DesignOne Japan, Inc. (6048) AI Stock Analysis

• Market Cap: ¥1.48B
• Dividend Yield: N/A
• Average Volume (3M): 178.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: -27.31%
• EPS Growth: 40.63%
• Country: JP
• Employees: 177
• Sector: Communication Services
• Sector Strength: 76
• Industry: Internet Content & Information
• EPS (TTM): -1.56
• Shares Outstanding: 15,202,100
• 10 Day Avg. Volume: 185,680
• 30 Day Avg. Volume: 178,643
• PEG Ratio: -0.17
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥107.00
• Price Target Upside: 7.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: ¥107.00 ▲(7.00%Upside)

The overall stock score for DesignOne Japan, Inc. is 46, largely influenced by financial performance struggles and valuation concerns. The robust balance sheet provides some stability, but significant challenges in profitability and liquidity, coupled with bearish technical indicators, weigh heavily on the score.

DesignOne Japan, Inc. Business Overview & Revenue Model

Company Description

DesignOne Japan, Inc. (6048) is a Japanese company that operates primarily in the internet service sector. The company is recognized for its platform that allows users to search for and review local businesses, similar to a local search and recommendation site. This platform is designed to connect consumers with various service providers, including restaurants, beauty salons, and other local businesses, by offering comprehensive business information and user-generated reviews.

How the Company Makes Money

DesignOne Japan, Inc. generates revenue primarily through advertising services. Local businesses pay to advertise on the company's platform to increase visibility and attract more customers. The company offers various advertising products and services, including premium placement in search results and enhanced business profiles. Additionally, DesignOne may profit from subscription fees for advanced features or insights offered to businesses. The platform's ability to drive customer engagement and business conversion is a critical factor in its revenue model.

DesignOne Japan, Inc. Financial Statement Overview

Summary

DesignOne Japan, Inc. exhibits a mixed financial performance. The balance sheet is strong with a high equity ratio and low leverage. However, profitability issues are evident with negative net profit margins and declining cash flows, indicating operational and liquidity challenges.

Income Statement

The company's revenue has been inconsistent with a noticeable decline from 2023 to 2024. Gross profit margin stands at a solid 64.9% for 2024, but the net profit margin is negative at -13.7%, indicating the company is struggling with profitability. EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The balance sheet is relatively strong with a high equity ratio of 86.3%, indicating financial stability. The debt-to-equity ratio is low at 0.03, suggesting minimal leverage. However, consistent declines in stockholders' equity indicate potential challenges in value retention.

Cash Flow

Cash flow from operations has declined significantly, turning negative in 2024, which is concerning. Free cash flow has also turned negative, indicating potential liquidity issues. The operating cash flow to net income ratio is not meaningful due to negative figures.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	2.26B	2.43B	2.25B	1.84B	1.92B
Gross Profit	1.48B	1.78B	1.72B	1.59B	1.70B
EBITDA	-239.27M	89.64M	47.36M	242.36M	246.71M
Net Income	-310.59M	-27.78M	-88.41M	87.64M	152.60M
Balance Sheet
Total Assets	3.31B	3.67B	3.72B	3.61B	3.38B
Cash, Cash Equivalents and Short-Term Investments	2.43B	2.76B	2.67B	2.62B	2.52B
Total Debt	71.59M	224.51M	239.95M	169.76M	6.67M
Total Liabilities	454.39M	561.04M	621.98M	463.30M	276.45M
Stockholders Equity	2.86B	3.11B	3.10B	3.14B	3.10B
Cash Flow
Free Cash Flow	-112.41M	134.91M	34.80M	215.79M	77.81M
Operating Cash Flow	-100.71M	136.38M	38.51M	218.33M	78.86M
Investing Cash Flow	-68.79M	-97.77M	-58.17M	8.11M	-35.65M
Financing Cash Flow	11.41M	-16.59M	-33.01M	-66.23M	-37.61M

DesignOne Japan, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 100.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6048, the sentiment is Neutral. The current price of 100 is above the 20-day moving average (MA) of 99.90, below the 50-day MA of 108.18, and below the 200-day MA of 112.02, indicating a neutral trend. The MACD of -1.72 indicates Negative momentum. The RSI at 46.25 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6048.

DesignOne Japan, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4057	66 Neutral	¥2.05B	14.43		―	12.66%	―
3961	61 Neutral	¥1.89B	7,383.72		―	-2.24%	-48.65%
3985	59 Neutral	¥2.86B	―		―	-12.25%	-142.67%
Sector *	56 Neutral	HK$69.25B	-1.77	-3.62%	5.50%	-4.09%	-17.08%
3845	51 Neutral	¥2.52B	―		―	-22.04%	-8.72%
6048	46 Neutral	¥1.48B	―		―	-27.31%	40.63%
2459	42 Neutral	¥1.81B	―		―	-29.86%	-88.54%