TRaaS On Product Inc. (6696) AI Stock Analysis

• Market Cap: ¥2.76B
• Dividend Yield: N/A
• Average Volume (3M): 200.18K
• Price to Earnings (P/E): 138.4
• Beta (1Y): 1.05
• Revenue Growth: 48.14%
• EPS Growth: N/A
• Country: JP
• Employees: 45
• Sector: Technology
• Sector Strength: 89
• Industry: Communication Equipment
• EPS (TTM): 1.49
• Shares Outstanding: 4,824,991
• 10 Day Avg. Volume: 163,880
• 30 Day Avg. Volume: 200,183
• PEG Ratio: 506.43
• Price to Book (P/B): 6.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 1

• Rating: 65 Neutral
• Price Target: ¥590.00 ▲(3.33%Upside)

TRaaS On Product Inc. scores a 65.1, driven primarily by its strong financial performance and positive technical indicators. The company's robust equity base and positive cash flow trends are significant strengths. However, the high valuation, as indicated by the P/E ratio, presents a potential risk.

TRaaS On Product Inc. Business Overview & Revenue Model

Company Description

TRaaS On Product Inc. (6696) is a technology company that specializes in providing innovative solutions in the field of technology and product management. The company operates in sectors such as software development, cloud services, and data analytics, offering a range of products and services designed to enhance business operations and optimize digital transformation efforts for clients across various industries.

How the Company Makes Money

TRaaS On Product Inc. generates revenue through a combination of direct sales of its software products and subscription-based models for its cloud services. The company also offers consulting and support services, creating additional revenue streams. Partnerships with other tech firms and strategic alliances with industry leaders contribute to its earnings by expanding its market reach and enhancing its service offerings. Licensing fees and enterprise solutions tailored for large organizations are also significant contributors to the company's financial performance.

TRaaS On Product Inc. Financial Statement Overview

Summary

TRaaS On Product Inc. demonstrates a positive financial turnaround, with notable improvements in profitability, revenue growth, and cash flow generation. The company benefits from a solid equity base and low leverage, ensuring financial stability. Despite these strengths, operational efficiency remains an area for improvement, as reflected in modest EBIT and EBITDA margins.

Income Statement

TRaaS On Product Inc.'s income statement shows significant improvement in profitability metrics over the past year. The gross profit margin has increased to 57.8% from 54.4% the previous year, indicating better cost management. Net profit margin improved to 0.6% from a negative position, reflecting a return to profitability. Revenue growth of 32.4% over the past year is a positive sign, pointing to strong sales momentum. However, EBIT and EBITDA margins remain low at 1.3% and 7.2%, respectively, suggesting operational inefficiencies still exist despite the turnaround.

Balance Sheet

The balance sheet of TRaaS On Product Inc. indicates a strong equity position with a debt-to-equity ratio of 0.15, showcasing conservative leverage. The return on equity stands at 0.6%, an improvement from negative returns in previous years, which suggests a recovering profitability trajectory. The equity ratio is robust at 75.9%, indicating financial stability and a strong asset base funded by equity. Overall, the balance sheet reflects a solid financial foundation with low risk.

Cash Flow

The cash flow statement of TRaaS On Product Inc. reveals significant improvement in cash generation. The operating cash flow to net income ratio is 11.9, highlighting strong cash conversion from earnings. Free cash flow has turned positive, with a substantial growth rate of 119.0% year-on-year, enhancing financial flexibility. The free cash flow to net income ratio of 10.4 indicates efficient use of cash generated. However, the high financing cash flow previously indicates reliance on external funding, which requires continued monitoring.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	341.15M	411.49M	310.96M	496.49M	404.57M	586.41M
Gross Profit	178.47M	237.74M	169.16M	235.23M	81.21M	205.40M
EBITDA	-42.13M	29.51M	-67.32M	-8.14M	-436.91M	-327.00M
Net Income	-57.36M	2.35M	-85.81M	-16.80M	-517.84M	-367.48M
Balance Sheet
Total Assets	1.29B	542.47M	513.34M	527.91M	298.88M	935.56M
Cash, Cash Equivalents and Short-Term Investments	1.02B	314.85M	330.10M	388.68M	120.10M	473.02M
Total Debt	0.00	60.00M	60.23M	158.62M	61.98M	101.98M
Total Liabilities	29.31M	130.40M	105.23M	200.01M	89.71M	209.24M
Stockholders Equity	1.26B	412.07M	408.11M	327.90M	209.17M	726.32M
Cash Flow
Free Cash Flow	15.93M	24.39M	-128.24M	-1.29M	-301.06M	-190.51M
Operating Cash Flow	15.93M	28.02M	-72.56M	18.13M	-263.08M	-116.22M
Investing Cash Flow	0.00	-45.20M	-53.96M	24.25M	89.46M	-237.01M
Financing Cash Flow	0.00	1.39M	67.83M	225.22M	-40.08M	108.34M

TRaaS On Product Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 571.00
• 50DMA: Positive
• 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:6696, the sentiment is Positive. The current price of 571 is above the 20-day moving average (MA) of 556.15, above the 50-day MA of 539.56, and above the 200-day MA of 446.27, indicating a bullish trend. The MACD of 5.25 indicates Positive momentum. The RSI at 55.72 is Neutral, neither overbought nor oversold. The STOCH value of 66.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6696.

TRaaS On Product Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6822	80 Outperform	¥4.30B	4.12		―	3.30%	36.77%
6696	65 Neutral	¥2.76B	138.36		―	48.14%	―
4388	61 Neutral	¥3.01B	20.87		―	102.19%	-122.72%
6778	58 Neutral	¥6.20B	29.20		2.99%	-1.17%	―
Sector *	56 Neutral	HK$13.86B	5.36	-5.75%	5.41%	9.34%	-42.23%
6634	47 Neutral	¥5.47B	―		―	220.67%	71.37%
6522	45 Neutral	¥3.25B	―		―	15.83%	38.72%