AVILEN Inc. (5591) AI Stock Analysis

• Market Cap: ¥7.80B
• Dividend Yield: N/A
• Average Volume (3M): 30.92K
• Price to Earnings (P/E): 39.5
• Beta (1Y): 1.36
• Revenue Growth: 35.46%
• EPS Growth: 59.47%
• Country: JP
• Employees: 63
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 8.32
• Shares Outstanding: 6,107,654
• 10 Day Avg. Volume: 33,550
• 30 Day Avg. Volume: 30,916
• PEG Ratio: 53.10
• Price to Book (P/B): 9.99
• Price to Sales (P/S): 4.45
• P/FCF Ratio: 27.04
• 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: 65 Neutral
• Price Target: ¥1,435.00 ▲(7.49% Upside)

The score is primarily supported by strong growth and improved cash generation, but is held back by increased leverage and a high P/E valuation. Technically, the stock shows improving short-term momentum while still below key longer-term moving averages.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion.

Cash Flow Improvement

Improved cash flow enhances financial flexibility and ability to invest in growth opportunities, supporting sustainable operations.

Equity Base Growth

A growing equity base strengthens financial stability and provides a buffer against potential economic downturns.

Negative Factors

Margin Compression

Margin compression could indicate rising costs or increased competition, potentially impacting profitability and long-term growth.

Increased Leverage

Increased leverage raises financial risk and reduces flexibility, potentially affecting the company's ability to navigate economic challenges.

Volatile Cash Flow History

Volatile cash flow history raises concerns about consistency in cash generation, which is crucial for long-term financial health.

AVILEN Inc. Business Overview & Revenue Model

Company Description

AVILEN Inc. provides AI software and data solutions in Japan. The company also offers support for organizational transformation through strategic planning of digital organization development and DX/AI human resource development. In addition, it engages in the development, provision, and implementation support of SaaS products utilizing AI technology. The company was incorporated in 2018 and is based in Chuo, Japan.

How the Company Makes Money

AVILEN Inc. generates revenue through multiple channels, primarily by offering AI-based software solutions and consulting services. The company licenses its proprietary AI platforms to businesses, allowing them to integrate advanced AI capabilities into their operations. Additionally, AVILEN provides consulting services to help organizations implement and customize AI solutions to suit their specific needs. The company may also engage in strategic partnerships with other technology firms to expand its reach and enhance its product offerings, contributing to its revenue growth.

AVILEN Inc. Financial Statement Overview

Summary

Strong revenue growth (~34% in 2024) and healthy profitability (~70% gross margin; ~14% operating margin) alongside a sharp cash-flow rebound (FCF ~204M; ~91% of net income). Offsetting this are 2024 margin compression and a meaningful step-up in leverage (debt-to-equity ~0.74 from zero historically), increasing financial risk.

Income Statement

AVILEN shows strong top-line momentum, with revenue up ~34% in 2024 (annual) after solid growth in prior years. Profitability is healthy with ~70% gross margin and ~14% operating margin in 2024. The key weakness is margin compression in 2024 versus 2023 (net margin down to ~9% from ~12%; operating margin down to ~14% from ~18%), suggesting higher operating costs or investment spending that reduced near-term profitability.

Balance Sheet

The balance sheet remains supported by a growing equity base (equity increased materially in 2024), and returns on equity are still strong (~21% in 2024). However, leverage stepped up meaningfully in 2024: total debt rose to ~409M and debt-to-equity increased to ~0.74 from zero in prior years. This change increases financial risk and reduces flexibility versus the company’s historically debt-free profile.

Cash Flow

Cash generation improved sharply in 2024, with operating cash flow rising to ~223M and free cash flow to ~204M, bringing free cash flow close to reported earnings (free cash flow at ~91% of net income). That said, cash flow was volatile historically—2023 showed weak operating cash flow (~13M) and negative free cash flow—so the main watch item is whether 2024’s strong conversion level is sustainable rather than a one-off rebound.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.24B	929.59M	732.09M	477.65M
Gross Profit	868.03M	651.81M	493.62M	308.88M
EBITDA	198.99M	179.85M	116.95M	89.97M
Net Income	116.01M	114.72M	79.14M	58.83M
Balance Sheet
Total Assets	1.23B	624.95M	415.72M	367.05M
Cash, Cash Equivalents and Short-Term Investments	566.33M	282.50M	228.00M	212.60M
Total Debt	408.75M	0.00	0.00	0.00
Total Liabilities	680.90M	209.25M	211.34M	243.18M
Stockholders Equity	552.59M	415.70M	204.39M	123.87M
Cash Flow
Free Cash Flow	204.26M	-32.66M	17.82M	95.70M
Operating Cash Flow	223.37M	12.81M	24.22M	97.26M
Investing Cash Flow	-359.37M	-45.47M	-9.96M	-14.21M
Financing Cash Flow	421.62M	87.30M	930.00K	1.40M

AVILEN Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1335.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5591, the sentiment is Negative. The current price of 1335 is above the 20-day moving average (MA) of 1326.25, above the 50-day MA of 1283.26, and below the 200-day MA of 1432.53, indicating a bearish trend. The MACD of -5.50 indicates Positive momentum. The RSI at 42.77 is Neutral, neither overbought nor oversold. The STOCH value of 7.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5591.

AVILEN Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5591	65 Neutral	¥7.80B	39.53	―	―	35.46%	59.47%
4477	62 Neutral	¥38.76B	67.42	―	―	27.97%	-5.25%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4447	61 Neutral	¥3.19B	35.33	―	4.17%	-15.23%	-65.39%
4011	58 Neutral	¥11.08B	61.71	―	―	34.56%	4.59%
5572	56 Neutral	¥9.05B	64.61	―	―	60.41%	-27.67%
4192	41 Neutral	¥10.79B	-27.30	―	―	22.18%	28.27%