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: 6.29%
• EPS Growth: -180.52%
• Country: JP
• Employees: 121
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 19.06
• 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: 60 Neutral
• Price Target: ¥3,428.00 ▲(17.84% Upside)

AI inside, Inc. has a solid financial foundation with strong revenue generation and efficient cost management. However, the decline in profitability and negative P/E ratio are significant concerns. Technical indicators suggest a neutral to bearish trend, and the lack of a dividend yield further impacts valuation. Addressing profitability challenges will be crucial for future growth.

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.

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: 2909.00
• 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 2909 is below the 20-day moving average (MA) of 2933.90, below the 50-day MA of 3073.00, and below the 200-day MA of 3244.41, indicating a bearish trend. The MACD of -60.62 indicates Negative momentum. The RSI at 43.89 is Neutral, neither overbought nor oversold. The STOCH value of 40.31 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	―	0.50%	21.21%	82.61%
3914	72 Outperform	¥22.82B	61.81	―	―	3.17%	-16.66%
5582	70 Outperform	¥11.83B	39.51	―	―	24.90%	-26.71%
3858	63 Neutral	¥3.58B	83.05	―	―	12.98%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4488	60 Neutral	¥11.49B	-27.59	―	―	6.29%	-180.52%
3695	56 Neutral	¥8.40B	48.35	―	6.00%	14.59%	-71.29%