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

• Market Cap: ¥18.48B
• Dividend Yield: N/A
• Average Volume (3M): 85.91K
• Price to Earnings (P/E): 19.1
• 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: ¥5,242.00 ▼(-14.35% 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

Very low leverage and a high equity ratio provide durable financial flexibility for a consumer finance franchise. This strengthens regulatory resilience, supports lending capacity and strategic investments, and reduces refinancing risk across economic cycles, aiding long-term stability.

Cash generation turnaround

A demonstrated shift to positive operating and free cash flow—OCF over twice net income—improves internal funding for loan originations, reserves and growth initiatives. Strong cash conversion enhances self-funded expansion and reduces reliance on external financing over the medium term.

Improved margins & revenue spike

A sharp recent revenue rebound alongside healthy gross and rising net margins signals product-market traction and pricing power in core consumer finance offerings. Sustained margin levels support profitability even if growth moderates, underpinning durable earnings capacity.

Negative Factors

Revenue growth inconsistency

Conflicting year-to-year revenue trends and a negative recent overall growth metric indicate instability in top-line drivers. For a lending-focused business, uneven origination volumes or demand sensitivity complicate forecasting, capital allocation and long-term planning.

Margin pressure (EBIT/EBITDA)

Declining EBIT/EBITDA margins point to rising operating costs or less efficient scaling. Persistent margin compression would erode operating leverage, reduce reinvestment capacity, and weaken the company’s ability to convert revenue growth into sustainable profit.

Historic cash flow volatility

Prior cash-flow swings increase funding and reserve uncertainty for a consumer finance lender. Volatility can force precautionary liquidity buffers, constrain origination cadence during stress periods, and raise the cost of managing capital over multiple quarters.

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

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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	7.24B	7.32B	11.86B	606.97M	471.06M
EBITDA	2.17B	1.35B	4.91B	-1.00B	-801.03M
Net Income	1.35B	895.00M	3.29B	-838.45M	-541.59M
Balance Sheet
Total Assets	8.54B	5.82B	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	2.73B	1.35B	4.41B	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	-974.50M	-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: 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 6120 is above the 20-day moving average (MA) of 5202.50, above the 50-day MA of 5806.40, and below the 200-day MA of 8279.55, indicating a bearish trend. The MACD of -147.95 indicates Negative momentum. The RSI at 39.56 is Neutral, neither overbought nor oversold. The STOCH value of 61.97 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	¥9.15B	9.63	―	―	11.15%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4393	58 Neutral	¥18.48B	19.12	―	―	-9.17%	51.84%
3632	54 Neutral	¥65.19B	111.53	1.59%	2.09%	-2.61%	116.80%
3656	52 Neutral	¥26.98B	-95.92	―	―	-14.71%	-38.87%
3903	46 Neutral	¥16.56B	9.33	―	―	-37.68%	―
3793	42 Neutral	¥11.30B	4.66	―	―	93.85%	-216.24%