Photosynth inc. (4379) AI Stock Analysis

• Market Cap: ¥6.94B
• Dividend Yield: N/A
• Average Volume (3M): 97.59K
• Price to Earnings (P/E): 42.6
• Beta (1Y): 0.62
• 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: ¥538.00 ▲(23.68% 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

Revenue and profitability turnaround

Consistent revenue growth combined with the shift from multi-year losses to positive net income establishes a durable operating base. This transition supports reinvestment in product, reduces reliance on external financing, and increases strategic optionality if growth sustains over multiple reporting cycles.

Conservative and improving balance sheet

Very low and falling leverage enhances financial resilience and lowers default and liquidity risk. A stronger equity base and declining absolute debt give management flexibility to fund growth organically, pursue targeted M&A, or withstand cyclical stress without large refinancing needs.

Improved cash generation

Sustained positive operating and free cash flow indicates improving earnings quality and self-funding capacity. Reliable cash generation supports capex and R&D spending, reduces dilution risk from equity raises, and provides a durable source of capital to support long-term strategic initiatives.

Negative Factors

Short profitability track record

Profitability only re-emerged recently, so the company lacks a multi-cycle track record. That raises the risk earnings could revert under pressure (e.g., slower demand or cost shocks), making long-term forecasting and confidence in sustained margins more uncertain for investors and lenders.

Modest and volatile margins

Low single-digit net margins limit the company’s ability to absorb cost inflation or pricing pressure. Historical margin volatility shows profits are sensitive to operating levers; modest margins reduce the buffer against downturns and constrain free cash flow upside absent structural margin improvement.

Cash-conversion inconsistency

Although FCF is positive recently, prior deep negative FCF and only ~54% conversion of net income in 2024 signal earnings quality is still stabilizing. Future working-capital swings or investment cycles could pressure liquidity and force external funding or cutbacks if cash conversion falters.

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

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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	381.92M	502.10M	347.13M	-38.52M	-541.78M	-827.44M
Net Income	180.89M	291.78M	155.24M	-175.07M	-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	92.96M	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	209.89M	-139.25M	-1.13B	-917.19M
Operating Cash Flow	0.00	549.07M	388.73M	219.03M	-426.20M	-576.29M
Investing Cash Flow	0.00	-342.93M	-213.35M	-435.32M	-848.77M	-372.76M
Financing Cash Flow	0.00	-97.92M	-193.87M	-62.59M	-371.56M	2.85B

Photosynth inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 435.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 435 is below the 20-day moving average (MA) of 454.85, above the 50-day MA of 431.28, and above the 200-day MA of 381.70, indicating a neutral trend. The MACD of 18.71 indicates Positive momentum. The RSI at 47.73 is Neutral, neither overbought nor oversold. The STOCH value of 27.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥6.94B	42.58	―	―	11.35%	160.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5572	59 Neutral	¥8.90B	33.78	―	―	60.41%	-27.67%
9337	59 Neutral	¥5.26B	38.13	―	―	25.11%	58.89%
3653	54 Neutral	¥3.50B	-2.76	―	―	1.78%	-125.35%
4425	44 Neutral	¥22.60B	35.20	―	―	36.08%	-7.71%