Retty Inc. (7356) AI Stock Analysis

• Market Cap: ¥2.56B
• Dividend Yield: N/A
• Average Volume (3M): 81.57K
• Price to Earnings (P/E): 219.7
• Beta (1Y): 0.52
• Revenue Growth: 6.67%
• EPS Growth: N/A
• Country: JP
• Employees: 96
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -1.38
• 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: ¥207.00
• Price Target Upside: 21.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: ¥207.00 ▲(21.05% 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 indicates bearish momentum, further contributing to a lower score. The high P/E ratio suggests overvaluation, and the lack of a dividend yield diminishes its appeal. These factors collectively result in a low overall stock score, highlighting significant risks and challenges.

Retty Inc. Business Overview & Revenue Model

Company Description

Retty Inc. (7356) is a Japan-based company that operates in the online food and dining sector. Primarily known for its restaurant review and recommendation platform, Retty connects users with dining experiences by enabling them to discover, share, and review restaurants. The company's core services include a mobile app and website that facilitate user-generated content about restaurants, enhancing the dining decision-making process for consumers. Retty focuses on improving the dining experience through personalized recommendations, leveraging social networking features to engage users.

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: Negative
• Last Price: 171.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7356, the sentiment is Negative. The current price of 171 is below the 20-day moving average (MA) of 194.55, below the 50-day MA of 220.06, and below the 200-day MA of 176.32, indicating a bearish trend. The MACD of -13.48 indicates Positive momentum. The RSI at 21.08 is Positive, neither overbought nor oversold. The STOCH value of 4.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥3.01B	12.60	―	―	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	58 Neutral	¥4.96B	―	―	―	-26.88%	26.91%
6048	51 Neutral	―	―	―	―	-27.31%	40.63%
3645	44 Neutral	¥2.68B	―	―	0.99%	13.89%	82.37%
7356	41 Neutral	¥2.56B	219.65	―	―	6.67%	―