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Ubiteq, Inc. (JP:6662)
:6662
Japanese Market

Ubiteq, Inc. (6662) AI Stock Analysis

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JP

Ubiteq, Inc.

(6662)

Rating:45Neutral
Price Target:
Ubiteq, Inc. is currently facing financial difficulties with persistent net losses and negative cash flow, which are the primary concerns affecting its stock score. Although the balance sheet shows strength with no debt, the company's inability to achieve profitability is a significant risk. The technical analysis provides mixed signals, with some indicators suggesting potential upward momentum. The negative P/E ratio and lack of dividend yield further weigh down the stock's valuation attractiveness. Overall, Ubiteq, Inc. needs to improve its financial health to enhance its stock potential.

Ubiteq, Inc. (6662) vs. iShares MSCI Japan ETF (EWJ)

Ubiteq, Inc. Business Overview & Revenue Model

Company DescriptionUbiteq, Inc. engages in the development and provision of IoT solutions. The company is involved in the design, manufacture, and quality assurance of electronic devices; design, development, and maintenance of software products; and provision of cloud services, as well as consulting on embedded system security. It also provides telematics platform to get the operation status of vehicles; car sharing platform for shared use of multiple vehicles; work mate system to support worker safety; D-collet, product defect improvement service; and D-drive for safe driving support services. The company was incorporated in 1977 and is based in Tokyo, Japan. Ubiteq, Inc. is a subsidiary of ORIX Corporation.
How the Company Makes MoneyUbiteq, Inc. generates revenue through a combination of product sales, service contracts, and recurring revenue streams associated with their technological solutions. The company makes money by developing and selling IoT solutions and systems to clients across different industries, which may include manufacturing, logistics, and smart infrastructure. Additionally, Ubiteq offers system integration and software development services, where clients pay for bespoke technology solutions tailored to their specific needs. The company may also have strategic partnerships with other technology firms to co-develop or distribute products, which contributes to its revenue streams. Recurring maintenance and support services for their technology products further ensure a steady stream of income.

Ubiteq, Inc. Financial Statement Overview

Summary
Ubiteq, Inc. is facing significant financial challenges with declining revenues and persistent net losses. While the balance sheet remains strong with no debt and high equity, the inability to generate positive cash flow and achieve profitability is concerning. The company needs to address these issues to improve its financial health and ensure long-term viability.
Income Statement
20
Very Negative
Ubiteq, Inc. has experienced a decline in revenue over the years, with a TTM revenue of ¥1,142,874,000. The TTM gross profit margin stands at 24.17%, indicating some level of operational efficiency, but the net profit margin is negative due to a significant net loss of ¥308,701,000. The revenue growth rate from the previous period is 12.49%, showing slight improvement, but the company faces challenges in achieving profitability as indicated by negative EBIT and EBITDA margins.
Balance Sheet
65
Positive
The company maintains a strong equity position with a debt-free balance sheet, reflected in a debt-to-equity ratio of 0. The equity ratio is high at 86.26%, showing a strong reliance on equity financing. However, the return on equity is negative due to ongoing net losses, which poses a potential risk if profitability does not improve.
Cash Flow
15
Very Negative
Ubiteq, Inc. struggles with cash flow management as indicated by zero operating cash flow in the latest TTM period. The lack of free cash flow growth and negative free cash flow to net income ratio highlight challenges in generating positive cash flow, raising concerns about the company's ability to sustain operations without external financing.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
1.14B1.02B985.09M1.17B1.29B1.76B
Gross Profit
276.37M213.02M184.54M213.37M236.20M421.57M
EBIT
-210.69M-245.99M-226.92M-207.58M-138.68M51.84M
EBITDA
-141.01M-174.00M-140.00M-142.00M-77.00M107.59M
Net Income Common Stockholders
-308.65M-344.27M-289.05M-210.54M-449.33M39.66M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.21B1.43B2.02B2.22B2.53B2.72B
Total Assets
2.14B2.36B2.63B2.93B3.15B3.65B
Total Debt
0.000.000.000.000.000.00
Net Debt
-1.21B-1.43B-2.02B-2.22B-2.53B-2.72B
Total Liabilities
262.00M354.99M273.85M273.01M284.96M338.74M
Stockholders Equity
1.85B1.98B2.32B2.62B2.83B3.28B
Cash FlowFree Cash Flow
0.00-583.32M-201.22M-315.82M-197.35M-54.18M
Operating Cash Flow
0.00-358.41M-90.17M-221.03M-127.66M37.88M
Investing Cash Flow
0.00275.60M-110.66M-93.36M-69.68M-92.07M
Financing Cash Flow
0.00-1.00K-15.00K-39.00K5.22M-39.53M

Ubiteq, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price236.00
Price Trends
50DMA
227.84
Positive
100DMA
225.48
Positive
200DMA
225.79
Positive
Market Momentum
MACD
3.93
Positive
RSI
53.09
Neutral
STOCH
31.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6662, the sentiment is Positive. The current price of 236 is below the 20-day moving average (MA) of 236.75, above the 50-day MA of 227.84, and above the 200-day MA of 225.79, indicating a bullish trend. The MACD of 3.93 indicates Positive momentum. The RSI at 53.09 is Neutral, neither overbought nor oversold. The STOCH value of 31.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6662.

Ubiteq, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥3.72B10.87
1.03%-1.62%
71
Outperform
¥4.14B12.49
1.24%9.28%73.57%
66
Neutral
¥4.20B43.31
18.96%195.08%
62
Neutral
$11.90B10.64-7.50%2.90%7.41%-8.19%
58
Neutral
¥2.45B57.30
0.63%2.69%-114.65%
54
Neutral
¥2.03B
13.99%-47.91%
45
Neutral
¥3.46B
6.87%4.96%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6662
Ubiteq, Inc.
234.00
-10.00
-4.10%
JP:3042
SecuAvail, Inc.
318.00
39.00
13.98%
JP:3858
Ubiquitous AI Corporation
386.00
-88.00
-18.57%
JP:4288
Asgent, Inc.
527.00
-24.00
-4.36%
JP:4391
Logizard Co., Ltd.
1,297.00
-199.25
-13.32%
JP:4494
Vario Secure, Inc.
823.00
181.00
28.19%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.