability margins, despite challenges in revenue contraction and cash flow volatility. The technical analysis presents a mixed outlook, with some short-term bullish signals but potential overbought conditions. The high P/E ratio suggests overvaluation, tempered by a reasonable dividend yield.

Akatsuki, Inc. (3932) vs. iShares MSCI Japan ETF (EWJ)

Akatsuki, Inc. Business Overview & Revenue Model

Company DescriptionAkatsuki, Inc. (3932) is a Japanese technology and entertainment company primarily engaged in the development and distribution of mobile games and digital content. The company operates in sectors such as gaming, entertainment, and media, with a focus on creating innovative and engaging experiences for users worldwide. Akatsuki is known for its popular mobile game titles and collaborations with entertainment franchises to expand its content offerings.
How the Company Makes MoneyAkatsuki, Inc. generates revenue primarily through its mobile gaming segment, which includes in-app purchases, advertising, and licensing deals. The company develops and publishes free-to-play games that monetize through the sale of virtual items and premium features. Additionally, Akatsuki partners with entertainment companies to create games based on popular intellectual properties, leveraging these partnerships to reach a wider audience. The company also earns revenue from collaborations in the entertainment and media sector, providing digital content and services that complement its gaming business.

Akatsuki, Inc. Financial Statement Overview

Summary
Akatsuki, Inc. presents a mixed financial profile. While profitability margins have improved and the balance sheet reflects strong financial health, revenue contraction and cash flow volatility pose challenges. The company should focus on stabilizing revenues and enhancing operational efficiency to sustain long-term growth. With a low debt burden and solid equity, Akatsuki is well-positioned to address these challenges.
Income Statement
72
Positive
Akatsuki, Inc. has demonstrated a declining revenue trend over the past few years, with the most recent annual report showing a total revenue of ¥23.65 billion, down from ¥31.10 billion in 2021. Gross profit margin improved slightly to 57.9% in 2025 from 56.3% in 2024, and the net profit margin increased to 7.0% from 5.4%. Despite these improvements, EBIT and EBITDA margins have shown volatility, indicating operational challenges.
Balance Sheet
80
Positive
The company maintains a strong balance sheet with a debt-to-equity ratio of 0.15, reflecting low leverage. Equity ratio stands at 75.9%, showcasing a solid equity base. Return on equity has been stable, although it slightly decreased to 4.0% in 2025. Overall, Akatsuki, Inc. exhibits financial stability, with ample cash reserves and manageable debt levels.
Cash Flow
68
Positive
Akatsuki, Inc. experienced significant improvement in cash flow, with free cash flow turning positive in 2025 at ¥3.80 billion, up from negative free cash flow in the previous year. However, the operating cash flow to net income ratio indicates some inconsistency, and the free cash flow to net income ratio shows potential for improvement. While the cash flow situation has improved, it remains a point of focus for future stability.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue23.65B23.65B23.97B24.34B26.27B31.10B
Gross Profit13.70B13.70B13.49B14.35B15.50B18.94B
EBITDA4.74B4.74B2.43B3.99B7.46B9.35B
Net Income1.65B1.65B1.29B1.34B5.19B6.34B
Balance Sheet
Total Assets54.63B54.63B52.04B53.16B46.08B46.06B
Cash, Cash Equivalents and Short-Term Investments28.38B28.38B30.96B34.07B25.72B30.99B
Total Debt6.10B6.10B7.10B10.20B4.21B5.31B
Total Liabilities13.18B13.18B11.83B14.40B7.84B10.28B
Stockholders Equity41.44B41.44B40.19B38.75B38.24B35.77B
Cash Flow
Free Cash Flow0.003.29B-325.00M4.99B4.35B9.93B
Operating Cash Flow0.003.64B-84.00M5.05B4.79B10.01B
Investing Cash Flow0.00-1.24B-77.00M1.19B-3.01B-4.77B
Financing Cash Flow0.00-2.14B-3.24B4.92B-4.19B-3.53B

Akatsuki, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2862.00
Price Trends
50DMA
2973.56
Negative
100DMA
3039.25
Negative
200DMA
2909.29
Negative
Market Momentum
MACD
-37.44
Positive
RSI
41.51
Neutral
STOCH
20.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3932, the sentiment is Negative. The current price of 2862 is below the 20-day moving average (MA) of 2978.65, below the 50-day MA of 2973.56, and below the 200-day MA of 2909.29, indicating a bearish trend. The MACD of -37.44 indicates Positive momentum. The RSI at 41.51 is Neutral, neither overbought nor oversold. The STOCH value of 20.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3932.

Akatsuki, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
¥14.66B22.26
1.40%1.15%-8.55%
66
Neutral
¥41.27B55.03
3.32%-10.86%-64.25%
60
Neutral
$46.60B4.09-11.41%4.12%1.85%-42.71%
58
Neutral
¥38.13B43.62
-13.60%5.59%
54
Neutral
¥12.52B8.80
4.13%
50
Neutral
¥30.56B15.04
-25.89%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3932
Akatsuki, Inc.
2,862.00
919.99
47.37%
JP:3723
Nihon Falcom Corporation
1,440.00
350.54
32.18%
JP:3903
gumi, Inc.
611.00
308.00
101.65%
JP:3911
Aiming, Inc.
268.00
46.00
20.72%
JP:4393
Bank of Innovation, Inc.
9,800.00
4,350.00
79.82%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 28, 2025