MicroAd, Inc. (9553) AI Stock Analysis

• Market Cap: ¥12.69B
• Dividend Yield: N/A
• Average Volume (3M): 272.78K
• Price to Earnings (P/E): 142.1
• Beta (1Y): 0.86
• Revenue Growth: 14.85%
• EPS Growth: -70.63%
• Country: JP
• Employees: 418
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 2.29
• Shares Outstanding: 27,831,354
• 10 Day Avg. Volume: 188,350
• 30 Day Avg. Volume: 272,783
• PEG Ratio: -0.47
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.49
• P/FCF Ratio: -58.27
• 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
• EPS Forecast (FY): 2,501.15
• Revenue Forecast (FY): ¥2.73T

• Rating: 50 Neutral
• Price Target: ¥419.00 ▼(-7.30% Downside)

MicroAd, Inc. faces significant challenges with its current valuation and technical indicators, both pointing towards a bearish outlook. While the company shows potential with revenue growth, its profitability and cash flow issues, combined with a high P/E ratio, weigh heavily on its overall score.

MicroAd, Inc. Business Overview & Revenue Model

Company Description

MicroAd, Inc. (9553) is a leading digital marketing technology company based in Japan, specializing in providing innovative advertising solutions across various sectors. The company primarily operates in the online advertising space, offering services such as programmatic advertising, data analytics, and marketing automation. MicroAd's core products include its proprietary ad distribution platform, which utilizes advanced algorithms and machine learning to optimize ad placements and maximize engagement for clients ranging from small businesses to large enterprises.

How the Company Makes Money

MicroAd generates revenue through a combination of service fees and performance-based pricing models. The primary revenue streams include advertising fees from clients who utilize its programmatic advertising services, where clients pay based on impressions, clicks, or conversions. Additionally, MicroAd offers data analytics services that help businesses understand consumer behavior and refine their marketing strategies, generating revenue through subscription models or one-time fees for reports and insights. The company has established significant partnerships with various media outlets and digital platforms, which enhance its ad inventory and distribution capabilities, further contributing to its earnings. The effectiveness of its solutions in driving client success also leads to repeat business and long-term contracts, stabilizing its revenue flow.

MicroAd, Inc. Financial Statement Overview

Summary

MicroAd, Inc. shows growth potential with steady revenue increases, yet faces challenges in profitability and cash flow management. The balance sheet reflects a stable capital structure, though there are risks associated with rising liabilities. Improving cash flow generation and profitability margins will be key for future performance.

Income Statement

MicroAd, Inc. has demonstrated consistent revenue growth with a positive revenue growth rate over the past years. The gross profit margin has remained stable, indicating efficient cost management. However, a declining EBIT margin suggests rising operating expenses. The net profit margin has weakened, pointing to challenges in converting revenue into profit.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, reflecting a balanced approach to leveraging. Return on equity has shown moderate performance, suggesting some effectiveness in using equity to generate profit. The equity ratio is solid, indicating a stable capital structure, but the increasing total liabilities signal potential risks.

Cash Flow

MicroAd, Inc. faces challenges in cash flow management, as indicated by fluctuating free cash flow. The absence of operating cash flow in the latest TTM period raises concerns about cash generation from operations. The free cash flow to net income ratio has been inconsistent, suggesting difficulty in translating earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.07B	13.71B	12.87B	12.23B	11.67B	10.92B
Gross Profit	4.54B	4.08B	4.13B	3.79B	3.00B	3.01B
EBITDA	651.49M	633.97M	957.90M	643.04M	224.64M	348.24M
Net Income	87.21M	282.66M	565.26M	496.41M	-38.86M	43.47M
Balance Sheet
Total Assets	8.60B	8.39B	6.84B	5.93B	4.23B	3.73B
Cash, Cash Equivalents and Short-Term Investments	2.36B	2.48B	2.98B	3.30B	2.16B	1.93B
Total Debt	2.69B	2.47B	1.19B	918.35M	938.18M	1.11B
Total Liabilities	4.82B	4.50B	3.11B	3.05B	2.76B	2.86B
Stockholders Equity	3.42B	3.28B	3.11B	2.32B	928.74M	549.70M
Cash Flow
Free Cash Flow	0.00	-115.22M	-210.68M	405.24M	-111.60M	534.62M
Operating Cash Flow	0.00	338.35M	266.44M	713.97M	31.41M	620.15M
Investing Cash Flow	0.00	-1.81B	-1.02B	-413.27M	-185.56M	13.32M
Financing Cash Flow	0.00	997.74M	421.71M	681.09M	300.54M	51.45M

MicroAd, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 452.00
• 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:9553, the sentiment is Positive. The current price of 452 is above the 20-day moving average (MA) of 448.00, below the 50-day MA of 505.86, and above the 200-day MA of 402.37, indicating a neutral trend. The MACD of -14.65 indicates Negative momentum. The RSI at 46.01 is Neutral, neither overbought nor oversold. The STOCH value of 58.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9553.

MicroAd, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
153A	75 Outperform	¥13.05B	39.55	―	―	―	―
4193	73 Outperform	¥11.19B	31.09	―	2.77%	13.71%	-48.11%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9553	50 Neutral	¥12.69B	142.07	―	―	14.85%	-70.63%
3777	47 Neutral	¥15.52B	―	―	―	-58.78%	-103.28%
4397	46 Neutral	¥8.37B	23.04	―	―	11.32%	―
9561	43 Neutral	¥4.26B	―	―	―	4.16%	-381.07%