Akatsuki Corp. (8737) AI Stock Analysis

• Market Cap: ¥17.48B
• Dividend Yield: 5.02%
• Average Volume (3M): 53.23K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.74
• Revenue Growth: 17.92%
• EPS Growth: 15.44%
• Country: JP
• Employees: 365
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 15.71
• Shares Outstanding: 34,029,545
• 10 Day Avg. Volume: 36,330
• 30 Day Avg. Volume: 53,230
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥545.00
• Price Target Upside: -3.20% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥545.00 ▼(-3.20% Downside)

The overall stock score of 73 reflects strong financial performance with potential risks due to high leverage and negative cash flow. The stock's attractive valuation with a low P/E ratio and high dividend yield is a significant positive factor. Technical analysis presents mixed signals, indicating short-term stability but caution due to bearish momentum.

Akatsuki Corp. Business Overview & Revenue Model

Company Description

Akatsuki Corp. (8737) is a diversified Japanese company primarily engaged in the development and operation of mobile games and digital entertainment content. The company focuses on creating engaging and innovative experiences for users across various platforms. It is known for its strong presence in the mobile gaming sector, where it develops and publishes games that appeal to a broad audience. In addition to mobile gaming, Akatsuki Corp. is involved in other entertainment sectors, including animation and media production, enhancing its portfolio and market reach.

How the Company Makes Money

Akatsuki Corp. generates revenue primarily through its mobile gaming division, where it monetizes games via in-app purchases, advertising, and licensing deals. The company designs free-to-play games that attract a large user base, offering virtual items, premium content, and features that users can purchase to enhance their gaming experience. Additionally, Akatsuki Corp. earns money through strategic partnerships and collaborations with other companies in the entertainment and media sectors, which help expand its content distribution and brand visibility. Revenue from animation and media production also contributes to the company's earnings, supporting its diversification strategy.

Akatsuki Corp. Financial Statement Overview

Summary

Akatsuki Corp. demonstrates robust revenue growth and profitability, with an improving gross profit margin. However, high leverage and negative operating cash flow present potential risks if not managed effectively.

Income Statement

The company shows a robust growth trajectory with a significant increase in total revenue, rising from 39.3 billion JPY in 2023 to 56.5 billion JPY in 2025. Gross profit margin improved, indicating efficient cost management. Net profit margin rose to 4.66%, reflecting solid profitability. However, the EBIT margin, while positive, suggests potential areas for operational efficiency improvements.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 2.38, indicating high leverage but manageable given industry standards. The equity ratio is 19.42%, showing a reasonable level of equity financing. Return on equity is relatively strong at 14.72%, signifying effective use of shareholder funds. However, the company's high debt levels present a potential risk in volatile market conditions.

Cash Flow

The company's cash flow demonstrates some challenges, with negative operating cash flow in the latest period, raising concerns about cash generation. Free cash flow has seen volatility, currently negative, which may impact future investment capabilities. However, previous periods showed positive free cash flow, indicating potential for recovery.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	56.48B	56.48B	46.68B	39.34B	35.31B	39.09B
Gross Profit	21.74B	21.86B	19.84B	14.89B	16.65B	17.07B
EBITDA	4.17B	4.24B	3.88B	2.29B	2.06B	3.00B
Net Income	2.63B	2.63B	2.54B	780.95M	1.01B	1.43B
Balance Sheet
Total Assets	92.04B	92.04B	92.13B	69.28B	64.18B	61.66B
Cash, Cash Equivalents and Short-Term Investments	19.45B	19.45B	47.52B	27.78B	14.08B	30.65B
Total Debt	42.57B	42.57B	42.64B	33.65B	31.55B	29.95B
Total Liabilities	73.18B	73.18B	75.38B	54.42B	49.41B	47.87B
Stockholders Equity	17.87B	17.87B	16.15B	14.31B	14.10B	13.78B
Cash Flow
Free Cash Flow	0.00	-4.19B	729.47M	-853.52M	-4.75B	6.63B
Operating Cash Flow	0.00	-3.94B	817.00M	-474.00M	-4.61B	6.85B
Investing Cash Flow	0.00	-402.61M	-771.45M	51.88M	-950.44M	-1.44B
Financing Cash Flow	0.00	-20.83M	10.78B	-631.79M	2.48B	-5.39B

Akatsuki Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 563.00
• 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:8737, the sentiment is Positive. The current price of 563 is above the 20-day moving average (MA) of 558.45, above the 50-day MA of 544.12, and above the 200-day MA of 488.43, indicating a neutral trend. The MACD of 3.65 indicates Positive momentum. The RSI at 54.24 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8737.

Akatsuki Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8737	73 Outperform	¥17.48B	6.49	―	5.02%	17.92%	15.44%
7347	68 Neutral	16.51B	237.04	2.89%	2.59%	11.20%	-93.41%
3772	64 Neutral	21.86B	13.74	5.68%	1.75%	-30.94%	26.14%
3454	61 Neutral	16.14B	11.02	5.71%	5.82%	22.01%	26.92%
2134	43 Neutral	24.65B	-12.77	―	―	59.21%	3.41%
8783	43 Neutral	8.79B	-1.71	-42.54%	―	-17.04%	46.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%