FreakOut Holdings, Inc. (6094) AI Stock Analysis

• Market Cap: ¥8.89B
• Dividend Yield: N/A
• Average Volume (3M): 33.84K
• Price to Earnings (P/E): 207.5
• Beta (1Y): 0.97
• Revenue Growth: 32.30%
• EPS Growth: N/A
• Country: JP
• Employees: 1,015
• Sector: Communication Services
• Sector Strength: 81
• Industry: Advertising Agencies
• EPS (TTM): -13.23
• Shares Outstanding: 18,022,924
• 10 Day Avg. Volume: 16,860
• 30 Day Avg. Volume: 33,840
• PEG Ratio: 0.14
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 46.41
• 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: 49 Neutral
• Price Target: ¥491.00 ▼(-1.60%Downside)

FreakOut Holdings, Inc. is currently in a challenging financial position, with negative profitability and cash flow issues being the most significant concerns. Technical indicators suggest a bearish trend, and the stock's high P/E ratio indicates overvaluation. These factors contribute to a low overall stock score, highlighting the need for strategic improvements to stabilize and grow the business.

FreakOut Holdings, Inc. Business Overview & Revenue Model

Company Description

FreakOut Holdings, Inc. (6094) is a digital marketing and ad-tech company headquartered in Japan. The company operates in the technology and advertising sectors, providing innovative digital marketing solutions. Its core products and services include programmatic advertising platforms, mobile marketing, and digital advertising technologies that facilitate targeted marketing campaigns and data-driven insights for advertisers and media companies.

How the Company Makes Money

FreakOut Holdings, Inc. generates revenue primarily through its programmatic advertising platforms, which enable automated buying and selling of digital advertising space. The company earns money by charging advertisers for ad placements and campaign management services offered through its platforms. Additionally, FreakOut Holdings partners with various publishers and media companies to expand its advertising network, thereby increasing its reach and inventory. Revenue is also supplemented by providing value-added services such as data analytics and insights that help clients optimize their marketing strategies.

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	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	51.88B	51.71B	30.60B	28.97B	29.50B	24.88B
Gross Profit	14.30B	14.65B	9.30B	7.84B	6.88B	5.81B
EBITDA	-117.59M	-922.13M	11.96B	3.02B	1.91B	399.79M
Net Income	-2.72B	-3.19B	7.87B	1.36B	580.47M	-669.90M
Balance Sheet
Total Assets	42.83B	41.62B	44.89B	24.73B	20.53B	24.32B
Cash, Cash Equivalents and Short-Term Investments	20.07B	20.84B	19.39B	7.29B	6.00B	10.91B
Total Debt	14.39B	15.10B	11.51B	8.00B	7.26B	13.46B
Total Liabilities	25.23B	24.67B	24.57B	14.69B	12.68B	17.96B
Stockholders Equity	13.57B	13.19B	16.78B	8.67B	6.80B	4.60B
Cash Flow
Free Cash Flow	0.00	-3.28B	2.01B	499.61M	1.63B	735.45M
Operating Cash Flow	0.00	-2.70B	2.46B	877.17M	1.90B	844.73M
Investing Cash Flow	0.00	244.79M	10.25B	-572.86M	-1.34B	-684.61M
Financing Cash Flow	0.00	3.06B	-848.08M	325.83M	-4.63B	4.09B

FreakOut Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 499.00
• 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 Neutral. The current price of 499 is above the 20-day moving average (MA) of 496.65, below the 50-day MA of 501.22, and below the 200-day MA of 598.74, indicating a neutral trend. The MACD of -1.03 indicates Negative momentum. The RSI at 49.35 is Neutral, neither overbought nor oversold. The STOCH value of 29.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6094.

FreakOut Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6535	81 Outperform	¥37.75B	13.86		3.37%	14.35%	-5.35%
4293	77 Outperform	¥88.26B	24.52		7.45%	-17.46%	43.19%
2491	67 Neutral	¥25.24B	5.81		6.40%	5.36%	32.46%
2461	63 Neutral	¥30.81B	23.82		3.44%	-5.88%	15.11%
Sector *	62 Neutral	$40.76B	-1.15	-12.05%	3.90%	2.03%	-69.70%
2389	54 Neutral	¥17.33B	7.73		3.85%	-9.56%	127.51%
6094	49 Neutral	¥8.89B	207.48		―	32.30%	―