Blue innovation Co.,Ltd. (5597) AI Stock Analysis

• Market Cap: ¥6.80B
• Dividend Yield: N/A
• Average Volume (3M): 1.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 69
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -17.48
• Shares Outstanding: 3,939,051
• 10 Day Avg. Volume: 643,450
• 30 Day Avg. Volume: 1,501,090
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• 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: ¥2,001.00
• Price Target Upside: 1.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: ¥1,960.00 ▼(-0.51%Downside)

The overall stock score of 49 reflects significant financial challenges, including declining revenues and negative cash flows, which are partially offset by positive technical indicators that suggest current market momentum is favorable. However, a poor valuation due to negative earnings severely impacts the stock's attractiveness.

Blue innovation Co.,Ltd. Business Overview & Revenue Model

Company Description

Blue Innovation Co., Ltd. (5597) is a technology company specializing in the development and provision of drone solutions and related services. The company operates in sectors including unmanned aerial vehicle (UAV) technologies, data processing, and artificial intelligence. Its core products and services include drone systems, software for drone operations, and data analysis solutions designed to enhance operational efficiency across various industries.

How the Company Makes Money

Blue Innovation Co., Ltd. generates revenue through the sale of its drone systems and associated software solutions. The company also offers consulting and operational support services for businesses integrating drone technology into their operations. Significant revenue streams include product sales, software licensing, and service fees for ongoing support and data analysis. Partnerships with industries such as logistics, agriculture, and infrastructure contribute to its earnings by expanding the application and demand for its technologies.

Blue innovation Co.,Ltd. Financial Statement Overview

Summary

The company faces significant financial challenges with declining revenue, negative net profit margin, and deteriorating cash flows. Although it maintains low leverage, the overall financial health is compromised by ongoing losses and liquidity issues.

Income Statement

The company has faced declining revenues over the past year, with a revenue decrease of 3.27% from 2023 to 2024. The net profit margin remains negative due to consistent losses, and both EBIT and EBITDA margins indicate operational inefficiencies. Despite a past upward growth trend in revenue, current profitability indicators suggest significant challenges.

Balance Sheet

The company maintains a relatively low debt-to-equity ratio, indicating conservative leverage. However, the return on equity is negative, reflecting ongoing losses. The equity ratio has improved slightly, suggesting a stable equity base, but overall assets have decreased, indicating potential financial strain.

Cash Flow

Cash flow from operations is negative and worsening, signaling potential liquidity issues. Free cash flow has deteriorated significantly, with no positive growth in sight, posing risks to sustaining operations. The operating cash flow to net income ratio is negative, highlighting challenges in converting revenue into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.22B	1.26B	908.40M	725.68M
Gross Profit	510.63M	566.45M	390.82M	238.48M
EBITDA	-340.11M	-249.37M	-297.74M	-355.88M
Net Income	-394.72M	-299.27M	-345.12M	-395.00M
Balance Sheet
Total Assets	1.34B	1.79B	937.12M	1.04B
Cash, Cash Equivalents and Short-Term Investments	668.50M	1.22B	527.30M	675.10M
Total Debt	474.08M	491.66M	400.00M	400.00M
Total Liabilities	709.47M	757.01M	571.15M	559.32M
Stockholders Equity	633.35M	1.03B	365.97M	480.57M
Cash Flow
Free Cash Flow	-531.70M	-350.88M	-377.79M	-334.58M
Operating Cash Flow	-494.23M	-320.20M	-365.24M	-282.44M
Investing Cash Flow	-37.47M	-30.67M	-12.55M	-52.15M
Financing Cash Flow	-21.86M	1.05B	230.00M	400.00M

Blue innovation Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1970.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5597, the sentiment is Positive. The current price of 1970 is above the 20-day moving average (MA) of 1928.50, above the 50-day MA of 1365.58, and above the 200-day MA of 932.30, indicating a bullish trend. The MACD of 113.12 indicates Positive momentum. The RSI at 63.27 is Neutral, neither overbought nor oversold. The STOCH value of 70.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5597.

Blue innovation Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5868	82 Outperform	¥3.54B	10.40		1.05%	―	―
4261	76 Outperform	¥3.50B	12.93		―	31.99%	35.59%
4421	74 Outperform	¥2.85B	11.39		2.58%	5.84%	7.76%
4335	69 Neutral	¥2.77B	8.92		3.29%	11.74%	-9.04%
Sector *	63 Neutral	$33.76B	6.14	-11.84%	1.84%	5.29%	-18.23%
5597	49 Neutral	¥6.80B	―		―	―	―
5255	48 Neutral	¥10.80B	―		―	-32.31%	-226.05%