TRaaS On Product Inc. (6696) AI Stock Analysis

• Market Cap: ¥2.65B
• Dividend Yield: N/A
• Average Volume (3M): 150.19K
• Price to Earnings (P/E): 135.6
• Beta (1Y): 1.09
• Revenue Growth: 48.14%
• EPS Growth: N/A
• Country: JP
• Employees: 45
• Sector: Technology
• Sector Strength: 92
• Industry: Communication Equipment
• EPS (TTM): 1.49
• Shares Outstanding: 4,824,991
• 10 Day Avg. Volume: 134,910
• 30 Day Avg. Volume: 150,190
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: 0

• Rating: 57 Neutral
• Price Target: ¥570.00 ▲(5.95% Upside)

The overall stock score is primarily influenced by the company's strong financial performance, which shows significant improvements in profitability and cash flow. However, the high P/E ratio suggests potential overvaluation, and technical indicators reflect a lack of strong momentum. The absence of earnings call data and corporate events means these factors did not influence the score.

TRaaS On Product Inc. Business Overview & Revenue Model

Company Description

TRaaS On Product Inc. (6696) is a technology-driven company specializing in providing advanced software solutions and services primarily focused on the transportation and logistics sectors. The company offers a suite of products designed to optimize supply chain management, enhance operational efficiency, and improve customer experience through innovative technology applications, including data analytics and cloud-based platforms.

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. shows a strong financial turnaround with improved profitability, revenue growth, and cash flow generation. A solid equity base and low leverage ensure financial stability, but operational efficiency needs 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	411.49M	310.96M	496.49M	404.57M	586.41M
Gross Profit	237.74M	169.16M	235.23M	81.21M	205.40M
EBITDA	29.51M	-67.32M	-8.14M	-436.91M	-327.00M
Net Income	2.35M	-85.81M	-16.80M	-517.84M	-367.48M
Balance Sheet
Total Assets	542.47M	513.34M	527.91M	298.88M	935.56M
Cash, Cash Equivalents and Short-Term Investments	314.85M	330.10M	388.68M	120.10M	473.02M
Total Debt	60.00M	60.23M	158.62M	61.98M	101.98M
Total Liabilities	130.40M	105.23M	200.01M	89.71M	209.24M
Stockholders Equity	412.07M	408.11M	327.90M	209.17M	726.32M
Cash Flow
Free Cash Flow	24.39M	-128.24M	-1.29M	-301.06M	-190.51M
Operating Cash Flow	28.02M	-72.56M	18.13M	-263.08M	-116.22M
Investing Cash Flow	-45.20M	-53.96M	24.25M	89.46M	-237.01M
Financing Cash Flow	1.39M	67.83M	225.22M	-40.08M	108.34M

TRaaS On Product Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 538.00
• 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:6696, the sentiment is Negative. The current price of 538 is below the 20-day moving average (MA) of 548.90, below the 50-day MA of 547.48, and above the 200-day MA of 457.94, indicating a neutral trend. The MACD of -0.51 indicates Positive momentum. The RSI at 47.01 is Neutral, neither overbought nor oversold. The STOCH value of 32.97 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	¥4.58B	3.43		―	1.33%	13.09%
4388	69 Neutral	¥3.36B	20.87		―	102.19%	-122.72%
Sector *	69 Neutral	¥233.80B	14.87	7.64%	2.58%	9.19%	5.65%
6778	58 Neutral	¥5.84B	27.50		3.18%	-1.17%	―
6696	57 Neutral	¥2.65B	135.63		―	48.14%	―
6522	56 Neutral	¥3.39B	―		―	8.28%	79.19%
6634	47 Neutral	¥5.28B	―		―	229.77%	0.22%