Arent, Inc. (5254) AI Stock Analysis

• Market Cap: ¥33.54B
• Dividend Yield: N/A
• Average Volume (3M): 32.85K
• Price to Earnings (P/E): 50.8
• Beta (1Y): 0.81
• Revenue Growth: 37.05%
• EPS Growth: -4.93%
• Country: JP
• Employees: 153
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): 23.93
• Shares Outstanding: 6,538,085
• 10 Day Avg. Volume: 28,080
• 30 Day Avg. Volume: 32,846
• 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: ¥5,765.00
• Price Target Upside: 12.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥5,765.00 ▲(12.38% Upside)

Arent, Inc. demonstrates strong financial health with impressive revenue growth and profitability, which is the most significant factor in its overall score. Technical analysis indicates positive momentum, although the stock faces resistance at the 200-day moving average. The high P/E ratio suggests overvaluation, which is a key risk factor. The absence of earnings call data and corporate events does not impact the score.

Arent, Inc. Business Overview & Revenue Model

Company Description

Arent, Inc. (5254) is a diversified technology company that specializes in delivering innovative solutions across various sectors, including software development, cloud computing, and data analytics. The company focuses on creating cutting-edge products and services that enhance operational efficiency and drive digital transformation for businesses. Arent, Inc. serves a broad range of industries, leveraging its expertise in artificial intelligence and machine learning to provide tailored solutions that meet the evolving needs of its clients.

How the Company Makes Money

Arent, Inc. generates revenue through multiple streams including software licensing, subscription services, and consulting fees. The company offers proprietary software products that are licensed to businesses on a subscription basis, providing a steady stream of recurring revenue. Additionally, Arent, Inc. engages in consulting services, helping organizations implement and optimize their technology solutions, which contributes to its revenue. Strategic partnerships with other technology firms and service providers enhance its offerings and market reach, further driving sales and profitability. The company's focus on innovative technology and client-centric solutions allows it to capture significant market demand and grow its earnings.

Arent, Inc. Financial Statement Overview

Summary

Arent, Inc. exhibits strong financial performance with robust revenue growth and profitability metrics. The company maintains a solid balance sheet with low leverage and effective equity utilization. Cash flow generation is strong, supporting operational and strategic flexibility. Minor concerns include a slight decline in net income and stockholders' equity growth.

Income Statement

Arent, Inc. has demonstrated strong revenue growth with a 26.18% increase in the latest year, indicating robust demand for its software applications. The company maintains healthy profitability metrics, with a gross profit margin of 63.36% and a net profit margin of 15.72%. The EBIT margin is also strong at 41.97%, showcasing efficient operational management. However, the slight decline in net income compared to the previous year suggests potential cost pressures or increased competition.

Balance Sheet

The balance sheet of Arent, Inc. reflects a solid financial position with a low debt-to-equity ratio of 0.067, indicating conservative leverage. The return on equity is commendable at 13.20%, reflecting effective use of shareholder funds. The equity ratio stands at 78.89%, highlighting a strong equity base relative to total assets. However, the decrease in stockholders' equity growth compared to previous years could be a concern if it continues.

Cash Flow

Arent, Inc. shows strong cash flow management with a significant increase in free cash flow, marked by an 'Infinity' growth rate due to a low base effect. The operating cash flow to net income ratio of 1.31 indicates efficient cash generation relative to net income. The free cash flow to net income ratio of 1.26 further underscores the company's ability to convert profits into cash. However, the slight decline in operating cash flow compared to the previous year warrants monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.90B	4.03B	2.94B	2.02B	1.01B	722.03M
Gross Profit	2.60B	2.55B	1.70B	1.07B	501.99M	360.99M
EBITDA	1.33B	1.18B	991.61M	547.98M	36.74M	74.14M
Net Income	722.19M	633.50M	658.16M	317.98M	-48.05M	-19.52M
Balance Sheet
Total Assets	5.93B	6.08B	5.06B	4.52B	3.06B	2.18B
Cash, Cash Equivalents and Short-Term Investments	3.63B	3.83B	3.85B	3.21B	1.93B	1.22B
Total Debt	350.19M	322.77M	394.71M	565.02M	813.23M	1.10B
Total Liabilities	1.27B	1.28B	935.19M	1.05B	1.07B	1.34B
Stockholders Equity	4.65B	4.80B	4.12B	3.46B	1.98B	832.61M
Cash Flow
Free Cash Flow	0.00	797.72M	829.71M	823.00M	150.67M	226.71M
Operating Cash Flow	0.00	827.55M	850.22M	833.68M	170.71M	239.57M
Investing Cash Flow	0.00	-828.21M	-43.30M	-454.62M	-368.34M	-971.16M
Financing Cash Flow	0.00	-19.55M	-168.81M	904.64M	906.69M	1.01B

Arent, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5130.00
• 50DMA: Positive
• 100DMA: Positive
• 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:5254, the sentiment is Positive. The current price of 5130 is above the 20-day moving average (MA) of 5042.75, above the 50-day MA of 4973.10, and below the 200-day MA of 5258.57, indicating a neutral trend. The MACD of 53.38 indicates Negative momentum. The RSI at 55.25 is Neutral, neither overbought nor oversold. The STOCH value of 62.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5254.

Arent, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3763	82 Outperform	¥39.25B	18.01		1.74%	12.63%	45.75%
3771	81 Outperform	¥34.82B	15.11		2.88%	11.38%	17.85%
4058	76 Outperform	¥36.16B	35.25		0.43%	43.96%	57.76%
3835	74 Outperform	¥22.80B	18.15		2.79%	5.96%	11.80%
5254	73 Outperform	¥33.54B	50.84		―	37.05%	-4.93%
4826	71 Outperform	¥30.71B	18.77		3.06%	4.53%	59.88%
Sector *	61 Neutral	$35.48B	7.63	-10.11%	1.88%	8.73%	-9.23%

Arent, Inc. Corporate Events

Arent Inc. Completes Strategic Acquisition of PlantStream Inc.

Arent Inc. has completed the acquisition of PlantStream Inc., a move that aligns with its long-term growth strategy. This acquisition is expected to enhance decision-making speed and flexibility in development and sales strategies, contributing to Arent’s vertical integration and strengthening its software domain. The acquisition also aims to leverage synergies with other M&A initiatives, promoting faster expansion into overseas markets and optimizing development resources.