FreakOut Holdings, Inc. (6094) AI Stock Analysis

• Market Cap: ¥9.17B
• Dividend Yield: N/A
• Average Volume (3M): 48.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: 50.61%
• EPS Growth: -136.32%
• Country: JP
• Employees: 1,015
• Sector: Communication Services
• Sector Strength: 85
• Industry: Advertising Agencies
• EPS (TTM): -151.55
• Shares Outstanding: 18,022,924
• 10 Day Avg. Volume: 23,170
• 30 Day Avg. Volume: 48,053
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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

FreakOut Holdings, Inc. faces significant financial challenges, reflected in its negative profitability and cash flow issues. While there is strong revenue growth, operational inefficiencies and rising leverage are concerning risks. The technical analysis suggests bearish momentum, and the valuation is unattractive due to negative earnings. Strategic improvements are necessary for a positive outlook.

FreakOut Holdings, Inc. Business Overview & Revenue Model

Company Description

FreakOut Holdings, Inc. (6094) is a prominent player in the digital marketing and advertising technology sector. The company offers a comprehensive suite of services, including demand-side platforms (DSP), supply-side platforms (SSP), and data management platforms (DMP), designed to optimize digital advertising strategies. With a strong focus on programmatic advertising, FreakOut Holdings leverages cutting-edge data analytics and real-time bidding technologies to deliver targeted advertising solutions across various digital channels, including mobile, video, and display advertising.

How the Company Makes Money

FreakOut Holdings, Inc. generates revenue primarily through its programmatic advertising solutions. The company earns money by providing advertisers access to advanced platforms that facilitate the buying and selling of digital ad inventory in real time. Key revenue streams include fees from advertisers for using their demand-side platform (DSP) to purchase ad space, as well as fees from publishers for utilizing their supply-side platform (SSP) to monetize their digital content. Additionally, FreakOut Holdings benefits from data management services, which enhance the targeting precision of advertising campaigns by leveraging consumer data. Strategic partnerships with technology providers and digital publishers further bolster the company's earnings by expanding its network and increasing the reach and effectiveness of its advertising solutions.

FreakOut Holdings, Inc. Financial Statement Overview

Summary

FreakOut Holdings, Inc. is experiencing a period of financial turbulence with negative profitability and cash flow issues. While revenue growth is strong, operational inefficiencies and rising leverage present significant risks. The company's substantial cash reserves provide a buffer, but strategic measures are needed to enhance profitability and improve cash flow to ensure long-term financial health.

Income Statement

The company shows a mixed performance in its income statement. The TTM data indicates a negative EBIT and EBITDA margin, suggesting operational inefficiencies. Net income is also negative, pointing to profitability issues. However, revenue growth is evident over the years, with a significant increase from 2023 to 2024, demonstrating potential for recovery if costs are managed better.

Balance Sheet

The balance sheet shows a moderate level of stability. The debt-to-equity ratio has increased over the years, indicating rising leverage, which could pose a risk if not managed carefully. However, the equity ratio remains reasonable, and the company has significant cash reserves, providing a cushion against potential financial challenges. Return on equity has been volatile, reflecting fluctuating profitability.

Cash Flow

Cash flow analysis reveals challenges with negative free cash flow and operating cash flow in the TTM period, indicating struggles in converting revenue into cash. The operating cash flow to net income ratio is concerning, given the negative net income. The company needs to improve cash generation to support its growth and operational needs.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
51.71B	30.60B	28.97B	29.50B	24.88B
	Gross Profit
14.65B	9.30B	7.84B	6.88B	5.81B
	EBIT
1.66M	1.61B	1.33B	1.01B	211.49M
	EBITDA
2.24B	11.96B	3.02B	1.91B	399.79M
	Net Income Common Stockholders
-3.19B	7.87B	1.36B	580.47M	-669.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.84B	19.39B	7.29B	6.00B	10.91B
	Total Assets
41.62B	43.36B	24.73B	20.53B	24.32B
	Total Debt
15.10B	11.51B	8.00B	7.26B	13.46B
	Net Debt
-4.72B	-7.88B	713.25M	1.26B	3.55B
	Total Liabilities
24.67B	24.03B	14.69B	12.68B	17.96B
	Stockholders Equity
13.19B	16.78B	8.67B	6.80B	4.60B
Cash Flow		Free Cash Flow
-3.28B	2.01B	499.61M	1.63B	735.45M
	Operating Cash Flow
-2.70B	2.46B	877.17M	1.90B	844.73M
	Investing Cash Flow
244.79M	10.25B	-572.86M	-1.34B	-684.61M
	Financing Cash Flow
3.06B	-848.08M	325.83M	-4.63B	4.09B

FreakOut Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 512.00
• 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:6094, the sentiment is Positive. The current price of 512 is above the 20-day moving average (MA) of 501.80, below the 50-day MA of 547.72, and below the 200-day MA of 656.73, indicating a neutral trend. The MACD of -6.12 indicates Negative momentum. The RSI at 50.96 is Neutral, neither overbought nor oversold. The STOCH value of 44.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6094.

FreakOut Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2121	69 Neutral	¥210.61B	16.75	7.28%	3.01%	3.22%	69.90%
2433	63 Neutral	$397.76B	13.05	8.14%	3.02%	-2.48%	458.59%
3626	62 Neutral	¥977.00B	19.28		1.62%	3.33%	-5.12%
Sector *	60 Neutral	$13.41B	7.23	-2.74%	3.81%	2.12%	-37.24%
4755	56 Neutral	$1.79T	―	-18.23%	―	10.04%	57.36%
4324	50 Neutral	$770.29B	―	-24.24%	4.94%	8.20%	-1728.50%
6094	45 Neutral	¥9.17B	―		―	50.61%	-136.32%