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

• Market Cap: ¥23.70B
• Dividend Yield: N/A
• Average Volume (3M): 85.91K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.11
• 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: 0.46
• 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: ¥6,812.00 ▲(11.31% Upside)

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 structural resilience for a lending business, reducing refinancing and solvency risk. Coupled with a strong ROE, this supports durable capital allocation, capacity to absorb loan losses, and long‑term reinvestment without heavy external funding.

Cash generation capability

A clear turnaround to positive operating and free cash flow and an OCF-to-net-income >2 indicates the company converts earnings to cash efficiently. Sustainable cash generation supports lending growth, reserve building and funding stability, lowering reliance on capital markets over months.

Improved profitability metrics

Substantially higher revenue with healthy gross and improved net margins signals pricing power and scalable cost structure in core consumer finance operations. If sustained, these margins underpin durable earnings, stronger internal funding and resilience to adverse rate or demand shifts.

Negative Factors

Negative medium-term revenue trend

A negative revenue growth metric points to inconsistent top‑line performance despite recent spikes. Persistent or recurring revenue declines would constrain loan book expansion and earnings scalability, pressuring capital allocation and making medium‑term growth targets harder to sustain.

Operating margin pressure

Declining EBIT/EBITDA margins indicate rising operating costs or deteriorating efficiency. If margin compression persists, it will erode cash flow and return on capital, limiting ability to originate loans, invest in distribution, or build reserves, weakening structural profitability.

Historical cash flow and balance volatility

Past volatility in operating cash flow and reported fluctuations in equity/debt levels raise concerns about predictability of funding and provisioning needs. For a finance company, inconsistent cash generation increases refinancing and liquidity risk and complicates prudent, long‑term lending.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.27B	12.37B	13.62B	21.33B	2.43B	2.13B
Gross Profit	6.00B	6.00B	6.45B	11.32B	47.18M	-197.79M
EBITDA	1.68B	2.20B	1.38B	4.93B	-995.92M	-783.77M
Net Income	893.00M	1.35B	895.00M	3.29B	-838.46M	-541.59M
Balance Sheet
Total Assets	7.17B	7.94B	5.80B	8.09B	2.04B	2.47B
Cash, Cash Equivalents and Short-Term Investments	4.64B	5.39B	2.90B	5.42B	1.04B	1.67B
Total Debt	35.00M	13.00M	200.00M	555.00M	1.28B	1.45B
Total Liabilities	1.85B	2.13B	1.34B	4.42B	1.64B	1.75B
Stockholders Equity	5.32B	5.82B	4.47B	3.68B	399.32M	722.29M
Cash Flow
Free Cash Flow	0.00	2.83B	-1.74B	5.16B	-976.60M	-735.35M
Operating Cash Flow	0.00	2.87B	-1.72B	5.21B	-974.29M	-729.83M
Investing Cash Flow	0.00	123.00M	-428.00M	-278.00M	96.36M	-65.44M
Financing Cash Flow	0.00	-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 below the 20-day moving average (MA) of 6340.00, below the 50-day MA of 6280.80, and below the 200-day MA of 8879.75, indicating a bearish trend. The MACD of -40.92 indicates Positive momentum. The RSI at 48.41 is Neutral, neither overbought nor oversold. The STOCH value of 32.97 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
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3932	60 Neutral	¥36.36B	17.69	―	4.06%	-15.30%	39.61%
4393	58 Neutral	¥23.70B	17.92	―	―	-9.17%	51.84%
3911	48 Neutral	¥10.28B	5.69	―	―	11.15%	―
3903	46 Neutral	¥18.71B	6.14	―	―	-37.68%	―
3667	42 Neutral	¥2.53B	-1.78	―	―	-22.21%	32.20%
3793	42 Neutral	¥11.85B	-6.00	―	―	93.85%	-216.24%