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

• Market Cap: ¥38.13B
• Dividend Yield: N/A
• Average Volume (3M): 179.15K
• Price to Earnings (P/E): 43.6
• Beta (1Y): 1.02
• Revenue Growth: -13.60%
• EPS Growth: 5.59%
• Country: JP
• Employees: 199
• Sector: Communication Services
• Sector Strength: 96
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 94.08
• Shares Outstanding: 4,003,000
• 10 Day Avg. Volume: 177,300
• 30 Day Avg. Volume: 179,153
• 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: ¥10,858.00
• Price Target Upside: 10.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: ¥10,858.00 ▲(10.80% Upside)

The overall stock score is primarily influenced by financial performance, which shows strong profitability but is offset by revenue declines and cash flow issues. Technical analysis indicates bearish trends, and valuation metrics suggest the stock is overvalued. The absence of earnings call and corporate events data limits further insights.

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

The company shows strong profitability with a robust gross profit margin and a healthy balance sheet characterized by low debt levels. However, recent revenue declines and cash flow challenges pose risks to 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.39B	13.62B	21.33B	2.43B	2.13B	3.06B
Gross Profit	5.92B	6.45B	11.32B	47.18M	-197.79M	563.43M
EBITDA	1.15B	1.38B	4.93B	-995.92M	-783.77M	-53.34M
Net Income	551.00M	895.00M	3.29B	-838.46M	-541.59M	-74.58M
Balance Sheet
Total Assets	6.76B	5.80B	8.09B	2.04B	2.47B	3.18B
Cash, Cash Equivalents and Short-Term Investments	4.08B	2.90B	5.42B	1.04B	1.67B	2.48B
Total Debt	90.00M	200.00M	555.00M	1.28B	1.45B	1.53B
Total Liabilities	1.82B	1.34B	4.42B	1.64B	1.75B	1.93B
Stockholders Equity	4.94B	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: Negative
• Last Price: 9800.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 9800 is below the 20-day moving average (MA) of 11605.00, below the 50-day MA of 11547.60, and above the 200-day MA of 8846.60, indicating a neutral trend. The MACD of -596.48 indicates Positive momentum. The RSI at 33.41 is Neutral, neither overbought nor oversold. The STOCH value of 16.14 is Positive, 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
3932	66 Neutral	¥41.27B	55.03		3.32%	-10.86%	-64.25%
Sector *	60 Neutral	$46.60B	4.08	-11.26%	4.13%	1.85%	-42.71%
4393	58 Neutral	¥38.13B	43.62		―	-13.60%	5.59%
3911	54 Neutral	¥12.52B	8.80		―	4.13%	―
3903	50 Neutral	¥30.56B	15.04		―	-25.89%	―
3667	46 Neutral	¥3.99B	―		―	-12.26%	44.44%
3793	42 Neutral	¥13.92B	―		―	56.97%	-780.15%