Geniee, Inc. (6562) AI Stock Analysis

• Market Cap: ¥12.25B
• Dividend Yield: N/A
• Average Volume (3M): 71.07K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.58
• Revenue Growth: 33.34%
• EPS Growth: -25.08%
• Country: JP
• Employees: 617
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 16.18
• Shares Outstanding: 18,056,400
• 10 Day Avg. Volume: 64,850
• 30 Day Avg. Volume: 71,070
• PEG Ratio: 0.08
• Price to Book (P/B): 2.79
• Price to Sales (P/S): 1.94
• P/FCF Ratio: 10.68
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥1,129.00 ▲(11.34% Upside)

Geniee, Inc. shows strong financial performance with effective cost management and revenue growth. However, high leverage and declining profitability margins are concerns. The technical analysis indicates a bearish trend, which may affect short-term stock performance. The valuation is reasonable, but the lack of a dividend yield could be a drawback for some investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates resilience and potential for market expansion, enhancing long-term business sustainability.

Gross Profit Margin

High gross profit margins reflect effective cost management and pricing power, supporting profitability and competitive positioning.

Market Position

Operating in the growing ad tech sector positions Geniee to capitalize on digital advertising trends, driving future growth.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting long-term financial stability and growth.

Declining Profit Margins

Decreasing profit margins suggest pressure on profitability, which could hinder reinvestment and shareholder returns over time.

Cash Flow Challenges

Low conversion of income into cash may constrain investment capacity and debt repayment, affecting long-term operational flexibility.

Geniee, Inc. Business Overview & Revenue Model

Company Description

Geniee, Inc. engages in the internet advertising business in Japan and internationally. It provides Geniee SSP, a platform that compares various deals, such as pure ads, real time bids from demand side platforms and ad exchanges, and ads from multiple ad networks and affiliate ads, as well as serves ads that enhance the revenue for online publishers; Geniee Trading Desk, an integrated operation service for display ads; DMP, a data platform that stores and analyzes data from ads, marketing, media, and users; and Data Exchange that enables the delivery of online ads and email ads using membership data and various types of medium audience data. The company also offers direct bidding tool for advertising agencies; GenieeDMP tool for advertising; GAURL, a technology that enables stable management of AdSense accounts and revenue maximization; and MAJIN, a marketing automation platform. In addition, it provides Demand Side Platform that allows advertisers and advertising agencies to buy advertising inventory, serve advertisements, and target the display destination and audience. Geniee, Inc. was incorporated in 2010 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Geniee, Inc. generates revenue through a combination of service fees, commissions, and subscription models related to its digital advertising solutions. Key revenue streams include programmatic advertising, where the company earns a percentage of ad spend from advertisers using its platform, and fees from publishers for utilizing its ad space. Additionally, Geniee offers data management services that help clients analyze consumer behavior and improve targeting, generating further income. Strategic partnerships with various media companies and technology providers enhance its offerings and expand its market reach, contributing significantly to its earnings.

Geniee, Inc. Financial Statement Overview

Summary

Geniee, Inc. demonstrates strong revenue growth and profitability, with high margins and a solid return on equity. However, challenges include declining free cash flow and moderate debt levels that require careful management.

Income Statement

Geniee, Inc. shows strong revenue growth with a 7.04% increase in TTM, supported by high gross and net profit margins of 77.79% and 17.26% respectively. The EBIT and EBITDA margins are also robust at 22.26% and 32.96%, indicating efficient operations. However, the net income has decreased compared to the previous period, which could be a concern if the trend continues.

Balance Sheet

The company's debt-to-equity ratio stands at 1.30, indicating moderate leverage. Return on equity is healthy at 24.65%, reflecting strong profitability relative to shareholder equity. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Geniee, Inc. experienced a decline in free cash flow by 15.10% in the TTM, which is concerning. The operating cash flow to net income ratio is 0.32, indicating that cash generation from operations is not fully covering net income. The free cash flow to net income ratio is 0.87, showing that while cash flow is positive, it is not as strong as it could be.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.12B	11.32B	8.01B	6.46B	14.46B	14.06B
Gross Profit	9.43B	8.81B	6.14B	5.14B	3.78B	2.61B
EBITDA	3.33B	3.74B	2.11B	2.96B	1.31B	537.96M
Net Income	1.43B	1.95B	1.03B	2.11B	500.64M	101.71M
Balance Sheet
Total Assets	23.79B	23.88B	19.20B	17.86B	7.34B	5.65B
Cash, Cash Equivalents and Short-Term Investments	2.54B	2.86B	2.50B	2.88B	1.48B	1.09B
Total Debt	10.60B	10.22B	8.07B	8.89B	2.44B	1.37B
Total Liabilities	15.22B	15.18B	11.91B	12.82B	4.60B	2.99B
Stockholders Equity	7.74B	7.89B	7.25B	4.99B	2.84B	2.66B
Cash Flow
Free Cash Flow	1.75B	2.06B	279.72M	630.17M	1.19B	-164.41M
Operating Cash Flow	2.00B	2.36B	1.14B	1.39B	1.24B	431.30M
Investing Cash Flow	-1.32B	-1.15B	-831.13M	-5.97B	-1.20B	-1.46B
Financing Cash Flow	-1.70B	-777.66M	-836.98M	5.93B	316.41M	912.44M

Geniee, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1014.00
• 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:6562, the sentiment is Positive. The current price of 1014 is below the 20-day moving average (MA) of 1039.85, below the 50-day MA of 1121.16, and below the 200-day MA of 1400.13, indicating a neutral trend. The MACD of -26.66 indicates Negative momentum. The RSI at 47.83 is Neutral, neither overbought nor oversold. The STOCH value of 43.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6562.

Geniee, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6026	76 Outperform	―	―	―	―	-11.55%	-13.99%
3662	70 Outperform	¥20.80B	18.01	―	1.90%	0.63%	-1.84%
6562	63 Neutral	¥12.25B	12.77	―	―	33.34%	-25.08%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2489	46 Neutral	¥10.68B	-18.06	―	1.11%	-5.70%	-215.73%
4436	41 Neutral	¥6.61B	-1.25	―	―	-0.30%	-304.34%