NEO MARKETING Inc. (4196) AI Stock Analysis

• Market Cap: ¥3.52B
• Dividend Yield: N/A
• Average Volume (3M): 9.64K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.14
• Revenue Growth: -3.61%
• EPS Growth: 66.56%
• Country: JP
• Employees: 115
• Sector: Communication Services
• Sector Strength: 82
• Industry: Advertising Agencies
• EPS (TTM): 80.55
• Shares Outstanding: 2,532,000
• 10 Day Avg. Volume: 20,380
• 30 Day Avg. Volume: 9,643
• PEG Ratio: 0.00
• Price to Book (P/B): 64.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.32K
• 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: ¥1,157.00
• Price Target Upside: -19.49% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥1,440.00 ▲(0.21%Upside)

NEO MARKETING Inc.'s stock is supported by strong technical momentum and a reasonable valuation, suggesting potential for growth. However, financial performance concerns, particularly around liquidity and operational efficiency, present risks that investors should consider. The lack of dividend yield may deter income-focused investors.

NEO MARKETING Inc. Business Overview & Revenue Model

Company Description

NEO MARKETING Inc. (4196) is a dynamic marketing company specializing in providing comprehensive marketing solutions, including digital marketing, marketing consulting, and consumer research services. The company operates primarily in the advertising and marketing sector, leveraging data-driven insights to help clients enhance their brand presence and achieve their business objectives.

How the Company Makes Money

NEO MARKETING Inc. makes money through a diversified revenue model that includes service fees for marketing consulting, digital advertising campaigns, and consumer research projects. The company charges clients for tailored marketing strategies, digital content creation, and media buying services. Additionally, NEO MARKETING Inc. generates revenue from data analytics and consumer insight reports that provide valuable market intelligence to businesses. Significant partnerships with technology and media companies, as well as a broad client base spanning various industries, contribute to its earnings.

NEO MARKETING Inc. Financial Statement Overview

Summary

NEO MARKETING Inc. demonstrates a mixed financial performance. The income statement shows low net profit margins and revenue volatility, while the balance sheet indicates a stable financial position with balanced leverage and solid equity. However, the cash flow statement raises liquidity concerns due to zero operating cash flow and negative free cash flow growth.

Income Statement

NEO MARKETING Inc. shows a mixed performance on its income statement. The TTM data indicates a gross profit margin of 45.34%, demonstrating a strong ability to manage production costs. However, the net profit margin for TTM stands at 5.05%, which is relatively low, primarily driven by a negative EBIT margin of -1.15% and a significant drop in EBITDA. The revenue shows slight volatility with a decline of 8% from the previous year, suggesting challenges in maintaining growth momentum.

Balance Sheet

The balance sheet of NEO MARKETING Inc. reflects a moderate financial position with a debt-to-equity ratio of 0.61, indicating a balanced use of leverage. The equity ratio is 47.96%, showcasing a solid equity base supporting its assets. Return on equity for the TTM is 13.38%, reflecting decent profitability for shareholders. The company's asset base has grown over the years, enhancing long-term financial stability.

Cash Flow

The cash flow statement reveals some concerns, as operating cash flow for TTM is zero, indicating potential operational inefficiencies. Free cash flow has also declined sharply in recent periods, with a negative growth rate from the previous year. The operating cash flow to net income ratio is unfavorable, raising questions about cash conversion efficiency. These factors point to potential liquidity risks.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	2.10B	2.10B	2.28B	2.25B	1.83B	1.43B
Gross Profit	948.79M	953.87M	1.07B	1.06B	919.64M	707.99M
EBITDA	-2.24M	215.02M	345.83M	-111.31M	316.42M	202.13M
Net Income	106.08M	147.44M	198.37M	-280.65M	206.00M	116.65M
Balance Sheet
Total Assets	1.65B	1.69B	1.38B	1.36B	1.50B	982.06M
Cash, Cash Equivalents and Short-Term Investments	656.00M	714.16M	498.31M	709.25M	925.55M	476.46M
Total Debt	484.00M	518.03M	333.72M	469.48M	282.20M	473.29M
Total Liabilities	860.00M	876.50M	723.90M	837.40M	703.50M	770.18M
Stockholders Equity	793.00M	810.29M	652.72M	522.25M	797.02M	211.89M
Cash Flow
Free Cash Flow	0.00	-36.40M	235.12M	126.51M	270.80M	229.48M
Operating Cash Flow	0.00	-35.84M	257.32M	140.35M	278.97M	233.19M
Investing Cash Flow	0.00	95.58M	-261.68M	-579.82M	-1.14M	-156.16M
Financing Cash Flow	0.00	186.11M	-206.58M	193.16M	171.38M	80.84M

NEO MARKETING Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1437.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4196, the sentiment is Positive. The current price of 1437 is above the 20-day moving average (MA) of 1242.00, above the 50-day MA of 1145.12, and above the 200-day MA of 1060.61, indicating a bullish trend. The MACD of 75.25 indicates Negative momentum. The RSI at 93.73 is Negative, neither overbought nor oversold. The STOCH value of 93.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4196.

NEO MARKETING Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7067	71 Outperform	¥1.77B	19.64		0.89%	9.15%	2289.13%
4196	71 Outperform	¥3.52B	14.49		―	-3.61%	66.56%
9254	70 Outperform	¥1.76B	38.62		―	―	―
7357	65 Neutral	¥3.23B	264.75		1.72%	4.86%	-49.46%
9466	63 Neutral	¥3.26B	6.88		6.02%	-4.30%	198.64%
9241	59 Neutral	¥1.32B	64.86		―	-0.09%	―
Sector *	59 Neutral	C$3.46B	8.39	-17.94%	5.31%	-2.61%	-25.43%