PIALA INC. (7044) AI Stock Analysis

• Market Cap: ¥4.50B
• Dividend Yield: N/A
• Average Volume (3M): 726.23K
• Price to Earnings (P/E): 47.9
• Beta (1Y): 0.99
• Revenue Growth: 59.48%
• EPS Growth: N/A
• Country: JP
• Employees: 149
• Sector: Communication Services
• Sector Strength: 79
• Industry: Advertising Agencies
• EPS (TTM): 19.53
• Shares Outstanding: 7,366,660
• 10 Day Avg. Volume: 438,120
• 30 Day Avg. Volume: 726,226
• 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: 61 Neutral
• Price Target: ¥665.00 ▲(6.23%Upside)

The overall stock score of 61 reflects the mixed outlook for PIALA INC. Financial performance is the most significant concern, with declining revenues and high debt levels weighing down the score. Technical analysis suggests strong bullish momentum, but caution is warranted due to potential overvaluation as indicated by the high P/E ratio. The absence of dividends and lack of recent earnings call data or corporate events further contribute to the moderate score.

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
	EBIT
-149.43M	-383.73M	-68.86M	-136.05M	503.64M
	EBITDA
-124.00M	-763.88M	-114.98M	-127.96M	562.55M
	Net Income Common Stockholders
-114.16M	-982.82M	-246.99M	-259.81M	334.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.36B	1.95B	2.14B	1.96B	2.27B
	Total Assets
4.26B	3.54B	4.86B	5.03B	5.06B
	Total Debt
1.48B	1.78B	1.97B	1.75B	1.14B
	Net Debt
120.36M	-175.99M	-164.93M	-202.13M	-1.13B
	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: 626.00
• 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 626 is above the 20-day moving average (MA) of 616.55, above the 50-day MA of 416.52, and above the 200-day MA of 298.10, indicating a neutral trend. The MACD of 60.21 indicates Positive momentum. The RSI at 60.19 is Neutral, neither overbought nor oversold. The STOCH value of 10.02 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	¥49.46B	17.24		1.07%	41.10%	-18.83%
7067	71 Outperform	¥1.43B	18.57		1.10%	9.15%	2289.13%
Sector *	61 Neutral	$14.64B	5.81	-3.99%	6.03%	2.71%	-31.56%
7044	61 Neutral	¥4.50B	47.89		―	59.48%	―
7069	51 Neutral	¥2.93B	37.97		―	1.11%	―
7078	48 Neutral	¥5.03B	12.72		―	-8.62%	-442.57%
7063	44 Neutral	¥4.21B	―		―	-88.51%	-29.38%