Retty Inc. (7356) AI Stock Analysis

• Market Cap: ¥2.50B
• Dividend Yield: N/A
• Average Volume (3M): 81.57K
• Price to Earnings (P/E): 214.5
• Beta (1Y): 0.51
• Revenue Growth: 4.36%
• EPS Growth: N/A
• Country: JP
• Employees: 96
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 1.23
• Shares Outstanding: 14,981,674
• 10 Day Avg. Volume: 75,050
• 30 Day Avg. Volume: 81,570
• PEG Ratio: 0.32
• Price to Book (P/B): 7.20
• Price to Sales (P/S): 1.45
• P/FCF Ratio: -21.14
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: ¥165.00 ▲(0.61% Upside)

Retty Inc.'s overall stock score is primarily impacted by its weak financial performance, characterized by declining revenue, persistent losses, and cash flow issues. The technical analysis further supports a bearish outlook with negative momentum indicators. The high P/E ratio suggests overvaluation, adding to the stock's risk profile.

Positive Factors

Gross Profit Margin

A strong gross profit margin suggests efficient cost management, which can support long-term profitability despite revenue challenges.

User Engagement

The platform's focus on user-generated content and social networking enhances user engagement, potentially driving sustained growth in user base and revenue.

Revenue Model

A diversified revenue model with advertising and partnerships provides multiple streams of income, supporting financial resilience and growth potential.

Negative Factors

Declining Revenue

The declining revenue trend indicates challenges in market competitiveness and growth, which could impact long-term financial stability and market position.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth and weather economic downturns.

Negative Cash Flow

Persistent negative cash flow highlights liquidity issues, which can constrain operations and strategic initiatives, posing a risk to long-term viability.

Retty Inc. Business Overview & Revenue Model

Company Description

Retty Inc. operates gourmet platform. It operates Retty, a platform that provides information on restaurants and stores in Japan. The company was incorporated in 2010 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Retty Inc. generates revenue primarily through advertising and promotional services offered to restaurants featured on its platform. Restaurants pay for enhanced visibility and promotional placements, which helps them reach a larger audience. Additionally, the company may earn revenue through partnerships with food delivery services and other related businesses, providing a commission-based model for transactions initiated through its platform. The success of Retty's revenue model is bolstered by its growing user base and the increasing trend of consumers relying on online reviews and recommendations when choosing dining options.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.63B	1.56B	1.56B	1.72B	1.94B	2.22B
Gross Profit	1.13B	1.10B	947.45M	905.80M	1.26B	1.42B
EBITDA	7.13M	-87.38M	-559.79M	-783.82M	-334.64M	-198.85M
Net Income	12.35M	-79.95M	-612.20M	-859.68M	-358.59M	-324.03M
Balance Sheet
Total Assets	922.54M	1.07B	1.27B	1.67B	1.73B	1.53B
Cash, Cash Equivalents and Short-Term Investments	413.31M	660.31M	872.61M	894.62M	629.16M	459.20M
Total Debt	474.71M	596.33M	701.60M	1.18B	378.67M	739.33M
Total Liabilities	601.64M	753.05M	878.26M	1.37B	613.75M	1.10B
Stockholders Equity	320.90M	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: 164.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 164 is above the 20-day moving average (MA) of 163.95, below the 50-day MA of 178.22, and below the 200-day MA of 179.97, indicating a bullish trend. The MACD of -1.63 indicates Negative momentum. The RSI at 56.35 is Neutral, neither overbought nor oversold. The STOCH value of 37.88 is Neutral, 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	¥2.95B	12.36	―	―	14.67%	267.69%
3770	72 Outperform	¥4.16B	24.76	―	1.19%	-0.86%	-29.61%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3845	52 Neutral	¥5.69B	―	―	―	-32.32%	-69.96%
6048	51 Neutral	―	―	―	―	-27.31%	40.63%
3645	43 Neutral	¥2.67B	―	―	0.99%	13.89%	82.37%
7356	41 Neutral	¥2.50B	214.52	―	―	4.36%	―