Arent, Inc. (5254) AI Stock Analysis

• Market Cap: ¥22.75B
• Dividend Yield: N/A
• Average Volume (3M): 28.11K
• Price to Earnings (P/E): 42.8
• Beta (1Y): 0.93
• Revenue Growth: 40.99%
• EPS Growth: -36.76%
• Country: JP
• Employees: 153
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 12.66
• Shares Outstanding: 6,731,815
• 10 Day Avg. Volume: 24,360
• 30 Day Avg. Volume: 28,110
• PEG Ratio: -9.95
• Price to Book (P/B): 6.46
• Price to Sales (P/S): 7.70
• P/FCF Ratio: 38.88
• 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: 58 Neutral
• Price Target: ¥3,136.00 ▲(6.99% Upside)

Arent, Inc.'s overall stock score is primarily influenced by its strong financial performance, which is offset by bearish technical indicators and a high P/E ratio. The lack of dividend yield further impacts the valuation. Despite solid financial health, the stock faces challenges in market momentum and valuation.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Arent's products and services, enhancing its market position and potential for future expansion.

Cash Flow Management

Efficient cash flow management ensures Arent can fund operations, invest in growth opportunities, and maintain financial flexibility.

Balance Sheet Health

A low debt-to-equity ratio highlights Arent's conservative leverage, reducing financial risk and supporting long-term stability.

Negative Factors

Net Income Decline

Declining net income may indicate rising costs or competitive pressures, potentially impacting profitability if not addressed.

Equity Growth Concerns

Stagnant equity growth may limit Arent's ability to fund new initiatives or absorb financial shocks, affecting long-term growth prospects.

Operating Cash Flow Decline

A decline in operating cash flow could signal inefficiencies or challenges in cash generation, potentially impacting liquidity and investment capacity.

Arent, Inc. Business Overview & Revenue Model

Company Description

Arent Inc. engages in the development of SaaS based solutions for construction industry in Japan. The company offers Lightning BIM software for architecture and structure industry; and PlantStream software for plant industry. It also provides consulting services. The company was incorporated in 2012 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Arent, Inc. generates revenue through multiple streams, including the sale of proprietary technology products, offering engineering and consulting services, and entering into long-term contracts with clients for customized solutions. The company benefits from strategic partnerships with key industry players, which enhance its market presence and provide access to new customer segments. Additionally, Arent, Inc. capitalizes on research and development initiatives, allowing it to introduce new products and maintain a competitive edge in the market.

Arent, Inc. Financial Statement Overview

Summary

Arent, Inc. demonstrates strong financial performance with significant revenue growth and healthy profitability metrics. The balance sheet is robust with low leverage, and cash flow generation is strong. Minor concerns exist regarding net income and equity growth, but overall financial health is solid.

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	4.03B	4.03B	2.94B	2.02B	1.01B	722.03M
Gross Profit	2.55B	2.55B	1.70B	1.07B	501.99M	360.99M
EBITDA	1.24B	1.18B	991.61M	547.98M	36.74M	74.14M
Net Income	632.57M	633.50M	658.16M	317.98M	-48.05M	-19.52M
Balance Sheet
Total Assets	6.08B	6.08B	5.06B	4.52B	3.06B	2.18B
Cash, Cash Equivalents and Short-Term Investments	3.83B	3.83B	3.85B	3.21B	1.93B	1.22B
Total Debt	322.77M	322.77M	394.71M	565.02M	813.23M	1.10B
Total Liabilities	1.28B	1.28B	935.19M	1.05B	1.07B	1.34B
Stockholders Equity	4.80B	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: Neutral
• Last Price: 2931.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5254, the sentiment is Neutral. The current price of 2931 is above the 20-day moving average (MA) of 2876.85, below the 50-day MA of 3215.46, and below the 200-day MA of 4460.41, indicating a neutral trend. The MACD of 37.22 indicates Negative momentum. The RSI at 68.48 is Neutral, neither overbought nor oversold. The STOCH value of 90.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥49.31B	17.13	―	1.92%	20.81%	68.06%
3771	77 Outperform	¥33.62B	13.79	―	2.93%	11.53%	23.23%
3835	75 Outperform	¥21.05B	17.85	―	3.14%	0.50%	-2.92%
4058	72 Outperform	¥31.33B	28.03	―	0.52%	50.92%	46.61%
4826	70 Outperform	¥35.35B	19.72	―	2.83%	4.51%	75.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5254	58 Neutral	¥22.75B	42.79	―	―	40.99%	-36.76%