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

• Market Cap: ¥1.92B
• Dividend Yield: N/A
• Average Volume (3M): 9.76K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.65
• Revenue Growth: -2.07%
• EPS Growth: 76.07%
• Country: JP
• Employees: 39
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Grocery Stores
• EPS (TTM): 21.24
• Shares Outstanding: 2,415,550
• 10 Day Avg. Volume: 10,440
• 30 Day Avg. Volume: 9,756
• PEG Ratio: 5.27
• Price to Book (P/B): 6.16
• Price to Sales (P/S): 2.07
• P/FCF Ratio: -129.36
• 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: 44 Neutral
• Price Target: ¥848.00 ▼(-3.64% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held down primarily by continued losses and historically weak cash flow despite meaningful improvement in 2025, alongside a bearish technical setup (below major moving averages with negative MACD). Valuation is also constrained by a deeply negative P/E and no dividend support.

Positive Factors

Sustained revenue growth

The multi-year rise from ~¥445m to ~¥1.03bn shows durable demand traction for the company's energy products and services. This expanding top line improves scale economics potential and gives management a clearer runway to focus on margin expansion and break-even sustainability over the medium term.

Diversified, recurring revenue streams

A mix of product sales, installation, consulting, maintenance contracts and PPAs creates recurring and partially contracted cash flows. Government incentives and local partnerships enhance project economics, reducing reliance on any single segment and providing structural revenue visibility over multi-year project cycles.

Improving balance sheet leverage

A material reduction in gross debt improves financial flexibility and lowers interest and refinancing burdens. Durable deleveraging enhances the firm's ability to fund working capital or selective capex and reduces bankruptcy risk, supporting longer-term operational improvement if profitability trends continue.

Negative Factors

Persistent unprofitability

Despite revenue gains, the company has not achieved positive operating earnings; recurring negative EBIT/net income constrains retained earnings and reinvestment capacity. Continued losses force reliance on external capital and make long-term shareholder returns contingent on sustained margin recovery.

Weak historical cash generation

Chronic negative operating and free cash flow means the business has historically required external funding to operate and invest. Even with 2025 improvement toward break-even, inconsistent cash generation raises refinancing risk and limits the company's ability to self-fund growth or weather shocks over the medium term.

Leverage significant versus earnings base

Debt near ~0.84x equity combined with negative ROE amplifies financial risk: leverage magnifies losses, limits strategic optionality, and can constrain investment in R&D or expansion. Until profitability and cash flow are reliably positive, leverage remains a persistent structural vulnerability.

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

Strong revenue growth over several years and a sharp improvement in 2025 losses and cash burn are positives, but profitability remains negative (EBIT and net income still below zero) and operating/free cash flow have been consistently negative despite improving toward break-even in 2025. Balance sheet leverage is improving with declining debt, but losses have weighed on returns.

Income Statement

Revenue has expanded meaningfully over the last several years (from ~¥445m in 2021 to ~¥1.03bn in 2025), showing demand traction. Profitability, however, remains the core issue: EBIT and net income are still negative in every period shown, despite a sharp improvement in 2025 (net loss narrowed to ~¥4m from ~¥164m in 2024). Gross profit is sizable, but operating costs continue to pressure results, leaving the earnings profile not yet consistently sustainable.

Balance Sheet

The balance sheet looks mixed but improving on leverage. Total debt has come down from ~¥350m (2023) to ~¥250m (2025) while equity has been relatively stable (~¥346m in 2024–2025). That said, leverage is still meaningful for the current earnings base (debt was ~0.84x equity in 2024), and the business has generated negative returns on equity in recent years, reflecting that losses have been eroding shareholder value.

Cash Flow

Cash generation has been weak, with operating cash flow negative across the periods shown, including a very large outflow in 2024 (~-¥250m). Free cash flow has also been consistently negative, indicating the company has not yet self-funded operations and reinvestment. A positive sign is the major improvement in 2025 operating cash flow (near break-even at ~-¥4m) and a much smaller free cash flow deficit versus 2024, but overall cash flow quality remains a key risk until consistently positive.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.03B	1.02B	956.52M	635.99M	445.31M
Gross Profit	674.80M	661.30M	570.11M	481.18M	329.41M
EBITDA	-672.00K	-154.50M	-176.92M	-317.63M	-558.26M
Net Income	-4.15M	-163.87M	-182.52M	-322.18M	-568.22M
Balance Sheet
Total Assets	1.01B	1.04B	1.29B	683.55M	606.44M
Cash, Cash Equivalents and Short-Term Investments	458.16M	543.39M	882.97M	400.17M	322.19M
Total Debt	250.00M	290.00M	350.00M	115.02M	3.19M
Total Liabilities	661.17M	696.97M	840.89M	550.51M	442.69M
Stockholders Equity	345.80M	345.95M	449.83M	133.04M	163.75M
Cash Flow
Free Cash Flow	-16.46M	-255.66M	-241.76M	-319.87M	-617.39M
Operating Cash Flow	-4.45M	-250.02M	-241.76M	-313.41M	-615.98M
Investing Cash Flow	-44.78M	-89.50M	2.21M	-11.90M	-1.42M
Financing Cash Flow	-36.00M	-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: Neutral

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 above the 20-day moving average (MA) of 854.60, below the 50-day MA of 885.58, and below the 200-day MA of 1045.67, indicating a bearish trend. The MACD of -24.81 indicates Positive momentum. The RSI at 30.37 is Neutral, neither overbought nor oversold. The STOCH value of 30.22 is Neutral, 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
4380	80 Outperform	¥6.03B	14.37	―	1.65%	―	―
2687	79 Outperform	¥2.46B	16.77	―	4.73%	2.93%	-81.08%
7544	69 Neutral	¥4.29B	14.44	―	2.18%	―	―
2747	62 Neutral	¥3.82B	-43.28	―	1.55%	0.42%	13.11%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7515	48 Neutral	¥4.20B	25.11	―	0.67%	5.74%	14.35%
5616	44 Neutral	¥1.92B	10.36	―	―	-2.07%	76.07%