Science Arts, Inc. (4412) AI Stock Analysis

• Market Cap: ¥10.05B
• Dividend Yield: N/A
• Average Volume (3M): 90.38K
• Price to Earnings (P/E): 256.6
• Beta (1Y): 0.65
• Revenue Growth: 33.54%
• EPS Growth: N/A
• Country: JP
• Employees: 46
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Application
• EPS (TTM): 2.43
• Shares Outstanding: 8,219,500
• 10 Day Avg. Volume: 61,930
• 30 Day Avg. Volume: 90,376
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: ―

Science Arts, Inc. exhibits strong revenue growth but faces challenges with profitability and cash flow. While the technical analysis suggests positive momentum, the valuation metrics highlight significant hurdles. The company needs to improve operational efficiency to leverage its growth potential effectively.

Science Arts, Inc. Business Overview & Revenue Model

Company Description

Science Arts, Inc. (4412) is a multifaceted company operating at the intersection of science and technology with a focus on innovative research and development. The company specializes in creating cutting-edge scientific instruments and software solutions tailored for academic, industrial, and government sectors. Science Arts, Inc. is dedicated to advancing scientific knowledge and understanding through the integration of art and technology, providing high-quality products and services that enhance scientific discovery and education.

How the Company Makes Money

Science Arts, Inc. generates revenue through the sale of its proprietary scientific instruments and software solutions. The company markets these products to universities, research institutions, and private industries that require advanced tools for scientific research and development. Additionally, Science Arts, Inc. offers consulting services and technical support, creating an additional revenue stream. Strategic partnerships with academic institutions and technology firms also play a crucial role in enhancing its product offerings and expanding its market reach. The company's revenue is influenced by its ability to innovate and stay at the forefront of scientific and technological advancements.

Science Arts, Inc. Financial Statement Overview

Summary

Science Arts, Inc. demonstrates strong revenue growth but struggles with profitability and cash flow sustainability. The balance sheet is robust due to high liquidity, offset by a concerning operating efficiency. The company must address operational inefficiencies to convert revenue growth into profitability and enhance cash flow stability to support long-term growth.

Income Statement

The income statement shows a positive revenue growth trend with a CAGR of approximately 17% from 2020 to 2024. However, persistent negative EBIT and net income indicate ongoing operating challenges. Gross profit margins have been relatively stable, but the company has struggled to translate this into net profitability. The EBIT and EBITDA margins remain negative, highlighting efficiency and cost management issues.

Balance Sheet

The balance sheet reflects a strong liquidity position, with substantial cash reserves consistently exceeding total debt. The equity ratio is stable, indicating a solid capital structure. However, the debt-to-equity ratio has fluctuated, and recent increases in liabilities may pose a risk if not controlled. Overall, the company's financial position is stable, with a favorable equity buffer.

Cash Flow

Cash flow analysis reveals inconsistent free cash flow, affected by volatile operating cash flow and high capital expenditures. There has been a substantial improvement in operating cash flow from a significant negative figure in 2023 to a positive one in 2024, but free cash flow remains negative. The operating cash flow to net income ratio has improved, yet challenges in generating sustainable free cash flow persist.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	1.18B	771.86M	659.99M	365.99M	222.76M
Gross Profit	677.77M	490.24M	435.36M	265.26M	166.50M
EBITDA	-18.74M	-46.00M	15.30M	-93.55M	-88.66M
Net Income	-31.85M	-81.34M	9.01M	-95.29M	-92.06M
Balance Sheet
Total Assets	953.46M	894.09M	801.13M	351.35M	428.03M
Cash, Cash Equivalents and Short-Term Investments	562.34M	504.76M	663.91M	260.53M	373.59M
Total Debt	89.02M	0.00	0.00	0.00	64.83M
Total Liabilities	477.00M	385.68M	230.52M	117.88M	149.43M
Stockholders Equity	476.56M	508.41M	570.61M	233.46M	278.60M
Cash Flow
Free Cash Flow	-46.38M	-87.88M	95.79M	-98.44M	-92.70M
Operating Cash Flow	1.15M	-66.92M	114.25M	-97.69M	-92.42M
Investing Cash Flow	-32.58M	-107.13M	-34.65M	-691.00K	210.00K
Financing Cash Flow	89.02M	14.90M	323.79M	-14.68M	64.48M

Science Arts, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1243.00
• 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:4412, the sentiment is Positive. The current price of 1243 is below the 20-day moving average (MA) of 1246.20, above the 50-day MA of 1182.84, and above the 200-day MA of 812.33, indicating a neutral trend. The MACD of 18.62 indicates Positive momentum. The RSI at 53.41 is Neutral, neither overbought nor oversold. The STOCH value of 44.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4412.

Science Arts, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4384	72 Outperform	€74.33B	30.93	15.49%	0.24%	22.41%	17.80%
Sector *	68 Neutral	¥242.89B	15.13	6.64%	2.45%	9.16%	-0.19%
3983	67 Neutral	¥44.27B	25.08		1.05%	5.39%	-6.71%
3994	56 Neutral	€355.27B	―	-18.26%	―	20.96%	-6.20%
4412	55 Neutral	¥10.05B	256.60		―	33.54%	―
4436	44 Neutral	¥8.45B	―		5.38%	7.38%	-317.56%