Bank of Innovation, Inc. (4393) AI Stock Analysis

• Market Cap: ¥40.86B
• Dividend Yield: N/A
• Average Volume (3M): 146.84K
• Price to Earnings (P/E): 73.8
• Beta (1Y): 0.89
• Revenue Growth: -18.69%
• EPS Growth: -48.21%
• Country: JP
• Employees: 199
• Sector: Communication Services
• Sector Strength: 90
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -15.49
• Shares Outstanding: 4,003,000
• 10 Day Avg. Volume: 206,320
• 30 Day Avg. Volume: 146,843
• PEG Ratio: -0.27
• Price to Book (P/B): 30.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.60
• 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: 70 Outperform
• Price Target: ¥11,550.00 ▲(12.90%Upside)

The stock's score is driven by strong technical performance and solid financial stability. However, high valuation concerns and significant cash flow challenges dampen the overall attractiveness. Addressing the cash flow issues and achieving a more reasonable valuation could significantly improve the stock's outlook.

Bank of Innovation, Inc. Business Overview & Revenue Model

Company Description

Bank of Innovation, Inc. (4393) is a technology-driven company specializing in the development and operation of mobile applications and online games. The company is primarily engaged in the entertainment software industry, leveraging cutting-edge technology and creative content to deliver engaging user experiences. Its core products include a variety of mobile games that cater to diverse audiences, combining elements of strategy, adventure, and role-playing genres.

How the Company Makes Money

Bank of Innovation, Inc. generates revenue primarily through its mobile gaming applications. The company's business model includes in-app purchases, where users can buy virtual goods, enhancements, and additional game features. Additionally, the company may leverage advertising within its games to create another revenue stream. Partnerships with other technology firms or game distributors can also enhance its market reach and profitability by expanding its user base or integrating new technologies into its offerings. The company's ability to consistently produce popular and engaging games plays a significant role in sustaining its revenue growth.

Bank of Innovation, Inc. Financial Statement Overview

Summary

The company shows strong profitability with a gross profit margin of 49.2% and a solid equity position. However, recent declines in revenue and significant cash flow challenges suggest potential risks. The net profit margin has decreased significantly, and the absence of free cash flow growth is concerning.

Income Statement

The company exhibits a robust gross profit margin of 49.2% TTM, indicating strong cost management relative to revenue. The net profit margin of 8.1% TTM showcases profitability, although there is a significant drop from the previous 15.4% annual margin, suggesting recent challenges. Revenue growth is volatile, with a notable decline of 36.2% from 2023 to 2024, despite prior growth. The EBIT margin stands at 12.2% TTM, reflecting operational efficiency but a decrease from the previous year. Overall, the company demonstrates solid profitability with recent pressures impacting growth.

Balance Sheet

The company has a strong equity position, with an equity ratio of 75.6% TTM, indicating a low reliance on debt; however, the debt-to-equity ratio of 0.029 is minimal, reflecting prudent financial leverage. Return on equity at 20.9% TTM signals effective use of equity to generate profits, albeit reduced from the previous year's 24.4%. While the balance sheet reflects financial stability, the decrease in ROE and fluctuating total assets suggest areas of concern.

Cash Flow

The cash flow statements reveal challenges, with operating cash flow at zero TTM, indicating potential issues in generating cash from operations. The absence of free cash flow growth further emphasizes these operational difficulties. Historically, the company had a strong operating cash flow to net income ratio, but recent periods show a lack of cash generation efficiency. This poses risks to liquidity and operational funding.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
12.97B	13.62B	21.33B	2.43B	2.13B	3.06B
	Gross Profit
6.38B	6.45B	11.32B	47.18M	-197.79M	563.43M
	EBIT
1.58B	1.33B	4.90B	-1.01B	-807.59M	-60.23M
	EBITDA
1.60B	1.38B	4.93B	-995.92M	-783.77M	-53.34M
	Net Income Common Stockholders
1.05B	895.00M	3.29B	-838.46M	-541.59M	-74.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.75B	2.90B	5.42B	1.04B	1.67B	2.48B
	Total Assets
6.62B	5.80B	8.09B	2.04B	2.47B	3.18B
	Total Debt
145.00M	200.00M	555.00M	1.28B	1.45B	1.53B
	Net Debt
-3.01B	-2.10B	-4.86B	236.88M	-226.56M	-954.75M
	Total Liabilities
1.62B	1.34B	4.42B	1.64B	1.75B	1.93B
	Stockholders Equity
5.00B	4.47B	3.68B	399.32M	722.29M	1.26B
Cash Flow		Free Cash Flow
0.00	-1.74B	5.16B	-976.60M	-735.35M	-251.60M
	Operating Cash Flow
0.00	-1.72B	5.21B	-974.29M	-729.83M	-246.55M
	Investing Cash Flow
0.00	-428.00M	-278.00M	96.36M	-65.44M	-12.05M
	Financing Cash Flow
0.00	-462.00M	-739.00M	349.19M	-74.92M	344.16M

Bank of Innovation, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10230.00
• 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:4393, the sentiment is Positive. The current price of 10230 is above the 20-day moving average (MA) of 9456.00, above the 50-day MA of 9222.00, and above the 200-day MA of 7025.48, indicating a bullish trend. The MACD of 344.10 indicates Negative momentum. The RSI at 62.52 is Neutral, neither overbought nor oversold. The STOCH value of 88.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4393.

Bank of Innovation, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4393	70 Outperform	¥40.86B	73.79		―	-18.69%	-48.21%
3932	64 Neutral	¥42.97B	26.11		3.69%	-1.33%	5.97%
Sector *	61 Neutral	$14.79B	5.90	-3.99%	6.20%	2.67%	-30.30%
3793	56 Neutral	¥15.42B	―		―	29.41%	-1104.58%
3911	52 Neutral	¥12.24B	33.04		―	<0.01%	―
3903	48 Neutral	¥26.23B	13.15		―	-12.61%	-314.92%
3667	44 Neutral	¥3.37B	―		―	-8.79%	49.62%