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

• Market Cap: ¥29.30B
• Dividend Yield: N/A
• Average Volume (3M): 85.91K
• Price to Earnings (P/E): 33.5
• Beta (1Y): 1.08
• Revenue Growth: -9.17%
• EPS Growth: 51.84%
• Country: JP
• Employees: 199
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 126.23
• Shares Outstanding: 4,003,000
• 10 Day Avg. Volume: 56,820
• 30 Day Avg. Volume: 85,910
• PEG Ratio: -0.32
• Price to Book (P/B): 4.69
• Price to Sales (P/S): 1.54
• P/FCF Ratio: -12.03
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ¥8,204.00 ▲(17.87% Upside)

The overall stock score reflects strong profitability and a solid balance sheet, but is tempered by recent revenue declines, cash flow challenges, and weak technical indicators. The high P/E ratio further suggests overvaluation concerns.

Positive Factors

Strong Profitability

A strong gross profit margin reflects effective cost management and pricing power, which supports long-term profitability and competitive positioning.

Healthy Balance Sheet

A strong equity position and low debt levels indicate financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Effective Use of Equity

High ROE suggests efficient use of shareholders' equity to generate profits, which is a positive indicator of management effectiveness and business strength.

Negative Factors

Revenue Decline

Significant revenue decline raises concerns about the company's ability to maintain market share and growth, potentially impacting long-term financial performance.

Cash Flow Challenges

Zero operating cash flow suggests difficulties in generating cash from operations, which could affect liquidity and the ability to fund ongoing operations and investments.

Declining Net Profit Margin

A declining net profit margin indicates pressure on profitability, possibly due to increased costs or reduced pricing power, which may impact long-term financial health.

Bank of Innovation, Inc. Business Overview & Revenue Model

Company Description

Bank of Innovation, Inc. (4393) is a forward-thinking financial institution that specializes in providing innovative banking solutions and technology-driven services. The company operates primarily in the financial services sector, focusing on areas such as digital banking, payment processing, and financial technology. Its core products include mobile banking applications, online payment platforms, and tailored financial products designed to meet the needs of both individual consumers and businesses.

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 shows strong profitability with a robust gross profit margin and a healthy balance sheet characterized by low debt and high equity ratios. However, recent revenue declines and cash flow challenges 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.27B	13.62B	21.33B	2.43B	2.13B	3.06B
Gross Profit	6.00B	6.45B	11.32B	47.18M	-197.79M	563.43M
EBITDA	1.68B	1.38B	4.93B	-995.92M	-783.77M	-53.34M
Net Income	893.00M	895.00M	3.29B	-838.46M	-541.59M	-74.58M
Balance Sheet
Total Assets	7.17B	5.80B	8.09B	2.04B	2.47B	3.18B
Cash, Cash Equivalents and Short-Term Investments	4.64B	2.90B	5.42B	1.04B	1.67B	2.48B
Total Debt	35.00M	200.00M	555.00M	1.28B	1.45B	1.53B
Total Liabilities	1.85B	1.34B	4.42B	1.64B	1.75B	1.93B
Stockholders Equity	5.32B	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: 6960.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 6960 is below the 20-day moving average (MA) of 7400.00, below the 50-day MA of 7701.00, and below the 200-day MA of 9310.50, indicating a bearish trend. The MACD of -196.09 indicates Negative momentum. The RSI at 40.64 is Neutral, neither overbought nor oversold. The STOCH value of 47.35 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
4393	62 Neutral	¥29.30B	33.51	―	―	-9.17%	51.84%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3932	60 Neutral	¥38.22B	50.95	―	4.16%	-15.30%	39.61%
3911	48 Neutral	¥10.23B	5.66	―	―	11.15%	―
3903	46 Neutral	¥21.91B	6.25	―	―	-39.08%	―
3793	42 Neutral	¥13.29B	-5.55	―	―	93.85%	-216.24%
3667	37 Underperform	¥3.31B	-3.14	―	―	-22.21%	32.20%