Retty Inc. (7356) AI Stock Analysis

• Market Cap: ¥2.89B
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: 5.37%
• EPS Growth: 94.53%
• Country: JP
• Employees: 96
• Sector: Communication Services
• Sector Strength: 87
• Industry: Internet Content & Information
• EPS (TTM): 1.19
• Shares Outstanding: 14,981,674
• 10 Day Avg. Volume: 3,125,170
• 30 Day Avg. Volume: 1,136,373
• PEG Ratio: -0.02
• Price to Book (P/B): 8.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.30
• 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: 52 Neutral
• Price Target: ¥219.00 ▲(15.87%Upside)

Retty Inc.'s stock score is significantly impacted by its financial performance, highlighting the company's struggles with declining revenue and persistent losses. While there is positive technical momentum, the valuation metrics indicate fundamental concerns. Improvement in financial health would be crucial for a stronger stock performance.

Retty Inc. Business Overview & Revenue Model

Company Description

Retty Inc. (7356) is a Japanese company operating in the digital and technology sector, primarily focused on providing a user-generated restaurant review and recommendation platform. The platform allows users to discover and share dining experiences, offering insights into various dining establishments, cuisines, and culinary trends across Japan.

How the Company Makes Money

Retty Inc. generates revenue primarily through advertising and partnerships with dining establishments. The company offers premium advertising services to restaurants looking to enhance their visibility on the platform. These services may include featured listings, targeted ads, and promotional campaigns tailored to reach specific user demographics. Additionally, Retty collaborates with restaurant owners to provide data analytics and insights derived from user interactions and reviews, helping them optimize their offerings and marketing strategies. Significant partnerships with local businesses, food brands, and culinary events also contribute to its earnings, providing diversified revenue streams and enhancing the overall ecosystem of the platform.

Retty Inc. Financial Statement Overview

Summary

Retty Inc. faces considerable financial challenges with declining revenue, persistent losses, and cash flow issues. The high leverage and low profitability raise concerns about the company's ability to sustain operations without significant changes. While there are strengths in gross profit margins, the overall financial health suggests a need for strategic adjustments to improve growth, profitability, and liquidity.

Income Statement

Retty Inc.'s income statement shows declining revenue and persistent net losses. The TTM gross profit margin stands at 67.6%, indicating good cost management, but the net profit margin is negative at -4.6% due to substantial losses. Revenue has decreased over the years, with a TTM revenue of ¥1.6 billion compared to ¥2.2 billion in 2020, signaling a negative growth trajectory. The EBIT and EBITDA margins are also negative, reflecting challenges in achieving operational profitability.

Balance Sheet

The balance sheet highlights a moderate debt-to-equity ratio of approximately 1.82, indicating significant leverage. Stockholders' equity is positive but has declined over the years. The equity ratio is 29.2%, suggesting a balanced but leveraged capital structure. Despite having cash reserves, the company faces risks due to high liabilities compared to equity, which could impact financial stability.

Cash Flow

Retty Inc.'s cash flow statements reveal ongoing challenges in generating positive cash flows. The operating cash flow is consistently negative, and the free cash flow has not improved, with a TTM free cash flow of zero. The operating cash flow to net income ratio is not calculable due to zero operating cash flow, further highlighting cash management issues. These factors indicate significant risks in liquidity and cash management.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	1.59B	1.56B	1.56B	1.72B	1.94B	2.22B
Gross Profit	1.08B	1.10B	947.45M	905.80M	1.26B	1.42B
EBITDA	-83.17M	-87.38M	-559.79M	-783.82M	-279.06M	-198.85M
Net Income	-73.58M	-79.95M	-612.20M	-859.68M	-358.59M	-324.03M
Balance Sheet
Total Assets	1.06B	1.07B	1.27B	1.67B	1.73B	1.53B
Cash, Cash Equivalents and Short-Term Investments	584.00M	660.31M	872.61M	894.62M	629.16M	459.20M
Total Debt	562.00M	596.33M	701.60M	1.18B	378.67M	739.33M
Total Liabilities	750.00M	753.05M	878.26M	1.37B	613.75M	1.10B
Stockholders Equity	310.78M	314.61M	392.94M	304.93M	1.11B	429.53M
Cash Flow
Free Cash Flow	0.00	-107.08M	-293.40M	-571.31M	-444.68M	-659.61M
Operating Cash Flow	0.00	-105.85M	-284.40M	-558.22M	-439.73M	-626.04M
Investing Cash Flow	0.00	-1.22M	42.64M	-8.74M	-61.19M	-36.85M
Financing Cash Flow	0.00	-105.21M	219.75M	832.33M	671.48M	731.43M

Retty Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 189.00
• 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:7356, the sentiment is Positive. The current price of 189 is above the 20-day moving average (MA) of 182.30, above the 50-day MA of 168.92, and above the 200-day MA of 153.24, indicating a bullish trend. The MACD of 8.79 indicates Positive momentum. The RSI at 56.01 is Neutral, neither overbought nor oversold. The STOCH value of 10.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7356.

Retty Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3930	76 Outperform	¥4.28B	15.06		―	13.96%	200.83%
3770	72 Outperform	¥3.59B	26.76		1.38%	-2.62%	―
Sector *	66 Neutral	¥376.80B	13.68	2.32%	2.50%	5.41%	-19.08%
3645	62 Neutral	¥2.65B	―		1.00%	19.56%	-906.44%
3845	54 Neutral	¥2.33B	―		―	-22.04%	-8.72%
7356	52 Neutral	¥2.89B	―		―	5.37%	94.53%
6048	46 Neutral	¥1.54B	―		―	-18.93%	9.04%