EBRAINS,INC. (6599) AI Stock Analysis

• Market Cap: ¥3.41B
• Dividend Yield: 1.77%
• Average Volume (3M): 1.47K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.16
• Revenue Growth: -1.94%
• EPS Growth: 2.49%
• Country: JP
• Employees: 116
• Sector: Technology
• Sector Strength: 86
• Industry: Computer Hardware
• EPS (TTM): 50.24
• Shares Outstanding: 1,536,000
• 10 Day Avg. Volume: 1,090
• 30 Day Avg. Volume: 1,470
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 71 Outperform
• Price Target: ―

EBRAINS, INC. shows a strong financial foundation with efficient operations, but faces challenges with declining revenue and lack of cash flow. Technical indicators suggest mixed momentum, needing cautious observation. The stock's valuation appears attractive due to a low P/E ratio and reasonable dividend yield.

Positive Factors

Business Model Strength

A diversified revenue model, including licensing, subscriptions, and consulting, provides stability and reduces reliance on a single income stream.

Financial Stability

A strong equity base and minimal debt enhance financial stability, allowing for greater resilience against economic fluctuations.

Profit Margins

Efficient cost management and robust operating efficiency are reflected in strong profit margins, supporting long-term profitability.

Negative Factors

Revenue Decline

A declining revenue trend can indicate challenges in market demand or competitive pressures, potentially impacting future growth.

Cash Flow Challenges

Lack of cash flow generation limits financial flexibility and investment capacity, posing risks to sustaining operations and growth initiatives.

Return on Equity

A decline in ROE suggests less effective utilization of shareholder equity, potentially affecting investor confidence and capital efficiency.

EBRAINS,INC. Business Overview & Revenue Model

Company Description

EBRAINS, INC. (6599) is a technology company specializing in the development and deployment of advanced AI and machine learning solutions. The company operates in sectors such as healthcare, finance, and telecommunications, providing tailored software and analytics services designed to optimize operations and enhance decision-making processes for its clients. Core products include predictive analytics platforms, AI-driven data processing tools, and customized machine learning models.

How the Company Makes Money

EBRAINS, INC. generates revenue through a diversified business model that includes licensing fees for its proprietary software solutions, subscription services for continuous access to its AI platforms, and consulting fees for personalized implementation and integration services. The company also engages in strategic partnerships with industry leaders to co-develop and market new technology solutions, thereby expanding its market reach and enhancing its revenue streams. Additionally, EBRAINS may receive funding through research grants and collaboration agreements aimed at innovative technology advancements.

EBRAINS,INC. Financial Statement Overview

Summary

EBRAINS, INC. demonstrates a strong financial position with efficient operations and low leverage, as evidenced by solid profit margins and a robust equity ratio. However, challenges include a decline in revenue and the absence of cash flow generation in the TTM period.

Income Statement

EBRAINS, INC. exhibited a stable gross profit margin with a TTM (Trailing-Twelve-Months) rate of 21.18%. The net profit margin was strong at 7.30% TTM, demonstrating efficient cost management. However, the revenue displayed a slight downward trend with a decrease of 8.06% from the previous annual report. The company maintained healthy EBIT and EBITDA margins at 10.47% and 10.91% TTM, respectively, indicating robust operating efficiency.

Balance Sheet

The balance sheet remains solid with a low debt-to-equity ratio due to minimal total debt, highlighting financial stability. The company's equity ratio stands at 80.75%, showcasing a strong equity base. However, the return on equity (ROE) decreased to 6.13% TTM, which could indicate less effective utilization of shareholder equity compared to prior periods.

Cash Flow

EBRAINS, INC. faced challenges in cash flow generation with zero operating and free cash flow reported in the TTM period. Despite previous periods showing positive free cash flow growth, the current lack of cash flow could pose a risk to future financial flexibility and investment capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.03B	4.03B	3.99B	4.26B	3.92B	3.20B
Gross Profit	862.66M	864.49M	911.14M	1.05B	927.64M	680.52M
EBITDA	492.15M	492.15M	511.44M	671.70M	550.21M	320.03M
Net Income	312.85M	313.41M	332.06M	426.20M	345.38M	200.17M
Balance Sheet
Total Assets	5.90B	5.90B	5.67B	5.60B	5.18B	4.58B
Cash, Cash Equivalents and Short-Term Investments	2.73B	2.73B	2.39B	1.92B	1.75B	1.53B
Total Debt	0.00	0.00	0.00	0.00	28.02M	66.02M
Total Liabilities	1.12B	1.12B	1.17B	1.41B	1.39B	1.13B
Stockholders Equity	4.79B	4.79B	4.50B	4.20B	3.79B	3.45B
Cash Flow
Free Cash Flow	0.00	379.61M	496.77M	226.05M	261.89M	126.22M
Operating Cash Flow	0.00	382.20M	505.42M	247.38M	267.96M	152.63M
Investing Cash Flow	0.00	-3.48M	-34.46M	-34.74M	2.90M	-18.09M
Financing Cash Flow	0.00	-57.34M	-40.81M	-61.22M	-65.16M	113.36M

EBRAINS,INC. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2259.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6599, the sentiment is Positive. The current price of 2259 is above the 20-day moving average (MA) of 2245.15, above the 50-day MA of 2207.44, and above the 200-day MA of 2162.45, indicating a bullish trend. The MACD of 18.56 indicates Negative momentum. The RSI at 55.13 is Neutral, neither overbought nor oversold. The STOCH value of 81.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6599.

EBRAINS,INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6734	80 Outperform	¥3.71B	11.61		2.57%	47.58%	23.65%
6803	77 Outperform	¥2.79B	13.30		1.05%	2.27%	―
6599	71 Outperform	¥3.41B	10.80		1.77%	-1.94%	2.49%
6840	68 Neutral	¥3.04B	20.33		―	21.30%	-15.27%
Sector *	61 Neutral	$36.70B	12.21	-10.39%	1.84%	8.50%	-7.32%
7709	48 Neutral	¥2.78B	140.33		―	6.75%	-17.60%
6731	36 Underperform	¥5.63B	―		―	-11.45%	66.36%