Accrete, Inc. (4395) AI Stock Analysis

• Market Cap: ¥8.54B
• Dividend Yield: 0.38%
• Average Volume (3M): 166.06K
• Price to Earnings (P/E): 74.5
• Beta (1Y): 0.50
• 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: 7,710,158
• 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: 76 Outperform
• Price Target: ¥1,354.00 ▼(-9.61% Downside)

The score is driven primarily by strong financial performance (robust cash flow generation and a solid, low-leverage balance sheet) and supportive technicals (price above key moving averages with positive momentum). These positives are partially offset by expensive valuation (high P/E and low dividend yield) and weaker profitability margins (notably low EBITDA margin).

Positive Factors

Revenue Growth

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

Cash Flow Generation

Strong cash flow generation enhances Accrete's ability to reinvest in growth opportunities and maintain financial flexibility.

Balance Sheet Health

A low debt-to-equity ratio reflects prudent financial management, providing stability and reducing risk in volatile markets.

Negative Factors

Profitability Margins

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

Return on Equity

A modest return on equity indicates limited efficiency in generating profits from shareholders' equity, impacting investor returns.

EBIT Margin Decline

A declining EBIT margin points to rising costs or pricing pressures, which could affect Accrete's future earnings potential.

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

Strong overall fundamentals supported by solid cash generation (free cash flow up 13.8% and strong cash conversion with operating/free cash flow to net income at 2.9) and a stable balance sheet (low debt-to-equity of 0.28 and equity ratio of 49.8%). Revenue growth is strong (+16.8%), but profitability is a constraint with very low EBITDA margin (0.5%) and softer EBIT margin (5.2%).

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: 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 1498 is above the 20-day moving average (MA) of 1129.70, above the 50-day MA of 1113.72, and above the 200-day MA of 984.36, indicating a neutral trend. The MACD of -2.48 indicates Positive momentum. The RSI at 50.03 is Neutral, neither overbought nor oversold. The STOCH value of 39.42 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	76 Outperform	¥8.54B	74.47	―	0.38%	17.63%	―
4415	67 Neutral	¥7.40B	17.23	―	―	39.18%	27.87%
3776	66 Neutral	¥11.86B	27.26	―	1.01%	17.19%	-43.91%
9419	64 Neutral	¥3.19B	24.87	―	―	-3.76%	-67.98%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3323	55 Neutral	¥9.80B	47.29	―	1.23%	11.99%	177.55%
9421	45 Neutral	¥3.40B	64.68	―	―	4.84%	-54.50%