Accrete, Inc. (4395) AI Stock Analysis

• Market Cap: ¥9.86B
• Dividend Yield: 0.38%
• Average Volume (3M): 166.06K
• Price to Earnings (P/E): 87.1
• Beta (1Y): 0.47
• Revenue Growth: 17.63%
• EPS Growth: N/A
• Country: JP
• Employees: 98
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 5.50
• Shares Outstanding: 7,530,158
• 10 Day Avg. Volume: 189,360
• 30 Day Avg. Volume: 166,063
• PEG Ratio: 0.48
• Price to Book (P/B): 2.39
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 19.94
• 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: 70 Outperform
• Price Target: ¥1,649.00 ▲(10.08% Upside)

Accrete, Inc. demonstrates strong financial stability and positive technical momentum, which are significant strengths. However, the high P/E ratio suggests potential overvaluation, which is a notable risk. The lack of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for Accrete's AI solutions, supporting long-term business expansion and market penetration.

Balance Sheet Health

A low debt-to-equity ratio reflects prudent financial management, providing Accrete with financial flexibility to invest in growth opportunities.

Cash Flow Generation

Strong cash flow growth enhances liquidity and supports Accrete's ability to fund operations, invest in R&D, and pursue strategic initiatives.

Negative Factors

Profitability Margins

Low profitability margins suggest operational inefficiencies, which could hinder Accrete's ability to sustain long-term profitability and competitiveness.

Return on Equity

A modest return on equity indicates that Accrete may not be fully leveraging its equity base to generate profits, impacting shareholder returns.

Net Profit Margin

While improved, a low net profit margin may limit Accrete's ability to reinvest in growth and withstand competitive pressures in the long term.

Accrete, Inc. Business Overview & Revenue Model

Company Description

Accrete, Inc. (4395) is a technology company specializing in advanced artificial intelligence and machine learning solutions. The company operates primarily in the software sector, providing innovative tools and platforms that enhance data analysis and decision-making processes for businesses across various industries, including finance, healthcare, and logistics. Accrete's core products include AI-driven analytics software, data integration solutions, and customized machine learning algorithms designed to optimize operational efficiency and drive business growth.

How the Company Makes Money

Accrete, Inc. generates revenue through a combination of software licensing, subscription services, and consulting fees. The primary revenue stream comes from the sale of software licenses for its AI analytics platforms, which companies purchase to integrate into their existing systems. Additionally, Accrete offers subscription-based access to its cloud-based services, providing continuous updates and support. The company also earns revenue from consulting services, helping clients implement AI solutions tailored to their specific needs. Strategic partnerships with technology firms and industry leaders further enhance its market reach and contribute to its earnings through co-development projects and joint marketing efforts.

Accrete, Inc. Financial Statement Overview

Summary

Accrete, Inc. exhibits a strong financial position with impressive revenue growth and a solid balance sheet. While profitability margins show some weaknesses, the company's cash flow generation remains robust, supporting its operational and financial stability.

Income Statement

Accrete, Inc. has demonstrated strong revenue growth with a 16.8% increase from the previous year. The gross profit margin stood at 24.6%, and the net profit margin improved to 1.2%. However, the EBIT margin decreased to 5.2%, and the EBITDA margin was notably low at 0.5%, indicating potential operational inefficiencies.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.28, reflecting prudent financial management. The equity ratio is robust at 49.8%, indicating strong financial stability. Return on equity is modest at 4.1%, suggesting room for improvement in profitability.

Cash Flow

Accrete, Inc. shows a healthy cash flow position with a 13.8% growth in free cash flow. The operating cash flow to net income ratio is strong at 2.9, and the free cash flow to net income ratio is 2.9, indicating efficient cash conversion and strong liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.42B	6.35B	5.43B	6.19B	2.83B	1.73B
Gross Profit	1.83B	1.56B	1.59B	2.30B	1.14B	690.60M
EBITDA	649.62M	29.07M	153.83M	1.35B	483.13M	360.49M
Net Income	136.30M	73.50M	33.43M	851.65M	307.06M	241.08M
Balance Sheet
Total Assets	4.54B	3.59B	4.21B	4.92B	2.75B	1.60B
Cash, Cash Equivalents and Short-Term Investments	1.43B	1.47B	1.82B	2.19B	1.52B	1.22B
Total Debt	446.20M	501.00M	923.00M	1.34B	346.08M	0.00
Total Liabilities	1.67B	1.50B	2.07B	2.74B	1.04B	337.31M
Stockholders Equity	2.38B	1.79B	1.67B	1.66B	1.65B	1.27B
Cash Flow
Free Cash Flow	0.00	214.00M	188.00M	956.61M	339.13M	260.31M
Operating Cash Flow	0.00	214.95M	191.00M	976.31M	359.72M	316.30M
Investing Cash Flow	0.00	-104.68M	-95.15M	-471.03M	-464.19M	-71.13M
Financing Cash Flow	0.00	-473.34M	-461.00M	161.14M	407.84M	-15.66M

Accrete, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1498.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1498 is above the 20-day moving average (MA) of 1016.50, above the 50-day MA of 990.12, and above the 200-day MA of 924.15, indicating a bullish trend. The MACD of 91.83 indicates Negative momentum. The RSI at 60.02 is Neutral, neither overbought nor oversold. The STOCH value of 79.12 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
4395	70 Outperform	¥9.86B	87.11	―	0.38%	17.63%	―
3776	66 Neutral	¥12.35B	29.30	―	1.00%	17.19%	-43.91%
4415	65 Neutral	¥6.21B	14.51	―	―	39.18%	27.87%
9419	63 Neutral	¥2.73B	21.30	―	―	-3.76%	-67.98%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3323	49 Neutral	¥6.45B	27.53	―	1.27%	11.99%	177.55%
9421	45 Neutral	¥3.01B	57.33	―	―	4.84%	-54.50%