Kaizen Platform, Inc. (4170) AI Stock Analysis

• Market Cap: ¥3.08B
• Dividend Yield: N/A
• Average Volume (3M): 144.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -1.52%
• EPS Growth: -457.01%
• Country: JP
• Employees: 127
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -0.47
• Shares Outstanding: 17,015,230
• 10 Day Avg. Volume: 100,910
• 30 Day Avg. Volume: 144,510
• PEG Ratio: -0.02
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 17.17
• 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: ¥206.00
• Price Target Upside: 18.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: ¥206.00 ▲(18.39% Upside)

Kaizen Platform, Inc. demonstrates strong revenue growth and improved cash flow management, but persistent profitability issues and negative valuation metrics weigh heavily on the stock. Technical indicators suggest weak momentum, further impacting the overall score.

Kaizen Platform, Inc. Business Overview & Revenue Model

Company Description

Kaizen Platform, Inc. is a technology-driven company specializing in the development of innovative solutions for digital marketing and optimization. Operating primarily within the tech sector, the company focuses on providing tools and services that enhance user experience, drive conversion rates, and improve overall business performance for its clients. Kaizen Platform leverages data analytics and machine learning to offer a range of services, including website optimization, A/B testing, and user experience enhancements, catering to a diverse clientele across various industries.

How the Company Makes Money

Kaizen Platform, Inc. generates revenue primarily through a subscription-based model, offering clients access to its suite of optimization tools and services. The company charges fees for its platform usage, which can vary based on the level of service and features required by clients. Additionally, Kaizen may earn revenue from consulting services provided to help businesses implement effective digital marketing strategies. Key revenue streams include recurring subscription fees, one-time consulting fees, and potentially performance-based incentives tied to the success of client campaigns. Strategic partnerships with other tech firms and digital marketing agencies also contribute to its earnings by expanding its reach and enhancing service offerings.

Kaizen Platform, Inc. Financial Statement Overview

Summary

Kaizen Platform, Inc. shows strong revenue growth and improved cash flow management. However, persistent profitability issues, as evidenced by negative net income and EBIT, pose challenges. The balance sheet indicates low leverage but increasing debt reliance. Overall, while there are positive trends in revenue and cash flow, profitability remains a key concern.

Income Statement

Kaizen Platform, Inc. shows strong revenue growth, increasing from 1,354 million JPY in 2019 to 4,523 million JPY in 2024. The gross profit margin remains healthy, but the company struggles with profitability, as indicated by negative EBIT and net income. The EBITDA margin has seen improvements, but the net profit margin remains negative, highlighting ongoing profitability challenges.

Balance Sheet

The company maintains a strong equity base with a high equity ratio, indicating low financial leverage. However, the debt-to-equity ratio has increased over the years, suggesting a growing reliance on debt financing. ROE is negative due to consistent net losses, which is a concern for equity returns.

Cash Flow

Free cash flow has improved significantly from negative values in previous years to a positive 200 million JPY in 2024, indicating better cash management. The operating cash flow to net income ratio indicates strong cash flow generation relative to net income. However, historical fluctuations in free cash flow highlight potential cash flow volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.42B	4.52B	4.34B	2.67B	2.26B	1.69B
Gross Profit	1.39B	1.37B	1.33B	955.06M	934.20M	822.19M
EBITDA	206.92M	112.27M	280.15M	49.38M	156.76M	128.44M
Net Income	-107.08M	-171.97M	-21.70M	-285.79M	-101.66M	107.38M
Balance Sheet
Total Assets	4.21B	4.42B	4.37B	5.24B	4.36B	3.39B
Cash, Cash Equivalents and Short-Term Investments	2.84B	2.91B	2.54B	3.34B	3.01B	2.66B
Total Debt	811.42M	914.71M	598.79M	1.34B	671.00M	250.00M
Total Liabilities	1.34B	1.46B	1.18B	1.96B	1.01B	534.16M
Stockholders Equity	2.88B	2.96B	3.15B	3.18B	3.28B	2.85B
Cash Flow
Free Cash Flow	0.00	167.52M	-19.41M	-90.16M	-249.03M	-88.64M
Operating Cash Flow	0.00	216.62M	78.49M	127.64M	16.45M	120.02M
Investing Cash Flow	0.00	-129.46M	-819.05M	-446.69M	-580.89M	-265.00M
Financing Cash Flow	0.00	110.94M	-908.60M	505.19M	852.04M	1.89B

Kaizen Platform, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 174.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4170, the sentiment is Negative. The current price of 174 is below the 20-day moving average (MA) of 188.20, below the 50-day MA of 205.08, and below the 200-day MA of 185.37, indicating a bearish trend. The MACD of -7.95 indicates Positive momentum. The RSI at 41.42 is Neutral, neither overbought nor oversold. The STOCH value of 42.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4170.

Kaizen Platform, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3690	56 Neutral	¥3.71B	31.29	―	1.35%	24.61%	19.89%
7036	56 Neutral	¥3.53B	27.19	―	3.62%	10.03%	236.86%
4170	54 Neutral	¥3.08B	―	―	―	-1.52%	-457.01%
7069	48 Neutral	¥3.04B	23.18	―	―	-5.87%	―
7078	48 Neutral	¥4.45B	―	―	―	-8.33%	-462.10%
7359	43 Neutral	¥3.95B	―	―	―	4.43%	24.14%

Kaizen Platform, Inc. Corporate Events

Kaizen Platform, Inc. Reports First Quarter Financial Results with Improved Profitability

Kaizen Platform, Inc. reported its consolidated financial results for the first quarter ending March 31, 2025, showing a slight decline in sales compared to the previous year. Despite the decrease in sales, the company managed to achieve a positive net income attributable to parent company shareholders, indicating an improvement in profitability. The financial position of the company remains stable with a high equity ratio, although there was a slight decrease in net assets. The company has maintained its dividend forecast, indicating no changes from previous expectations.