itsumo.inc. (7694) AI Stock Analysis

• Market Cap: ¥4.94B
• Dividend Yield: N/A
• Average Volume (3M): 21.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: 5.77%
• EPS Growth: -277.31%
• Country: JP
• Employees: 279
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -2.11
• Shares Outstanding: 5,949,678
• 10 Day Avg. Volume: 12,410
• 30 Day Avg. Volume: 21,213
• PEG Ratio: 0.18
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 38.84
• 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: 55 Neutral
• Price Target: ¥666.00 ▲(10.82% Upside)

The overall stock score of 55 reflects a challenging financial and technical environment. The most significant factor is the mixed financial performance, with minimal revenue growth and deteriorating profitability. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to negative earnings. The absence of earnings call insights and corporate events further limits positive influences on the score.

Positive Factors

Cash Flow Improvement

Positive operating cash flow indicates improved financial health and the ability to fund operations and investments without relying on external financing.

Stable Gross Profit Margin

A stable gross profit margin suggests consistent cost management and pricing strategies, which can support long-term profitability despite revenue growth challenges.

Strategic Partnerships

Partnerships with major tech firms and government contracts enhance market reach and product offerings, providing a competitive edge and potential for sustained revenue.

Negative Factors

High Leverage

High leverage can pose financial risks, limiting flexibility and increasing vulnerability to economic downturns, which could impact long-term stability.

Negative Net Income

Negative net income reflects deteriorating profitability, which can erode investor confidence and hinder the company's ability to reinvest in growth opportunities.

Deteriorating Profitability

Declining profitability metrics indicate weakened operational efficiency, which may challenge the company's ability to sustain growth and maintain competitive positioning.

itsumo.inc. Business Overview & Revenue Model

Company Description

Itsumo Inc. (7694) is a Japanese technology company specializing in software development and IT services, particularly in the fields of artificial intelligence and cloud computing. The company focuses on creating innovative solutions that enhance business efficiency and productivity across various sectors, including finance, healthcare, and logistics. Its core products include AI-driven analytics platforms and cloud-based enterprise management tools.

How the Company Makes Money

Itsumo Inc. generates revenue primarily through the sale of software licenses and subscription-based services for its AI and cloud solutions. Additionally, the company offers consulting services that help businesses integrate its technologies into their existing operations, providing a significant source of income. Key revenue streams also include maintenance and support services, as well as customized software development projects for clients. Strategic partnerships with major tech firms and participation in government contracts further bolster its earnings, allowing the company to expand its market reach and enhance its product offerings.

itsumo.inc. Financial Statement Overview

Summary

itsumo.inc. displays a mixed financial performance. Revenue growth is minimal, and profitability metrics have deteriorated, impacting net income negatively. The balance sheet is under pressure from high leverage, but cash flows show signs of recovery. The company must address its profitability issues and leverage to ensure long-term financial health.

Income Statement

The company's revenue growth has slowed down significantly from past years, with a minor increase from 2024 to 2025. The gross profit margin is stable, but net income has turned negative in the recent year, resulting in a negative net profit margin. EBIT and EBITDA margins have decreased, indicating weakened operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, suggesting elevated leverage levels that could pose financial risks. However, the company's equity ratio is stable, reflecting a solid base of stockholder equity relative to total assets. Return on equity has turned negative due to recent losses, which could affect investor confidence.

Cash Flow

The cash flow statement reveals a turnaround in operating cash flow, now positive, improving the operating cash flow to net income ratio. Free cash flow has also improved from the previous year's negative figure, but the free cash flow to net income ratio is still a concern due to negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.85B	13.94B	13.86B	12.31B	11.65B	8.80B
Gross Profit	3.48B	2.98B	3.27B	3.06B	3.08B	2.12B
EBITDA	178.33M	196.51M	405.92M	188.63M	703.62M	629.85M
Net Income	-136.62M	-98.09M	258.96M	-219.83M	361.14M	419.76M
Balance Sheet
Total Assets	8.91B	8.61B	7.42B	6.60B	6.93B	4.43B
Cash, Cash Equivalents and Short-Term Investments	2.52B	2.93B	2.13B	2.70B	4.12B	2.83B
Total Debt	3.82B	4.12B	2.90B	2.50B	2.94B	920.98M
Total Liabilities	6.63B	6.25B	4.97B	4.40B	4.52B	2.40B
Stockholders Equity	2.28B	2.36B	2.45B	2.20B	2.41B	2.03B
Cash Flow
Free Cash Flow	0.00	61.30M	-900.36M	-353.73M	364.62M	649.13M
Operating Cash Flow	0.00	65.31M	-609.17M	-344.31M	399.82M	668.15M
Investing Cash Flow	0.00	-486.29M	-356.31M	-650.34M	-925.65M	-25.62M
Financing Cash Flow	0.00	1.22B	376.18M	-429.20M	1.89B	1.10B

itsumo.inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 601.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7694, the sentiment is Negative. The current price of 601 is below the 20-day moving average (MA) of 724.75, below the 50-day MA of 791.78, and below the 200-day MA of 677.12, indicating a bearish trend. The MACD of -62.87 indicates Positive momentum. The RSI at 25.37 is Positive, neither overbought nor oversold. The STOCH value of 22.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7694.

itsumo.inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3958	70 Outperform	¥3.24B	13.01	―	3.24%	-3.41%	-24.95%
7919	68 Neutral	¥3.28B	7.11	―	3.97%	0.62%	-24.08%
7805	64 Neutral	¥3.30B	7.41	―	1.95%	-1.00%	105.56%
7850	64 Neutral	¥2.63B	8.22	―	2.29%	2.78%	16.45%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.21B	9.59	―	2.99%	-1.30%	―
7694	55 Neutral	¥4.94B	-35.94	―	―	5.77%	-277.31%