HEROZ, Inc. (4382) AI Stock Analysis

• Market Cap: ¥17.03B
• Dividend Yield: N/A
• Average Volume (3M): 54.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: 22.47%
• EPS Growth: 84.35%
• Country: JP
• Employees: 256
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Application
• EPS (TTM): 0.17
• Shares Outstanding: 15,174,468
• 10 Day Avg. Volume: 49,570
• 30 Day Avg. Volume: 54,920
• PEG Ratio: 0.95
• Price to Book (P/B): 3.07
• Price to Sales (P/S): 2.40
• P/FCF Ratio: -71.19
• 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: ¥1,073.00
• Price Target Upside: -4.37% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: ¥1,073.00 ▼(-4.37% Downside)

HEROZ, Inc. faces significant challenges in profitability and cash flow, which are the most impactful factors. Technical indicators suggest neutral momentum, but valuation is weak due to negative earnings and lack of dividends.

HEROZ, Inc. Business Overview & Revenue Model

Company Description

HEROZ, Inc. (4382) is a Japanese technology company specializing in artificial intelligence and machine learning applications. The company primarily operates within the sectors of game development and AI solutions, focusing on creating innovative products that enhance user experience and operational efficiency. HEROZ is well-known for its development of AI-powered gaming platforms and has expanded its offerings to include AI solutions for various industries, such as finance and healthcare.

How the Company Makes Money

HEROZ generates revenue through multiple streams, including the sale of its AI-based gaming products, licensing agreements, and consulting services in AI implementation. The company earns significant income from its proprietary gaming titles, which are monetized through in-game purchases and advertising. Additionally, HEROZ establishes partnerships with various enterprises to provide customized AI solutions, which contribute to its consulting revenue. The growing demand for AI technologies across different sectors has further enhanced its earnings potential.

HEROZ, Inc. Financial Statement Overview

Summary

HEROZ, Inc. shows positive revenue growth but struggles with profitability and cash flow management. The balance sheet is relatively strong, but increasing leverage and negative returns on equity highlight potential risks.

Income Statement

HEROZ, Inc. has shown a positive revenue growth rate of 11.2% in the latest year, indicating a strong top-line performance. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -3.0% and a declining EBIT margin. The gross profit margin has decreased slightly, which may suggest rising costs or pricing pressures.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.44, indicating a rise in leverage, but it remains at a manageable level. The return on equity is negative at -3.8%, reflecting the company's current unprofitability. However, the equity ratio is strong, suggesting a solid capital structure with a high proportion of equity financing.

Cash Flow

HEROZ, Inc. faces challenges in cash flow management, with a negative free cash flow and a concerning free cash flow to net income ratio of -0.91. The operating cash flow to net income ratio is low, indicating potential issues in converting earnings into cash. The free cash flow growth rate is not meaningful due to negative values.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.56B	5.93B	4.84B	2.98B	1.48B	1.56B
Gross Profit	2.53B	2.69B	2.39B	1.35B	558.99M	705.26M
EBITDA	334.86M	566.25M	-343.40M	-168.66M	240.52M	367.03M
Net Income	-393.13M	-177.71M	-1.13B	-574.33M	49.40M	207.15M
Balance Sheet
Total Assets	7.95B	8.15B	7.69B	8.67B	6.64B	6.55B
Cash, Cash Equivalents and Short-Term Investments	2.90B	1.73B	2.74B	3.80B	3.66B	5.55B
Total Debt	1.86B	2.05B	1.40B	1.50B	0.00	0.00
Total Liabilities	2.75B	2.95B	2.55B	2.59B	194.63M	143.50M
Stockholders Equity	4.70B	4.64B	4.79B	5.87B	6.44B	6.40B
Cash Flow
Free Cash Flow	0.00	-200.24M	20.80M	387.11M	186.17M	-18.82M
Operating Cash Flow	0.00	219.03M	464.00M	483.38M	198.15M	360.70M
Investing Cash Flow	0.00	-479.27M	-1.22B	-144.47M	-2.09B	-384.52M
Financing Cash Flow	0.00	664.63M	-303.96M	-200.78M	1.00K	15.25M

HEROZ, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1122.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4382, the sentiment is Positive. The current price of 1122 is above the 20-day moving average (MA) of 1057.05, above the 50-day MA of 1107.28, and above the 200-day MA of 1024.31, indicating a bullish trend. The MACD of 5.88 indicates Negative momentum. The RSI at 60.91 is Neutral, neither overbought nor oversold. The STOCH value of 94.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4382.

HEROZ, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4495	78 Outperform	¥11.54B	19.84		1.56%	27.15%	24.58%
4168	75 Outperform	¥14.24B	18.90		0.55%	12.09%	141.99%
4011	67 Neutral	¥14.57B	122.13		―	21.37%	33.73%
Sector *	57 Neutral	HK$14.53B	9.13	-0.60%	4.32%	7.09%	-37.88%
4382	51 Neutral	¥17.03B	―		―	22.47%	84.35%
3905	48 Neutral	¥60.94B	―		―	32.00%	55.33%
4192	41 Neutral	¥17.27B	―		―	24.80%	12.00%

HEROZ, Inc. Corporate Events

HEROZ, Inc. Reports Increased Net Sales Despite Profit Decline

HEROZ, Inc. reported its consolidated financial results for the fiscal year ended April 30, 2025, showing a 22.5% increase in net sales compared to the previous year, despite a decline in operating and ordinary profits. The company anticipates further growth in the upcoming fiscal year, with projected increases in net sales and profits, indicating a positive outlook for stakeholders.

HEROZ, Inc. Reports Extraordinary Loss Amid SaaS Market Expansion

HEROZ, Inc. announced an extraordinary loss due to impairment in software assets related to its group company, StrategIT, Inc., impacting its financial results for the fiscal year ending April 2025. Despite the loss, the company continues to invest in its product, JOINT iPaaS for SaaS, aiming to leverage its AI expertise and expand its recurring revenue model in the growing SaaS market.