Area Quest Inc. (8912) AI Stock Analysis

• Market Cap: ¥2.37B
• Dividend Yield: 1.89%
• Average Volume (3M): 16.52K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.07
• Revenue Growth: 6.32%
• EPS Growth: -10.34%
• Country: JP
• Employees: 39
• Sector: Real Estate
• Sector Strength: 49
• Industry: Real Estate - Services
• EPS (TTM): 1.58
• Shares Outstanding: 17,145,800
• 10 Day Avg. Volume: 12,710
• 30 Day Avg. Volume: 16,523
• 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: ¥172.00
• Price Target Upside: 8.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ¥171.00 ▲(8.23% Upside)

The overall stock score for Area Quest Inc. is driven primarily by its financial performance, which shows steady revenue growth and improved profitability. However, the increased leverage and declining cash flow generation are significant concerns. The technical analysis indicates bearish momentum, and the valuation suggests moderate pricing with a modest dividend yield. These factors collectively contribute to a moderate overall score.

Area Quest Inc. Business Overview & Revenue Model

Company Description

Area Quest Inc. (8912) is a technology-driven company specializing in location-based services and geographic information systems (GIS). The company operates primarily in the tech sector, offering innovative solutions that empower businesses and individuals to harness geospatial data for various applications, including urban planning, logistics, and real estate. Core products include mapping software, data analytics tools, and mobile applications designed to enhance navigation and location intelligence.

How the Company Makes Money

Area Quest Inc. generates revenue through multiple streams, primarily by selling software licenses and subscriptions for its mapping and GIS tools. The company also offers consulting services, helping organizations integrate geospatial data into their operational workflows. Additionally, Area Quest partners with urban development firms and government agencies, providing tailored solutions that leverage its technology for specific projects. Revenue is further supplemented through data monetization, where anonymized location data is sold to third parties for market analysis and research purposes.

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.

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.

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.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	2.46B	2.33B	2.32B	2.18B	2.14B	2.17B
Gross Profit	702.10M	639.43M	672.01M	593.03M	628.62M	646.18M
EBITDA	377.12M	231.41M	348.50M	307.03M	340.78M	329.52M
Net Income	114.51M	134.92M	114.76M	103.62M	141.10M	139.92M
Balance Sheet
Total Assets	3.93B	4.35B	3.81B	3.70B	3.35B	3.30B
Cash, Cash Equivalents and Short-Term Investments	427.76M	642.08M	397.66M	381.79M	443.05M	416.09M
Total Debt	715.95M	703.86M	560.01M	607.32M	596.03M	676.46M
Total Liabilities	2.60B	2.72B	2.19B	2.04B	1.90B	1.94B
Stockholders Equity	1.33B	1.62B	1.62B	1.66B	1.45B	1.36B
Cash Flow
Free Cash Flow	0.00	45.00M	198.44M	11.27M	76.59M	-21.38M
Operating Cash Flow	0.00	62.62M	207.32M	184.57M	204.59M	222.24M
Investing Cash Flow	0.00	375.18M	56.07M	-150.88M	-26.92M	-261.40M
Financing Cash Flow	0.00	-193.39M	-247.52M	-94.95M	-150.71M	41.80M

Area Quest Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 158.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 158 is below the 20-day moving average (MA) of 159.00, below the 50-day MA of 161.28, and above the 200-day MA of 155.06, indicating a neutral trend. The MACD of -1.28 indicates Negative momentum. The RSI at 43.35 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3490	79 Outperform	¥3.98B	5.04		1.03%	16.28%	146.48%
9342	78 Outperform	¥2.94B	16.42		0.22%	14.00%	323.78%
9423	77 Outperform	¥2.79B	108.47		2.30%	-1.13%	-81.83%
3494	69 Neutral	¥4.02B	13.91		1.01%	46.64%	137.70%
8912	60 Neutral	¥2.37B	22.71		1.89%	6.32%	-10.34%
8836	60 Neutral	¥3.74B	288.04		―	9.80%	―
Sector *	53 Neutral	$1.24B	3.03	-6.08%	5.65%	-8.21%	-81.31%