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

• Market Cap: ¥12.72B
• Dividend Yield: N/A
• Average Volume (3M): 1.96M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.96
• Revenue Growth: 54.82%
• EPS Growth: -495.66%
• Country: JP
• Employees: 47
• Sector: Communication Services
• Sector Strength: 85
• Industry: Advertising Agencies
• EPS (TTM): -6.76
• Shares Outstanding: 7,531,116
• 10 Day Avg. Volume: 3,391,520
• 30 Day Avg. Volume: 1,956,363
• PEG Ratio: -0.07
• Price to Book (P/B): 4.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.02
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: ¥1,946.00 ▲(10.25%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. Business Overview & Revenue Model

Company Description

Ureru 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 Money

Ureru 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

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

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

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 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement		Total Revenue
756.72M	959.40M	843.80M	2.40B
	Gross Profit
462.81M	707.55M	577.77M	720.18M
	EBIT
-308.42M	151.24M	-77.91M	184.46M
	EBITDA
-228.79M	237.73M	-6.07M	228.49M
	Net Income Common Stockholders
-326.73M	113.31M	-52.91M	134.74M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
278.02M	386.94M	169.75M	544.42M
	Total Assets
1.43B	1.05B	879.65M	1.05B
	Total Debt
396.84M	10.94M	6.45M	3.87M
	Net Debt
118.82M	-376.00M	-163.30M	-540.55M
	Total Liabilities
735.62M	403.44M	349.91M	464.30M
	Stockholders Equity
693.05M	643.04M	529.74M	582.65M
Cash Flow		Free Cash Flow
-509.62M	264.46M	-65.88M	-6.04M
	Operating Cash Flow
-384.93M	264.46M	-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 Price: 1765.00
• 50DMA: Positive
• 100DMA: Positive
• 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:9235, the sentiment is Positive. The current price of 1765 is above the 20-day moving average (MA) of 1414.60, above the 50-day MA of 1043.64, and above the 200-day MA of 796.95, indicating a bullish trend. The MACD of 210.90 indicates Negative momentum. The RSI at 65.62 is Neutral, neither overbought nor oversold. The STOCH value of 67.23 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6045	77 Outperform	¥8.58B	12.64		2.14%	17.22%	96.65%
6533	72 Outperform	¥7.88B	31.48		1.42%	15.81%	-52.13%
Sector *	61 Neutral	$14.55B	5.81	-3.99%	6.41%	2.71%	-31.56%
2122	57 Neutral	¥6.32B	73.82		3.22%	11.85%	-80.65%
9235	55 Neutral	¥12.72B	―		―	54.82%	-495.66%
7063	44 Neutral	¥4.04B	―		―	-88.51%	-29.38%
6094	43 Neutral	¥8.65B	203.70		―	32.30%	―