PIALA INC. (7044) AI Stock Analysis

• Market Cap: ¥4.04B
• Dividend Yield: N/A
• Average Volume (3M): 45.44K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.98
• Revenue Growth: 42.12%
• EPS Growth: N/A
• Country: US
• Employees: 149
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.00
• Shares Outstanding: 7,367,300
• 10 Day Avg. Volume: 46,710
• 30 Day Avg. Volume: 45,440
• PEG Ratio: 0.16
• Price to Book (P/B): 3.68
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -6.71
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ¥568.00 ▲(1.07% Upside)

The overall stock score of 57 reflects significant financial challenges, including declining revenues and negative profit margins. Technical indicators suggest neutral to slightly bearish momentum. The valuation is moderate, but the lack of dividend yield may deter income investors. Liquidity from cash reserves provides some relief amidst high debt levels.

Positive Factors

Recurring revenue model

PIALA's subscription-focused model produces recurring revenue and predictable customer spend, improving revenue visibility and allowing higher lifetime value. Over months this supports steadier cash inflows, easier forecasting, and scalable upsell/expansion economics versus one-time sales.

Market focus in logistics software

Specialization in logistics and supply chain software aligns with secular digitization across retail, manufacturing and e-commerce. This structural demand expands the addressable market and gives PIALA durable relevance to enterprises seeking efficiency, visibility, and automation.

Liquidity buffer from cash reserves

A meaningful cash and short-term investment balance provides a runway to cover near-term obligations, invest in product initiatives, or pursue partnerships. This liquidity reduces immediate refinancing pressure and supports execution while longer-term fixes are implemented.

Negative Factors

High leverage

A debt-to-equity ratio persistently above 1 indicates elevated financial leverage. High debt increases interest and refinancing risk, constrains capital allocation for R&D and sales, and reduces strategic flexibility, making multi-month recovery or investment more difficult.

Weak cash generation

Negative free cash flow growth and operating cash shortfalls show the business isn't converting results into sustainable cash. This forces reliance on external funding, limits reinvestment for growth or margin improvement, and heightens solvency risk if trends persist.

Declining revenues and negative margins

Sustained revenue declines paired with negative net margins point to structural competitiveness or pricing issues. Without reversing top-line trends or materially improving margins, the company will struggle to achieve scale economics, service debt, and fund strategic initiatives over months.

PIALA INC. Business Overview & Revenue Model

Company Description

PIALA Inc. provides marketing services in Asia. It offers a range of services, such as marketing, event, system/apps development, design, etc., as well as develops various services as a general support for its clients, such as solution for real/Web media, big data analysis, and consultation. The company was founded in 2004 and is based in Tokyo, Japan.

How the Company Makes Money

PIALA INC. generates revenue primarily through a subscription-based model for its software solutions, allowing clients to access its platforms for a recurring fee. Additionally, the company earns income from consulting services that help businesses implement and optimize their logistics operations. Key revenue streams include software licensing fees, maintenance and support services, and customized solutions for specific client needs. Strategic partnerships with other technology providers and logistics companies further enhance its offerings and expand its client base, contributing significantly to its overall earnings.

PIALA INC. Financial Statement Overview

Summary

PIALA INC. faces financial difficulties with declining revenues, negative profit margins, and cash flow challenges. The high debt levels and negative equity growth are concerning, although 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	15.90B	13.49B	9.06B	11.78B	12.66B	14.59B
Gross Profit	2.33B	2.09B	1.77B	2.16B	1.96B	2.46B
EBITDA	330.83M	-51.96M	-763.88M	-114.98M	-127.96M	562.55M
Net Income	219.46M	-114.16M	-982.82M	-232.58M	-259.81M	334.26M
Balance Sheet
Total Assets	4.13B	4.26B	3.54B	4.86B	5.03B	5.06B
Cash, Cash Equivalents and Short-Term Investments	1.55B	1.36B	1.95B	2.14B	1.96B	2.27B
Total Debt	1.37B	1.48B	1.78B	1.97B	1.75B	1.14B
Total Liabilities	3.43B	3.76B	2.96B	3.25B	3.10B	2.85B
Stockholders Equity	610.71M	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: Neutral
• Last Price: 562.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7044, the sentiment is Neutral. The current price of 562 is above the 20-day moving average (MA) of 553.85, below the 50-day MA of 583.68, and above the 200-day MA of 558.02, indicating a neutral trend. The MACD of -9.64 indicates Negative momentum. The RSI at 44.77 is Neutral, neither overbought nor oversold. The STOCH value of 48.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7044.

PIALA INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7067	69 Neutral	¥1.76B	46.14	―	1.00%	5.79%	-30.56%
7095	66 Neutral	¥22.80B	8.52	―	2.01%	15.43%	12.47%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
7069	60 Neutral	¥3.62B	9.49	―	―	-4.44%	―
7044	57 Neutral	¥4.04B	18.19	―	―	42.12%	―
7078	52 Neutral	¥4.26B	-3.29	―	―	-8.67%	-407.35%
7063	43 Neutral	¥3.54B	-2.79	―	―	-83.17%	91.97%