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

• Market Cap: ¥19.30B
• Dividend Yield: N/A
• Average Volume (3M): 85.91K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.93
• Revenue Growth: -9.17%
• EPS Growth: 51.84%
• Country: JP
• Employees: 199
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 80.17
• Shares Outstanding: 4,003,000
• 10 Day Avg. Volume: 56,820
• 30 Day Avg. Volume: 85,910
• PEG Ratio: 0.46
• Price to Book (P/B): 5.54
• Price to Sales (P/S): 2.60
• P/FCF Ratio: 11.37
• 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: 58 Neutral
• Price Target: ¥5,304.00 ▼(-13.33% Downside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

The overall stock score is primarily influenced by strong financial performance, despite some operational challenges and cash flow volatility. Technical analysis indicates a bearish trend, which negatively impacts the score. The valuation is reasonable, but the lack of a dividend yield may deter some investors.

Positive Factors

Balance Sheet Strength

A high equity ratio and very low leverage provide durable financial flexibility, reducing solvency risk and enabling the firm to fund lending or absorb shocks without heavy external borrowing. Strong ROE (23.2%) indicates efficient capital use supporting long-term shareholder returns.

Cash Generation

The recent turnaround to positive operating and free cash flows, with OCF well above net income, demonstrates the business converts earnings into real cash. Durable cash generation supports loan origination, reserve building and strategic investments without frequent external financing.

Margin Sustainability

Healthy gross and improved net margins point to sustained core profitability and pricing power in consumer finance operations. These margins create a cushion against credit costs or funding pressure, helping preserve earnings stability over the medium term.

Negative Factors

Recent Revenue Trend

A negative reported revenue growth rate signals top-line deterioration that can limit scale economies and reinvestment capacity. If revenue contraction persists, it may force reliance on cost cutting or reduce loan book expansion, pressuring long-term earnings potential.

Operational Margin Compression

Declining EBIT and EBITDA margins suggest rising operating costs or weakening efficiency. Sustained margin compression erodes operating earnings even if gross margins remain healthy, reducing the firm's ability to absorb credit losses or invest for growth over the medium term.

Cash Flow Volatility

Despite the recent cash-flow improvement, documented historical volatility reduces predictability for provisioning, capital allocation and debt servicing. Variable cash conversion increases refinancing and operational risk during adverse economic cycles, challenging strategic planning.

Bank of Innovation, Inc. Business Overview & Revenue Model

Company Description

Bank of Innovation,Inc. engages in the development and operation of smartphone games. Its game applications include Mitrasphere and Cryptotract. The company was incorporated in 2006 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Bank of Innovation, Inc. generates revenue through multiple streams, primarily from transaction fees associated with its payment processing services and subscription fees for its digital banking platforms. The company also earns interest income from its lending services, including personal loans and business financing. Additionally, strategic partnerships with technology firms and e-commerce platforms enhance its service offerings, leading to increased user engagement and transaction volume, which further boosts its earnings. The company benefits from economies of scale as it expands its customer base, allowing it to reduce costs and increase profitability.

Bank of Innovation, Inc. Financial Statement Overview

Summary

The company has shown strong revenue growth and profitability improvements, supported by a solid balance sheet with low leverage. However, operational efficiency and cash flow stability remain areas to monitor.

Income Statement

The company has shown strong revenue growth in recent years, with a notable 82.3% increase in the latest year. Gross profit margin is healthy at 48.5%, and net profit margin has improved to 10.9%. However, the EBIT and EBITDA margins have decreased compared to previous years, indicating potential operational challenges.

Balance Sheet

The balance sheet reflects a solid equity base with an equity ratio of 73.2%. The debt-to-equity ratio is low at 0.22, indicating low leverage and financial stability. Return on equity is strong at 23.2%, showing effective use of equity to generate profits. However, the company has experienced fluctuations in equity and debt levels over the years.

Cash Flow

The company has demonstrated a significant turnaround in cash flow, with positive operating and free cash flows in the latest year. The operating cash flow to net income ratio is 2.12, indicating strong cash generation relative to net income. However, historical volatility in cash flows poses a potential risk.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	12.37B	13.62B	21.33B	2.43B	2.13B
Gross Profit	6.00B	6.45B	11.32B	47.18M	-197.79M
EBITDA	2.20B	1.38B	4.93B	-995.92M	-783.77M
Net Income	1.35B	895.00M	3.29B	-838.46M	-541.59M
Balance Sheet
Total Assets	7.94B	5.80B	8.09B	2.04B	2.47B
Cash, Cash Equivalents and Short-Term Investments	5.39B	2.90B	5.42B	1.04B	1.67B
Total Debt	13.00M	200.00M	555.00M	1.28B	1.45B
Total Liabilities	2.13B	1.34B	4.42B	1.64B	1.75B
Stockholders Equity	5.82B	4.47B	3.68B	399.32M	722.29M
Cash Flow
Free Cash Flow	2.83B	-1.74B	5.16B	-976.60M	-735.35M
Operating Cash Flow	2.87B	-1.72B	5.21B	-974.29M	-729.83M
Investing Cash Flow	123.00M	-428.00M	-278.00M	96.36M	-65.44M
Financing Cash Flow	-188.00M	-462.00M	-739.00M	349.19M	-74.92M

Bank of Innovation, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6120.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4393, the sentiment is Negative. The current price of 6120 is above the 20-day moving average (MA) of 5740.50, above the 50-day MA of 6048.40, and below the 200-day MA of 8521.20, indicating a bearish trend. The MACD of -289.74 indicates Positive momentum. The RSI at 30.41 is Neutral, neither overbought nor oversold. The STOCH value of 22.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
3911	62 Neutral	¥9.67B	8.90	―	―	11.15%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4393	58 Neutral	¥19.30B	17.41	―	―	-9.17%	51.84%
3632	54 Neutral	¥68.95B	44.90	4.14%	2.09%	-2.61%	116.80%
3903	46 Neutral	¥16.89B	5.54	―	―	-37.68%	―
3656	45 Neutral	¥26.74B	-4.34	―	―	-14.71%	-38.87%
3793	42 Neutral	¥11.32B	-5.73	―	―	93.85%	-216.24%