Accrete, Inc. (4395) AI Stock Analysis

• Market Cap: ¥6.00B
• Dividend Yield: 0.71%
• Average Volume (3M): 65.93K
• Price to Earnings (P/E): 52.4
• Beta (1Y): 0.31
• Revenue Growth: 32.90%
• EPS Growth: N/A
• Country: JP
• Employees: 98
• Sector: Communication Services
• Sector Strength: 72
• Industry: Telecommunications Services
• EPS (TTM): 9.83
• Shares Outstanding: 6,647,320
• 10 Day Avg. Volume: 29,810
• 30 Day Avg. Volume: 65,930
• PEG Ratio: 1.60
• Price to Book (P/B): 2.55
• 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: ¥1,017.00
• Price Target Upside: 13.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥988.00 ▲(10.39%Upside)

Accrete, Inc.'s strong financial performance is a key driver, supported by effective cash flow management and stable profitability. However, its high P/E ratio suggests overvaluation, and technical indicators reflect only moderate momentum. There were no significant earnings call insights or corporate events affecting the score.

Accrete, Inc. Business Overview & Revenue Model

Company Description

Accrete, Inc. (4395) is a technology company specializing in artificial intelligence solutions. The company focuses on developing advanced AI platforms and software that serve various industries, including defense, finance, and media. Accrete's core products are designed to enhance decision-making processes by providing predictive analytics, pattern recognition, and automated data processing capabilities.

How the Company Makes Money

Accrete, Inc. generates revenue primarily through the sale and licensing of its AI software and platforms to commercial and government clients. The company's key revenue streams include subscription fees for its software-as-a-service (SaaS) offerings, custom AI solution development contracts, and ongoing maintenance and support services. Strategic partnerships with defense contractors and financial institutions also contribute to Accrete's earnings by expanding the company's market reach and facilitating the integration of its technology into large-scale projects.

Accrete, Inc. Financial Statement Overview

Summary

Accrete, Inc. presents a strong financial position with solid revenue growth, profitability, and cash flow management. The balance sheet exhibits financial stability and low leverage, although liquidity has decreased. The company is well-positioned in the telecommunications industry, but attention should be paid to cost management and liquidity levels to sustain future growth.

Income Statement

Accrete, Inc. has demonstrated consistent revenue growth over the years, with a significant increase from 2023 to 2024. The gross profit margin and EBIT margin remain strong, although the gross profit margin slightly decreased in 2024, suggesting some pressure on cost management. Net profit margin improved in 2024, indicating better profitability. Overall, the company's income statement reflects a healthy financial performance with a positive growth trajectory.

Balance Sheet

The company's balance sheet is robust, with a strong equity base and a low debt-to-equity ratio, indicating prudent financial management. The equity ratio is relatively high, reflecting stability. However, the decline in cash and equivalents from 2023 to 2024 warrants attention. Overall, the balance sheet is solid with low leverage, but the decrease in liquidity should be monitored.

Cash Flow

Accrete, Inc. maintains strong cash flow generation with positive free cash flow growth in 2024. The operating cash flow to net income ratio is healthy, indicating efficient cash management. The company has managed to keep free cash flow strong despite fluctuations in capital expenditures. Overall, the cash flow statement demonstrates sound financial health and effective cash flow management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.35B	5.43B	6.19B	2.83B	1.73B
Gross Profit	1.56B	1.59B	2.30B	1.14B	690.60M
EBITDA	29.07M	467.00M	1.35B	483.13M	360.49M
Net Income	73.50M	33.00M	851.65M	307.06M	241.08M
Balance Sheet
Total Assets	3.59B	4.21B	4.92B	2.75B	1.60B
Cash, Cash Equivalents and Short-Term Investments	1.47B	1.82B	2.19B	1.52B	1.22B
Total Debt	501.00M	923.00M	1.34B	346.08M	0.00
Total Liabilities	1.50B	2.07B	2.74B	1.04B	337.31M
Stockholders Equity	1.79B	1.67B	1.66B	1.65B	1.27B
Cash Flow
Free Cash Flow	214.00M	188.00M	956.61M	339.13M	260.31M
Operating Cash Flow	214.95M	191.00M	976.31M	359.72M	316.30M
Investing Cash Flow	-104.68M	-95.15M	-471.03M	-464.19M	-71.13M
Financing Cash Flow	-473.34M	-461.00M	161.14M	407.84M	-15.66M

Accrete, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 895.00
• 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:4395, the sentiment is Positive. The current price of 895 is below the 20-day moving average (MA) of 898.90, above the 50-day MA of 889.62, and above the 200-day MA of 776.99, indicating a bullish trend. The MACD of 0.77 indicates Positive momentum. The RSI at 51.30 is Neutral, neither overbought nor oversold. The STOCH value of 58.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4395.

Accrete, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3323	74 Outperform	¥6.86B	61.54		1.93%	22.67%	-69.80%
4395	70 Outperform	¥6.00B	52.39		0.71%	32.90%	―
4415	69 Neutral	¥4.65B	11.21		―	15.58%	38.21%
9419	67 Neutral	¥2.76B	9.83		―	-1.07%	6.60%
3776	66 Neutral	¥9.22B	24.16		1.32%	4.70%	35.62%
Sector *	62 Neutral	$42.09B	-1.57	-12.06%	2.81%	2.10%	-71.01%
9421	42 Neutral	¥3.10B	22.14		―	-13.42%	-195.53%