AI, Inc. (4388) AI Stock Analysis

• Market Cap: ¥2.44B
• Dividend Yield: N/A
• Average Volume (3M): 27.83K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.74
• Revenue Growth: 126.85%
• EPS Growth: -114.79%
• Country: JP
• Employees: 56
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 9.80
• Shares Outstanding: 6,304,298
• 10 Day Avg. Volume: 34,790
• 30 Day Avg. Volume: 27,826
• PEG Ratio: 1.59
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 1.89
• P/FCF Ratio: 37.87
• 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: 58 Neutral
• Price Target: ¥416.00 ▼(-11.68% Downside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

AI, Inc.'s overall stock score is primarily influenced by its strong financial performance, particularly its revenue growth and solid balance sheet. However, the negative net profit margin and operational inefficiencies weigh heavily on the score. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to the net loss and lack of dividend yield.

Positive Factors

Strong Revenue Growth

A ~75% revenue increase indicates robust demand and rapid top-line expansion, supporting scale advantages and stronger negotiating power with suppliers and customers. Over 2–6 months this growth underpins capacity to invest in product development and market share gains, making future margin recovery more attainable if operational issues are addressed.

Conservative Capital Structure

A strong equity position and low leverage materially reduce financial risk and provide flexibility to fund R&D, absorb shocks, or pursue strategic M&A without immediate refinancing pressure. This balance sheet durability supports multi‑period investment and enhances resilience through industry cycles.

Positive Free Cash Flow

Sustained positive free cash flow shows the business can internally fund capital spending and some growth initiatives despite a net loss. A favorable FCF-to-net-income ratio signals capital discipline and provides a persistent liquidity source to support operations, working capital and strategic investments over coming quarters.

Negative Factors

Negative Net Profit Margin

A negative net margin driven by a 2025 net loss undermines return generation and diminishes retained earnings, constraining reinvestment and shareholder returns. If losses persist, they can erode equity, limit strategic flexibility and make it harder to sustain R&D or marketing spend needed to convert top-line growth into durable profitability.

Declining Operating Cash Flow

Falling operating cash flow suggests the core business is increasingly failing to convert revenue into cash. Even with positive free cash flow now, continued OCF deterioration would pressure liquidity and could force trade‑offs between reinvestment, working capital management, and potential external financing, weakening long‑term self‑funding capacity.

Compressed Operating Margins

Declining EBIT/EBITDA margins and lower ROE point to structural operational inefficiencies or rising costs relative to revenue. Without corrective action, margin compression will persistently reduce cash generation and economic returns, making it harder to translate revenue growth into sustainable profitability and investor value over months ahead.

AI, Inc. Business Overview & Revenue Model

Company Description

AI,Inc. develops and provides various speech synthesis engines and solutions in Japan. It also offers consulting and peripheral system services. AI,Inc. was incorporated in 2003 and is headquartered in Tokyo, Japan.

AI, Inc. Financial Statement Overview

Summary

AI, Inc. demonstrates strong revenue growth and maintains a solid balance sheet with low leverage. However, profitability has been impacted by a net loss in 2025, affecting margins and return on equity. Cash flow management remains effective, but operational efficiency needs improvement to enhance profitability.

Income Statement

AI, Inc. has shown strong revenue growth, with a significant increase from 2024 to 2025. However, the net profit margin is negative in 2025 due to a net loss, indicating profitability challenges. The gross profit margin remains healthy, suggesting efficient cost management. EBIT and EBITDA margins have declined, reflecting potential operational inefficiencies.

Balance Sheet

The company maintains a strong equity position with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, reflecting minimal leverage and reduced financial risk. However, the return on equity has declined due to the net loss in 2025, impacting overall profitability.

Cash Flow

AI, Inc. has experienced a decline in operating cash flow, but free cash flow remains positive, indicating effective capital expenditure management. The free cash flow to net income ratio is favorable, although the operating cash flow to net income ratio has been impacted by the net loss, suggesting potential cash flow challenges.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.49B	734.98M	634.00M	756.57M	887.57M
Gross Profit	749.19M	513.90M	475.42M	604.30M	745.32M
EBITDA	31.42M	120.75M	31.73M	122.75M	295.20M
Net Income	-15.69M	109.72M	16.37M	83.76M	215.19M
Balance Sheet
Total Assets	2.96B	1.71B	1.39B	1.35B	1.35B
Cash, Cash Equivalents and Short-Term Investments	1.59B	575.20M	1.24B	1.18B	1.10B
Total Debt	129.03M	246.39M	152.11M	2.80M	3.46M
Total Liabilities	443.16M	409.26M	202.45M	75.36M	120.07M
Stockholders Equity	2.36B	1.30B	1.19B	1.28B	1.23B
Cash Flow
Free Cash Flow	74.01M	167.66M	12.94M	121.71M	168.54M
Operating Cash Flow	101.73M	169.61M	18.16M	130.56M	180.60M
Investing Cash Flow	-245.08M	-1.04B	-5.21M	-8.85M	-11.86M
Financing Cash Flow	-382.07M	90.83M	44.38M	-43.59M	-31.90M

AI, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 471.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4388, the sentiment is Negative. The current price of 471 is above the 20-day moving average (MA) of 407.75, above the 50-day MA of 425.30, and above the 200-day MA of 460.02, indicating a bearish trend. The MACD of -7.15 indicates Positive momentum. The RSI at 37.76 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4388.

AI, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3773	80 Outperform	¥18.14B	12.45	―	2.54%	6.31%	38.60%
4441	73 Outperform	¥15.03B	19.56	―	1.66%	16.60%	6.60%
4392	72 Outperform	¥9.14B	11.14	―	1.66%	8.96%	-1257.34%
1724	64 Neutral	¥3.31B	13.45	―	3.94%	-2.32%	54.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4388	58 Neutral	¥2.44B	10.38	―	―	126.85%	-114.79%
6522	54 Neutral	¥6.66B	-73.07	―	―	5.57%	56.29%