Allied Architects, Inc. (6081) AI Stock Analysis

• Market Cap: ¥4.50B
• Dividend Yield: N/A
• Average Volume (3M): 200.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: -14.76%
• EPS Growth: 22.12%
• Country: JP
• Employees: 194
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -8.16
• Shares Outstanding: 15,899,482
• 10 Day Avg. Volume: 396,600
• 30 Day Avg. Volume: 200,646
• PEG Ratio: -0.02
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.66
• P/FCF Ratio: -11.53
• 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: 55 Neutral
• Price Target: ¥291.00 ▲(42.65% Upside)

The score is held back primarily by weak financial performance (declining revenue, losses, and negative recent operating/free cash flow). Technicals are a positive offset with strong momentum and price above major moving averages, but valuation remains challenged due to the negative P/E and lack of dividend yield data.

Positive Factors

Balance-sheet stability

A relatively healthy equity ratio and manageable leverage provide a durable financial cushion against revenue volatility. This structural balance-sheet strength supports borrowing capacity and funds strategic investment, reducing refinancing risk over the medium term.

Historic cash-generation ability

Prior episodes of positive operating and free cash flow show the business can generate cash when operations stabilize. That operational cash-generation track record implies management can restore liquidity through execution, aiding long-term sustainability without permanent capital raises.

Proven revenue/profit recovery

Historic periods of revenue and profit expansion demonstrate the underlying business model can scale and capture demand. This operational resiliency implies the company may regain growth and margins if product/market execution improves, supporting a multi‑quarter recovery path.

Negative Factors

Declining revenue trend

Sustained revenue decline reduces scale economics and limits pricing power, making it harder to cover fixed costs and invest in growth. Over several quarters this erodes competitive positioning, constrains reinvestment, and lengthens the timeline for structural recovery.

Margin deterioration

Negative operating margins indicate core profitability issues rather than transitory items. Persistently weak margins impair free cash generation and the ability to fund R&D or marketing, reduce competitive reinvestment capacity, and may require structural cost or strategic changes.

Negative operating and free cash flow

Ongoing negative operating and free cash flow depletes liquidity and raises dependence on external financing. Over a multi‑quarter horizon this increases financial risk, limits strategic optionality, and can force austerity or dilution that weakens long‑term competitive position.

Allied Architects, Inc. Business Overview & Revenue Model

Company Description

Allied Architects, Inc. engages in marketing DX support business in Japan, China, and internationally. The company provides SaaS-type products; Letro and Lertro Studio, a video production tool service; Monipla, a platform for public relations and product development; and echoes, a service for instant win campaigns, as well as solutions for SNS advertising and account operations; web promotions; and fan marketing solutions. It also offers Creadits, an advertising platform; other marketing tools, including WEIQ, Othello, and BoJapan; and other account and marketing support services. The company was incorporated in 2005 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Allied Architects, Inc. generates revenue primarily through architectural design fees, which are charged for services rendered during the planning and execution of projects. Key revenue streams include fixed-price contracts for specific projects, hourly billing for consulting services, and additional fees for project management and oversight. The firm often partners with construction companies and developers, allowing for collaborative projects that can lead to additional business opportunities and higher revenue through bundled services. Additionally, the company may engage in public sector contracts, which can provide significant funding for large-scale municipal projects.

Allied Architects, Inc. Financial Statement Overview

Summary

Financials are pressured by declining revenue and recent net losses, with gross margin deterioration and negative EBIT/EBITDA margins in 2024. Cash flow is also weak with negative operating and free cash flow in recent years. The balance sheet is comparatively steadier with a healthy equity ratio and manageable leverage, but profitability declines weigh on overall quality.

Income Statement

Allied Architects, Inc. is experiencing declining revenue trends and profitability issues. The company saw a significant drop in revenue from 2021 to 2024, with a notable net loss in the last two years. Gross profit margins have decreased, and both EBIT and EBITDA margins turned negative in 2024, indicating operational challenges. However, the company has seen periods of positive revenue and profit growth in previous years, suggesting potential for recovery.

Balance Sheet

The balance sheet shows a relatively stable equity position but with some risk factors. The debt-to-equity ratio is manageable, although there's an increase in debt over recent years. The equity ratio remains healthy, showing a significant proportion of assets financed by equity. However, the declining net income impacts the return on equity negatively. Overall, the balance sheet reflects a moderate level of financial stability with some potential risks.

Cash Flow

Cash flow performance is mixed, with recent years showing negative free cash flow and operating cash flow. The company has struggled to generate positive cash flow from operations, which is a concern. However, there were periods of positive cash flow in earlier years, indicating potential for improvement. The free cash flow to net income ratio is negative due to net losses, but the company has a history of better cash flow management, suggesting room for recovery.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.26B	3.46B	4.14B	4.55B	6.21B	4.19B
Gross Profit	2.24B	2.39B	3.11B	3.51B	2.77B	2.06B
EBITDA	-444.40M	-301.32M	215.99M	1.22B	1.09B	431.02M
Net Income	-698.37M	-516.29M	-146.96M	806.97M	726.93M	173.29M
Balance Sheet
Total Assets	3.11B	4.09B	4.11B	4.58B	3.83B	3.20B
Cash, Cash Equivalents and Short-Term Investments	1.49B	1.94B	1.84B	2.12B	1.70B	1.17B
Total Debt	519.00M	633.63M	291.23M	513.17M	371.03M	784.96M
Total Liabilities	1.21B	1.55B	1.01B	1.36B	1.35B	1.42B
Stockholders Equity	1.76B	2.39B	3.01B	3.16B	2.44B	1.74B
Cash Flow
Free Cash Flow	0.00	-199.75M	-259.43M	243.04M	768.45M	99.06M
Operating Cash Flow	0.00	-106.78M	-118.55M	338.95M	849.36M	195.77M
Investing Cash Flow	0.00	-139.88M	49.09M	-66.63M	87.76M	174.87M
Financing Cash Flow	0.00	311.49M	-234.96M	107.88M	-423.94M	146.82M

Allied Architects, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 204.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6081, the sentiment is Positive. The current price of 204 is below the 20-day moving average (MA) of 262.30, below the 50-day MA of 232.54, and below the 200-day MA of 218.41, indicating a bullish trend. The MACD of 26.61 indicates Negative momentum. The RSI at 54.87 is Neutral, neither overbought nor oversold. The STOCH value of 34.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6081.

Allied Architects, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2477	78 Outperform	¥20.12B	18.53	―	1.21%	8.09%	8.53%
7077	66 Neutral	¥2.29B	-22.52	―	―	―	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6081	55 Neutral	¥4.50B	-7.04	―	―	-14.76%	22.12%
3674	46 Neutral	¥3.58B	-10.83	―	―	-3.79%	-272.95%
7356	45 Neutral	¥2.22B	187.84	―	―	4.36%	―