Appirits Inc. (4174) AI Stock Analysis

• Market Cap: ¥3.13B
• Dividend Yield: 2.14%
• Average Volume (3M): 13.66K
• Price to Earnings (P/E): 77.2
• Beta (1Y): 0.68
• Revenue Growth: 9.30%
• EPS Growth: -109.29%
• Country: JP
• Employees: 720
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): -2.44
• Shares Outstanding: 4,189,662
• 10 Day Avg. Volume: 7,550
• 30 Day Avg. Volume: 13,656
• PEG Ratio: 0.24
• Price to Book (P/B): 2.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.62
• 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: ¥761.00
• Price Target Upside: 2.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: ¥761.00 ▲(2.01%Upside)

The overall stock score is primarily affected by financial performance challenges, especially negative free cash flow and declining profit margins. Technical analysis further weighs down the score with bearish indicators. Valuation issues, highlighted by a negative P/E ratio, also contribute significantly to the lower score.

Appirits Inc. Business Overview & Revenue Model

Company Description

Appirits Inc. (4174) is a Japan-based company primarily engaged in the development and operation of online games, as well as providing web services. The company is known for its expertise in creating engaging and interactive gaming experiences, catering to a wide range of audiences. In addition to its gaming operations, Appirits offers various web service solutions, leveraging its technical expertise to support businesses in enhancing their online presence.

How the Company Makes Money

Appirits Inc. generates revenue through multiple streams, primarily focused on its gaming and web service sectors. In the gaming sector, the company earns money through in-game purchases, subscription models, and advertising within its online games. These games are typically hosted on various platforms, providing a steady flow of income from a loyal user base. Additionally, Appirits partners with other companies for co-development and distribution, enhancing its reach and revenue potential. In the web services sector, Appirits provides consulting, development, and maintenance services for corporate clients, charging fees for these services. This diversification in revenue streams allows Appirits to maintain a stable financial performance.

Appirits Inc. Financial Statement Overview

Summary

Appirits Inc. demonstrates strong revenue growth but faces challenges with declining profit margins and negative free cash flow. The balance sheet remains stable with moderate leverage, suggesting potential for future stability and growth if operational efficiencies improve.

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: 746.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 746 is above the 20-day moving average (MA) of 742.30, below the 50-day MA of 803.54, and below the 200-day MA of 777.32, indicating a neutral trend. The MACD of -18.95 indicates Negative momentum. The RSI at 39.55 is Neutral, neither overbought nor oversold. The STOCH value of 62.79 is Neutral, 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	74 Outperform	¥3.78B	18.20		1.69%	-0.64%	-36.11%
5035	71 Outperform	¥3.66B	30.82		0.58%	3.65%	-4.30%
Sector *	63 Neutral	$33.91B	5.95	-11.88%	1.83%	5.33%	-18.39%
4484	61 Neutral	¥3.61B	20.39		―	-1.85%	122.23%
4174	52 Neutral	¥3.13B	77.18		2.14%	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.