AI, Inc. (4388) AI Stock Analysis

• Market Cap: ¥3.49B
• Dividend Yield: N/A
• Average Volume (3M): 50.83K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.82
• Revenue Growth: 108.44%
• EPS Growth: -159.31%
• Country: JP
• Employees: 56
• Sector: Technology
• Sector Strength: 85
• Industry: Communication Equipment
• EPS (TTM): -7.31
• Shares Outstanding: 7,004,298
• 10 Day Avg. Volume: 47,360
• 30 Day Avg. Volume: 50,826
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥515.00
• Price Target Upside: -1.53% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ¥515.00 ▼(-1.53% Downside)

AI, Inc.'s overall stock score is primarily driven by its strong financial stability and positive technical indicators. However, the negative P/E ratio and lack of dividend yield present significant valuation challenges. The company's profitability issues, reflected in the net loss, also weigh on the score.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates strong market demand and successful product adoption, supporting long-term business expansion.

Financial Stability

A strong equity position and low leverage reduce financial risk, providing a solid foundation for sustainable growth and strategic investments.

Cash Flow Management

Positive free cash flow reflects efficient capital management, enabling the company to reinvest in growth opportunities and maintain operational flexibility.

Negative Factors

Profitability Challenges

The net loss and negative profit margins highlight operational inefficiencies, which could hinder long-term profitability unless addressed.

Operational Efficiency

Declining margins suggest inefficiencies in operations, which may require strategic adjustments to improve cost management and enhance profitability.

Cash Flow Challenges

Challenges in operating cash flow relative to net income indicate potential liquidity issues, necessitating improved cash flow management strategies.

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. 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: Neutral
• Last Price: 523.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4388, the sentiment is Neutral. The current price of 523 is above the 20-day moving average (MA) of 522.90, above the 50-day MA of 486.60, and above the 200-day MA of 490.38, indicating a neutral trend. The MACD of 11.74 indicates Positive momentum. The RSI at 50.39 is Neutral, neither overbought nor oversold. The STOCH value of 1.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4388.

AI, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3773	74 Outperform	¥21.56B	13.03		2.39%	6.99%	23.92%
4388	63 Neutral	¥3.49B	20.87		―	108.44%	-159.31%
Sector *	61 Neutral	$36.69B	12.42	-10.20%	1.85%	8.50%	-7.32%
4392	57 Neutral	¥9.26B	90.26		1.57%	2.99%	-943.03%
6634	51 Neutral	¥5.85B	―		―	229.77%	0.22%
6696	51 Neutral	¥2.09B	110.24		―	41.44%	―
6522	46 Neutral	¥3.21B	―		―	8.28%	79.19%