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User Local, Inc. (JP:3984)
:3984
Japanese Market
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User Local, Inc. (3984) AI Stock Analysis

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JP:3984

User Local, Inc.

(3984)

Rating:77Outperform
Price Target:
User Local, Inc. demonstrates strong financial stability with excellent profitability and a robust balance sheet. The stock shows positive short-term momentum, although caution is warranted due to potential overbought conditions. The valuation appears fair, offering moderate appeal to growth-focused investors. The primary risk lies in the company's recent cash flow challenges, which require careful monitoring to ensure continued financial strength.

User Local, Inc. (3984) vs. iShares MSCI Japan ETF (EWJ)

User Local, Inc. Business Overview & Revenue Model

Company DescriptionUser Local, Inc. develops various analysis tools for website creators and marketers. The company engages in the research and development of big data analysis systems. It also provides Web marketing support tools under the User Insight name; social media analysis tools under the Social Insight name; and media analysis tools under the Media Insight name, as well as manages artificial intelligence chat bot. In addition, the company offers text mining, emotion and face recognition, future prediction, and automotive image processing AI services, as well as automatic summarization tools, AI comment systems, personal information anonymization filters, and duplicate aggregation tools. The company was incorporated in 2005 and is based in Tokyo, Japan.
How the Company Makes MoneyUser Local, Inc. makes money primarily through the sale of its AI-powered analytics tools and solutions. These products are offered as subscription services to businesses looking to leverage data-driven insights for digital marketing, customer engagement, and strategic decision-making. The company also generates revenue through partnerships with other technology firms and enterprises, providing customized AI solutions tailored to specific industry needs. Additionally, User Local may engage in consultancy services, offering expertise in implementing AI technologies across various business sectors.

User Local, Inc. Financial Statement Overview

Summary
User Local, Inc. exhibits strong financial health with robust revenue growth and high profitability. The balance sheet is particularly strong with no debt and a solid equity base. However, recent cash flow figures, particularly operating and free cash flow, require further investigation to ensure ongoing financial flexibility and operational efficiency.
Income Statement
92
Very Positive
User Local, Inc. demonstrates strong financial performance with impressive growth rates and margins. The company's TTM gross profit margin is 90.8%, and the net profit margin is 30.4%, indicating high profitability. The TTM revenue growth rate is 8.1%, showing consistent business expansion. EBIT and EBITDA margins are also robust at 44.1% and 44.8%, respectively.
Balance Sheet
95
Very Positive
The balance sheet reflects an excellent financial position with no debt and a high equity ratio of 88.6%. The return on equity (ROE) is 16.1%, showcasing effective use of equity financing. The company maintains substantial cash reserves, further enhancing financial stability.
Cash Flow
60
Neutral
Cash flow metrics show a mixed performance with a strong historical growth trajectory but some recent challenges. Historical free cash flow growth has been positive, but current TTM free cash flow data is unavailable, and operating cash flow is reported as zero. The company's capability to convert profits into cash needs closer examination.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue3.91B3.29B2.68B2.09B1.67B
Gross Profit3.57B3.05B2.48B1.89B1.51B
EBITDA1.76B1.38B1.10B911.25M700.24M
Net Income1.19B954.35M721.89M615.47M419.87M
Balance Sheet
Total Assets8.84B7.21B6.24B5.28B4.42B
Cash, Cash Equivalents and Short-Term Investments7.68B6.37B5.32B4.70B4.03B
Total Debt0.000.000.000.000.00
Total Liabilities1.11B871.51M700.50M571.26M481.13M
Stockholders Equity7.72B6.34B5.54B4.71B3.94B
Cash Flow
Free Cash Flow1.53B1.29B869.30M676.74M603.20M
Operating Cash Flow1.55B1.31B911.55M696.73M621.63M
Investing Cash Flow-198.80M-28.03M-120.50M-100.09M-23.06M
Financing Cash Flow-36.68M-238.22M-167.26M64.99M989.49M

User Local, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1971.00
Price Trends
50DMA
1857.81
Positive
100DMA
1756.01
Positive
200DMA
1800.43
Positive
Market Momentum
MACD
41.74
Negative
RSI
72.36
Negative
STOCH
86.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3984, the sentiment is Positive. The current price of 1971 is above the 20-day moving average (MA) of 1874.40, above the 50-day MA of 1857.81, and above the 200-day MA of 1800.43, indicating a bullish trend. The MACD of 41.74 indicates Negative momentum. The RSI at 72.36 is Negative, neither overbought nor oversold. The STOCH value of 86.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3984.

User Local, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥26.04B10.97
1.14%11.94%14.10%
77
Outperform
¥32.17B24.06
0.70%17.50%16.98%
76
Outperform
¥29.27B19.94
1.77%20.75%31.02%
73
Outperform
¥30.87B25.26
0.56%10.35%98.15%
68
Neutral
¥35.48B83.11
25.51%95.13%
61
Neutral
$34.83B4.75-10.43%2.08%6.55%-10.00%
60
Neutral
¥37.78B67.92
-17.30%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3984
User Local, Inc.
2,011.00
338.48
20.24%
JP:2158
FRONTEO, Inc.
975.00
469.00
92.69%
JP:2349
Nippon Information Development Co., Ltd.
2,372.00
83.70
3.66%
JP:3655
BrainPad Inc.
1,416.00
565.87
66.56%
JP:4396
System Support, Inc.
3,025.00
1,354.81
81.12%
JP:5574
ABEJA,Inc.
3,705.00
1,947.00
110.75%

User Local, Inc. Corporate Events

User Local, Inc. Reports Strong Financial Growth for Six Months Ending December 2024
Feb 12, 2025

User Local, Inc. reported a significant growth in its financial results for the six months ending December 31, 2024, with a 16.9% increase in net sales and a 16.8% rise in operating profit compared to the previous year. This performance highlights the company’s strong market position and strategic focus on expansion, as well as its commitment to delivering value to shareholders through a stable financial position and increased dividend forecasts for the fiscal year ending June 30, 2025.

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: May 03, 2025