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TRaaS On Product Inc. (JP:6696)
:6696
Japanese Market
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TRaaS On Product Inc. (6696) AI Stock Analysis

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JP:6696

TRaaS On Product Inc.

(6696)

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Neutral 51 (OpenAI - 4o)
Rating:51Neutral
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. (6696) vs. iShares MSCI Japan ETF (EWJ)

TRaaS On Product Inc. Business Overview & Revenue Model

Company DescriptionTRaaS 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 MoneyTRaaS 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
65
Positive
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
70
Positive
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
68
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue341.15M411.49M310.96M496.49M404.57M586.41M
Gross Profit178.47M237.74M169.16M235.23M81.21M205.40M
EBITDA-42.13M29.51M-67.32M-8.14M-436.91M-327.00M
Net Income-57.36M2.35M-85.81M-16.80M-517.84M-384.30M
Balance Sheet
Total Assets502.56M542.47M513.34M527.91M298.88M926.24M
Cash, Cash Equivalents and Short-Term Investments350.75M314.85M330.10M388.68M120.10M432.47M
Total Debt60.00M60.00M60.23M158.62M61.98M101.98M
Total Liabilities90.98M130.40M105.23M200.01M89.71M209.24M
Stockholders Equity411.58M412.07M408.11M327.90M209.17M726.32M
Cash Flow
Free Cash Flow15.93M24.39M-128.24M-1.29M-301.06M-190.51M
Operating Cash Flow15.93M28.02M-72.56M18.13M-263.08M-116.22M
Investing Cash Flow0.00-45.20M-53.96M24.25M89.46M-237.01M
Financing Cash Flow0.001.39M67.83M225.22M-40.08M108.34M

TRaaS On Product Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price365.00
Price Trends
50DMA
466.88
Negative
100DMA
507.18
Negative
200DMA
484.20
Negative
Market Momentum
MACD
-26.44
Negative
RSI
28.70
Positive
STOCH
26.19
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥5.21B3.910.51%1.33%13.09%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
57
Neutral
¥5.56B40.453.33%-4.92%
57
Neutral
¥3.22B20.87108.44%-159.31%
51
Neutral
¥1.80B92.9241.44%
49
Neutral
¥5.17B165.52%17.61%
46
Neutral
¥2.88B5.57%55.31%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6696
TRaaS On Product Inc.
365.00
-48.00
-11.62%
JP:4388
AI, Inc.
471.00
-124.00
-20.84%
JP:6522
Asterisk Inc.
367.00
-97.00
-20.91%
JP:6634
NCXX Group, Inc.
127.00
32.00
33.68%
JP:6778
Artiza Networks, Inc.
608.00
71.68
13.37%
JP:6822
Oi Electric Co., Ltd.
4,005.00
2,213.75
123.59%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 10, 2025