Aqualine Ltd. (6173) AI Stock Analysis

• Market Cap: ¥1.49B
• Dividend Yield: N/A
• Average Volume (3M): 14.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: -41.75%
• EPS Growth: -116.16%
• Country: JP
• Employees: 67
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): -12.60
• Shares Outstanding: 8,361,129
• 10 Day Avg. Volume: 11,390
• 30 Day Avg. Volume: 14,370
• PEG Ratio: -0.14
• Price to Book (P/B): -2.65
• Price to Sales (P/S): 0.32
• P/FCF Ratio: -2.73
• 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: 41 Neutral
• Price Target: ¥171.00 ▼(-22.97% Downside)

The score is primarily constrained by very weak financial performance—persistent losses, negative operating/free cash flow, and negative equity indicating solvency risk. Technicals are mixed but lean bearish due to negative MACD and price below longer-term moving averages, while valuation support is limited because the company is loss-making and has no dividend yield data.

Positive Factors

Recurring service revenue

Long-term maintenance contracts and municipal partnerships create recurring revenue streams that smooth cash flow volatility, improve customer retention, and provide a predictable base to fund operations and R&D. This durable revenue mix supports resilience through business cycles.

Diverse revenue streams

Having equipment sales, service contracts, and consultancy diversifies income sources and reduces dependency on single-sale cycles. This mix permits cross-selling, stabilizes margins over time, and helps the company capture both upfront project value and long-run service economics.

Specialized water-management expertise

Aqualine’s focus on advanced filtration, chemical treatments and environmental consultancy positions it in a structurally growing market. Specialized technology and R&D capabilities support differentiation, barrier-to-entry benefits, and long-term demand from municipal and industrial clients.

Negative Factors

Negative shareholders' equity

Negative equity signals solvency stress and can materially impair financing options, forcing reliance on dilutive capital or costly debt. Over months this hampers strategic investments, raises refinancing risk, and may necessitate restructuring or covenant concessions.

Negative operating and free cash flow

Sustained negative operating and free cash flow indicate the core business fails to fund capex or service liabilities. This structural cash shortfall erodes liquidity, increases dependence on external financing, and limits the firm's ability to invest in growth or weather prolonged downturns.

Declining revenue and profitability

A marked decline in revenue and persistent negative net income reduce scale benefits and weaken margins, impairing competitive positioning. Over the medium term this trend constrains reinvestment capacity, pressures customer confidence, and increases the risk of market share erosion.

Aqualine Ltd. Business Overview & Revenue Model

Company Description

Aqualine Ltd. provides emergency repair services for water supply products to individual and corporate clients in Japan. It offers a range of services, including unclogging blocks in toilets, kitchens, washrooms, and bathrooms; repairing leaks; selling water supply products; pipe-laying within homes and apartments; and renovating water supply systems, as well as customer-oriented services, such as dedicated customer call centers and on-site customer visits. The company also provides mineral water under the aqua-aqua brand name; and water dispenser services. The company was founded in 1995 and is based in Hiroshima, Japan.

How the Company Makes Money

Aqualine Ltd. generates revenue primarily through the sale of its advanced water purification and wastewater treatment technologies. Key revenue streams include the sale of equipment, ongoing maintenance contracts, and consultancy services tailored for water management projects. The company also benefits from long-term partnerships with municipalities and industrial clients, providing recurring revenue through service agreements. Additionally, Aqualine Ltd. engages in research and development to innovate new products, which can lead to new market opportunities and enhanced profitability.

Aqualine Ltd. Financial Statement Overview

Summary

Financials are highly stressed: revenues and profitability are declining with negative net income and EBIT, operating and free cash flow are negative, and the balance sheet shows negative equity (liabilities exceeding assets), raising solvency and funding risk.

Income Statement

Aqualine Ltd. shows a declining trend in revenues and profitability over the years, with a negative net income and EBIT in the most recent period. The gross profit margin has decreased, indicating diminishing cost efficiency. The company has struggled to manage its operational costs effectively, as evidenced by consistent negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet reveals a worrying trend with negative stockholders' equity, indicating that liabilities exceed assets and raising concerns about solvency. The debt-to-equity ratio cannot be calculated due to negative equity, but the high debt levels compared to assets suggest significant leverage risks. The equity ratio is negative, highlighting the company's financial instability.

Cash Flow

Cash flow analysis shows negative operating cash flow, indicating challenges in generating cash from core business activities. Free cash flow is also negative, suggesting issues with covering capital expenditures and debt obligations through operational performance. The operating cash flow to net income ratio is negative, reflecting poor cash conversion from reported losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.96B	3.46B	4.84B	4.58B	5.26B	6.03B
Gross Profit	1.31B	1.57B	1.97B	2.05B	2.36B	2.59B
EBITDA	-362.13M	-347.32M	-348.80M	-66.62M	-322.23M	-370.88M
Net Income	-362.32M	-324.17M	-371.27M	-170.54M	-549.88M	-645.13M
Balance Sheet
Total Assets	626.72M	715.45M	1.41B	2.02B	2.11B	2.69B
Cash, Cash Equivalents and Short-Term Investments	71.25M	74.43M	58.84M	129.34M	551.19M	896.67M
Total Debt	152.52M	451.00M	334.42M	871.95M	1.08B	997.00M
Total Liabilities	589.16M	1.13B	1.02B	1.89B	1.66B	1.68B
Stockholders Equity	37.57M	-415.62M	342.99M	40.62M	11.18M	528.64M
Cash Flow
Free Cash Flow	0.00	-403.30M	-46.59M	-101.54M	-487.20M	114.17M
Operating Cash Flow	0.00	-403.30M	-32.94M	4.53M	-434.74M	154.41M
Investing Cash Flow	0.00	523.51M	-16.77M	-318.46M	-42.82M	-685.86M
Financing Cash Flow	0.00	-104.62M	-20.79M	-7.92M	132.08M	588.38M

Aqualine Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 222.00
• 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:6173, the sentiment is Negative. The current price of 222 is above the 20-day moving average (MA) of 206.90, above the 50-day MA of 215.34, and below the 200-day MA of 285.81, indicating a bearish trend. The MACD of -12.06 indicates Positive momentum. The RSI at 33.04 is Neutral, neither overbought nor oversold. The STOCH value of 9.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6173.

Aqualine Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5287	80 Outperform	¥3.60B	14.61	―	2.00%	-3.03%	-14.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5380	62 Neutral	¥1.24B	27.68	―	2.30%	-0.62%	―
7896	60 Neutral	¥2.41B	-87.52	―	3.86%	2.13%	156.83%
5386	58 Neutral	¥3.15B	19.66	―	1.59%	-4.01%	-41.29%
5928	51 Neutral	¥2.91B	14.78	―	2.96%	-8.43%	135.83%
6173	41 Neutral	¥1.49B	-1.49	―	―	-41.75%	-116.16%