Almedio Inc. (7859) AI Stock Analysis

• Market Cap: ¥4.37B
• Dividend Yield: N/A
• Average Volume (3M): 98.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: -66.67%
• EPS Growth: -108.79%
• Country: JP
• Employees: 310
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -8.85
• Shares Outstanding: 20,806,316
• 10 Day Avg. Volume: 115,930
• 30 Day Avg. Volume: 98,640
• PEG Ratio: -0.16
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 33.59
• 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: 52 Neutral
• Price Target: ¥178.00 ▲(11.25% Upside)

Almedio Inc.'s overall stock score is primarily influenced by its stable financial performance, despite recent challenges in revenue and cash flow. The technical analysis indicates bearish momentum, and the valuation is unattractive due to a negative P/E ratio and lack of dividend yield. These factors suggest caution for potential investors.

Positive Factors

Strong Balance Sheet

A strong balance sheet with a high equity ratio and low debt-to-equity ratio provides financial stability and reduces risk, supporting long-term growth.

Cash Generation Ability

Consistent positive operating cash flows highlight the company's ability to generate cash, which is crucial for funding operations and strategic investments.

Efficient Cost Management

Healthy profit margins reflect efficient cost management, which is vital for sustaining profitability and competitive positioning over the long term.

Negative Factors

Decline in Revenue

A decline in revenue and margins suggests potential difficulties in maintaining growth, which could impact long-term business sustainability.

Fluctuating Free Cash Flow

Fluctuating free cash flow due to high capital expenditures may strain financial resources, affecting the company's ability to invest in growth opportunities.

Decreased EBIT and EBITDA Margins

Decreasing EBIT and EBITDA margins indicate operational inefficiencies, which could hinder profitability and competitive advantage if not addressed.

Almedio Inc. Business Overview & Revenue Model

Company Description

Almedio Inc. (7859) is a Japanese company that specializes in the development and provision of advanced digital solutions, primarily focusing on data analytics and software applications. The company operates in sectors such as information technology and digital marketing, offering core products that include data management tools, analytics software, and consulting services aimed at enhancing business performance. Almedio is dedicated to helping organizations leverage data-driven insights to improve decision-making and operational efficiency.

How the Company Makes Money

Almedio Inc. generates revenue through a combination of software sales, subscription services, and consulting fees. The company offers its software products on a licensing model, allowing businesses to purchase licenses for their data analytics tools. In addition, Almedio provides subscription-based services that give clients access to ongoing software updates, support, and additional features. The consulting division contributes to revenue by providing expert services to help clients implement and optimize their data strategies. Significant partnerships with other technology firms and industry leaders enhance Almedio's market presence and can lead to collaborative projects, further boosting revenue streams.

Almedio Inc. Financial Statement Overview

Summary

Almedio Inc. demonstrates a stable financial position with strong past revenue growth and efficient management, reflected in healthy profit margins and a robust balance sheet. However, the recent decline in revenue and margins, along with fluctuating free cash flow, suggests the need for strategic adjustments to sustain long-term growth and profitability.

Income Statement

Almedio Inc. has shown strong revenue growth over the years, with a notable increase from 2023 to 2024, but a decline in 2025. Gross and net profit margins are healthy, indicating efficient cost management. However, the recent decline in revenue and margins compared to the previous year highlights potential challenges in maintaining growth momentum. EBIT and EBITDA margins have also decreased, suggesting a need for operational improvements.

Balance Sheet

The company maintains a solid balance sheet with a high equity ratio, suggesting financial stability. A low debt-to-equity ratio indicates conservative leverage, reducing financial risk. The return on equity has been positive, reflecting effective use of shareholder funds. However, the decline in total assets over the latest period is a point of concern that may impact future growth.

Cash Flow

Almedio Inc. has generated consistent positive operating cash flows, indicating strong cash generation capabilities. However, the free cash flow has fluctuated, primarily due to significant capital expenditures. The free cash flow to net income ratio shows room for improvement in converting profits into cash flows. The recent decline in free cash flow growth rate necessitates careful management of expenses and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.46B	5.80B	11.56B	4.94B	3.27B	2.68B
Gross Profit	1.39B	2.11B	4.99B	1.56B	918.77M	798.10M
EBITDA	285.02M	1.05B	3.42B	554.14M	106.70M	-3.94M
Net Income	-68.62M	476.40M	2.33B	164.06M	-39.79M	-135.76M
Balance Sheet
Total Assets	8.98B	9.69B	9.76B	5.81B	4.35B	3.48B
Cash, Cash Equivalents and Short-Term Investments	4.43B	4.10B	3.95B	1.46B	1.54B	1.55B
Total Debt	541.31M	545.32M	423.77M	792.13M	757.28M	346.11M
Total Liabilities	1.17B	1.48B	2.20B	2.42B	1.60B	965.53M
Stockholders Equity	7.81B	8.21B	7.55B	3.39B	2.75B	2.51B
Cash Flow
Free Cash Flow	0.00	178.87M	1.18B	-539.52M	-619.39M	-90.61M
Operating Cash Flow	0.00	866.45M	2.25B	447.85M	-280.72M	45.22M
Investing Cash Flow	0.00	-698.72M	-1.28B	-1.05B	-347.06M	-135.26M
Financing Cash Flow	0.00	-76.71M	1.40B	439.00M	547.89M	-41.01M

Almedio Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 160.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7859, the sentiment is Negative. The current price of 160 is below the 20-day moving average (MA) of 170.15, below the 50-day MA of 199.20, and below the 200-day MA of 236.26, indicating a bearish trend. The MACD of -11.59 indicates Negative momentum. The RSI at 33.40 is Neutral, neither overbought nor oversold. The STOCH value of 58.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7859.

Almedio Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6424	75 Outperform	¥4.12B	6.03	―	2.09%	-15.50%	-56.40%
6837	65 Neutral	¥5.23B	9.08	―	3.74%	2.03%	-23.50%
6629	62 Neutral	¥8.21B	70.01	1.21%	2.73%	2.36%	-72.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
7859	52 Neutral	¥4.37B	-61.79	―	―	-66.67%	-108.79%
6926	46 Neutral	¥4.47B	―	―	―	-6.31%	-64.22%