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

• Market Cap: ¥43.82B
• Dividend Yield: N/A
• Average Volume (3M): 164.84K
• Price to Earnings (P/E): 81.2
• Beta (1Y): 0.95
• Revenue Growth: -18.69%
• EPS Growth: -48.21%
• Country: JP
• Employees: 199
• Sector: Communication Services
• Sector Strength: 71
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -15.49
• Shares Outstanding: 4,003,000
• 10 Day Avg. Volume: 156,060
• 30 Day Avg. Volume: 164,843
• PEG Ratio: -1.70
• Price to Book (P/B): 8.98
• 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: ¥11,550.00
• Price Target Upside: 2.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥12,647.00 ▲(12.32%Upside)

The overall score is primarily influenced by strong profitability and a robust balance sheet. However, the company's high P/E ratio suggests overvaluation risks, especially amidst cash flow generation challenges. Technical indicators show positive momentum, but valuation concerns weigh heavily on the overall score.

Bank of Innovation, Inc. Business Overview & Revenue Model

Company Description

Bank of Innovation, Inc. (4393) is a dynamic company operating within the technology and gaming sectors. It specializes in developing innovative mobile games and digital entertainment content that captivates audiences worldwide. The company is known for its engaging and visually appealing gaming applications, which are available across various platforms, offering users an immersive and interactive experience.

How the Company Makes Money

Bank of Innovation, Inc. generates revenue primarily through in-app purchases and advertising within its mobile games. The company designs games that are free to download, attracting a broad user base. Once users are engaged, they can purchase virtual items, upgrades, or other enhancements to improve their gameplay experience. Additionally, the company partners with advertisers to integrate ads into its games, providing another stream of income. These revenue streams are bolstered by the company's focus on continually updating and expanding their game offerings to retain user interest and drive repeat engagement.

Bank of Innovation, Inc. Financial Statement Overview

Summary

Bank of Innovation, Inc. displays strong profitability metrics and a healthy balance sheet, underscored by low debt and high equity ratios. However, recent revenue declines and challenges in cash flow generation raise concerns about future growth and operational sustainability.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	13.62B	21.33B	2.43B	2.13B	3.06B
Gross Profit	6.45B	11.32B	47.18M	-197.79M	563.43M
EBITDA	1.38B	4.93B	-995.92M	-783.77M	-53.34M
Net Income	895.00M	3.29B	-838.46M	-541.59M	-74.58M
Balance Sheet
Total Assets	5.80B	8.09B	2.04B	2.47B	3.18B
Cash, Cash Equivalents and Short-Term Investments	2.90B	5.42B	1.04B	1.67B	2.48B
Total Debt	200.00M	555.00M	1.28B	1.45B	1.53B
Total Liabilities	1.34B	4.42B	1.64B	1.75B	1.93B
Stockholders Equity	4.47B	3.68B	399.32M	722.29M	1.26B
Cash Flow
Free Cash Flow	-1.74B	5.16B	-976.60M	-735.35M	-251.60M
Operating Cash Flow	-1.72B	5.21B	-974.29M	-729.83M	-246.55M
Investing Cash Flow	-428.00M	-278.00M	96.36M	-65.44M	-12.05M
Financing Cash Flow	-462.00M	-739.00M	349.19M	-74.92M	344.16M

Bank of Innovation, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11260.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 11260 is above the 20-day moving average (MA) of 11144.00, above the 50-day MA of 10437.40, and above the 200-day MA of 7903.63, indicating a bullish trend. The MACD of 267.95 indicates Positive momentum. The RSI at 53.31 is Neutral, neither overbought nor oversold. The STOCH value of 50.07 is Neutral, 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	69 Neutral	¥43.82B	81.22		―	-18.69%	-48.21%
3932	69 Neutral	¥42.09B	25.57		3.25%	-1.33%	5.97%
Sector *	62 Neutral	$41.98B	-1.92	-12.06%	3.47%	2.10%	-71.01%
3793	55 Neutral	¥16.58B	―		―	29.41%	-1104.69%
3911	50 Neutral	¥11.30B	30.75		―	<0.01%	―
3903	48 Neutral	¥30.29B	14.91		―	-12.61%	-314.92%
3667	46 Neutral	¥3.82B	―		―	-8.79%	49.62%