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

• Market Cap: ¥9.47B
• Dividend Yield: 1.57%
• Average Volume (3M): 212.60K
• Price to Earnings (P/E): 90.3
• Beta (1Y): 0.86
• Revenue Growth: 2.99%
• EPS Growth: -943.03%
• Country: JP
• Employees: 713
• Sector: Technology
• Sector Strength: 85
• Industry: Communication Equipment
• EPS (TTM): 5.97
• Shares Outstanding: 31,593,115
• 10 Day Avg. Volume: 407,890
• 30 Day Avg. Volume: 212,600
• 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: ¥306.00
• Price Target Upside: -4.08% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: ¥306.00 ▼(-4.08% Downside)

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.

Positive Factors

Revenue Growth

The notable increase in net sales demonstrates strong demand for the company's offerings, indicating a solid market position and potential for continued revenue growth.

Cash Flow Improvements

Positive free cash flow indicates effective cash generation, enhancing financial stability and providing resources for reinvestment and growth.

Employee Retention Strategy

The share-based remuneration aligns management interests with shareholders, potentially improving employee retention and incentivizing long-term company performance.

Negative Factors

Profitability Challenges

Negative net profit margins highlight ongoing profitability issues, which could hinder the company's ability to reinvest in growth and maintain competitive advantage.

Convertible Bond Adjustment

The reduction in conversion price may signal financial strategy adjustments, potentially affecting investor confidence and diluting existing shareholders.

Operational Inefficiencies

Operational inefficiencies can lead to increased costs and reduced profitability, impacting long-term financial performance and competitive positioning.

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 financial performance is challenged by declining revenue and profitability, with a negative net profit margin in 2024. The balance sheet shows reduced leverage but negative return on equity, indicating profitability issues. Cash flow improvements are a positive sign, but operational inefficiencies need addressing.

Income Statement

The company's income statement shows a declining trend in revenue and profitability. The gross profit margin decreased from 29.8% in 2023 to 31.1% in 2024, indicating pressure on cost management. Net profit margin turned negative in 2024 due to significant net losses, reflecting challenges in maintaining profitability. Revenue growth has been inconsistent, with a decline in 2024 compared to 2023, suggesting potential market or operational challenges.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio improved from 1.07 in 2023 to 0.58 in 2024, indicating reduced leverage. However, the equity ratio decreased slightly from 41.9% in 2023 to 51.4% in 2024, showing a reliance on equity financing. Return on equity turned negative in 2024, highlighting profitability issues.

Cash Flow

Cash flow analysis shows improvement in free cash flow, turning positive in 2024 from a negative position in 2023. The operating cash flow to net income ratio is strong, indicating effective cash generation relative to earnings. However, the free cash flow to net income ratio is negative due to net losses, suggesting challenges in translating earnings into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.47B	12.02B	13.53B	12.91B	12.26B	10.33B
Gross Profit	2.90B	3.73B	4.03B	3.88B	3.27B	2.30B
EBITDA	-914.00M	-549.00M	905.00M	1.46B	1.06B	924.00M
Net Income	-1.53B	-1.41B	210.00M	685.00M	441.00M	169.00M
Balance Sheet
Total Assets	15.22B	15.89B	22.84B	21.46B	18.97B	15.29B
Cash, Cash Equivalents and Short-Term Investments	1.93B	2.61B	2.20B	2.20B	2.41B	2.34B
Total Debt	4.41B	4.76B	10.29B	8.55B	7.40B	4.71B
Total Liabilities	7.08B	7.72B	13.24B	11.76B	10.09B	6.98B
Stockholders Equity	8.14B	8.17B	9.58B	9.70B	8.86B	8.29B
Cash Flow
Free Cash Flow	0.00	2.82B	-1.12B	-1.01B	-2.33B	-1.16B
Operating Cash Flow	0.00	3.16B	-578.00M	359.00M	63.00M	412.00M
Investing Cash Flow	0.00	2.92B	-838.00M	-1.85B	-2.52B	-1.81B
Financing Cash Flow	0.00	-5.67B	1.43B	1.29B	2.51B	1.70B

Future Innovation Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 319.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 319 is above the 20-day moving average (MA) of 303.00, above the 50-day MA of 295.52, and above the 200-day MA of 278.58, indicating a bullish trend. The MACD of 6.35 indicates Negative momentum. The RSI at 62.85 is Neutral, neither overbought nor oversold. The STOCH value of 47.37 is Neutral, 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
7673	79 Outperform	¥8.60B	10.53		3.26%	26.17%	35.59%
4441	77 Outperform	¥12.52B	18.62		1.62%	17.60%	4.04%
6904	68 Neutral	¥10.11B	20.29		1.60%	-7.72%	―
Sector *	61 Neutral	$36.80B	12.38	-10.20%	1.85%	8.54%	-7.31%
4392	57 Neutral	¥9.47B	90.26		1.57%	2.99%	-943.03%
6634	51 Neutral	¥5.70B	―		―	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.