ALiNK Internet, Inc. (7077) AI Stock Analysis

• Market Cap: ¥2.05B
• Dividend Yield: N/A
• Average Volume (3M): 1.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 22
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -1.18
• Shares Outstanding: 2,136,900
• 10 Day Avg. Volume: 1,420
• 30 Day Avg. Volume: 1,463
• PEG Ratio: -0.72
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 2.05
• P/FCF Ratio: 7.16
• 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: 66 Neutral
• Price Target: ¥1,040.00 ▼(-5.80% Downside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

The score is primarily supported by low financial risk (debt-free balance sheet) and strong cash generation, but is meaningfully constrained by the sharp deterioration in profitability and returns. Technicals are moderately positive with price above key moving averages, while valuation is a clear weak spot due to the negative P/E and lack of dividend yield data.

Positive Factors

Debt-free, conservative balance sheet

ALiNK's zero‑debt, highly capitalized balance sheet materially lowers financial risk and provides durable flexibility. With equity close to total assets, management can self‑fund investments, absorb shocks or pursue opportunistic M&A without raising external capital, supporting stability over months.

Strong operating cash conversion and improving FCF

Consistent OCF above net income and a marked FCF improvement in 2025 indicate high-quality cash generation. Reliable cash conversion reduces dependence on external financing, supports reinvestment or shareholder returns, and underpins sustainable capital allocation over the medium term.

Return to revenue growth in 2025

Resumption of top‑line growth in 2025 signals renewed demand and a platform to rebuild margins and scale core offerings. If sustained, this revenue momentum supports operational leverage and justifies continued investment in product and distribution over the coming quarters.

Negative Factors

Sharp margin and ROE deterioration

Material compression in margins and a steep ROE decline indicate reduced profitability and capital efficiency. Lower margins shrink the cushion against revenue shocks, limit reinvestment capacity, and make it harder to generate attractive shareholder returns absent structural margin recovery.

Uneven multi-year cash flow pattern

Prior swings in cash flow introduce forecasting and execution risk despite a strong 2025 showing. Volatile cash generation complicates multi‑period planning for capex, hiring or strategic initiatives and raises the chance that one year of improved FCF may not persist.

Small operating scale and limited headcount

A 22‑person operating footprint reflects limited scale, which can constrain product development, sales coverage and operational redundancy. Small scale increases execution risk, slows ability to expand market share, and can make sustaining growth more dependent on key personnel.

ALiNK Internet, Inc. Business Overview & Revenue Model

Company Description

ALiNK Internet, Inc. plans, develops, and manages Internet media. It offers Tenki.jp, an application that shows current weather, temperature, and rain clouds information. The company also provides information, such as weather explanations by weather forecasters, as well as earthquake and typhoon information. In addition, it offers Internet consulting and advertising agency services. The company was founded in 2013 and is based in Tokyo, Japan.

How the Company Makes Money

ALiNK Internet, Inc. Financial Statement Overview

Summary

Strong financial resilience from a debt-free, highly capitalized balance sheet and solid cash conversion (operating cash flow consistently above net income; improved free cash flow in 2025). The main drag is sharply weaker and more volatile profitability, with significant margin and ROE deterioration versus prior years.

Income Statement

Revenue returned to growth in 2025 (up 5.6% year over year), but the longer trend is choppy, including a material decline in 2024. Profitability has weakened sharply: net margin fell to ~6.4% in 2025 from ~16.8% in 2024 and ~20–32% in 2022–2023, and gross margin has compressed meaningfully versus prior years. The result is a company that remains profitable, but with noticeably higher earnings volatility and reduced margin cushion versus its own history.

Balance Sheet

The balance sheet is very conservative with zero debt across all periods provided and a large equity base (equity of ~¥1.66B on ~¥1.83B assets in 2025), which lowers financial risk and provides flexibility. Returns on equity, however, have trended down materially (about 3.4% in 2025 vs ~6.4% in 2024 and ~12%+ in 2021–2022), indicating weaker efficiency in generating profits from shareholders’ capital despite the strong capitalization.

Cash Flow

Cash generation is solid and high-quality: operating cash flow has exceeded net income in each year shown (about 1.6x in 2025), and free cash flow closely tracks reported earnings (near 1.0x in 2025). Free cash flow improved strongly in 2025 (~¥254M vs ~¥131M in 2024), but the multi-year pattern is uneven with notable swings in prior periods, which adds some volatility risk despite strong conversion.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	947.68M	888.43M	609.96M	685.49M	649.70M	610.99M
Gross Profit	456.71M	461.52M	340.97M	465.25M	494.56M	462.85M
EBITDA	75.65M	149.51M	94.00M	200.60M	223.05M	226.14M
Net Income	24.56M	57.25M	102.60M	140.18M	205.24M	189.50M
Balance Sheet
Total Assets	1.90B	1.83B	1.67B	1.56B	1.81B	1.58B
Cash, Cash Equivalents and Short-Term Investments	395.00M	743.38M	838.77M	1.19B	1.35B	1.17B
Total Debt	100.00M	0.00	0.00	0.00	0.00	0.00
Total Liabilities	241.00M	173.72M	82.03M	72.86M	118.28M	103.52M
Stockholders Equity	1.66B	1.66B	1.59B	1.49B	1.69B	1.48B
Cash Flow
Free Cash Flow	0.00	254.49M	130.85M	180.21M	178.58M	309.75M
Operating Cash Flow	0.00	255.28M	132.17M	185.01M	179.05M	310.75M
Investing Cash Flow	0.00	-350.47M	-489.67M	-2.29M	-5.52M	-2.28M
Financing Cash Flow	0.00	0.00	133.00K	-338.91M	5.49M	-70.00K

ALiNK Internet, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7077	66 Neutral	¥2.05B	-227.65	―	―	―	―
7082	65 Neutral	¥7.10B	18.99	―	―	3.38%	47.24%
3930	61 Neutral	¥2.82B	125.45	―	―	7.20%	47.54%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4176	58 Neutral	¥6.90B	27.11	―	―	42.83%	26.89%
5243	54 Neutral	¥42.24B	58.36	―	―	22.37%	655.34%
3674	46 Neutral	¥3.53B	-15.74	―	―	-3.79%	-272.95%