kaonavi, Inc. (4435) AI Stock Analysis

• Market Cap: ¥52.12B
• Dividend Yield: N/A
• Average Volume (3M): 8.35K
• Price to Earnings (P/E): 172.4
• Beta (1Y): 0.68
• Revenue Growth: 24.81%
• EPS Growth: -58.00%
• Country: JP
• Employees: 322
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Infrastructure
• EPS (TTM): -10.16
• Shares Outstanding: 11,940,000
• 10 Day Avg. Volume: 10,330
• 30 Day Avg. Volume: 8,353
• PEG Ratio: -72.61
• Price to Book (P/B): 19.83
• 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: 67 Neutral
• Price Target: ―

The overall stock score reflects strong financial performance and healthy technical indicators. However, the high P/E ratio significantly impacts the valuation negatively, indicating overvaluation concerns. Despite robust financials, the lack of earnings call data and dividend yield limits further upside potential.

kaonavi, Inc. Business Overview & Revenue Model

Company Description

kaonavi, Inc. (4435) is a leading Japanese company specializing in cloud-based human resources (HR) management solutions. The company focuses on providing innovative HR technology services that help organizations manage their workforce more effectively. Its core product, the kaonavi platform, offers features such as employee data management, talent visualization, and performance tracking, enabling businesses to optimize their HR processes and improve employee engagement.

How the Company Makes Money

kaonavi, Inc. generates revenue primarily through subscription fees for its cloud-based HR management platform. Customers, which include enterprises across various industries, pay recurring fees for access to the software, which is typically offered on a Software-as-a-Service (SaaS) model. The company may also earn additional revenue from providing consulting services, training, and support to help businesses implement and maximize the use of its platform. Furthermore, strategic partnerships with other technology providers and continuous product innovation contribute to its ability to attract and retain clients, thus driving revenue growth.

kaonavi, Inc. Financial Statement Overview

Summary

kaonavi, Inc. demonstrates robust revenue and profit growth, with strong margins and efficient equity usage. The balance sheet reflects low leverage and solid equity, though potential risks from liabilities exist. Cash flow management, however, needs improvement to enhance financial flexibility and support growth.

Income Statement

kaonavi, Inc. shows strong revenue growth with a TTM revenue of ¥9.06 billion, up from ¥7.62 billion YoY. Gross profit margins remain healthy at approximately 76.6% for TTM, supported by efficient cost management. Net profit margin improved significantly, reaching 9.2% TTM, indicating enhanced profitability. However, EBIT and EBITDA margins indicate room for further operational efficiency improvements.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 35.37% TTM, reflecting a solid capital structure. Debt-to-equity ratio is low at 0.14, indicating low leverage. Return on equity stands at 31.46% TTM, showcasing effective use of equity capital. However, high liabilities relative to assets suggest potential risk if revenues decline.

Cash Flow

Cash flow performance is mixed, with zero free cash flow in the TTM period raising concerns over cash generation. Historically, free cash flow to net income ratios were healthy, but the recent stagnation requires attention. Operating cash flows need to recover to sustain future growth and investment.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
9.06B	7.63B	5.99B	4.50B	3.40B	2.62B
	Gross Profit
6.95B	5.90B	4.42B	3.30B	2.46B	1.97B
	EBIT
699.74M	679.00M	322.30M	174.09M	-11.04M	-277.65M
	EBITDA
729.58M	649.00M	423.00M	184.06M	-86.20M	-335.44M
	Net Income Common Stockholders
829.96M	699.00M	246.40M	210.07M	-130.75M	-356.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.56B	4.69B	3.40B	2.84B	1.96B	1.63B
	Total Assets
7.46B	6.54B	4.62B	3.99B	3.01B	2.40B
	Total Debt
372.00M	418.00M	327.38M	454.55M	581.71M	462.66M
	Net Debt
-5.19B	-4.27B	-3.07B	-2.38B	-1.37B	-1.17B
	Total Liabilities
4.80B	4.23B	3.13B	2.79B	2.05B	1.40B
	Stockholders Equity
2.64B	2.21B	1.49B	1.21B	960.95M	995.36M
Cash Flow		Free Cash Flow
0.00	1.35B	791.08M	968.15M	128.82M	-68.23M
	Operating Cash Flow
0.00	1.39B	816.28M	979.24M	383.70M	-52.70M
	Investing Cash Flow
0.00	-179.00M	-134.48M	-30.94M	-236.49M	-429.64M
	Financing Cash Flow
0.00	80.00M	-117.30M	-68.22M	173.08M	330.98M

kaonavi, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4365.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4435, the sentiment is Neutral. The current price of 4365 is below the 20-day moving average (MA) of 4373.25, below the 50-day MA of 4392.30, and above the 200-day MA of 2885.79, indicating a neutral trend. The MACD of 1.20 indicates Positive momentum. The RSI at 48.36 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4435.

kaonavi, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5036	79 Outperform	¥64.65B	15.34		2.12%	24.55%	83.97%
3915	78 Outperform	¥34.85B	35.35		―	29.12%	238.06%
4417	76 Outperform	¥52.37B	49.38		0.63%	25.69%	28.41%
4435	67 Neutral	¥52.12B	172.35		―	24.81%	-58.00%
4475	66 Neutral	¥51.32B	42.39		0.19%	25.42%	36.27%
Sector *	62 Neutral	$11.72B	10.43	-7.10%	2.91%	7.41%	-7.94%