AIAI Group Corporation (6557) AI Stock Analysis

• Market Cap: ¥8.68B
• Dividend Yield: N/A
• Average Volume (3M): 22.29K
• Price to Earnings (P/E): 19.9
• Beta (1Y): -0.85
• Revenue Growth: 8.11%
• EPS Growth: 89.89%
• Country: JP
• Employees: 1,080
• Sector: Healthcare
• Sector Strength: 48
• Industry: Medical - Care Facilities
• EPS (TTM): 20.75
• Shares Outstanding: 6,600,762
• 10 Day Avg. Volume: 12,420
• 30 Day Avg. Volume: 22,286
• PEG Ratio: 1.70
• Price to Book (P/B): 3.22
• Price to Sales (P/S): 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

AIAI Group Corporation’s stock score is primarily driven by improving profitability and operational efficiency. However, financial risks due to high leverage and cash flow volatility are significant concerns. The stock's technical position suggests downward pressure, though it remains fairly valued. Overall, while there are positive operational trends, financial risks require careful consideration.

AIAI Group Corporation Business Overview & Revenue Model

Company Description

AIAI Group Corporation (6557) is a Japan-based company primarily engaged in the operation of childcare facilities. The company focuses on providing high-quality early childhood education and care services through its network of nursery schools and related educational institutions. AIAI Group aims to support the development and well-being of children while assisting parents with reliable childcare solutions.

How the Company Makes Money

AIAI Group Corporation generates revenue primarily through its childcare services offered at various nursery schools and early childhood education centers. The company earns money by charging tuition and fees for enrollment in its educational programs. Additionally, AIAI Group may receive funding or subsidies from government bodies that support childcare initiatives, which can contribute to its financial inflows. The corporation might also engage in partnerships with local governments or private entities to expand its reach and enhance service offerings, further bolstering its revenue streams.

AIAI Group Corporation Financial Statement Overview

Summary

AIAI Group Corporation shows improving revenue and profitability, with operational efficiencies evident. However, high leverage and cash flow volatility present financial risks. Continued debt management and consistent cash flow generation are key for future stability.

Income Statement

The company has shown positive revenue growth, with TTM revenue increasing by 4.5% from the previous annual report. Gross profit margin stands at 15.9% TTM, reflecting a stable ability to manage costs relative to revenue. Net profit margin is also positive at 4.6% TTM, indicating profitability improvements. EBIT and EBITDA margins of 5.4% and 12.6% respectively, suggest operational efficiency gains. However, historical losses and fluctuations in net income indicate past volatility.

Balance Sheet

The debt-to-equity ratio remains high at 2.46 TTM, indicating significant leverage which poses a risk. However, the equity ratio has improved to 24.2% TTM, showing a strengthening position. ROE is relatively strong at 21.2% TTM, reflecting effective equity utilization. Despite improvements, high leverage remains a concern for financial stability.

Cash Flow

The cash flow statement lacks current TTM data, but historical figures show inconsistent free cash flow trends and reliance on external financing. With historical free cash flow volatility and a lack of operating cash flow in the TTM, the company's cash generation ability is uncertain, impacting its financial flexibility.

Breakdown
TTM	Mar 2024	Mar 2023	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
12.35B	11.82B	10.82B	9.43B	8.32B	5.92B
	Gross Profit
1.96B	1.74B	1.35B	1.05B	428.92M	434.00M
	EBIT
669.01M	532.30M	80.71M	-437.59M	-1.27B	-888.00M
	EBITDA
1.56B	1.31B	651.20M	703.08M	871.65M	-547.00M
	Net Income Common Stockholders
573.47M	353.26M	-506.11M	-65.17M	150.73M	-31.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.73B	1.67B	1.31B	1.68B	825.00M	1.17B
	Total Assets
11.19B	11.66B	11.74B	11.99B	10.50B	7.78B
	Total Debt
6.64B	7.86B	8.68B	8.77B	7.25B	5.36B
	Net Debt
4.92B	6.19B	7.38B	7.09B	6.43B	4.20B
	Total Liabilities
8.48B	9.91B	10.40B	10.59B	9.07B	6.82B
	Stockholders Equity
2.71B	1.75B	1.34B	1.41B	1.43B	961.58M
Cash Flow		Free Cash Flow
0.00	1.19B	-15.13M	-555.63M	-1.81B	-1.38B
	Operating Cash Flow
0.00	1.77B	873.87M	850.31M	385.68M	287.00M
	Investing Cash Flow
0.00	-619.00M	-809.07M	-1.49B	-2.92B	-1.91B
	Financing Cash Flow
0.00	-786.22M	293.35M	1.50B	2.21B	1.35B

AIAI Group Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1315.00
• 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:6557, the sentiment is Negative. The current price of 1315 is above the 20-day moving average (MA) of 1300.60, below the 50-day MA of 1385.60, and below the 200-day MA of 1463.25, indicating a neutral trend. The MACD of -12.15 indicates Negative momentum. The RSI at 47.91 is Neutral, neither overbought nor oversold. The STOCH value of 37.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6557.

AIAI Group Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6183	73 Outperform	¥92.29B	11.52		4.79%	-3.44%	6.06%
6191	70 Outperform	$21.79B	10.07	16.02%	0.55%	7.20%	87.54%
6098	69 Neutral	$12.08T	30.71	22.31%	0.28%	4.09%	13.88%
6178	62 Neutral	$4.20T	14.15	3.05%	3.44%	6.19%	21.48%
6557	58 Neutral	¥8.68B	19.87		―	8.11%	89.89%
Sector *	52 Neutral	$5.21B	3.49	-43.30%	2.83%	14.70%	-0.24%