AI, Inc. (4388) AI Stock Analysis

• Market Cap: ¥3.23B
• Dividend Yield: N/A
• Average Volume (3M): 28.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: 126.85%
• EPS Growth: -114.79%
• Country: JP
• Employees: 56
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 8.40
• Shares Outstanding: 7,004,298
• 10 Day Avg. Volume: 39,000
• 30 Day Avg. Volume: 28,263
• 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: ¥499.00 ▲(5.94% Upside)

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.

AI, Inc. Business Overview & Revenue Model

Company Description

AI, Inc. (4388) is a leading technology firm specializing in artificial intelligence solutions across various sectors, including healthcare, finance, and manufacturing. The company develops advanced machine learning algorithms, natural language processing tools, and data analytics platforms that empower businesses to optimize operations, enhance decision-making, and drive innovation. With a strong focus on research and development, AI, Inc. continuously enhances its product offerings to meet the evolving needs of its diverse client base.

How the Company Makes Money

AI, Inc. generates revenue through multiple streams, primarily by offering software-as-a-service (SaaS) solutions that allow businesses to access its AI tools on a subscription basis. This recurring revenue model ensures a steady income as clients pay monthly or annual fees for continued access. Additionally, the company earns money through professional services, including consulting and implementation support, helping clients integrate AI solutions into their existing systems. Key partnerships with major cloud service providers enhance AI, Inc.'s market reach and product capabilities, contributing significantly to its earnings. Furthermore, the company explores revenue opportunities in data licensing and custom AI development projects tailored to specific client needs.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.49B	1.49B	734.98M	634.00M	756.57M	887.57M
Gross Profit	748.95M	749.19M	513.90M	475.42M	604.30M	745.32M
EBITDA	36.30M	31.42M	120.75M	31.73M	122.75M	295.20M
Net Income	-15.14M	-15.69M	109.72M	16.37M	83.76M	215.19M
Balance Sheet
Total Assets	2.96B	2.96B	1.71B	1.39B	1.35B	1.35B
Cash, Cash Equivalents and Short-Term Investments	1.59B	1.59B	575.20M	1.24B	1.18B	1.10B
Total Debt	129.03M	129.03M	246.39M	152.11M	2.80M	3.46M
Total Liabilities	442.17M	442.17M	409.26M	202.46M	75.33M	119.98M
Stockholders Equity	2.36B	2.36B	1.30B	1.19B	1.28B	1.23B
Cash Flow
Free Cash Flow	0.00	74.01M	167.66M	12.94M	121.71M	168.54M
Operating Cash Flow	0.00	101.73M	169.61M	18.16M	130.56M	180.60M
Investing Cash Flow	0.00	-245.08M	-1.04B	-5.21M	-8.85M	-11.86M
Financing Cash Flow	0.00	-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: Negative
• 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 below the 20-day moving average (MA) of 479.75, below the 50-day MA of 501.90, and below the 200-day MA of 483.94, indicating a bearish trend. The MACD of -5.40 indicates Negative momentum. The RSI at 45.09 is Neutral, neither overbought nor oversold. The STOCH value of 24.29 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	72 Outperform	¥19.90B	12.18	―	2.60%	6.31%	38.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4388	58 Neutral	¥3.23B	―	―	―	126.85%	-114.79%
6696	54 Neutral	¥1.75B	92.42	―	―	41.44%	―
4392	51 Neutral	¥9.05B	―	―	1.64%	2.99%	-943.03%
6522	46 Neutral	¥2.74B	-14.33	―	―	5.57%	55.31%
6634	42 Neutral	¥4.79B	―	―	―	165.52%	17.61%