TRaaS On Product Inc. (6696) AI Stock Analysis

• Market Cap: ¥1.80B
• Dividend Yield: N/A
• Average Volume (3M): 124.72K
• Price to Earnings (P/E): 92.9
• Beta (1Y): 1.10
• Revenue Growth: 41.44%
• EPS Growth: N/A
• Country: JP
• Employees: 45
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -2.29
• Shares Outstanding: 4,824,991
• 10 Day Avg. Volume: 30,600
• 30 Day Avg. Volume: 124,723
• PEG Ratio: -8.12
• Price to Book (P/B): 4.75
• Price to Sales (P/S): 4.75
• P/FCF Ratio: 80.16
• 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: ¥434.00
• Price Target Upside: 18.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: ¥434.00 ▲(18.90% Upside)

TRaaS On Product Inc. shows strong financial recovery with improved profitability and a solid balance sheet. However, the technical indicators suggest bearish momentum, and the high P/E ratio points to potential overvaluation. The lack of dividend yield further impacts the valuation attractiveness. The overall score reflects these mixed signals, with financial performance being the most significant positive factor.

TRaaS On Product Inc. Business Overview & Revenue Model

Company Description

TRaaS On Product Inc. manufactures and sells various devices to connect people and things with AI and IoT digital technologies. The company offers SHISA, an automatic check-in system for lodging personal equipment with personal identification function; TRA-DeCA that detects danger by comparing person with the database; and Cygnus in which various applications can be installed in the terminal according to the intended use. It also provides NGH that manages information on accommodation facilities and contents, such as guest room services; T-signage that distributes programs; STB, which can be used to receive and watch TV programs, as well as can used as function- specific computer, video playback, video conferencing, IP broadcasting, digital signages, IOT gateways, etc.; and SHISA, an outdoor digital signage. The company was formerly known as P3, Inc. and changed its name to TRaaS On Product Inc. in April 2022. TRaaS On Product Inc. was founded in 1995 and is headquartered in Tokyo, Japan.

How the Company Makes Money

TRaaS On Product Inc. generates revenue through multiple streams, including the sale of software licenses, subscription fees for cloud-based services, and consulting services aimed at implementing and optimizing their software solutions. Key revenue streams include direct sales to businesses in the logistics and transportation sectors, as well as ongoing maintenance and support contracts. The company has established significant partnerships with industry leaders, enabling it to expand its market reach and enhance its product offerings, which further contributes to its overall earnings.

TRaaS On Product Inc. Financial Statement Overview

Summary

TRaaS On Product Inc. has shown a significant improvement in its financial performance over the past year. The gross profit margin increased to 57.8% from 54.4%, and the net profit margin turned positive at 0.6%. Revenue growth was strong at 32.3% year-over-year. The balance sheet is strong with a debt-to-equity ratio of 0.15 and high cash reserves. Cash flow from operations turned positive at $28 million. However, the EBIT margin remains low at 1.3%, suggesting room for operational efficiency improvements.

Income Statement

TRaaS On Product Inc. has shown a significant improvement in its financial performance over the past year. The gross profit margin increased to 57.8% from 54.4% in the previous year, indicating better cost management. The net profit margin turned positive at 0.6%, a substantial improvement from the previous year's negative margin. Revenue growth was strong at 32.3% year-over-year, showcasing a robust recovery. However, the EBIT margin remains low at 1.3%, suggesting room for operational efficiency improvements.

Balance Sheet

The company maintains a strong balance sheet with a debt-to-equity ratio of 0.15, indicating low leverage. The equity ratio stands at 75.9%, reflecting a strong capital structure. Return on equity improved to 0.6%, a positive shift from negative returns in previous years. The company’s high cash reserves further strengthen its financial position, reducing risk.

Cash Flow

Cash flow from operations turned positive at $28 million, a significant turnaround from negative cash flows in prior years. Free cash flow also improved, reflecting better cash management. The operating cash flow to net income ratio is 11.9, indicating strong cash generation relative to net income. However, the free cash flow growth rate is not calculable due to negative figures in the previous year.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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	-384.30M
Balance Sheet
Total Assets	502.56M	542.47M	513.34M	527.91M	298.88M	926.24M
Cash, Cash Equivalents and Short-Term Investments	350.75M	314.85M	330.10M	388.68M	120.10M	432.47M
Total Debt	60.00M	60.00M	60.23M	158.62M	61.98M	101.98M
Total Liabilities	90.98M	130.40M	105.23M	200.01M	89.71M	209.24M
Stockholders Equity	411.58M	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: Negative
• Last Price: 365.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6696, the sentiment is Negative. The current price of 365 is below the 20-day moving average (MA) of 390.25, below the 50-day MA of 466.88, and below the 200-day MA of 484.20, indicating a bearish trend. The MACD of -26.44 indicates Negative momentum. The RSI at 28.70 is Positive, neither overbought nor oversold. The STOCH value of 26.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	82 Outperform	¥5.21B	3.91	―	0.51%	1.33%	13.09%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6778	57 Neutral	¥5.56B	40.45	―	3.33%	-4.92%	―
4388	57 Neutral	¥3.22B	20.87	―	―	108.44%	-159.31%
6696	51 Neutral	¥1.80B	92.92	―	―	41.44%	―
6634	49 Neutral	¥5.17B	―	―	―	165.52%	17.61%
6522	46 Neutral	¥2.88B	―	―	―	5.57%	55.31%