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Area Quest Inc. (JP:8912)
:8912
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Area Quest Inc.
(8912)
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Rating:66Neutral
Price Target:
¥174.00
▲(8.75% Upside)
Area Quest Inc. shows strong financial performance with robust revenue growth and operational efficiency. However, technical indicators suggest potential short-term weakness, and the stock appears overvalued based on its P/E ratio. The dividend yield is modest, offering limited income potential.
Area Quest Inc. (8912) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.65B
Dividend Yield1.7%
Average Volume (3M)1.27M
Price to Earnings (P/E)24.6
Beta (1Y)0.19
Revenue Growth6.32%
EPS Growth-10.34%
CountryJP
Employees39
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)1.58
Shares Outstanding17,145,800
10 Day Avg. Volume3,786,950
30 Day Avg. Volume1,268,763
Financial Highlights & Ratios
PEG Ratio-2.26
Price to Book (P/B)1.88
Price to Sales (P/S)1.05
P/FCF Ratio18.59
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
Area Quest Inc. Business Overview & Revenue Model
Company DescriptionArea Quest Inc. (8912) is a technology-driven company specializing in geospatial analytics and location-based services. The company operates primarily in the fields of urban planning, environmental monitoring, and transportation logistics. Its core products include advanced mapping software, data analytics platforms, and consulting services designed to help businesses and governments make informed decisions based on geographic data.
How the Company Makes MoneyArea Quest Inc. generates revenue through a multi-faceted model that includes software sales, subscription services, and consulting fees. The company earns significant income from licensing its proprietary mapping and analytics software to businesses and government agencies, who utilize the tools for urban development, resource management, and logistical planning. Additionally, Area Quest offers subscription services for ongoing access to its cloud-based data analytics platforms, providing clients with continuous updates and support. Consulting services, which involve tailored solutions and expert advice on geospatial analytics, also contribute to the company's revenue. Key partnerships with government entities and private sector firms enhance its market reach and create opportunities for collaborative projects, further bolstering its earnings.
Area Quest Inc. Financial Statement Overview
Summary
Area Quest Inc. shows steady revenue growth and improved profitability. However, increased leverage and declining cash flow generation pose potential risks. The company needs to focus on improving cost efficiency and cash flow management to enhance financial stability.Income Statement
Area Quest Inc. has demonstrated steady revenue growth, with a 0.44% increase from 2023 to 2024. The gross profit margin decreased slightly to 27.44% in 2024 from 28.97% in 2023, indicating a slight decline in cost efficiency. However, the net profit margin improved to 5.79% in 2024 from 4.95% in 2023, reflecting better profitability. EBIT and EBITDA margins also show a strong position, although EBIT margin decreased to 4.85% from 10.03% in 2023.85
Very Positive
Balance Sheet
The company's debt-to-equity ratio increased to 0.43 in 2024 from 0.35 in 2023, indicating higher leverage. The return on equity (ROE) improved to 8.31% in 2024 from 7.08% in 2023, showing better utilization of equity. The equity ratio decreased slightly to 37.35% in 2024 from 42.54% in 2023, suggesting a slight decline in financial stability.75
Positive
Cash Flow
Free cash flow decreased significantly from 198.44 million JPY in 2023 to 45.00 million JPY in 2024, indicating a decline in cash generation. The operating cash flow to net income ratio dropped to 0.46 in 2024 from 1.81 in 2023, suggesting reduced cash efficiency. However, the company maintained positive operating cash flow, indicating operational viability.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.48B | 2.48B | 2.33B | 2.32B | 2.18B | 2.14B |
| Gross Profit | 712.76M | 720.00M | 639.43M | 672.01M | 593.03M | 628.62M |
| EBITDA | 417.20M | 421.00M | 231.41M | 348.50M | 307.03M | 340.78M |
| Net Income | 111.65M | 112.00M | 134.92M | 114.76M | 103.62M | 141.10M |
Balance Sheet | ||||||
| Total Assets | 3.95B | 3.95B | 4.35B | 3.81B | 3.70B | 3.35B |
| Cash, Cash Equivalents and Short-Term Investments | 414.00M | 414.00M | 642.08M | 397.66M | 381.79M | 443.05M |
| Total Debt | 618.00M | 618.00M | 703.86M | 560.01M | 607.32M | 596.03M |
| Total Liabilities | 2.57B | 2.57B | 2.72B | 2.19B | 2.04B | 1.90B |
| Stockholders Equity | 1.39B | 1.39B | 1.62B | 1.62B | 1.66B | 1.45B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 140.00M | 45.00M | 198.44M | 11.27M | 76.59M |
| Operating Cash Flow | 0.00 | 297.00M | 62.62M | 207.32M | 184.57M | 204.59M |
| Investing Cash Flow | 0.00 | -183.00M | 375.18M | 56.07M | -150.88M | -26.92M |
| Financing Cash Flow | 0.00 | -334.00M | -193.39M | -247.52M | -94.95M | -150.71M |
Area Quest Inc. Technical Analysis
Negative
160.00
Price Trends
164.54
Negative
165.81
Negative
160.61
Negative
Market Momentum
0.04
Positive
46.06
Neutral
12.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8912, the sentiment is Negative. The current price of 160 is below the 20-day moving average (MA) of 175.05, below the 50-day MA of 164.54, and below the 200-day MA of 160.61, indicating a bearish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 46.06 is Neutral, neither overbought nor oversold. The STOCH value of 12.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8912.
Area Quest Inc. Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ¥2.62B | 100.92 | ― | 2.43% | -1.13% | -81.83% | |
| ― | ¥2.57B | 14.41 | ― | 0.22% | 14.00% | 323.78% | |
| ― | ¥2.65B | 24.57 | ― | 1.70% | 6.32% | -10.34% | |
| ― | ¥4.11B | 6.01 | ― | 1.08% | 5.69% | 15.12% | |
| ― | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
| ― | ¥3.25B | 11.26 | ― | 1.45% | 46.64% | 137.70% | |
| ― | ¥3.26B | 251.11 | ― | ― | 9.80% | ― |
* Real Estate Sector Average
JP:8912
Area Quest Inc.
160.00
20.32
14.55%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.