Area Quest Inc. (8912) AI Stock Analysis

• Market Cap: ¥2.25B
• Dividend Yield: 1.49%
• Average Volume (3M): 10.47K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.15
• Revenue Growth: 6.32%
• EPS Growth: -10.34%
• Country: JP
• Employees: 39
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 1.58
• Shares Outstanding: 17,145,800
• 10 Day Avg. Volume: 12,130
• 30 Day Avg. Volume: 10,470
• PEG Ratio: -2.26
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 1.05
• P/FCF Ratio: 18.59
• 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: ¥220.00
• Price Target Upside: 9.45% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥220.00 ▲(9.45% Upside)

Area Quest Inc. has a strong financial performance with significant revenue growth and solid balance sheet metrics. The technical analysis suggests a bullish trend, but the high RSI indicates potential overbought conditions. The valuation is somewhat high, which could limit upside potential. Overall, the stock is well-positioned but may face short-term volatility.

Area Quest Inc. Business Overview & Revenue Model

Company Description

Area Quest Inc., together with its subsidiaries, provides real estate solutions in Japan. It provides tenant attraction, which offers marketing services for building owners or building managers; and renewal and contract management that provides advice and information for solving the problems related to building management. It also provides building management and subleasing services. The company was incorporated in 2000 and is headquartered in Tokyo, Japan.

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 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

• Technical Analysis Sentiment: Positive
• Last Price: 201.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8912, the sentiment is Positive. The current price of 201 is above the 20-day moving average (MA) of 157.80, above the 50-day MA of 158.98, and above the 200-day MA of 157.27, indicating a bullish trend. The MACD of 2.15 indicates Negative momentum. The RSI at 85.48 is Negative, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8912.

Area Quest Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9423	77 Outperform	¥2.67B	103.75	―	2.36%	-1.13%	-81.83%
8912	69 Neutral	¥2.25B	21.57	―	1.49%	6.32%	-10.34%
3490	66 Neutral	¥4.00B	6.34	―	1.06%	5.69%	15.12%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
9342	65 Neutral	¥2.59B	14.38	―	0.22%	14.00%	323.78%
3494	59 Neutral	¥3.24B	11.20	―	1.48%	46.64%	137.70%
8836	59 Neutral	¥3.55B	258.49	―	―	9.80%	―