IMAGE MAGIC Inc. (7793) AI Stock Analysis

• Market Cap: ¥4.10B
• Dividend Yield: 2.05%
• Average Volume (3M): 6.06K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.45
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 222
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 74.35
• Shares Outstanding: 2,572,235
• 10 Day Avg. Volume: 7,010
• 30 Day Avg. Volume: 6,060
• PEG Ratio: 2.29
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 12.24
• 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: 66 Neutral
• Price Target: ¥1,730.00 ▲(20.31% Upside)

IMAGE MAGIC Inc. has a strong financial foundation with robust revenue growth and efficient cash flow management. However, the technical analysis indicates bearish momentum, which is a significant risk factor. The stock's valuation is fair, offering a reasonable P/E ratio and dividend yield. The overall score reflects the balance between strong financial health and current market challenges.

Positive Factors

Sustained Revenue Growth

A 26.6% revenue increase indicates durable top-line expansion in the specialty business services market. Over 2–6 months this supports reinvestment in capabilities, strengthens client relationships, and underpins scalable margins assuming continued demand and execution, reinforcing competitive position.

Robust Cash Generation

Very strong cash conversion and nearly doubling FCF growth provide durable liquidity to fund operations, capex, dividends or M&A without raising leverage. High OCF-to-income reduces refinancing risk and gives management flexibility to invest for medium-term growth and absorb shocks to earnings.

Conservative Leverage and Solid Equity Base

Low leverage and a high equity ratio mean the company has financial flexibility to pursue strategic investments or weather downturns without stressing the balance sheet. A 14% ROE shows effective capital allocation, supporting sustained shareholder value creation over the medium term.

Negative Factors

Thin Net Profit Margin

A low 3.3% net margin signals limited earnings retention after operating costs, taxes, or non-operating items. Structurally this reduces buffer against cost inflation and limits internally generated funds for strategic initiatives, making the business more sensitive to adverse revenue or expense swings.

Moderate EBITDA Margin

EBITDA near 8% suggests only moderate operating leverage in the business. In a competitive specialty services industry, these margins can be pressured by pricing competition or rising labor costs, constraining durable profitability and reducing flexibility to invest without sacrificing returns.

Limited Public Guidance and Event Visibility

Absence of earnings call data and corporate event disclosures reduces transparency around strategy, guidance and execution. Over the medium term this can hinder investor visibility into management actions, make monitoring of performance harder, and raise governance or information-risk for stakeholders.

IMAGE MAGIC Inc. Business Overview & Revenue Model

Company Description

IMAGE MAGIC Inc. provides on-demand printing services for original products in Japan. It offers ordering systems, which comprise maker town, a cloud-based on-demand EC service; customized EC OEM services, such as design tools and management screens; ordering tools for manufacturing of original goods; and B2B on-demand ordering tools. The company provides cooperation systems, including image submission API, link generation tool, design tool provided API, cloud ordering tool, XML collaboration, and design order tool products, as well as various products and tools for creating goods. In addition, it offers various hardware products, such as on-demand transfer printers, folding packing compression systems, folding and bagging machines, folding machines, packing and shipping machines, garment printers, automatic sorting machines, 9-mouth automatic sorter, 5-mouth automatic sorter, rotary UV and LED printers, pretreatment machines, and DAS systems. Further, the company provides entertainment goods business; sign, display, and decoration products; on-demand apparel solutions; and on-demand print cooperation systems. IMAGE MAGIC Inc. was incorporated in 1995 and is headquartered in Tokyo, Japan.

How the Company Makes Money

IMAGE MAGIC Inc. generates revenue through multiple streams, including the sale of imaging hardware, software licensing, and subscription services for its cloud-based platforms. A significant portion of its income comes from long-term contracts with healthcare institutions and educational organizations, where the company provides both equipment and ongoing technical support. Additionally, IMAGE MAGIC Inc. has established partnerships with technology firms and research institutions, allowing for collaborative projects that expand its market reach and enhance product development. The company also benefits from a growing demand for imaging solutions in sectors such as telemedicine and virtual reality, contributing to its overall profitability.

IMAGE MAGIC Inc. Financial Statement Overview

Summary

IMAGE MAGIC Inc. demonstrates strong financial performance with impressive revenue growth of 26.62%, solid profit margins, and efficient cash flow management. The low debt levels and high return on equity further bolster its financial strength.

Income Statement

IMAGE MAGIC Inc. has demonstrated strong revenue growth with a significant increase of 26.62% from the previous year. The company maintains healthy profit margins, with a gross profit margin of 38.10% and a net profit margin of 3.32% for the latest year. The EBIT and EBITDA margins are also solid at 5.65% and 8.19%, respectively, indicating efficient operations and profitability. The consistent growth trajectory and stable profit margins highlight the company's strong financial performance in the specialty business services industry.

Balance Sheet

The company presents a strong balance sheet with a low debt-to-equity ratio of 0.16, indicating prudent financial leverage. The return on equity is 14.27%, reflecting good returns to shareholders. The equity ratio stands at 59.82%, suggesting a solid equity base relative to total assets. These metrics suggest a financially stable company with a low risk of over-leverage, contributing to its strong financial position.

Cash Flow

IMAGE MAGIC Inc. shows robust cash flow management with a free cash flow growth rate of 49.44%. The operating cash flow to net income ratio is 2.29, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.04, highlighting the company's ability to convert net income into free cash flow effectively. These positive cash flow metrics underline the company's ability to generate cash to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.76B	7.77B	6.13B	5.29B	4.90B	4.33B
Gross Profit	3.49B	2.96B	2.19B	1.69B	1.67B	1.39B
EBITDA	701.38M	636.00M	558.50M	271.24M	501.06M	363.95M
Net Income	278.78M	258.00M	241.33M	48.99M	234.44M	152.79M
Balance Sheet
Total Assets	3.09B	3.02B	2.69B	2.34B	2.36B	1.94B
Cash, Cash Equivalents and Short-Term Investments	579.23M	940.00M	862.00M	679.54M	955.95M	574.33M
Total Debt	211.62M	283.00M	407.00M	304.55M	472.64M	723.58M
Total Liabilities	1.24B	1.21B	1.15B	1.02B	1.09B	1.35B
Stockholders Equity	1.85B	1.81B	1.53B	1.31B	1.26B	590.70M
Cash Flow
Free Cash Flow	0.00	269.00M	180.00M	-125.48M	233.36M	-122.55M
Operating Cash Flow	0.00	591.00M	637.50M	131.43M	352.06M	358.78M
Investing Cash Flow	0.00	-404.00M	-520.50M	-240.19M	-141.84M	-486.98M
Financing Cash Flow	0.00	-109.00M	156.00M	-167.64M	171.39M	187.32M

IMAGE MAGIC Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1438.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7793, the sentiment is Positive. The current price of 1438 is below the 20-day moving average (MA) of 1520.00, below the 50-day MA of 1483.33, and below the 200-day MA of 1445.04, indicating a bullish trend. The MACD of 39.71 indicates Negative momentum. The RSI at 72.82 is Negative, neither overbought nor oversold. The STOCH value of 79.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7793.

IMAGE MAGIC Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7805	77 Outperform	¥3.43B	7.16	―	1.93%	-1.00%	105.56%
3958	70 Outperform	¥3.23B	11.30	―	3.30%	-3.41%	-24.95%
7946	67 Neutral	¥1.49B	27.59	―	1.68%	3.07%	-32.45%
7793	66 Neutral	¥4.10B	12.63	―	2.05%	―	―
7919	66 Neutral	¥3.61B	10.48	―	3.69%	0.62%	-24.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.64B	10.38	―	2.72%	-1.30%	―