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Blue innovation Co.,Ltd. (JP:5597)
:5597
Japanese Market

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

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JP

Blue innovation Co.,Ltd.

(5597)

Rating:49Neutral
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. (5597) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionBlue 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 MoneyBlue 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
20
Very Negative
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
35
Negative
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
15
Very Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.22B1.26B908.40M725.68M
Gross Profit510.63M566.45M390.82M238.48M
EBITDA-340.11M-249.37M-297.74M-355.88M
Net Income-394.72M-299.27M-345.12M-395.00M
Balance Sheet
Total Assets1.34B1.79B937.12M1.04B
Cash, Cash Equivalents and Short-Term Investments668.50M1.22B527.30M675.10M
Total Debt474.08M491.66M400.00M400.00M
Total Liabilities709.47M757.01M571.15M559.32M
Stockholders Equity633.35M1.03B365.97M480.57M
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-21.86M1.05B230.00M400.00M

Blue innovation Co.,Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1970.00
Price Trends
50DMA
1365.58
Positive
100DMA
1181.58
Positive
200DMA
932.30
Positive
Market Momentum
MACD
113.12
Positive
RSI
63.27
Neutral
STOCH
70.87
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥3.54B10.40
1.05%
76
Outperform
¥3.50B12.93
31.99%35.59%
74
Outperform
¥2.85B11.39
2.58%5.84%7.76%
69
Neutral
¥2.77B8.92
3.29%11.74%-9.04%
63
Neutral
$33.76B6.14-11.84%1.84%5.29%-18.23%
49
Neutral
¥6.80B
48
Neutral
¥10.80B
-32.31%-226.05%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5597
Blue innovation Co.,Ltd.
2,004.00
1,022.00
104.07%
JP:4261
AsiaQuest Co.,Ltd.
2,481.00
261.00
11.76%
JP:4335
IPS Co., Ltd.
1,159.00
141.40
13.90%
JP:4421
D.I.System Co.,Ltd.
928.00
-0.51
-0.05%
JP:5255
Monstarlab Holdings Inc.
216.00
-57.00
-20.88%
JP:5868
Rococo Co. Ltd.
961.00
35.82
3.87%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 09, 2025