Accrete, Inc. (4395) AI Stock Analysis

• Market Cap: ¥7.40B
• Dividend Yield: 0.48%
• Average Volume (3M): 166.06K
• Price to Earnings (P/E): 45.5
• Beta (1Y): 0.37
• Revenue Growth: 40.61%
• EPS Growth: N/A
• Country: JP
• Employees: 98
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 10.14
• Shares Outstanding: 7,330,158
• 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: ¥1,121.00
• Price Target Upside: 8.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥1,121.00 ▲(8.20% Upside)

Accrete, Inc. scores well due to its strong financial performance, particularly in cash flow and balance sheet stability. Technical analysis shows mixed signals, with some bearish momentum indicators. Valuation metrics suggest the stock might be overvalued, which slightly dampens the overall score.

Accrete, Inc. Business Overview & Revenue Model

Company Description

Accrete, Inc. (4395) is a technology company focused on developing advanced artificial intelligence solutions aimed at enhancing data processing and analytics for businesses across various sectors. The company specializes in providing AI-driven software that automates complex decision-making processes, enabling organizations to leverage data more effectively in industries such as finance, healthcare, and logistics. Accrete's core products include AI platforms that offer natural language processing, machine learning capabilities, and data visualization tools designed to optimize operational efficiency and drive strategic insights.

How the Company Makes Money

Accrete, Inc. generates revenue primarily through a subscription-based model, where clients pay for access to its AI software and services. Key revenue streams include licensing fees for its proprietary AI platforms, consulting services for implementation and customization, and training programs for clients' personnel. Additionally, the company may engage in strategic partnerships with other technology firms and enterprises, allowing for shared resources and co-development of solutions, which can further enhance its revenue potential. The growing demand for AI and data-driven decision-making tools across various industries significantly contributes to Accrete's earnings.

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: 1036.00
• 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 1036 is above the 20-day moving average (MA) of 991.05, above the 50-day MA of 1033.54, and above the 200-day MA of 875.34, indicating a bullish trend. The MACD of -9.30 indicates Negative momentum. The RSI at 54.69 is Neutral, neither overbought nor oversold. The STOCH value of 69.10 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	72 Outperform	¥7.40B	45.54	―	0.48%	40.61%	―
4415	72 Outperform	¥7.69B	16.57	―	―	27.56%	47.92%
9419	61 Neutral	¥2.97B	17.10	―	―	-2.94%	-52.22%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3776	60 Neutral	¥10.08B	40.68	―	1.22%	1.95%	-59.39%
3323	50 Neutral	¥8.74B	43.05	―	1.47%	23.35%	-2.24%
9421	49 Neutral	¥3.18B	98.38	―	―	-6.09%	-88.41%