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

• Market Cap: ¥7.13B
• Dividend Yield: N/A
• Average Volume (3M): 154.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 69
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -47.99
• Shares Outstanding: 4,022,051
• 10 Day Avg. Volume: 66,320
• 30 Day Avg. Volume: 154,686
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 12,014.73
• Revenue Forecast (FY): ¥379.01B

• Rating: 41 Neutral
• Price Target: ¥1,690.00 ▼(-14.90% Downside)

The overall stock score reflects significant financial challenges, with declining revenues and negative cash flows being the most critical factors. Technical indicators suggest a bearish trend, while the negative P/E ratio and lack of dividend yield further weaken the stock's appeal.

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

Company Description

Blue Innovation Co., Ltd. (5597) is a dynamic technology firm specializing in the development and provision of advanced solutions in the fields of artificial intelligence, IoT (Internet of Things), and smart manufacturing. The company operates in various sectors including healthcare, automotive, and smart cities, offering a range of products such as AI-driven analytics platforms, IoT devices, and automation software. With a commitment to innovation and sustainability, Blue Innovation aims to enhance operational efficiency and drive digital transformation for its clients.

How the Company Makes Money

Blue Innovation Co., Ltd. generates revenue primarily through the sale of its technology products and services, including software licenses, hardware sales, and subscription-based models for its cloud services. Key revenue streams include direct sales to businesses in targeted industries, consulting and implementation services for custom solutions, and ongoing maintenance and support contracts. The company also benefits from strategic partnerships with other tech firms and industry leaders, which help to expand its market reach and enhance its product offerings. Additionally, Blue Innovation may engage in joint ventures or collaborations that provide further opportunities for monetization.

Blue innovation Co.,Ltd. Financial Statement Overview

Summary

Blue innovation Co., Ltd. is facing substantial financial challenges characterized by declining revenue, negative margins, and deteriorating cash flows. Despite a low leverage position, the company’s financial health is compromised by consistent losses and negative cash flows. Immediate strategic actions are needed to improve operational efficiency and stabilize the financial outlook.

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: Negative
• Last Price: 1986.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5597, the sentiment is Negative. The current price of 1986 is below the 20-day moving average (MA) of 2016.70, below the 50-day MA of 2234.36, and above the 200-day MA of 1572.21, indicating a neutral trend. The MACD of -96.14 indicates Positive momentum. The RSI at 35.60 is Neutral, neither overbought nor oversold. The STOCH value of 8.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
4421	72 Outperform	¥3.01B	12.16	―	2.74%	5.61%	6.12%
5868	72 Outperform	¥3.70B	8.01	―	1.00%	―	―
4261	71 Outperform	¥4.15B	14.26	―	―	30.92%	15.42%
4335	69 Neutral	¥2.75B	9.62	―	3.32%	19.29%	19.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5597	41 Neutral	¥7.13B	―	―	―	―	―
5255	41 Neutral	¥10.47B	-1.39	―	―	-34.51%	52.07%