AI inside, Inc. (4488) AI Stock Analysis

• Market Cap: ¥8.53B
• Dividend Yield: N/A
• Average Volume (3M): 21.16K
• Price to Earnings (P/E): 86.1
• Beta (1Y): 0.79
• Revenue Growth: 7.00%
• EPS Growth: -244.58%
• Country: JP
• Employees: 121
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 7.54
• Shares Outstanding: 3,999,950
• 10 Day Avg. Volume: 21,220
• 30 Day Avg. Volume: 21,163
• PEG Ratio: 0.12
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 2.64
• P/FCF Ratio: 17.00
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ¥2,268.00 ▼(-12.77% Downside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is driven primarily by mixed fundamentals: strong growth and healthy cash flow are offset by a return to net losses and negative ROE. Technicals add pressure with a bearish trend (below key moving averages) and negative momentum, while valuation is a headwind given the very high P/E and no dividend support.

Positive Factors

Strong Revenue Generation

The company's ability to generate strong revenue with a high gross profit margin indicates effective cost management and a competitive edge in its industry.

Robust Balance Sheet

A strong balance sheet with low leverage and a solid equity base provides financial stability, allowing the company to weather economic fluctuations and invest in growth opportunities.

Stable Cash Flow

Stable cash flow and efficient cash management ensure the company can sustain operations and fund strategic initiatives, even amid declining net income.

Negative Factors

Declining Profitability

The decline in profitability and negative return on equity highlight operational challenges that could hinder long-term growth and investor confidence.

Negative Net Profit Margin

A negative net profit margin indicates that the company is not currently profitable, which could impact its ability to reinvest in the business and deliver shareholder value.

Decline in Net Income

A declining net income can strain future cash flow, limiting the company's ability to invest in growth and potentially affecting its financial health over time.

AI inside, Inc. Business Overview & Revenue Model

Company Description

AI inside Inc. provides OCR-services using artificial intelligence-technology in Japan. It offers DX suite, an AI OCR platform. The company was founded in 2015 and is based in Tokyo, japan.

AI inside, Inc. Financial Statement Overview

Summary

Financial performance is mixed: strong FY2025 revenue growth (+33.8%) and high gross margin (~72.9%) are positives, supported by solid operating cash flow (~¥0.78B) and free cash flow (~¥0.68B). Offsetting this, profitability is volatile with a swing to a FY2025 net loss (net margin ~-11.3%) and negative ROE, raising execution risk despite manageable leverage (debt-to-equity ~0.35).

Income Statement

Revenue growth is strong in FY2025 (+33.8%) and has been generally positive since FY2023, but profitability has been volatile. The company swung from a solid profit in FY2024 (net margin ~12.8%) to a loss in FY2025 (net margin ~-11.3%), and margins have compressed versus earlier peak years (FY2020–FY2021). Gross margin remains high (~72.9% in FY2025), but the return to negative net income raises execution risk despite positive operating profitability (FY2025 EBIT margin ~8.7%).

Balance Sheet

Leverage appears manageable, with debt-to-equity around ~0.35 in FY2025 and debt levels broadly stable over time. Equity remains sizeable (FY2025 equity ~¥4.5B vs assets ~¥6.9B), supporting balance-sheet resilience. The main weakness is earnings-driven: return on equity turned negative in FY2025, reflecting the net loss and reducing the quality of the capital base despite reasonable leverage.

Cash Flow

Cash generation is a relative strength: FY2025 operating cash flow (~¥0.78B) and free cash flow (~¥0.68B) remained solid and positive, following similarly positive FY2023–FY2024. While cash flow was negative in FY2022, the recovery since then suggests improved cash discipline. A watch item is that cash flow did not fully track reported earnings in FY2025 (positive cash flow despite a net loss), which is supportive near-term but warrants monitoring for sustainability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.49B	4.40B	4.19B	3.80B	3.31B	4.60B
Gross Profit	3.42B	3.21B	2.96B	2.62B	2.44B	4.26B
EBITDA	843.31M	867.33M	937.81M	735.85M	703.82M	2.43B
Net Income	-422.36M	-497.02M	535.72M	-518.52M	411.70M	1.66B
Balance Sheet
Total Assets	6.78B	6.94B	7.21B	7.02B	6.96B	7.57B
Cash, Cash Equivalents and Short-Term Investments	4.66B	5.09B	4.57B	3.24B	4.42B	4.82B
Total Debt	1.50B	1.60B	1.61B	1.62B	1.60B	1.60B
Total Liabilities	2.17B	2.42B	2.25B	2.67B	2.23B	3.36B
Stockholders Equity	4.61B	4.52B	4.96B	4.35B	4.73B	4.20B
Cash Flow
Free Cash Flow	0.00	683.82M	723.28M	654.10M	-432.47M	1.95B
Operating Cash Flow	0.00	778.48M	737.78M	793.85M	-208.83M	2.09B
Investing Cash Flow	0.00	-200.96M	597.53M	-2.07B	-223.63M	-1.50B
Financing Cash Flow	0.00	-53.94M	-300.00K	-21.65M	35.26M	1.70B

AI inside, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2600.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4488, the sentiment is Negative. The current price of 2600 is above the 20-day moving average (MA) of 2284.60, above the 50-day MA of 2471.10, and below the 200-day MA of 3001.68, indicating a bearish trend. The MACD of -49.67 indicates Negative momentum. The RSI at 41.40 is Neutral, neither overbought nor oversold. The STOCH value of 62.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4488.

AI inside, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4811	72 Outperform	¥9.27B	19.47	―	1.01%	15.34%	67.96%
3993	68 Neutral	¥86.63B	29.14	6.41%	―	28.88%	27.51%
3850	65 Neutral	¥14.52B	25.11	―	0.91%	15.28%	60.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2315	59 Neutral	¥13.57B	-351.13	6.02%	―	-7.33%	441.81%
4488	57 Neutral	¥8.53B	86.07	―	―	7.00%	-244.58%
3858	56 Neutral	¥3.46B	-7.14	―	―	4.78%	-234.94%