Future Innovation Group, Inc. (4392) AI Stock Analysis

• Market Cap: ¥8.96B
• Dividend Yield: 1.66%
• Average Volume (3M): 93.72K
• Price to Earnings (P/E): 90.3
• Beta (1Y): 0.88
• Revenue Growth: -5.43%
• EPS Growth: -617.19%
• Country: JP
• Employees: 713
• Sector: Technology
• Sector Strength: 92
• Industry: Communication Equipment
• EPS (TTM): 4.92
• Shares Outstanding: 31,593,115
• 10 Day Avg. Volume: 104,590
• 30 Day Avg. Volume: 93,716
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: ¥306.00 ▲(2.68% Upside)

The overall stock score of 57 reflects significant challenges in financial performance, particularly in profitability and valuation, with a negative P/E ratio. While technical analysis indicates bullish momentum, the financial and valuation concerns weigh heavily on the score. Improvements in cash flow are a positive aspect, but the company must address operational inefficiencies to enhance its financial health.

Future Innovation Group, Inc. Business Overview & Revenue Model

Company Description

Future Innovation Group, Inc. (4392) is a forward-thinking technology firm specializing in the development and implementation of cutting-edge solutions across various sectors, including artificial intelligence, renewable energy, and smart manufacturing. The company focuses on creating innovative products and services that enhance efficiency, sustainability, and overall productivity for businesses and consumers alike. With a commitment to research and development, Future Innovation Group aims to lead the market in technological advancements that shape the future.

How the Company Makes Money

Future Innovation Group, Inc. generates revenue through multiple streams, primarily by offering proprietary software solutions and consulting services tailored to businesses seeking to integrate advanced technologies into their operations. The company's core revenue comes from licensing fees for its software products, which are designed to optimize processes in various industries. Additionally, Future Innovation Group earns income from service contracts that provide ongoing support and updates for its solutions. Strategic partnerships with key players in the technology and energy sectors further enhance its market reach and revenue potential, allowing the company to tap into new customer bases and collaborative projects that drive additional income.

Future Innovation Group, Inc. Financial Statement Overview

Summary

The company shows a mixed financial performance with strong cash flow recovery and balance sheet stability, but declining revenue and profitability are significant concerns. The income statement reflects negative revenue growth and profitability, while the balance sheet indicates stability with a low debt-to-equity ratio. Cash flow has improved significantly, but previous negative operating cash flow remains a point of concern.

Income Statement

The company experienced a decrease in total revenue from the previous year, with a negative revenue growth rate of -11.21%. Additionally, there was a significant decline in profitability as indicated by the negative net income, leading to a negative net profit margin. Despite this, the gross profit margin remains relatively stable at around 31.06%, and EBITDA margin is at 7.40%, showing some operational efficiency.

Balance Sheet

The balance sheet remains strong with a reduction in total debt and an improved debt-to-equity ratio of 0.58, indicating lower leverage. The equity ratio is robust at 51.40%, suggesting strong financial stability. However, the return on equity is negative due to net losses, which is a concern for profitability.

Cash Flow

The cash flow statement indicates a substantial improvement in free cash flow, now positive at 2.82 billion, showing a significant recovery from the previous year. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, the previous year's negative operating cash flow is a point of concern.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.02B	13.53B	12.91B	12.26B	10.33B
Gross Profit	3.73B	4.03B	3.88B	3.27B	2.30B
EBITDA	-549.00M	905.00M	1.46B	1.01B	203.00M
Net Income	-1.41B	210.00M	685.00M	441.00M	169.00M
Balance Sheet
Total Assets	15.89B	22.84B	21.46B	18.97B	15.29B
Cash, Cash Equivalents and Short-Term Investments	2.61B	2.20B	6.64B	4.37B	4.24B
Total Debt	4.76B	10.29B	8.55B	7.40B	4.71B
Total Liabilities	7.72B	13.24B	11.76B	10.09B	6.98B
Stockholders Equity	8.17B	9.58B	9.70B	8.86B	8.29B
Cash Flow
Free Cash Flow	2.82B	-1.12B	-1.01B	-2.33B	-1.16B
Operating Cash Flow	3.16B	-578.00M	359.00M	63.00M	412.00M
Investing Cash Flow	2.92B	-838.00M	-1.85B	-2.52B	-1.81B
Financing Cash Flow	-5.67B	1.43B	1.29B	2.51B	1.70B

Future Innovation Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 298.00
• 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:4392, the sentiment is Positive. The current price of 298 is above the 20-day moving average (MA) of 288.55, above the 50-day MA of 283.90, and above the 200-day MA of 278.34, indicating a bullish trend. The MACD of 4.69 indicates Negative momentum. The RSI at 60.57 is Neutral, neither overbought nor oversold. The STOCH value of 84.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4392.

Future Innovation Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4441	77 Outperform	¥12.00B	18.09		1.62%	18.97%	10.09%
Sector *	69 Neutral	¥233.80B	14.87	7.64%	2.58%	9.19%	5.65%
4392	57 Neutral	¥8.96B	90.26		1.66%	-5.43%	-617.19%
NPNZF	―	$55.03M	3.82	25.99%	―	―	―
7673	82 Outperform	¥8.08B	9.90		3.37%	26.37%	39.14%
6904	53 Neutral	¥9.48B	56.87		1.72%	-4.63%	-83.79%
6634	47 Neutral	¥5.28B	―		―	229.77%	0.22%

Future Innovation Group, Inc. Corporate Events

Future Innovation Group Completes Share-Based Remuneration Issuance

Future Innovation Group, Inc. has completed the payment procedures for issuing new shares as restricted share-based remuneration. This issuance involves 118,800 shares at 246 yen each, aimed at compensating directors and executive officers, which could enhance employee retention and align interests with shareholders.

Future Innovation Group Reports Strong Q1 2025 Results Despite Profit Dip

Future Innovation Group, Inc. reported a significant increase in net sales and operating profit for the first quarter of 2025, with net sales rising by 12.9% and operating profit by 49.6% compared to the previous year. However, the profit attributable to owners of the parent decreased by 45.3%. The company maintains a stable financial position with a slight increase in the equity ratio. The financial forecast for the full year 2025 indicates a positive outlook with expected growth in net sales and profits, suggesting a robust market position and potential benefits for stakeholders.

Future Innovation Group Adjusts Convertible Bond Conversion Price

Future Innovation Group, Inc. has announced an adjustment to the conversion price of its 1st Series Unsecured Convertible-Bond-Type Bonds With Share Acquisition Rights, reducing it from 415 yen to 305.80 yen. This adjustment, effective May 9, 2025, is due to the application of a conversion price adjustment clause, potentially impacting the company’s financial strategy and investor relations.