Photosynth inc. (4379) AI Stock Analysis

• Market Cap: ¥6.53B
• Dividend Yield: N/A
• Average Volume (3M): 97.59K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.78
• Revenue Growth: 11.35%
• EPS Growth: 160.35%
• Country: JP
• Employees: 143
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 2.56
• Shares Outstanding: 15,645,200
• 10 Day Avg. Volume: 129,680
• 30 Day Avg. Volume: 97,586
• PEG Ratio: 0.26
• Price to Book (P/B): 2.81
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 21.80
• 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: 71 Outperform
• Price Target: ¥482.00 ▲(10.80% Upside)
• Action: Upgraded Date: 02/28/26
• Date: Action: Upgraded 02/28/26

The score is primarily supported by improving financial performance (return to profitability, low leverage, and better cash generation). Technicals are moderately positive with price above key moving averages but partially offset by a slightly negative MACD. Valuation is fair-to-moderate on a ~23x P/E with no dividend yield.

Positive Factors

Consistent revenue growth

Photosynth’s steady top-line expansion across 2020–2025, including re-acceleration in 2025, indicates durable product adoption and market traction. Sustained revenue growth supports operating leverage, funds R&D/hardware investment, and reduces reliance on one-time sales, strengthening long-term business resilience.

Improved cash generation

The shift to persistent positive operating and free cash flow since 2023 shows Photosynth can self-fund core operations and investments. Consistent cash generation reduces funding risk, enables strategic capital allocation (product development, partnerships), and supports longer-term profitability sustainability.

Low and improving leverage

A sharply reduced debt burden and rising equity provide balance-sheet flexibility. Low leverage lowers interest and solvency risk, enabling Photosynth to invest in R&D, scale cloud and subscription offerings, or pursue partnerships without material refinancing pressure, supporting durable growth.

Negative Factors

Short profitability track record

Although profitable in 2024–2025, Photosynth’s recent return to profitability follows several years of losses. A short profit history limits confidence in the persistence of margins and earnings through cycles, increasing execution risk for sustaining investment-funded growth and meeting long-term return targets.

Modest and volatile margins

Net margins remain modest and have displayed significant volatility over recent years. Low, uneven margins expose Photosynth to input-cost swings and competitive pricing pressures, limiting free cash flow upside and making long-term margin expansion dependent on sustained operational improvements.

Historic cash-flow volatility

Past episodes of deeply negative free cash flow and a sub-100% cash conversion rate indicate earnings do not always convert to cash reliably. This volatility can strain liquidity during heavy investment cycles or seasonal working-capital swings, requiring cautious capital planning despite recent improvements.

Photosynth inc. Business Overview & Revenue Model

Company Description

Photosynth inc. engages in the research and development of IoT-related equipment in Japan. The company develops and sells Akerun Access Control System, a cloud-based service for corporate customers that combines digital and physical IDs to authenticate users and connects doors to the Internet. It also provides various services for residents. Photosynth inc. was incorporated in 2014 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Photosynth Inc. generates revenue through multiple streams, including software sales, subscription services, and hardware sales. Key revenue streams consist of direct sales of their photo editing software, which is offered as one-time purchases or through a subscription model that provides users with continuous updates and additional features. The company also earns income from its cloud storage solutions, charging users for data storage based on usage tiers. Additionally, Photosynth has established partnerships with photography retailers and online platforms, which help drive hardware sales of their cameras and drones. These partnerships often include co-marketing agreements that further enhance their market presence and contribute to overall earnings.

Photosynth inc. Financial Statement Overview

Summary

Strong turnaround: revenue has grown consistently across 2020–2025, profitability improved from losses (2020–2023) to positive net income in 2024–2025 with a clear step-up in EBIT/EBITDA in 2025, leverage is low and improving, and operating/free cash flow turned sustainably positive in 2023–2025. Main risks are the relatively short profitability track record and historical cash-flow volatility.

Income Statement

Revenue has scaled consistently from 2020 to 2025, with growth remaining positive in each reported year and re-accelerating in 2025 (8.3% vs. 2024’s ~18.8% and 2023’s ~25.0%). Profitability has improved materially: the company moved from sizable losses in 2020–2023 to positive net income in 2024–2025, and 2025 shows a clear step-up in EBIT and EBITDA versus 2024. Strengths are the strong gross profit base and the successful turn to profitability; weaknesses are the still-modest net profitability in 2024 (~5.2% net margin) and the fact that margins have been volatile and negative as recently as 2023.

Balance Sheet

Leverage appears conservative and improving: total debt is low relative to equity (debt-to-equity ~0.04 in 2024 vs. ~0.15 in 2023 and ~2.06 in 2020), and absolute debt declines further in 2025. Equity has grown versus 2023–2025, supporting balance-sheet resilience. The main watch-out is that returns on equity were negative in 2020–2023 before turning positive in 2024 (~7.3%), so the balance sheet is strong but the profitability track record is still relatively fresh.

Cash Flow

Cash generation has improved meaningfully: operating cash flow turned positive after being negative in 2020–2022 and remained positive in 2023–2025, with free cash flow also flipping from negative in 2021–2023 to positive in 2024–2025 (and strong growth in 2024). This supports improving earnings quality and self-funding capacity. The weakness is historical volatility—free cash flow was deeply negative in 2022—and 2024 cash conversion versus earnings looks moderate (free cash flow was ~54% of net income), indicating results can still fluctuate with investment and working-capital needs.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.13B	3.38B	2.96B	2.49B	1.99B	1.60B
Gross Profit	2.39B	2.54B	2.27B	2.03B	1.74B	1.39B
EBITDA	372.11M	502.10M	159.78M	-47.08M	-528.39M	-832.80M
Net Income	181.43M	291.78M	155.24M	-175.00M	-578.17M	-866.50M
Balance Sheet
Total Assets	3.66B	3.87B	3.44B	3.60B	3.47B	4.31B
Cash, Cash Equivalents and Short-Term Investments	1.81B	1.66B	1.56B	1.57B	1.85B	3.53B
Total Debt	68.99M	73.15M	92.00M	301.76M	379.76M	754.65M
Total Liabilities	1.29B	1.39B	1.28B	1.47B	1.27B	1.63B
Stockholders Equity	2.26B	2.40B	2.14B	1.95B	2.10B	2.64B
Cash Flow
Free Cash Flow	0.00	309.10M	210.00M	-138.00M	-1.40B	-944.99M
Operating Cash Flow	0.00	549.07M	388.73M	219.00M	-426.20M	-574.99M
Investing Cash Flow	0.00	-342.93M	-213.35M	-582.00M	-946.77M	-372.76M
Financing Cash Flow	0.00	-97.92M	-193.87M	84.00M	-273.56M	2.85B

Photosynth inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 435.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4379, the sentiment is Positive. The current price of 435 is above the 20-day moving average (MA) of 402.40, above the 50-day MA of 417.76, and above the 200-day MA of 374.84, indicating a bullish trend. The MACD of -0.70 indicates Negative momentum. The RSI at 61.81 is Neutral, neither overbought nor oversold. The STOCH value of 73.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4379.

Photosynth inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4379	71 Outperform	¥6.53B	22.23	―	―	11.35%	160.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9337	59 Neutral	¥5.46B	12.44	―	―	25.11%	58.89%
5572	56 Neutral	¥9.82B	70.80	―	―	60.41%	-27.67%
3653	54 Neutral	¥4.49B	-56.31	―	―	1.78%	-125.35%
4425	44 Neutral	¥24.06B	-47.09	―	―	36.08%	-7.71%