AI inside, Inc. (4488) AI Stock Analysis

• Market Cap: ¥12.09B
• Dividend Yield: N/A
• Average Volume (3M): 52.36K
• Price to Earnings (P/E): 77.1
• Beta (1Y): 0.87
• Revenue Growth: 6.29%
• EPS Growth: -180.52%
• Country: JP
• Employees: 121
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Infrastructure
• EPS (TTM): 19.06
• Shares Outstanding: 3,999,950
• 10 Day Avg. Volume: 24,940
• 30 Day Avg. Volume: 52,360
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥3,591.00
• Price Target Upside: 15.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: ¥3,591.00 ▲(15.47% Upside)

AI inside, Inc. has a solid financial foundation with strong revenue generation and efficient cost management. However, declining profitability and net losses are significant concerns. The technical analysis indicates mixed signals, with potential short-term weakness but some bullish momentum. The negative P/E ratio suggests potential overvaluation, and the absence of a dividend yield further impacts the valuation score. Addressing profitability challenges will be crucial for future growth.

AI inside, Inc. Business Overview & Revenue Model

Company Description

AI Inside, Inc. (4488) is a technology company specializing in artificial intelligence solutions for various industries, including finance, healthcare, and manufacturing. The company focuses on developing advanced machine learning algorithms and data analytics tools that help businesses optimize operations, enhance decision-making, and improve customer experiences. AI Inside offers a range of products, including AI-driven software platforms, consulting services, and customized AI solutions tailored to meet the specific needs of their clients.

How the Company Makes Money

AI Inside generates revenue through multiple streams, primarily by selling software licenses for their AI platforms and tools. They charge clients on a subscription basis for access to their software, which includes regular updates and support. Additionally, the company earns revenue from consulting services, where they partner with businesses to implement AI solutions tailored to their unique challenges. Strategic partnerships with other technology firms and industry leaders also enhance their offerings and drive additional income through joint ventures and collaborative projects, allowing them to expand their market reach and enhance their service capabilities.

AI inside, Inc. Financial Statement Overview

Summary

AI inside, Inc. presents a mixed financial outlook. The company shows strong revenue generation and efficient cost management, but declining profitability and net losses are concerning. The balance sheet remains solid with low leverage and a strong equity position, providing financial stability. Cash flow generation is robust, yet the decline in net income could impact future cash flow sustainability. Overall, while the company has a strong foundation, addressing profitability challenges will be crucial for future growth.

Income Statement

AI inside, Inc. has shown a mixed performance in its income statement. The gross profit margin remains strong at approximately 81.3% for the latest year, indicating efficient cost management. However, the net profit margin has turned negative at -11.3%, primarily due to a significant drop in net income. Revenue growth has been moderate, with a 5% increase from the previous year. The EBIT margin stands at 8.8%, reflecting a decline in operational profitability. Overall, while the company maintains strong revenue generation, the decline in profitability is a concern.

Balance Sheet

The balance sheet of AI inside, Inc. is robust with a strong equity base. The debt-to-equity ratio is low at 0.35, indicating conservative leverage. The equity ratio is healthy at 65.1%, showcasing a solid financial foundation. However, the return on equity has turned negative due to the net loss, which is a potential risk. Despite this, the company's strong cash position and low debt levels provide stability.

Cash Flow

AI inside, Inc. demonstrates a stable cash flow position. The operating cash flow to net income ratio is strong, highlighting effective cash generation relative to earnings. Free cash flow growth has been positive, although at a slower pace than previous years. The free cash flow to net income ratio is favorable, indicating efficient cash management. However, the decline in net income poses a challenge for future cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.36B	4.40B	4.19B	3.80B	3.31B	4.60B
Gross Profit	2.75B	3.58B	3.33B	2.97B	2.49B	4.30B
EBITDA	44.19M	210.08M	1.02B	55.89M	708.20M	2.41B
Net Income	-497.12M	-497.02M	535.72M	-518.52M	411.70M	1.66B
Balance Sheet
Total Assets	6.94B	6.94B	7.21B	6.68B	6.85B	7.47B
Cash, Cash Equivalents and Short-Term Investments	5.09B	5.09B	4.57B	3.24B	4.42B	4.82B
Total Debt	1.60B	1.60B	1.61B	1.62B	1.60B	1.60B
Total Liabilities	2.42B	2.42B	2.25B	2.32B	2.12B	3.27B
Stockholders Equity	4.52B	4.52B	4.96B	4.35B	4.73B	4.20B
Cash Flow
Free Cash Flow	0.00	683.82M	723.28M	364.60M	-432.47M	1.85B
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: 3110.00
• 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 3110 is below the 20-day moving average (MA) of 3211.75, below the 50-day MA of 3559.90, and below the 200-day MA of 3270.66, indicating a bearish trend. The MACD of -153.84 indicates Negative momentum. The RSI at 36.03 is Neutral, neither overbought nor oversold. The STOCH value of 34.13 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
4374	76 Outperform	¥12.82B	29.18		0.42%	21.21%	82.61%
5582	67 Neutral	¥11.41B	39.10		―	24.90%	-26.71%
3914	66 Neutral	¥16.11B	43.14		―	3.19%	-29.94%
Sector *	61 Neutral	$35.56B	8.99	-10.49%	1.86%	8.45%	-8.32%
3695	61 Neutral	¥9.73B	56.02		5.22%	14.59%	-71.29%
3858	58 Neutral	¥3.69B	89.36		―	12.98%	―
4488	57 Neutral	¥12.09B	77.06		―	6.29%	-180.52%