Appirits Inc. (4174) AI Stock Analysis

• Market Cap: ¥3.14B
• Dividend Yield: 2.96%
• Average Volume (3M): 5.71K
• Price to Earnings (P/E): 77.2
• Beta (1Y): 0.66
• Revenue Growth: 9.30%
• EPS Growth: -109.29%
• Country: JP
• Employees: 720
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Application
• EPS (TTM): -2.44
• Shares Outstanding: 4,189,662
• 10 Day Avg. Volume: 4,740
• 30 Day Avg. Volume: 5,713
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥740.00
• Price Target Upside: -1.86% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: ¥740.00 ▼(-1.86% Downside)

The overall stock score reflects significant challenges in financial performance, particularly in profitability and cash flow management, despite strong revenue growth. Technical indicators are bearish, as the stock trades below key moving averages, and valuation metrics are concerning due to a negative P/E ratio. The dividend yield offers some investment appeal, but overall, the risks weigh heavily on the stock's outlook.

Appirits Inc. Business Overview & Revenue Model

Company Description

Appirits Inc. (4174) is a Japanese company primarily engaged in the development and operation of online games and web systems. The company focuses on creating engaging and innovative gaming experiences, leveraging its expertise in online game development and operation. It also offers web system development services, providing customized solutions that cater to various client needs across different industries.

How the Company Makes Money

Appirits Inc. generates revenue primarily through its online gaming segment. The company earns money from in-game purchases, subscriptions, and advertisements within its games. Players often purchase virtual goods or upgrades to enhance their gaming experience, contributing significantly to the company's income. Additionally, Appirits provides web system development services, which involve creating tailored software solutions for businesses. This segment generates revenue through project-based contracts and long-term maintenance agreements. The company's earnings are further supported by strategic partnerships and collaborations that expand its reach and enhance its product offerings.

Appirits Inc. Financial Statement Overview

Summary

Appirits Inc. demonstrates strong revenue growth but faces challenges with declining profit margins and negative free cash flow, which raise concerns about profitability and cash management. The balance sheet is stable with moderate leverage.

Income Statement

The company exhibits a strong revenue growth with a noticeable increase from ¥3.88 billion in 2021 to ¥9.01 billion in 2025. However, the gross profit margin has declined from approximately 30.4% in 2021 to 21.0% in 2025, indicating rising costs or pricing pressure. Net profit margin also decreased significantly from 3.2% in 2021 to 0.5% in 2025. This suggests challenges in maintaining profitability despite revenue growth.

Balance Sheet

The debt-to-equity ratio increased, indicating higher leverage, yet remains manageable with substantial equity backing. Stockholders' equity has consistently grown, reaching ¥2.39 billion in 2025, showing strong asset backing. The equity ratio remains stable at about 41.6% in 2025, reflecting a balanced financial structure.

Cash Flow

Free cash flow has turned negative in 2025, indicating potential liquidity issues, as it dropped from ¥207.7 million in 2024 to negative ¥175.2 million. Moreover, the operating cash flow to net income ratio has significantly decreased, highlighting inefficiencies in converting income to cash. Although operating cash flow remains positive, it has significantly decreased from previous years.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.01B	8.43B	7.32B	4.80B	3.89B
Gross Profit	1.89B	2.03B	1.75B	1.19B	1.18B
EBITDA	332.42M	750.32M	578.39M	240.77M	264.69M
Net Income	45.97M	386.32M	210.21M	109.21M	125.60M
Balance Sheet
Total Assets	5.76B	4.59B	4.20B	2.82B	2.08B
Cash, Cash Equivalents and Short-Term Investments	2.29B	1.74B	1.82B	1.44B	1.03B
Total Debt	1.77B	797.50M	607.50M	312.81M	43.12M
Total Liabilities	3.37B	2.12B	2.08B	891.32M	545.99M
Stockholders Equity	2.39B	2.47B	2.12B	1.92B	1.53B
Cash Flow
Free Cash Flow	-175.24M	207.75M	477.65M	208.81M	149.47M
Operating Cash Flow	10.13M	251.69M	535.67M	307.66M	173.87M
Investing Cash Flow	-160.99M	-462.81M	-254.91M	-426.43M	-89.78M
Financing Cash Flow	702.65M	130.88M	102.50M	525.03M	-60.05M

Appirits Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 754.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4174, the sentiment is Neutral. The current price of 754 is above the 20-day moving average (MA) of 737.36, above the 50-day MA of 749.13, and below the 200-day MA of 766.38, indicating a neutral trend. The MACD of 1.50 indicates Negative momentum. The RSI at 61.08 is Neutral, neither overbought nor oversold. The STOCH value of 95.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4174.

Appirits Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4447	72 Outperform	¥3.86B	19.93		1.68%	42.88%	-5.21%
5035	66 Neutral	¥3.59B	30.22		0.61%	3.65%	-4.30%
Sector *	61 Neutral	3.19B	12.55	-24.61%	3.45%	13.92%	29.92%
4484	61 Neutral	¥4.45B	28.40		―	1.83%	-20.00%
4174	51 Neutral	¥3.14B	77.18		2.96%	9.30%	-109.29%

Appirits Inc. Corporate Events

Appirits Inc. Reports Financial Results and Positive Outlook for 2026

Appirits Inc. reported its consolidated financial results for the fiscal year ending January 31, 2025, showing a 6.9% increase in net sales to ¥9,008 million. However, the company experienced significant declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 69.0%, 68.9%, and 88.1%, respectively. The company plans to increase its annual dividend to ¥16.00 per share, reflecting a higher payout ratio. The financial forecast for the fiscal year ending January 31, 2026, anticipates a 16.2% increase in net sales and substantial growth in profits, indicating a positive outlook for the company.