Artiza Networks, Inc. (6778) AI Stock Analysis

• Market Cap: ¥6.25B
• Dividend Yield: 3.15%
• Average Volume (3M): 20.90K
• Price to Earnings (P/E): 45.4
• Beta (1Y): 0.31
• Revenue Growth: -4.92%
• EPS Growth: N/A
• Country: JP
• Employees: 173
• Sector: Technology
• Sector Strength: 85
• Industry: Communication Equipment
• EPS (TTM): -6.38
• Shares Outstanding: 9,562,000
• 10 Day Avg. Volume: 33,720
• 30 Day Avg. Volume: 20,896
• 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: ¥639.00
• Price Target Upside: 0.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ¥639.00 ▲(0.63% Upside)

Artiza Networks, Inc. is facing financial challenges with declining revenues and profitability, which is a significant concern. The technical analysis shows a neutral trend with weak momentum, and the valuation is moderate. These factors combined result in a cautious outlook for the stock.

Positive Factors

Strong Partnerships

Artiza Networks' strategic partnerships with telecom operators enhance its market position and provide stable revenue streams through customized solutions.

Recurring Revenue Streams

The presence of long-term contracts and recurring revenue from software licenses ensures consistent cash flow and financial stability, supporting long-term growth.

Robust Balance Sheet

A strong balance sheet with low leverage provides financial flexibility and resilience, enabling the company to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Declining Revenue

The decline in revenue indicates challenges in market demand or competitive positioning, which could hinder growth and profitability if not addressed.

Profitability Challenges

Decreased profitability and negative net profit margins suggest operational inefficiencies and cost management issues, impacting long-term financial health.

Declining Cash Flow

A declining trend in cash flow, despite being positive, raises concerns about the company's ability to sustain operations and fund future growth initiatives.

Artiza Networks, Inc. Business Overview & Revenue Model

Company Description

Artiza Networks, Inc. (6778) is a technology company specializing in the development and manufacturing of advanced testing equipment and solutions for telecommunications networks. The company operates primarily within the telecommunications and network technology sectors, providing cutting-edge products that help telecom operators and service providers ensure the reliability, performance, and efficiency of their network infrastructures.

How the Company Makes Money

Artiza Networks, Inc. generates revenue through the sale of its network testing equipment and software solutions to telecommunications companies and service providers. Its key revenue streams include the sale of hardware and software products, as well as maintenance and support services. Additionally, the company engages in significant partnerships with telecom operators to provide customized solutions, which further contributes to its earnings. Artiza also benefits from long-term contracts and recurring revenue from software licenses and service agreements.

Artiza Networks, Inc. Financial Statement Overview

Summary

Artiza Networks, Inc. faces challenges with declining revenues and profitability, as seen in the income statement. While the balance sheet remains robust with low leverage, the cash flow statement indicates potential inefficiencies. The company needs to address revenue growth and improve profitability to enhance its financial health.

Income Statement

Artiza Networks, Inc. experienced a decline in revenue from the previous year with a significant decrease in net income, resulting in a negative net profit margin. Although gross profit margin remains relatively stable, the overall income performance is weakened by negative growth and profitability challenges.

Balance Sheet

The balance sheet shows a solid equity base with a low debt-to-equity ratio, indicating strong financial stability. However, there is a significant decrease in total assets and stockholders' equity, which could signal potential constraints on growth.

Cash Flow

The cash flow statement reveals a positive free cash flow, although it shows a declining trend. The operating cash flow to net income ratio is distorted due to negative net income, which raises concerns about operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.43B	2.82B	4.11B	4.54B	4.05B	3.23B
Gross Profit	1.46B	1.66B	2.75B	3.54B	2.66B	1.93B
EBITDA	205.24M	191.21M	485.58M	1.70B	1.01B	604.38M
Net Income	10.55M	-143.29M	119.35M	1.10B	793.17M	439.31M
Balance Sheet
Total Assets	8.53B	8.92B	9.73B	10.50B	8.98B	6.01B
Cash, Cash Equivalents and Short-Term Investments	2.42B	6.46B	6.83B	6.74B	6.24B	2.90B
Total Debt	1.40B	1.50B	1.75B	1.67B	1.64B	1.38B
Total Liabilities	1.87B	1.93B	2.32B	2.89B	2.36B	1.93B
Stockholders Equity	6.66B	6.99B	7.41B	7.62B	6.62B	4.08B
Cash Flow
Free Cash Flow	0.00	207.78M	130.42M	688.90M	1.25B	459.81M
Operating Cash Flow	0.00	226.76M	233.23M	826.98M	1.87B	632.82M
Investing Cash Flow	0.00	-59.62M	100.84M	-201.52M	-529.78M	-36.99M
Financing Cash Flow	0.00	-532.09M	-258.80M	-130.39M	2.00B	357.64M

Artiza Networks, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 635.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6778, the sentiment is Negative. The current price of 635 is below the 20-day moving average (MA) of 649.60, below the 50-day MA of 642.47, and above the 200-day MA of 582.73, indicating a neutral trend. The MACD of 7.20 indicates Negative momentum. The RSI at 43.45 is Neutral, neither overbought nor oversold. The STOCH value of 41.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6778.

Artiza Networks, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6822	82 Outperform	¥5.36B	4.02		―	1.33%	13.09%
Sector *	61 Neutral	$36.69B	12.42	-10.20%	1.85%	8.50%	-7.32%
6778	55 Neutral	¥6.25B	45.44		3.15%	-4.92%	―
6634	51 Neutral	¥5.85B	―		―	229.77%	0.22%
6696	51 Neutral	¥2.09B	110.24		―	41.44%	―
6771	49 Neutral	¥3.78B	29.94		2.04%	0.35%	―