AI inside, Inc. (4488) AI Stock Analysis

• Market Cap: ¥11.49B
• Dividend Yield: N/A
• Average Volume (3M): 21.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: 7.00%
• EPS Growth: -244.58%
• Country: JP
• Employees: 121
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 21.81
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ¥2,771.00 ▼(-2.57% Downside)

AI inside, Inc. faces significant challenges with declining profitability and bearish technical indicators. The strong financial foundation provides some stability, but the negative P/E ratio and lack of dividend yield are concerning from a valuation standpoint. The stock's technical indicators suggest weak momentum, further impacting the overall score.

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. (4488) is a technology company specializing in artificial intelligence solutions across various sectors, including healthcare, finance, and retail. The company focuses on developing AI-driven software and platforms that enhance operational efficiency, improve decision-making, and enable data-driven insights for businesses. Its core products include machine learning algorithms, predictive analytics tools, and customizable AI solutions that cater to specific industry needs.

How the Company Makes Money

AI Inside, Inc. generates revenue through multiple channels, including subscription-based models for its software products, licensing fees for proprietary technology, and consulting services that help organizations implement AI solutions. Key revenue streams include recurring subscriptions from enterprise clients, one-time fees for custom software development, and revenue-sharing agreements with partners in various sectors. Strategic partnerships with technology firms and industry leaders further bolster its earnings by expanding its market reach and enhancing product offerings.

AI inside, Inc. Financial Statement Overview

Summary

AI inside, Inc. shows strong revenue generation and efficient cost management with a gross profit margin of 81.3%. However, declining profitability with a net profit margin of -11.3% and negative return on equity are concerning. The balance sheet is robust with low leverage and a strong equity position, providing financial stability. Cash flow generation is stable, but the decline in net income could impact future cash flow sustainability.

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	4.49B	4.40B	4.19B	3.80B	3.31B	4.60B
Gross Profit	3.67B	3.58B	3.33B	2.97B	2.49B	4.30B
EBITDA	186.55M	210.08M	1.02B	55.89M	708.20M	2.41B
Net Income	-421.85M	-497.02M	535.72M	-518.52M	411.70M	1.66B
Balance Sheet
Total Assets	6.78B	6.94B	7.21B	6.68B	6.85B	7.47B
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	2.32B	2.12B	3.27B
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	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: 2844.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 2844 is below the 20-day moving average (MA) of 2904.20, below the 50-day MA of 3007.00, and below the 200-day MA of 3222.86, indicating a bearish trend. The MACD of -51.90 indicates Positive momentum. The RSI at 44.73 is Neutral, neither overbought nor oversold. The STOCH value of 25.82 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	¥10.70B	24.36	―	0.46%	19.35%	71.74%
5582	74 Outperform	¥11.83B	39.51	―	―	18.26%	-36.33%
3858	70 Outperform	¥3.58B	83.05	―	―	4.78%	-234.94%
3914	67 Neutral	¥22.82B	61.81	―	―	3.17%	-16.66%
3695	65 Neutral	¥8.78B	27.64	―	5.70%	26.41%	-20.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4488	52 Neutral	¥11.49B	-27.59	―	―	7.00%	-244.58%