Ubiteq, Inc. (6662) AI Stock Analysis

• Market Cap: ¥3.76B
• Dividend Yield: N/A
• Average Volume (3M): 22.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: 21.60%
• EPS Growth: -43.31%
• Country: JP
• Employees: 76
• Sector: Technology
• Sector Strength: 85
• Industry: Software - Infrastructure
• EPS (TTM): -23.83
• Shares Outstanding: 14,791,600
• 10 Day Avg. Volume: 13,860
• 30 Day Avg. Volume: 22,830
• 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: 45 Neutral
• 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.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet provides Ubiteq with financial flexibility and reduces risk, allowing the company to focus on strategic investments and growth opportunities without the burden of interest payments.

Equity Financing

A high equity ratio indicates that Ubiteq is less reliant on debt, which can be advantageous in maintaining control over financial decisions and reducing vulnerability to interest rate fluctuations.

Revenue Growth

Positive revenue growth suggests that Ubiteq is expanding its market presence and product adoption, which can lead to improved financial performance and potential profitability in the long term.

Negative Factors

Net Losses

Persistent net losses indicate challenges in achieving profitability, which can strain resources and limit the company's ability to invest in growth and innovation.

Negative Cash Flow

Negative cash flow raises concerns about Ubiteq's ability to sustain operations without external financing, potentially impacting its long-term viability and financial health.

Declining Revenues

Declining revenues can hinder growth prospects and indicate potential issues in market competitiveness or product demand, challenging the company's ability to achieve sustainable 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 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	1.33B	1.02B	985.09M	1.17B	1.29B	1.76B
Gross Profit	364.41M	213.02M	184.54M	213.37M	236.20M	421.57M
EBITDA	-69.12M	-174.00M	-140.00M	-142.00M	-77.00M	107.59M
Net Income	-236.37M	-344.27M	-289.05M	-210.54M	-449.33M	39.66M
Balance Sheet
Total Assets	2.01B	2.36B	2.63B	2.93B	3.15B	3.65B
Cash, Cash Equivalents and Short-Term Investments	1.19B	1.43B	2.02B	2.22B	2.53B	2.72B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	145.03M	354.99M	273.85M	273.01M	284.96M	338.74M
Stockholders Equity	1.84B	1.98B	2.32B	2.62B	2.83B	3.28B
Cash Flow
Free 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	-127.66M	37.88M
Investing Cash Flow	0.00	275.60M	-110.66M	-93.36M	-69.68M	-92.07M
Financing Cash Flow	0.00	-1.00K	-15.00K	-39.00K	5.22M	-39.53M

Ubiteq, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 252.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 252 is below the 20-day moving average (MA) of 252.35, below the 50-day MA of 255.76, and above the 200-day MA of 233.88, indicating a neutral trend. The MACD of -0.83 indicates Positive momentum. The RSI at 47.89 is Neutral, neither overbought nor oversold. The STOCH value of 45.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6662.

Ubiteq, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4391	71 Outperform	¥3.89B	14.18		1.49%	10.09%	8.89%
4494	68 Neutral	¥3.58B	10.16		―	1.13%	-1.12%
Sector *	61 Neutral	$36.58B	11.16	-10.39%	1.86%	8.71%	-7.09%
3042	58 Neutral	¥2.59B	24.82		0.62%	13.74%	-55.69%
3858	58 Neutral	¥3.85B	87.66		―	12.98%	―
4288	54 Neutral	¥2.12B	―		―	30.27%	29.21%
6662	45 Neutral	¥3.76B	―		―	21.60%	-43.31%