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Ureru Net Advertising Co.,Ltd. (JP:9235)
:9235
Japanese Market

Ureru Net Advertising Co.,Ltd. (9235) AI Stock Analysis

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JP

Ureru Net Advertising Co.,Ltd.

(9235)

Rating:55Neutral
Price Target:
¥1,946.00
▲(4.62%Upside)
The overall stock score is driven primarily by significant financial challenges, with declining revenues and profitability posing substantial risks. This is somewhat offset by strong technical indicators suggesting bullish momentum. However, negative earnings and lack of dividends detract from its valuation appeal.

Ureru Net Advertising Co.,Ltd. (9235) vs. iShares MSCI Japan ETF (EWJ)

Ureru Net Advertising Co.,Ltd. Business Overview & Revenue Model

Company DescriptionUreru Net Advertising Co., Ltd. (9235) is a digital marketing company that operates within the advertising and media industry. It specializes in providing online advertising solutions, focusing on maximizing the reach and impact of its clients' marketing campaigns. The company offers a range of services, including search engine marketing (SEM), social media advertising, and display advertising, catering primarily to businesses looking to enhance their online presence and engage with a broader audience.
How the Company Makes MoneyUreru Net Advertising Co., Ltd. generates revenue through multiple streams within the digital advertising sector. The primary source of income comes from offering tailored advertising solutions to businesses, where the company designs and manages online marketing campaigns across various platforms such as Google, Facebook, and other social media networks. Revenue is earned through a combination of service fees for campaign management, commissions on advertising spend, and performance-based incentives tied to the success of client campaigns. Additionally, partnerships with major digital platforms and media agencies play a significant role in enhancing the company's service offerings and expanding its client base, further contributing to its earnings.

Ureru Net Advertising Co.,Ltd. Financial Statement Overview

Summary
Ureru Net Advertising Co.,Ltd. is facing severe financial challenges with declining revenues, negative profitability, and increased leverage. The sharp decrease in revenue and deterioration in profit margins highlight significant operational inefficiencies. The negative cash flow position further exacerbates the financial difficulties, necessitating urgent strategic intervention.
Income Statement
22
Negative
The company experienced a sharp decline in revenue, falling from ¥959.4M in 2023 to ¥756.7M in 2024, representing a decrease of 21.2%. Gross profit margin decreased from 73.8% to 61.2%, and the net profit margin turned negative at -43.2% in 2024, indicating significant profitability challenges. The negative EBIT and EBITDA margins highlight operational inefficiencies and declining financial health.
Balance Sheet
45
Neutral
The debt-to-equity ratio increased significantly from 0.02 in 2023 to 0.57 in 2024, indicating higher leverage and potential financial risk. However, the equity ratio remains relatively stable at around 48.5%, suggesting a balanced asset structure. The decline in stockholders' equity suggests financial pressure.
Cash Flow
18
Very Negative
The free cash flow turned negative at ¥-509.6M in 2024, a steep decline from ¥264.5M in 2023, indicating severe cash management issues. The operating cash flow to net income ratio is negative, reflecting poor cash generation from operations. The cash flow statement reveals a dependency on financing activities to fund operations.
Breakdown
Sep 2024Sep 2023Sep 2022Sep 2021
Income StatementTotal Revenue
756.72M959.40M843.80M2.40B
Gross Profit
462.81M707.55M577.77M720.18M
EBIT
-308.42M151.24M-77.91M184.46M
EBITDA
-228.79M237.73M-6.07M228.49M
Net Income Common Stockholders
-326.73M113.31M-52.91M134.74M
Balance SheetCash, Cash Equivalents and Short-Term Investments
278.02M386.94M169.75M544.42M
Total Assets
1.43B1.05B879.65M1.05B
Total Debt
396.84M10.94M6.45M3.87M
Net Debt
118.82M-376.00M-163.30M-540.55M
Total Liabilities
735.62M403.44M349.91M464.30M
Stockholders Equity
693.05M643.04M529.74M582.65M
Cash FlowFree Cash Flow
-509.62M264.46M-65.88M-6.04M
Operating Cash Flow
-384.93M264.46M-65.88M-6.04M
Investing Cash Flow
-190.67M-45.41M-306.96M-63.32M
Financing Cash Flow
466.68M-1.87M-1.83M-10.20M

Ureru Net Advertising Co.,Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1860.00
Price Trends
50DMA
1017.48
Positive
100DMA
810.64
Positive
200DMA
791.92
Positive
Market Momentum
MACD
211.78
Negative
RSI
63.53
Neutral
STOCH
77.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9235, the sentiment is Positive. The current price of 1860 is above the 20-day moving average (MA) of 1379.45, above the 50-day MA of 1017.48, and above the 200-day MA of 791.92, indicating a bullish trend. The MACD of 211.78 indicates Negative momentum. The RSI at 63.53 is Neutral, neither overbought nor oversold. The STOCH value of 77.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9235.

Ureru Net Advertising Co.,Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥8.54B12.75
2.12%17.22%96.65%
72
Outperform
¥7.85B31.81
1.41%15.81%-52.13%
61
Neutral
$14.79B5.90-3.99%6.20%2.67%-30.30%
57
Neutral
¥6.30B73.82
3.23%11.85%-80.65%
55
Neutral
¥14.01B
44
Neutral
¥3.84B
-88.51%-29.38%
43
Neutral
¥8.69B205.80
32.30%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9235
Ureru Net Advertising Co.,Ltd.
1,690.00
564.50
50.16%
JP:2122
Interspace Co., Ltd.
932.00
30.56
3.39%
JP:6045
Rentracks Co., Ltd.
1,086.00
656.55
152.88%
JP:6094
FreakOut Holdings, Inc.
489.00
-360.00
-42.40%
JP:6533
Orchestra Holdings Inc.
786.00
-587.36
-42.77%
JP:7063
Birdman Inc.
307.00
-729.00
-70.37%
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.