PIALA INC. (7044) AI Stock Analysis

• Market Cap: ¥3.88B
• Dividend Yield: N/A
• Average Volume (3M): 242.21K
• Price to Earnings (P/E): 40.7
• Beta (1Y): 0.95
• Revenue Growth: 59.48%
• EPS Growth: N/A
• Country: JP
• Employees: 149
• Sector: Communication Services
• Sector Strength: 83
• Industry: Advertising Agencies
• EPS (TTM): 19.53
• Shares Outstanding: 7,366,660
• 10 Day Avg. Volume: 130,320
• 30 Day Avg. Volume: 242,213
• PEG Ratio: 5.84
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 554.18
• 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

• Rating: 54 Neutral
• Price Target: ¥549.00 ▲(6.19%Upside)

The overall score is primarily driven by financial difficulties, including declining revenues and negative profit margins. While the technical analysis offers some positive signs, the valuation remains unattractive due to a high P/E ratio and no dividend yield. Liquidity from cash reserves provides some support, but strategic improvements are needed for better performance.

PIALA INC. Business Overview & Revenue Model

Company Description

PIALA INC. (7044) is a Japan-based company engaged in the provision of marketing solutions, primarily focusing on the digital advertising sector. The company offers a range of services that include internet advertising, website planning and production, and consulting, primarily catering to businesses seeking to enhance their online presence and marketing effectiveness.

How the Company Makes Money

PIALA INC. generates revenue primarily through offering digital marketing services, which include performance-based advertising and affiliate marketing. The company earns money by managing and optimizing online advertising campaigns for its clients, with compensation often based on the performance of these ads, such as pay-per-click or conversion rates. Additionally, PIALA INC. might have partnerships with various digital platforms and networks to enhance their service offerings and reach. The company also benefits from consulting fees for advising businesses on effective digital marketing strategies, website planning and implementation.

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. Strategic adjustments are necessary to improve the company's financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.49B	9.06B	11.78B	12.66B	14.59B
Gross Profit	2.09B	1.77B	2.16B	1.96B	2.46B
EBITDA	-124.00M	-763.88M	-114.98M	-127.96M	562.55M
Net Income	-114.16M	-982.82M	-246.99M	-259.81M	334.26M
Balance Sheet
Total Assets	4.26B	3.54B	4.86B	5.03B	5.06B
Cash, Cash Equivalents and Short-Term Investments	1.36B	1.95B	2.14B	1.96B	2.27B
Total Debt	1.48B	1.78B	1.97B	1.75B	1.14B
Total Liabilities	3.76B	2.96B	3.25B	3.10B	2.85B
Stockholders Equity	441.00M	534.05M	1.52B	1.85B	2.21B
Cash Flow
Free Cash Flow	-241.53M	-114.66M	6.88M	-705.27M	573.97M
Operating Cash Flow	-160.73M	1.85M	157.26M	-430.20M	778.28M
Investing Cash Flow	-117.52M	1.17M	-190.57M	-396.58M	-398.63M
Financing Cash Flow	-284.51M	-184.31M	204.01M	515.06M	270.75M

PIALA INC. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 517.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 517 is below the 20-day moving average (MA) of 591.65, below the 50-day MA of 518.36, and above the 200-day MA of 317.34, indicating a neutral trend. The MACD of -4.84 indicates Positive momentum. The RSI at 43.57 is Neutral, neither overbought nor oversold. The STOCH value of 4.50 is Positive, 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
7095	73 Outperform	¥37.88B	13.20		203.40%	41.10%	-18.83%
7067	71 Outperform	¥1.52B	19.54		1.03%	9.15%	2289.13%
Sector *	61 Neutral	$41.26B	-0.79	-14.19%	3.78%	2.39%	-73.52%
7044	54 Neutral	¥3.88B	40.70		―	59.48%	―
7078	52 Neutral	¥5.03B	12.72		―	-8.62%	-440.78%
7069	50 Neutral	¥2.81B	36.62		―	1.11%	―
7063	41 Neutral	¥3.68B	―		―	-88.51%	-29.38%