AI, Inc. (4388) AI Stock Analysis

• Market Cap: ¥3.36B
• Dividend Yield: N/A
• Average Volume (3M): 27.13K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.76
• Revenue Growth: 102.19%
• EPS Growth: -122.72%
• Country: JP
• Employees: 56
• Sector: Technology
• Sector Strength: 92
• Industry: Communication Equipment
• EPS (TTM): 12.88
• Shares Outstanding: 7,004,298
• 10 Day Avg. Volume: 39,090
• 30 Day Avg. Volume: 27,126
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥479.00
• Price Target Upside: 0.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥521.00 ▲(9.45% Upside)

The overall stock score is primarily influenced by strong financial performance, particularly in revenue growth and balance sheet stability. However, profitability challenges due to a net loss and negative P/E ratio weigh heavily on the valuation score. Technical analysis indicates positive momentum, providing some support to the overall score.

AI, Inc. Business Overview & Revenue Model

Company Description

AI, Inc. (4388) is a leading technology company specializing in artificial intelligence solutions across various sectors, including healthcare, finance, and logistics. The company focuses on developing advanced machine learning algorithms, natural language processing tools, and data analytics platforms. Its core products include AI-driven software applications, predictive analytics services, and customizable AI models tailored to meet the specific needs of businesses in different industries.

How the Company Makes Money

AI, Inc. generates revenue through multiple channels, including subscription fees for its software-as-a-service (SaaS) offerings, licensing fees for its proprietary AI technologies, and consulting services that help organizations implement AI solutions. The company has established significant partnerships with major industry players, which not only enhance its product offerings but also contribute to its earnings through joint ventures and collaborative projects. Additionally, AI, Inc. earns revenue from training and support services, ensuring that clients can effectively utilize its AI solutions to drive operational efficiency and innovation.

AI, Inc. Financial Statement Overview

Summary

AI, Inc. exhibits robust revenue growth and strong equity stability with a high equity ratio and minimal leverage. However, the company faces profitability challenges with a negative net profit margin and declining cash flow efficiency, which impact its overall financial health.

Income Statement

AI, Inc. has shown impressive revenue growth, nearly doubling from 2024 to 2025, with a strong Gross Profit Margin of 50.4% in 2025. However, the Net Profit Margin turned negative in 2025, indicating profitability challenges despite the revenue growth. EBIT and EBITDA margins have decreased, reflecting operational inefficiencies or increased expenses.

Balance Sheet

The company maintains a strong equity position with a high Equity Ratio of 79.6% and a very low Debt-to-Equity Ratio of 0.05, reflecting minimal leverage. This stability is a significant strength. However, the decline in Stockholders' Equity from 2024 to 2025 suggests potential risks if this trend continues.

Cash Flow

Operating Cash Flow decreased significantly in 2025 from 2024, but Free Cash Flow remains positive, albeit reduced. The Operating Cash Flow to Net Income Ratio is positive but shows a declining trend, suggesting diminishing cash-generating efficiency. Free Cash Flow to Net Income is also positive, indicating some capability to cover net income needs with free cash flow.

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	299.69M
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	442.17M	409.26M	202.46M	75.33M	119.98M
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: Positive
• Last Price: 476.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 476 is above the 20-day moving average (MA) of 464.20, above the 50-day MA of 457.60, and below the 200-day MA of 500.02, indicating a neutral trend. The MACD of 7.93 indicates Negative momentum. The RSI at 66.96 is Neutral, neither overbought nor oversold. The STOCH value of 62.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4388.

AI, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3773	78 Outperform	¥21.67B	13.03		2.33%	11.06%	39.41%
4388	69 Neutral	¥3.36B	20.87		―	102.19%	-122.72%
Sector *	69 Neutral	¥234.30B	14.83	7.64%	2.58%	9.20%	5.94%
6696	58 Neutral	¥2.60B	133.64		―	48.14%	―
4392	57 Neutral	¥8.93B	90.26		1.66%	-5.43%	-617.19%
6522	56 Neutral	¥3.40B	―		―	8.28%	79.19%
6634	46 Neutral	¥5.39B	―		―	229.77%	0.22%