Ame Kaze Taiyo,Inc. (5616) AI Stock Analysis

• Market Cap: ¥2.14B
• Dividend Yield: N/A
• Average Volume (3M): 9.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -2.07%
• EPS Growth: 76.07%
• Country: JP
• Employees: 39
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Grocery Stores
• EPS (TTM): -4.06
• Shares Outstanding: 2,415,550
• 10 Day Avg. Volume: 10,440
• 30 Day Avg. Volume: 9,756
• PEG Ratio: 1.22
• Price to Book (P/B): 7.19
• Price to Sales (P/S): 2.45
• P/FCF Ratio: -9.73
• 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: 41 Neutral
• Price Target: ¥846.00 ▼(-3.86% Downside)

Ame Kaze Taiyo, Inc. faces significant challenges with profitability and cash flow, which are the primary factors impacting the overall stock score. The technical analysis also indicates bearish trends, further weighing down the score. Valuation concerns due to negative earnings and lack of dividends contribute to a low overall score. Strategic improvements in financial performance and market sentiment are crucial for enhancing the stock's attractiveness.

Positive Factors

Diversified revenue streams

Multiple product and service lines plus PPAs and government incentives create recurring and project-based revenue diversity. This reduces single-market exposure, supports steadier cash inflows over months, and improves resilience while management scales installation and maintenance offerings.

Manageable leverage and balanced capital structure

A moderate debt-to-equity profile and stable equity ratio provide financial flexibility to fund project capex and R&D without excessive refinancing stress. This structural balance supports multi-month planning for large renewable projects and cushions execution risk during revenue recovery phases.

Relatively healthy gross profit margin

Sustained gross margins indicate the core products and installations retain pricing power and cost control at the production level. If operating expenses and cash flow conversion improve, these margins provide a clear pathway to durable operating profitability over the medium term.

Negative Factors

Consistent negative free cash flow

Ongoing negative free cash flow erodes internal funding for projects and maintenance, forcing dependence on external capital or asset sales. Over several months this constrains organic growth, increases financing risk, and can delay strategic investments in R&D or new installations.

Persistent negative EBIT and net income margins

Negative operating and net margins mean the business doesn't currently convert revenue into sustainable profit. This structural profitability gap limits reinvestment capacity, weakens earnings resiliency to shocks, and raises the threshold for achieving positive long-term returns.

Negative return on equity

A negative ROE signals capital is not generating shareholder returns and undermines investor confidence. Persisting over months, this hampers the company’s ability to attract equity financing on favorable terms and may force dilutive funding or higher-cost debt to sustain operations.

Ame Kaze Taiyo,Inc. Business Overview & Revenue Model

Company Description

Ame Kaze Taiyo, Inc. engages in providing food related services. It operates an app Pocket Marché, cooperating with local governments to implement initiatives to grow sales pipes for producers and providing study programs with producers. The company was founded by Hiroyuki Takahashi on February 10, 2015 and is headquartered in Hanamaki, Japan.

How the Company Makes Money

Ame Kaze Taiyo, Inc. generates revenue through multiple streams including the sale and installation of solar panels and wind turbines, energy efficiency consulting services, and long-term maintenance contracts for their energy systems. The company also benefits from government incentives and subsidies for renewable energy projects, which enhance profit margins. Key partnerships with technology providers and local governments further bolster its market presence and facilitate project funding. Additionally, Ame Kaze Taiyo may engage in power purchase agreements (PPAs) that secure long-term revenue streams by selling generated energy back to the grid or to private entities.

Ame Kaze Taiyo,Inc. Financial Statement Overview

Summary

Ame Kaze Taiyo, Inc. demonstrates strong revenue growth but faces significant profitability and cash flow challenges. The company's balance sheet is stable with manageable leverage, but persistent losses and negative cash flows pose risks to financial health. Strategic improvements in profitability and cash management are essential for future stability.

Income Statement

Ame Kaze Taiyo, Inc. has shown significant revenue growth over the years, with a notable increase from 2021 to 2024. However, the company is struggling with profitability as indicated by negative EBIT and net income margins. The gross profit margin is relatively healthy, but the persistent net losses are a concern, impacting the overall score.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, indicating manageable leverage. The equity ratio is stable, suggesting a balanced capital structure. However, the negative net income affects the return on equity, which remains negative, highlighting profitability challenges.

Cash Flow

Cash flow analysis reveals consistent negative free cash flow, which is concerning for sustainability. The operating cash flow to net income ratio indicates operational inefficiencies. Despite a strong cash position, the negative cash flow trends weigh heavily on the score.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.02B	956.52M	635.99M	445.31M
Gross Profit	661.30M	570.11M	481.18M	329.41M
EBITDA	-154.50M	-176.92M	-317.63M	-558.26M
Net Income	-163.87M	-182.52M	-322.18M	-568.22M
Balance Sheet
Total Assets	1.04B	1.29B	683.55M	606.44M
Cash, Cash Equivalents and Short-Term Investments	543.39M	882.97M	400.17M	322.19M
Total Debt	290.00M	350.00M	115.02M	3.19M
Total Liabilities	696.97M	840.89M	550.51M	442.69M
Stockholders Equity	345.95M	449.83M	133.04M	163.75M
Cash Flow
Free Cash Flow	-255.66M	-241.76M	-319.87M	-617.39M
Operating Cash Flow	-250.02M	-241.76M	-313.41M	-615.98M
Investing Cash Flow	-89.50M	2.21M	-11.90M	-1.42M
Financing Cash Flow	-60.00K	722.35M	403.30M	3.33M

Ame Kaze Taiyo,Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 880.00
• 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:5616, the sentiment is Negative. The current price of 880 is below the 20-day moving average (MA) of 917.10, below the 50-day MA of 928.08, and below the 200-day MA of 1067.60, indicating a bearish trend. The MACD of -4.24 indicates Positive momentum. The RSI at 38.92 is Neutral, neither overbought nor oversold. The STOCH value of 1.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5616.

Ame Kaze Taiyo,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2687	79 Outperform	¥2.56B	14.52	―	4.73%	2.93%	-81.08%
9259	75 Outperform	¥4.56B	11.33	―	3.81%	1.83%	-25.02%
7544	69 Neutral	¥4.39B	10.80	―	2.18%	―	―
2747	62 Neutral	¥4.08B	35.10	―	1.55%	0.42%	13.11%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7515	48 Neutral	¥4.35B	24.68	―	0.67%	5.74%	14.35%
5616	41 Neutral	¥2.14B	-48.02	―	―	-2.07%	76.07%