Ubiteq, Inc. (6662) AI Stock Analysis

• Market Cap: ¥3.86B
• Dividend Yield: N/A
• Average Volume (3M): 9.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: 24.22%
• EPS Growth: -22.37%
• Country: JP
• Employees: 76
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 2.11
• Shares Outstanding: 14,791,600
• 10 Day Avg. Volume: 9,230
• 30 Day Avg. Volume: 9,510
• PEG Ratio: -0.18
• Price to Book (P/B): 2.53
• Price to Sales (P/S): 3.03
• P/FCF Ratio: -42.53
• 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: 48 Neutral
• Price Target: ¥252.00 ▼(-1.18% Downside)

The score is held down primarily by sustained unprofitability and persistent free-cash-flow burn despite a debt-free balance sheet. Technicals are mixed with mildly bearish momentum, and valuation remains unfavorable/unclear due to ongoing losses (negative P/E) and no provided dividend support.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet reduces financial risk and provides flexibility for future investments or downturns, supporting long-term stability.

Improved Gross Margin

Improved gross margins suggest better pricing power and cost control, which can lead to enhanced profitability as the company scales.

Revenue Growth

Strong revenue growth indicates increasing market demand and successful product adoption, which is crucial for long-term business expansion.

Negative Factors

Sustained Net Losses

Persistent net losses highlight challenges in achieving profitability, which can hinder long-term financial health and shareholder value.

Negative Free Cash Flow

Negative free cash flow suggests ongoing funding needs, which may limit growth opportunities and strain resources if profitability does not improve.

Equity Erosion

Erosion of equity base due to repeated losses undermines financial stability and can impact the company's ability to raise capital or invest in growth.

Ubiteq, Inc. Business Overview & Revenue Model

Company Description

Ubiteq, 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 Money

Ubiteq, 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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.23B	1.24B	1.02B	985.09M	1.17B	1.29B
Gross Profit	347.54M	348.00M	213.02M	184.54M	213.37M	236.20M
EBITDA	-93.87M	-91.00M	-174.00M	-140.00M	-142.00M	-77.00M
Net Income	-493.94M	-493.00M	-344.27M	-289.05M	-210.54M	-449.33M
Balance Sheet
Total Assets	1.70B	1.70B	2.36B	2.63B	2.93B	3.15B
Cash, Cash Equivalents and Short-Term Investments	1.24B	1.24B	1.43B	2.02B	2.22B	2.53B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	187.00M	187.00M	354.99M	273.85M	273.01M	284.96M
Stockholders Equity	1.48B	1.48B	1.98B	2.32B	2.62B	2.83B
Cash Flow
Free Cash Flow	0.00	-88.00M	-583.32M	-201.22M	-315.82M	-197.35M
Operating Cash Flow	0.00	6.00M	-358.41M	-90.17M	-221.03M	-127.66M
Investing Cash Flow	0.00	-225.31M	275.60M	-110.66M	-93.36M	-69.68M
Financing Cash Flow	0.00	0.00	-1.00K	-15.00K	-39.00K	5.22M

Ubiteq, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 255.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 255 is below the 20-day moving average (MA) of 256.65, below the 50-day MA of 258.90, and above the 200-day MA of 246.94, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 55.10 is Neutral, neither overbought nor oversold. The STOCH value of 68.75 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4494	75 Outperform	¥3.70B	9.94	―	―	1.62%	9.93%
4391	74 Outperform	¥3.59B	14.52	―	1.59%	8.31%	-2.44%
3858	70 Outperform	¥4.03B	-125.71	―	―	4.78%	-234.94%
3042	62 Neutral	¥2.67B	18.37	―	0.58%	25.37%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4288	51 Neutral	¥2.62B	-10.72	―	―	20.46%	37.56%
6662	48 Neutral	¥3.86B	-10.00	―	―	24.22%	-22.37%