Almedio Inc. (7859) AI Stock Analysis

• Market Cap: ¥5.55B
• Dividend Yield: N/A
• Average Volume (3M): 98.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: -66.67%
• EPS Growth: -108.79%
• Country: JP
• Employees: 310
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -12.42
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥296.00 ▲(87.34% Upside)
• Action: Upgraded Date: 03/03/26
• Date: Action: Upgraded 03/03/26

The score is primarily supported by solid overall financial fundamentals—especially balance sheet strength and positive operating cash flow—alongside strong bullish technical momentum (price above key moving averages with positive MACD). These positives are tempered by weaker valuation signals due to a negative P/E and recent income-statement softening (declining revenue and margins) plus fluctuating free cash flow.

Positive Factors

Strong balance sheet / low leverage

High equity ratio and low debt-to-equity indicate conservative leverage and lower refinancing risk. This durable financial strength increases resilience to cyclical downturns, supports discretionary investment or restructuring, and preserves strategic optionality over the next 2–6 months.

Consistent operating cash generation

Sustained positive operating cash flow supports internal funding for operations, capex and working capital needs without relying heavily on external financing. This enhances financial flexibility, enabling the company to fund strategic investments and navigate near-term execution risks.

Healthy profit margins historically

Relatively strong gross and net margins reflect durable operational efficiency and pricing power versus peers. Even if top-line growth slows, healthier margins help preserve earnings and cash generation, providing a buffer while management addresses revenue pressures over several quarters.

Negative Factors

Recent revenue decline

Material revenue contraction reduces scale benefits and stresses fixed-cost absorption, undermining operating leverage. If the decline persists, it will pressure margins, limit reinvestment capacity, and make sustaining long-term growth targets more difficult absent a clear turnaround plan.

Fluctuating free cash flow

Volatile free cash flow driven by uneven capex weakens the company's ability to consistently fund dividends, buybacks, or opportunistic M&A. This variability raises execution risk and may force trade-offs between growth investment and balance sheet preservation in the medium term.

Decline in total assets

A shrinking asset base can signal retrenchment or underinvestment in productive capacity, constraining revenue recovery and long-term growth. Reduced asset investment may impair market competitiveness and limit the company’s ability to scale operations or capture market share over the next several quarters.

Almedio Inc. Business Overview & Revenue Model

Company Description

Almedio Inc. engages in the research, development, manufacture, and sale of test tapes and test discs in Japan. It operates through Insulating Material, Storage Solution, Archive, Industrial Solution, and Nano Material segments. The Insulating Material segment manufactures and sells refractory materials, thermal insulators, and related products. The Storage Solution segment develops, manufactures, and sells optical drives mounted. The Archive segment preserves information such as documents, images, pictures, etc.; provides optical disc archive; and offers digitalization of information, recording, and preservation. The Industrial Solution segment develops, manufactures, and sells test discs. The Nano Material segment develops, produces, and processes nanomaterial products, such as carbon nano fiber/ carbon microfiber, synthetic graphene powder, and high modulus polypropylene CNF pellets for aviation / space, automobile, medical products, and sports / leisure goods industries. The company research, develops, manufactures, and sells measuring instruments for optical media and industrial equipment for the optical disc drives. In addition, it provides attestation tests for the DVD verification laboratory; and tests for various kinds of discs. The company was formerly known as A-BEX and changed its name to Almedio Inc. in March 1997. Almedio Inc. was incorporated in 1981 and is based in Kunitachi, Japan.

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

Financials are solid overall: a strong balance sheet (high equity ratio and low leverage) supports stability, while operating cash flow is consistently positive. Offsetting this, income statement trends show a recent decline in revenue and profitability margins, and free cash flow has been volatile due to capex and weaker recent growth.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• Last Price: 158.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 158 is below the 20-day moving average (MA) of 203.05, below the 50-day MA of 184.50, and below the 200-day MA of 205.13, indicating a bullish trend. The MACD of 7.09 indicates Positive momentum. The RSI at 62.53 is Neutral, neither overbought nor oversold. The STOCH value of 58.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥4.14B	9.02	―	2.17%	-15.50%	-56.40%
7859	71 Outperform	¥5.55B	-11.29	―	―	-66.67%	-108.79%
6837	65 Neutral	¥4.28B	17.93	―	3.77%	2.03%	-23.50%
6629	64 Neutral	¥13.72B	-1,837.21	1.21%	0.97%	2.36%	-72.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6926	46 Neutral	¥4.56B	-2.53	―	―	-6.31%	-64.22%