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

• Market Cap: ¥8.93B
• Dividend Yield: 1.66%
• Average Volume (3M): 125.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: 8.96%
• EPS Growth: -1257.34%
• Country: JP
• Employees: 713
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 9.88
• Shares Outstanding: 31,593,115
• 10 Day Avg. Volume: 176,200
• 30 Day Avg. Volume: 125,833
• PEG Ratio: <0.01
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 3.04
• 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: 51 Neutral
• Price Target: ¥313.00 ▲(3.99% Upside)

The overall stock score reflects significant challenges in financial performance, particularly in profitability and revenue growth. Technical analysis shows mixed signals with short-term bearish momentum but some longer-term support. Valuation is impacted by negative earnings, though the dividend yield offers some compensation.

Positive Factors

Cash Flow Improvement

Positive free cash flow indicates better cash generation, enhancing the company's ability to invest in growth and manage debt.

Debt Reduction

Reduced leverage improves financial stability and lowers risk, providing more flexibility for strategic investments.

Strong Cash Generation

Strong cash generation supports operational stability and provides resources for future growth initiatives.

Negative Factors

Declining Profit Margins

Negative profit margins highlight challenges in cost management and profitability, potentially impacting long-term viability.

Inconsistent Revenue Growth

Inconsistent revenue growth suggests market or operational challenges, which could hinder long-term expansion efforts.

Negative Return on Equity

Negative ROE indicates inefficiencies in generating returns on shareholder investments, affecting investor confidence.

Future Innovation Group, Inc. Business Overview & Revenue Model

Company Description

Future Innovation Group, Inc., through its subsidiaries, engages in the information and communications, and equipment related businesses in Japan. The company engages in the development, sale, operation, rental and lease, and maintenance of mobile communication network products utilizing mobile communication infrastructure and mobile management systems utilizing GPS; and design and manufacture of semiconductor, automobile-related automation equipment, medical-related equipment, automatic packaging equipment, precision molds, precision machined parts, etc. It is also involved in the provision of sightseeing, taxi, and bus services; research and development, manufacture, construction, maintenance, sale, and import/export of unmanned aerial vehicles or robot control systems; and call center system, system development, sensor system, and e-commerce businesses, as well as location-based services in the transportation and logistics industry. In addition, the company engages in the design and manufacture of inspection equipment; system development of image processing equipment and automatic control equipment; development, operation, and maintenance of multimedia systems for hotel operators, semiconductor substrate business, and manufacturing equipment businesses; development of systems for logistics and consulting businesses; development of solutions related to virtual reality systems; and research and development of IoT devices, as well as 2D, 3D, and video design content businesses. Future Innovation Group, Inc. was incorporated in 2018 and is based in Oita, Japan.

How the Company Makes Money

Future Innovation Group generates revenue through a diversified model that includes multiple key streams. The primary source of income comes from the sale of software solutions and applications that cater to enterprise clients looking to enhance operational efficiency. Additionally, the company earns revenue from consulting services that help organizations implement innovative technologies effectively. Another significant revenue stream is derived from partnerships with other technology firms and government contracts focused on renewable energy projects, which provide both funding and collaborative opportunities. The company also explores licensing agreements for its proprietary technologies, further contributing to its earnings.

Future Innovation Group, Inc. Financial Statement Overview

Summary

The company faces challenges in maintaining revenue growth and profitability, with declining margins and net losses. However, there is a positive sign in cash flow improvements, despite ongoing operational inefficiencies and market challenges.

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	9.82B	12.02B	13.53B	12.91B	12.26B	10.33B
Gross Profit	2.94B	3.73B	4.03B	3.88B	3.27B	2.30B
EBITDA	-741.00M	-549.00M	905.00M	1.46B	1.06B	924.00M
Net Income	-1.38B	-1.41B	210.00M	685.00M	441.00M	169.00M
Balance Sheet
Total Assets	15.11B	15.89B	22.84B	21.46B	18.97B	15.29B
Cash, Cash Equivalents and Short-Term Investments	1.99B	2.61B	2.20B	2.20B	2.41B	2.34B
Total Debt	3.93B	4.76B	10.29B	8.55B	7.40B	4.71B
Total Liabilities	6.71B	7.72B	13.24B	11.76B	10.09B	6.98B
Stockholders Equity	8.40B	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: 301.00
• 50DMA: Negative
• 100DMA: Negative
• 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 301 is below the 20-day moving average (MA) of 301.95, below the 50-day MA of 305.32, and above the 200-day MA of 288.98, indicating a neutral trend. The MACD of -0.84 indicates Negative momentum. The RSI at 53.25 is Neutral, neither overbought nor oversold. The STOCH value of 76.19 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	74 Outperform	¥8.54B	10.42	―	3.22%	21.26%	20.51%
4441	73 Outperform	¥13.43B	20.65	―	1.66%	16.60%	6.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6904	59 Neutral	¥9.98B	11.58	―	1.64%	-11.47%	―
4392	51 Neutral	¥8.93B	-8.56	―	1.66%	8.96%	-1257.34%
6634	42 Neutral	¥4.25B	-4.04	―	―	165.52%	17.61%

Future Innovation Group, Inc. Corporate Events

Future Innovation Group Reports Strong Financial Growth in 2025

Future Innovation Group, Inc. reported significant financial growth for the nine months ending September 30, 2025, with net sales increasing by 12.8% and profit attributable to owners of the parent rising by 113.4% compared to the previous year. This financial performance highlights the company’s strong market position and potential for continued growth, with forecasts indicating further increases in sales and profits by the end of the fiscal year.

Future Innovation Group Doubles Year-End Dividend Forecast

Future Innovation Group, Inc. has announced a revision to its year-end dividend forecast for the fiscal year ending December 2025, doubling the dividend from 5 yen to 10 yen per share. This decision aligns with the company’s strategy to enhance shareholder returns and reflects its commitment to sustainable profit growth, considering recent performance trends and a policy of maintaining a consolidated payout ratio of 30% or more.

Future Innovation Group Announces New Dividend Policy

Future Innovation Group, Inc. has announced a new dividend policy aimed at clarifying shareholder returns in alignment with medium- to long-term profit growth. The company plans to implement stable dividend payments with a consolidated payout ratio of 30% or more, balancing shareholder returns with necessary internal reserves for future business development.

Future Innovation Group Records Extraordinary Income from Securities Sale

Future Innovation Group, Inc. announced an extraordinary income from the sale of investment securities, resulting in a gain of 263 million yen. This financial maneuver is expected to impact the company’s consolidated financial results for the third quarter of fiscal year 2025, with potential implications for the full-year earnings forecast, which is currently under review.