Appirits Inc. (4174) AI Stock Analysis

• Market Cap: ¥2.85B
• Dividend Yield: 3.41%
• Average Volume (3M): 9.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: 18.78%
• EPS Growth: -134.64%
• Country: JP
• Employees: 720
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -21.80
• Shares Outstanding: 4,189,662
• 10 Day Avg. Volume: 3,780
• 30 Day Avg. Volume: 9,890
• PEG Ratio: -0.79
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 0.36
• P/FCF Ratio: -18.36
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ¥744.00 ▲(14.29% Upside)

The overall stock score of 55 reflects the company's strong revenue growth but is tempered by declining profit margins and negative free cash flow. The technical analysis indicates a bearish trend, though there are signs of potential reversal. Valuation is a concern due to the negative P/E ratio, but the dividend yield offers some compensation.

Positive Factors

Revenue Growth

Appirits Inc.'s robust revenue growth indicates successful market expansion and product adoption, providing a solid foundation for future business development.

Balance Sheet Health

The consistent growth in stockholders' equity reflects a strong asset base, enhancing financial stability and providing resilience against economic fluctuations.

Market Position

By leveraging expertise in online gaming, Appirits Inc. strengthens its market position, enhancing competitive advantage in the growing digital entertainment sector.

Negative Factors

Declining Profit Margins

The decline in profit margins suggests rising costs or pricing pressures, which may hinder profitability and require strategic adjustments to maintain financial health.

Negative Free Cash Flow

Negative free cash flow raises concerns about liquidity and cash management, potentially impacting the company's ability to fund operations and growth initiatives.

Profitability Challenges

The sharp decline in net profit margin highlights challenges in maintaining profitability, necessitating operational efficiencies to sustain long-term growth.

Appirits Inc. Business Overview & Revenue Model

Company Description

Appirits Inc. develops and sells web services and related consulting services. Its services also cover infrastructure construction, maintenance, and monitoring of various web service systems; contract development of various web service systems; and planning, design, development, and operation of online games. In addition, its solutions include AWS implementation design/development, Smartphone application development, EC order/inventory centralized management ASP, and in-site search ASP. Further, it provides web marketing design services, such as UX and UI design and production, and SEO and SEM consulting services, as well as Google Analytics data solutions, training, and support desk services; smartphone-enabled and app development services; security services, including security, web application, platform, and smartphone application diagnostics services, as well as software testing and cloud based web application firewall services; and dispatch and staffing services. Appirits Inc. was founded in 2000 and is headquartered in Tokyo, Japan.

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 declining profit margins and negative free cash flow raise concerns about profitability and cash management. The balance sheet remains stable with moderate leverage, indicating potential for stability and growth if operational efficiencies are improved.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.94B	9.01B	8.43B	7.32B	4.80B	3.89B
Gross Profit	1.96B	1.89B	2.03B	1.75B	1.19B	1.18B
EBITDA	295.83M	300.16M	750.32M	578.39M	240.77M	264.69M
Net Income	26.33M	45.97M	386.32M	210.21M	109.21M	125.60M
Balance Sheet
Total Assets	5.72B	5.76B	4.59B	4.20B	2.82B	2.08B
Cash, Cash Equivalents and Short-Term Investments	1.87B	2.29B	1.74B	1.82B	1.44B	1.03B
Total Debt	1.62B	1.77B	797.50M	607.50M	312.81M	43.12M
Total Liabilities	3.38B	3.37B	2.12B	2.08B	891.32M	545.99M
Stockholders Equity	2.34B	2.39B	2.47B	2.12B	1.92B	1.53B
Cash Flow
Free Cash Flow	0.00	-175.24M	207.75M	477.65M	208.81M	149.47M
Operating Cash Flow	0.00	10.13M	251.69M	535.67M	307.66M	173.87M
Investing Cash Flow	0.00	-160.99M	-462.81M	-254.91M	-426.43M	-89.78M
Financing Cash Flow	0.00	702.65M	130.88M	102.50M	525.03M	-60.05M

Appirits Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 651.00
• 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 651 is below the 20-day moving average (MA) of 662.05, below the 50-day MA of 671.92, and below the 200-day MA of 734.79, indicating a neutral trend. The MACD of 3.18 indicates Negative momentum. The RSI at 60.22 is Neutral, neither overbought nor oversold. The STOCH value of 88.28 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
4429	73 Outperform	¥4.67B	14.28	―	―	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4447	61 Neutral	¥3.19B	35.40	―	4.17%	-15.23%	-65.39%
4174	55 Neutral	¥2.85B	-138.98	―	3.41%	18.78%	-134.64%
4484	55 Neutral	¥5.13B	29.76	―	―	4.36%	-0.02%
5035	54 Neutral	¥3.17B	-36.24	―	0.72%	4.40%	-336.50%

Appirits Inc. Corporate Events

Appirits Inc. Reports Increased Sales but Faces Profitability Challenges

Appirits Inc. reported its consolidated financial results for the nine months ending October 31, 2025, showing a significant increase in net sales by 18.1% compared to the previous year. However, the company faced operating and ordinary losses, reflecting challenges in profitability despite increased sales. The financial position indicates a slight decline in the equity-to-asset ratio, suggesting a need for strategic adjustments to improve financial stability. The announcement also highlighted changes in the scope of consolidation, including the inclusion of two new companies and the exclusion of one, which may impact future financial performance.

The most recent analyst rating on (JP:4174) stock is a Hold with a Yen744.00 price target. To see the full list of analyst forecasts on Appirits Inc. stock, see the JP:4174 Stock Forecast page.