Ai Partners Financial Inc. (7345) AI Stock Analysis

• Market Cap: ¥3.20B
• Dividend Yield: 0.62%
• Average Volume (3M): 3.48K
• Price to Earnings (P/E): 61.5
• Beta (1Y): 0.60
• Revenue Growth: 1.87%
• EPS Growth: 51.81%
• Country: JP
• Employees: 39
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 12.42
• Shares Outstanding: 3,534,800
• 10 Day Avg. Volume: 3,580
• 30 Day Avg. Volume: 3,476
• PEG Ratio: 0.87
• Price to Book (P/B): 3.08
• Price to Sales (P/S): 0.51
• P/FCF Ratio: -191.51
• 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: 53 Neutral
• Price Target: ¥912.00 ▲(31.03% Upside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is held back primarily by weak financial performance (revenue decline, net loss, and negative operating cash flow) and very expensive valuation (P/E ~987). Technicals are supportive with a strong uptrend, but overbought momentum readings reduce the upside implied by price action.

Positive Factors

Conservative leverage

Low debt-to-equity provides durable financial flexibility, letting management absorb revenue volatility or invest opportunistically without large interest burdens. Over the next several months this conservatism reduces refinancing risk and preserves strategic optionality.

Prior free cash flow resilience

Historic ability to generate positive free cash flow indicates the business model can produce operating cash when conditions normalize. This characteristic supports recovery, funds limited capex or buybacks, and lowers dependence on external funding over a medium-term horizon.

Lean, low-volatility operating base

A small employee base and low beta suggest a lean cost structure and lower sensitivity to market swings. In asset management, a compact team can scale fees with AUM growth and keep fixed costs contained, aiding margin recovery and operational stability over months.

Negative Factors

Revenue decline and net loss

Falling revenue and a 2025 net loss reflect weakening core business performance and pressure on margins. Sustained declines threaten investment capacity and management credibility, and require either successful strategic adjustments or cost restructuring to restore durable profitability.

Negative operating cash flow in 2025

Negative operating cash flow is a structural warning: it reduces liquidity, limits reinvestment, and can force reliance on financing. If OCF remains weak, the firm may need to cut growth initiatives or raise capital, increasing execution risk over the next several months.

Weakening equity ratio and negative ROE

A shrinking equity base and negative ROE signal capital erosion and diminished shareholder returns. Over a medium-term horizon this raises concerns about solvency cushions and could constrain strategic choices, making recovery harder without earnings turnaround or capital actions.

Ai Partners Financial Inc. Business Overview & Revenue Model

Company Description

AI Partners Financial Inc. engages in the financial instruments intermediary business. The company was formerly known as i-Brain Co., Ltd. and changed its name to AI Partners Financial Inc. in February 2009. AI Partners Financial Inc. was incorporated in 2006 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Ai Partners Financial Inc. generates revenue through multiple streams. Primarily, it earns money by offering subscription-based access to its AI analytics platforms and robo-advisory services, allowing clients to leverage advanced algorithms for investment strategies. Additionally, the company generates fees from asset management services, where it charges a percentage of assets under management (AUM). Partnerships with financial institutions and brokerages also contribute to its earnings, as these collaborations often involve revenue-sharing agreements for utilizing Ai Partners' technology within their services. Furthermore, Ai Partners may engage in performance-based fees tied to the profitability of investment portfolios, providing an incentive for clients to utilize their advanced tools.

Ai Partners Financial Inc. Financial Statement Overview

Summary

Weak profitability and operating performance: revenue declined into 2025 and net income turned negative, pushing EBIT margin negative. Cash generation also deteriorated with operating cash flow turning negative in 2025, despite the balance sheet showing relatively low leverage.

Income Statement

The income statement reveals a challenging financial situation. The company experienced a decline in total revenue from 2024 to 2025, with a negative net income in 2025 indicating profitability issues. The gross profit margin decreased slightly, and the EBIT margin turned negative, highlighting operational inefficiencies. Revenue growth has been inconsistent, with a notable decline in 2025.

Balance Sheet

The balance sheet indicates a moderate financial position. The debt-to-equity ratio is low, suggesting conservative leverage, which is a positive aspect. However, the equity ratio has decreased over time, indicating a potential increase in financial risk. The return on equity is negative in 2025 due to the net loss, which is a concern for shareholders.

Cash Flow

The cash flow statement shows mixed results. Operating cash flow turned negative in 2025, indicating potential cash management issues. Free cash flow also declined significantly, which could affect future investments and debt servicing. Despite these challenges, the company has managed to maintain a positive free cash flow in previous years, suggesting some resilience.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.74B	3.80B	3.73B	3.00B	3.81B	4.03B
Gross Profit	748.46M	751.93M	771.00M	665.21M	862.75M	1.05B
EBITDA	16.59M	19.31M	36.83M	-93.96M	131.97M	259.89M
Net Income	-10.62M	-9.73M	7.43M	-131.91M	64.87M	152.98M
Balance Sheet
Total Assets	1.00B	1.00B	1.08B	998.65M	1.21B	1.12B
Cash, Cash Equivalents and Short-Term Investments	488.00M	495.29M	518.73M	541.00M	664.56M	526.22M
Total Debt	7.39M	15.90M	24.01M	31.97M	10.69M	15.35M
Total Liabilities	401.00M	369.88M	449.19M	363.43M	334.81M	623.18M
Stockholders Equity	603.00M	630.26M	634.10M	635.22M	870.67M	494.43M
Cash Flow
Free Cash Flow	0.00	-10.15M	10.89M	-75.24M	-80.08M	290.99M
Operating Cash Flow	0.00	-3.02M	14.49M	-61.53M	-60.06M	311.95M
Investing Cash Flow	0.00	-5.44M	-6.62M	-12.58M	-35.65M	-19.47M
Financing Cash Flow	0.00	-14.97M	-31.45M	-108.50M	294.40M	-4.32M

Ai Partners Financial Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 696.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7345, the sentiment is Positive. The current price of 696 is below the 20-day moving average (MA) of 930.00, below the 50-day MA of 803.74, and above the 200-day MA of 642.38, indicating a bullish trend. The MACD of 50.52 indicates Negative momentum. The RSI at 80.56 is Negative, neither overbought nor oversold. The STOCH value of 90.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7345.

Ai Partners Financial Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
7345	53 Neutral	¥3.20B	61.54	―	0.62%	1.87%	51.81%
7162	48 Neutral	¥2.83B	-2.78	―	3.24%	21.67%	-214.76%
8518	46 Neutral	¥4.65B	-7.17	4.15%	―	-6.60%	―
3121	44 Neutral	¥7.22B	-84.41	―	0.96%	-23.90%	-146.54%
3113	39 Underperform	¥5.96B	-5.72	―	―	-42.35%	42.01%