User Local, Inc. (3984) AI Stock Analysis

• Market Cap: ¥29.69B
• Dividend Yield: 0.43%
• Average Volume (3M): 55.15K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 1.07
• Revenue Growth: 17.50%
• EPS Growth: 16.98%
• Country: JP
• Employees: 102
• Sector: Technology
• Sector Strength: 81
• Industry: Information Technology Services
• EPS (TTM): 22.29
• Shares Outstanding: 16,218,300
• 10 Day Avg. Volume: 46,500
• 30 Day Avg. Volume: 55,153
• PEG Ratio: 1.36
• Price to Book (P/B): 6.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.76
• 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

• Rating: 77 Outperform
• 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. Business Overview & Revenue Model

Company Description

User Local, Inc. (3984) is a technology company that specializes in providing artificial intelligence and big data analytics solutions. The company focuses on developing tools that enhance user experience and engagement through AI-driven insights. Its core products are centered around user analytics, social media analysis, and natural language processing, catering to a wide range of industries seeking to optimize their digital strategies.

How the Company Makes Money

User 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

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

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

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.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
4.22B	3.91B	3.29B	2.68B	2.09B	1.67B
	Gross Profit
3.84B	3.57B	3.05B	2.48B	1.89B	1.51B
	EBIT
1.86B	1.73B	1.37B	1.02B	854.75M	687.22M
	EBITDA
1.89B	1.76B	1.38B	1.10B	911.25M	700.24M
	Net Income Common Stockholders
1.28B	1.19B	954.35M	721.89M	615.47M	419.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.84B	7.68B	6.37B	5.32B	4.70B	4.03B
	Total Assets
9.02B	8.84B	7.21B	6.24B	5.28B	4.42B
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-7.84B	-7.68B	-6.37B	-5.32B	-4.70B	-4.03B
	Total Liabilities
1.03B	1.11B	871.51M	700.50M	571.26M	481.13M
	Stockholders Equity
7.99B	7.72B	6.34B	5.54B	4.71B	3.94B
Cash Flow		Free Cash Flow
0.00	1.53B	1.29B	869.30M	676.74M	603.20M
	Operating Cash Flow
0.00	1.55B	1.31B	911.55M	696.73M	621.63M
	Investing Cash Flow
0.00	-198.80M	-28.03M	-120.50M	-100.09M	-23.06M
	Financing Cash Flow
0.00	-36.68M	-238.22M	-167.26M	64.99M	989.49M

User Local, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1870.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3984, the sentiment is Neutral. The current price of 1870 is above the 20-day moving average (MA) of 1863.80, above the 50-day MA of 1740.42, and above the 200-day MA of 1816.40, indicating a neutral trend. The MACD of 29.78 indicates Positive momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 25.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3984.

User Local, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3984	77 Outperform	¥29.69B	22.20		0.43%	17.50%	16.98%
3912	75 Outperform	€7.98B	9.81	24.41%	3.96%	-2.51%	12128.19%
3694	66 Neutral	¥30.81B	25.76		―	0.14%	-21.25%
Sector *	62 Neutral	$11.89B	9.95	-7.22%	4.98%	7.31%	-8.91%
4324	56 Neutral	$828.29B	―	-24.51%	4.38%	6.88%	-1044.58%
3926	47 Neutral	¥15.60B	―	-2.47%	―	-3.62%	-549.45%

User Local, Inc. Corporate Events

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

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.