AppBank, Inc. (6177) AI Stock Analysis

• Market Cap: ¥3.12B
• Dividend Yield: N/A
• Average Volume (3M): 2.16M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: 89.13%
• EPS Growth: -23.83%
• Country: JP
• Employees: 36
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -23.00
• Shares Outstanding: 23,813,500
• 10 Day Avg. Volume: 843,170
• 30 Day Avg. Volume: 2,160,426
• PEG Ratio: 0.09
• Price to Book (P/B): 17.79
• Price to Sales (P/S): 1.27
• P/FCF Ratio: -5.26
• 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: 44 Neutral
• Price Target: ¥124.00 ▼(-0.80% Downside)

The score is held down primarily by weak financial performance—multi-year losses, very low recent gross margins, and continued negative operating/free cash flow—despite improved sales momentum and debt reduction to zero. Technicals also remain bearish with the stock trading below key moving averages and a negative MACD, while valuation is difficult to assess due to negative earnings and no dividend yield provided.

Positive Factors

Revenue Growth

The significant revenue growth indicates a potential recovery in market demand and effectiveness in capturing sales, which could support future profitability if sustained.

Debt Reduction

Eliminating debt reduces financial risk and increases operational flexibility, allowing the company to focus on growth and strategic investments without the burden of interest payments.

Market Position Recovery

The sharp revenue rebound suggests a strengthening market position, potentially indicating improved competitive standing and customer acquisition.

Negative Factors

Persistent Net Losses

Ongoing net losses highlight challenges in achieving profitability, which could limit reinvestment capacity and necessitate external financing, impacting long-term sustainability.

Compressed Gross Margins

Severely compressed gross margins suggest pricing pressures or cost inefficiencies, which undermine profitability and could hinder the ability to compete effectively.

Negative Cash Flow

Consistently negative cash flow indicates reliance on external funding and raises concerns about liquidity and the ability to sustain operations without financial restructuring.

AppBank, Inc. Business Overview & Revenue Model

Company Description

AppBank Inc. engages in media, rights management, and advertising platform businesses in Japan. The company offers iPhone applications, iPhone cases, accessories, and iPhone related news through AppBank.net site; game strategy media, including hit puzzle RPG Puzzle & Dragons capture media and capture media for pull hunting monster strike; and strategies for games and SNS. It also operates YouTube channels Max Murai and Studio Murai that uploads gameplay videos; sells banner advertisements and article advertisements; and manages video content-related rights. AppBank Inc. was founded in 2008 and is based in Tokyo, Japan.

How the Company Makes Money

AppBank, Inc. generates revenue primarily through the monetization of its mobile applications. This includes in-app purchases, advertising, and premium app subscriptions. The company may also earn income through partnerships with other app developers and platforms, providing services such as app marketing, user acquisition, and performance analytics. These partnerships can enhance the company's market reach and increase user engagement, thereby driving revenue growth.

AppBank, Inc. Financial Statement Overview

Summary

AppBank, Inc. is facing significant financial challenges with declining revenues, persistent losses, and negative cash flows. Despite slight improvements in gross profit margins and a debt-free balance sheet, the company struggles with profitability and cash generation, posing risks to its financial stability and long-term viability.

Income Statement

AppBank, Inc. has seen a significant reduction in revenue over the years, from 1,323 million JPY in 2019 to 994 million JPY in 2024. Although the gross profit margin improved slightly in recent years, the company remains unprofitable, with negative net income and EBIT margins. The net profit margin was negative at -24.1% for 2024, indicating persistent challenges in achieving profitability.

Balance Sheet

The company's balance sheet reveals a moderate financial position. With a debt-to-equity ratio of 0.00, the company has no debt, which is a positive aspect. However, the return on equity (ROE) is negative due to continued net losses. The equity ratio stands at 25.1%, reflecting a reasonable level of equity compared to total assets but still indicating potential financial instability.

Cash Flow

Cash flow from operations is negative, indicating ongoing difficulties in generating cash from core business activities. Free cash flow growth remains negative, resulting in a free cash flow to net income ratio that reflects cash burn. The operating cash flow to net income ratio is unfavorable, highlighting the challenge of converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	490.14M	994.44M	471.98M	388.69M	342.11M	547.48M
Gross Profit	20.79M	44.11M	55.44M	27.43M	67.32M	206.65M
EBITDA	-405.58M	-235.49M	-480.32M	-274.49M	-175.44M	-170.56M
Net Income	-421.40M	-239.32M	-421.00M	-288.90M	-186.25M	-177.58M
Balance Sheet
Total Assets	161.50M	281.95M	280.00M	276.74M	414.59M	604.29M
Cash, Cash Equivalents and Short-Term Investments	163.47M	70.83M	163.00M	123.03M	242.62M	472.44M
Total Debt	59.99M	0.00	59.00M	14.79M	19.59M	36.12M
Total Liabilities	83.53M	211.07M	253.00M	127.16M	79.71M	84.77M
Stockholders Equity	77.97M	70.87M	77.97M	149.59M	334.88M	519.52M
Cash Flow
Free Cash Flow	0.00	-239.70M	-306.00M	-218.47M	-228.19M	-173.29M
Operating Cash Flow	0.00	-227.54M	-300.39M	-216.42M	-194.41M	-171.92M
Investing Cash Flow	0.00	-14.68M	-6.71M	-4.99M	-18.89M	-84.70M
Financing Cash Flow	0.00	236.83M	347.54M	101.83M	-16.52M	-130.34M

AppBank, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 125.00
• 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:6177, the sentiment is Neutral. The current price of 125 is below the 20-day moving average (MA) of 129.50, below the 50-day MA of 149.38, and below the 200-day MA of 145.43, indicating a neutral trend. The MACD of -4.84 indicates Negative momentum. The RSI at 47.49 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6177.

AppBank, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7067	69 Neutral	¥1.83B	50.26	―	1.00%	5.79%	-30.56%
7357	62 Neutral	¥4.10B	404.44	―	2.36%	5.91%	-64.01%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9254	58 Neutral	¥1.90B	11.06	―	―	21.68%	110.72%
2156	55 Neutral	¥1.33B	20.05	―	1.98%	5.87%	―
7689	47 Neutral	¥1.37B	-3.20	―	―	―	―
6177	44 Neutral	¥3.12B	-3.89	―	―	89.13%	-23.83%