PIALA INC. (7044) AI Stock Analysis

• Market Cap: ¥4.86B
• Dividend Yield: N/A
• Average Volume (3M): 74.80K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.83
• Revenue Growth: 57.85%
• EPS Growth: N/A
• Country: JP
• Employees: 149
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 1.30
• Shares Outstanding: 7,366,660
• 10 Day Avg. Volume: 39,690
• 30 Day Avg. Volume: 74,803
• 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: ¥593.00
• Price Target Upside: -10.96% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: ¥593.00 ▼(-10.96% Downside)

PIALA INC.'s stock score reflects significant financial challenges, with negative profit margins and high debt levels weighing heavily. While technical indicators show some positive short-term momentum, the high P/E ratio suggests overvaluation, limiting the stock's appeal. Liquidity from cash reserves provides some stability, but strategic improvements are necessary for sustainable growth.

PIALA INC. Business Overview & Revenue Model

Company Description

PIALA INC. is a Japan-based company primarily engaged in the provision of digital marketing solutions. The company focuses on offering advertising services utilizing its proprietary technology and platforms, targeting improved efficiency and effectiveness in digital marketing campaigns. Its services cater to a wide range of industries, helping businesses optimize their online advertising strategies through data-driven insights and innovative marketing techniques.

How the Company Makes Money

PIALA INC. generates revenue primarily through its digital marketing services, which include performance-based advertising and marketing automation solutions. The company leverages its technology platforms to deliver targeted advertising campaigns, earning income based on the performance and success of these campaigns. Additionally, PIALA INC. may engage in partnerships with other digital platforms and service providers to enhance its offerings and expand its market reach, contributing to its revenue growth. The company focuses on continuous innovation in its technology to maintain competitive advantage and drive client satisfaction.

PIALA INC. Financial Statement Overview

Summary

PIALA INC. is experiencing financial difficulties, with declining revenues, negative profit margins, and cash flow challenges. High debt levels and negative equity growth are concerning, though liquidity from cash reserves offers some relief.

Income Statement

PIALA INC. shows declining revenue and profitability metrics. The gross profit margin decreased slightly over the years, and net profit margins are negative due to consistent net losses. The revenue growth rate was negative in recent years, indicating declining sales. EBIT and EBITDA margins have also been negative, reflecting operational challenges.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio consistently above 1. The equity ratio has decreased, indicating a higher reliance on debt financing. Return on equity is negative due to net losses. However, there is a decent level of cash and short-term investments, which could provide some liquidity.

Cash Flow

Cash flow analysis shows negative free cash flow growth and a negative operating cash flow to net income ratio, indicating cash flow challenges. The free cash flow to net income ratio is also negative, reflecting a struggle to generate positive cash flows from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.00B	13.49B	9.06B	11.78B	12.66B	14.59B
Gross Profit	2.19B	2.09B	1.77B	2.16B	1.96B	2.46B
EBITDA	217.01M	-51.96M	-763.88M	-114.98M	-127.96M	562.55M
Net Income	93.60M	-114.16M	-982.82M	-232.58M	-259.81M	334.26M
Balance Sheet
Total Assets	4.14B	4.26B	3.54B	4.86B	5.03B	5.06B
Cash, Cash Equivalents and Short-Term Investments	1.15B	1.36B	1.95B	2.14B	1.96B	2.27B
Total Debt	1.26B	1.48B	1.78B	1.97B	1.75B	1.14B
Total Liabilities	3.49B	3.76B	2.96B	3.25B	3.10B	2.85B
Stockholders Equity	583.00M	441.00M	534.05M	1.52B	1.85B	2.21B
Cash Flow
Free Cash Flow	0.00	-241.53M	-114.66M	6.88M	-705.27M	573.97M
Operating Cash Flow	0.00	-160.73M	1.85M	157.26M	-430.20M	778.28M
Investing Cash Flow	0.00	-117.52M	1.17M	-190.57M	-396.58M	-398.63M
Financing Cash Flow	0.00	-284.51M	-184.31M	204.01M	515.06M	270.75M

PIALA INC. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 666.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7044, the sentiment is Positive. The current price of 666 is above the 20-day moving average (MA) of 637.80, above the 50-day MA of 618.88, and above the 200-day MA of 416.64, indicating a bullish trend. The MACD of 9.37 indicates Negative momentum. The RSI at 60.11 is Neutral, neither overbought nor oversold. The STOCH value of 85.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7044.

PIALA INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7067	66 Neutral	¥1.55B	26.89	6.49%	1.02%	11.28%	275.99%
7095	65 Neutral	¥33.59B	11.72	28.33%	1.57%	26.56%	31.28%
7069	60 Neutral	¥3.34B	25.46	-554.49%	―	-5.87%	―
7044	53 Neutral	¥4.86B	21.35	―	―	57.85%	―
7078	48 Neutral	¥4.93B	-4.15	-60.83%	―	-8.33%	-462.10%
7063	40 Underperform	¥5.21B	-3.32	-280.69%	―	-84.70%	86.28%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%