Akatsuki, Inc. (3932) AI Stock Analysis

• Market Cap: ¥43.84B
• Dividend Yield: 4.06%
• Average Volume (3M): 61.17K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.40
• Revenue Growth: -15.30%
• EPS Growth: 39.61%
• Country: JP
• Employees: 539
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 69.55
• Shares Outstanding: 14,519,800
• 10 Day Avg. Volume: 39,880
• 30 Day Avg. Volume: 61,166
• PEG Ratio: 2.76
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 1.90
• P/FCF Ratio: 13.63
• 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): 209.75
• Revenue Forecast (FY): ¥21.60B

• Rating: 60 Neutral
• Price Target: ¥3,287.00 ▲(23.94% Upside)
• Action: Reiterated Date: 11/19/25
• Date: Action: Reiterated 11/19/25

Akatsuki, Inc.'s overall stock score is driven by its strong financial health and attractive dividend yield. However, the bearish technical indicators and revenue challenges weigh on the score. The company needs to stabilize revenues and improve cash flow to enhance its market position.

Positive Factors

Strong balance sheet and low leverage

A very low debt-to-equity ratio and high equity ratio provide durable financial flexibility. This reduces refinancing and solvency risk, allowing the company to fund multi‑year game development, sustain operations through product cycles, and pursue strategic investments without stressing capital structure.

Improving profitability margins

Wider gross and rising net margins signal stronger pricing power or better cost control in the core games business. Sustained margins improve return on new IP and marketing spend, enabling reinvestment into live service content and extending the runway for product development without proportionate revenue growth.

Free cash flow turned positive

A shift to positive free cash flow marks an important structural improvement in cash generation. Reliable FCF supports dividends, R&D and live-ops spend, and reduces dependence on external financing, enhancing the company's ability to execute longer-term content roadmaps and sustain operations.

Negative Factors

Declining revenue trend

A multi-year revenue decline indicates weakening top-line momentum or market share erosion in a hit-driven sector. Persistent revenue contraction undermines scale economics, pressures long-term growth prospects, and forces reliance on margin gains or cost cuts to maintain earnings and fund content pipelines.

Volatile EBIT and EBITDA margins

Material swings in operating margins point to uneven cost absorption or hit-driven revenue volatility typical in gaming. This reduces predictability of operating performance, complicates multi-year budgeting for game development, and raises execution risk for sustaining recurring revenue streams.

Inconsistent cash conversion

Inconsistent conversion of accounting profits into operating cash suggests working capital sensitivity or timing effects. Even with positive FCF, irregular cash conversion can strain funding for long development cycles and make dividend or investment commitments less reliable over the medium term.

Akatsuki, Inc. Business Overview & Revenue Model

Company Description

Akatsuki Inc. engages in the mobile game and live experience businesses primarily in Japan. It develops mobiles games. The company also operates Asobuild, an entertainment facility service site; Pong!Pong!, a ping pong table activity and projection mapping service site; Sotoasobi, a service site to provide reservations for outdoor and leisure activities; and Daigomi, a Cheese restaurants. In addition, it provides Crayon, an app development support services to artists, creators, and athletes; a media franchise project of both music and audio drama CDs on themes of Jazz; and operates Kumarba Channel, an education and entertainment channel distributed through YouTube platform. The company was founded in 2010 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Akatsuki, 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. shows a mixed financial profile with improved profitability margins and a strong balance sheet, but faces challenges with revenue contraction and cash flow volatility. The low debt burden and solid equity position provide a stable foundation.

Income Statement

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

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

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.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	21.83B	23.65B	23.97B	24.34B	26.27B	31.10B
Gross Profit	12.37B	13.70B	13.49B	14.35B	15.50B	18.94B
EBITDA	3.47B	4.74B	2.43B	3.99B	7.46B	9.35B
Net Income	750.00M	1.65B	1.29B	1.34B	5.19B	6.34B
Balance Sheet
Total Assets	50.98B	54.63B	52.04B	53.16B	46.08B	46.06B
Cash, Cash Equivalents and Short-Term Investments	28.31B	33.30B	30.96B	34.07B	25.72B	30.99B
Total Debt	6.10B	6.10B	7.10B	10.20B	4.21B	5.31B
Total Liabilities	10.56B	13.18B	11.83B	14.40B	7.84B	10.28B
Stockholders Equity	40.40B	41.44B	40.19B	38.75B	38.24B	35.77B
Cash Flow
Free Cash Flow	0.00	3.29B	-325.00M	4.99B	4.35B	9.93B
Operating Cash Flow	0.00	3.64B	-84.00M	5.05B	4.79B	10.01B
Investing Cash Flow	0.00	-1.24B	-77.00M	1.19B	-3.01B	-4.77B
Financing Cash Flow	0.00	-2.14B	-3.24B	4.92B	-4.19B	-3.53B

Akatsuki, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2652.00
• 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:3932, the sentiment is Positive. The current price of 2652 is below the 20-day moving average (MA) of 2840.75, below the 50-day MA of 2721.26, and below the 200-day MA of 2785.39, indicating a bullish trend. The MACD of 123.91 indicates Negative momentum. The RSI at 76.06 is Negative, neither overbought nor oversold. The STOCH value of 89.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3932.

Akatsuki, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7803	67 Neutral	¥37.25B	7.76	―	0.74%	22.82%	811.76%
3765	61 Neutral	¥141.41B	101.24	3.38%	2.38%	-3.12%	-63.07%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3932	60 Neutral	¥43.84B	11.64	―	4.06%	-15.30%	39.61%
3632	54 Neutral	¥68.95B	44.90	4.14%	2.09%	-2.61%	116.80%
3903	46 Neutral	¥16.89B	5.54	―	―	-37.68%	―
3656	45 Neutral	¥26.74B	-4.34	―	―	-14.71%	-38.87%