DesignOne Japan, Inc. (6048) AI Stock Analysis

• Market Cap: ¥1.42B
• Dividend Yield: N/A
• Average Volume (3M): 274.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: -18.93%
• EPS Growth: 9.04%
• Country: JP
• Employees: 177
• Sector: Communication Services
• Sector Strength: 87
• Industry: Internet Content & Information
• EPS (TTM): -1.49
• Shares Outstanding: 15,202,100
• 10 Day Avg. Volume: 177,220
• 30 Day Avg. Volume: 274,066
• PEG Ratio: -0.20
• Price to Book (P/B): 0.60
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: ¥107.00 ▲(11.46%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 in the internet and media sectors, specializing in providing online service platforms. The company is known for its comprehensive review site, 'Ekiten,' which offers a wide range of user-generated reviews and ratings across various local businesses and services in Japan. This platform serves as a bridge for businesses to connect with potential customers, providing valuable insights and visibility.

How the Company Makes Money

DesignOne Japan, Inc. generates revenue primarily through advertising and subscription fees from businesses listed on its Ekiten platform. The company charges businesses for premium listings and enhanced visibility options, which include promotional features to improve their presence on the platform. Additionally, partnerships with local businesses and service providers contribute to revenue through collaborative marketing initiatives. The user-generated content model encourages high engagement, making the platform attractive for advertisers seeking targeted reach within specific local markets.

DesignOne Japan, Inc. Financial Statement Overview

Summary

DesignOne Japan, Inc. exhibits a mixed financial performance. While the balance sheet is strong with low leverage and high equity, profitability remains a significant issue, as indicated by negative net profit and EBITDA margins. Declining cash flows further highlight potential liquidity concerns.

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	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	2.06B	2.26B	2.43B	2.25B	1.84B	1.92B
Gross Profit	1.35B	1.48B	1.78B	1.72B	1.59B	1.70B
EBITDA	-326.79M	-239.27M	89.64M	47.36M	242.36M	246.71M
Net Income	-362.76M	-310.59M	-27.78M	-88.41M	87.64M	152.60M
Balance Sheet
Total Assets	3.20B	3.31B	3.67B	3.72B	3.61B	3.38B
Cash, Cash Equivalents and Short-Term Investments	2.25B	2.43B	2.76B	2.67B	2.62B	2.52B
Total Debt	32.00M	71.59M	224.51M	239.95M	169.76M	6.67M
Total Liabilities	396.00M	454.39M	561.04M	621.98M	463.30M	276.45M
Stockholders Equity	2.80B	2.86B	3.11B	3.10B	3.14B	3.10B
Cash Flow
Free Cash Flow	0.00	-112.41M	134.91M	34.80M	215.79M	77.81M
Operating Cash Flow	0.00	-100.71M	136.38M	38.51M	218.33M	78.86M
Investing Cash Flow	0.00	-68.79M	-97.77M	-58.17M	8.11M	-35.65M
Financing Cash Flow	0.00	11.41M	-16.59M	-33.01M	-66.23M	-37.61M

DesignOne Japan, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 96.00
• 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:6048, the sentiment is Negative. The current price of 96 is below the 20-day moving average (MA) of 102.50, below the 50-day MA of 111.62, and below the 200-day MA of 113.92, indicating a bearish trend. The MACD of -3.64 indicates Positive momentum. The RSI at 36.61 is Neutral, neither overbought nor oversold. The STOCH value of 12.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥2.25B	13.62		―	12.66%	―
3961	61 Neutral	¥1.88B	7,267.44		―	-2.24%	-48.65%
3985	58 Neutral	¥2.39B	―		―	-12.25%	-142.67%
Sector *	55 Neutral	HK$64.51B	-1.63	-1.91%	7.22%	-4.22%	-14.17%
3845	54 Neutral	¥2.33B	―		―	-22.04%	-8.72%
6048	46 Neutral	¥1.42B	―		―	-18.93%	9.04%
2459	42 Neutral	¥1.81B	―		―	-29.86%	-88.54%