MicroAd, Inc. (9553) AI Stock Analysis

• Market Cap: ¥21.71B
• Dividend Yield: N/A
• Average Volume (3M): 371.60K
• Price to Earnings (P/E): 109.4
• Beta (1Y): 0.96
• Revenue Growth: 14.28%
• EPS Growth: -30.60%
• Country: JP
• Employees: 418
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 3.80
• Shares Outstanding: 27,831,354
• 10 Day Avg. Volume: 768,050
• 30 Day Avg. Volume: 371,603
• PEG Ratio: -2.14
• Price to Book (P/B): 3.62
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 18.31
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥854.00 ▲(34.70% Upside)

MicroAd, Inc. scores well in technical analysis due to strong market momentum, but is held back by high valuation concerns and challenges in financial performance, particularly in profitability and cash flow stability.

Positive Factors

Consistent revenue growth

Sustained top-line growth supports long-term scalability of the advertising platform and recurring services. With Fundamentals.RevenueGrowth at ~14.3%, the company can leverage scale to invest in product development and client retention, underpinning durable revenue expansion.

Improved leverage and capital structure

A lower debt-to-equity and a ~38.6% equity ratio enhance financial flexibility for strategic investments and downturn resilience. This stronger balance sheet reduces refinancing risk and supports multi-quarter initiatives like tech upgrades or M&A without destabilizing operations.

Stronger operating cash generation

Improved operating cash flow and a high FCF-to-net-income ratio indicate the business converts earnings into cash effectively. That cash generation supports reinvestment in platform capabilities and marketing, enabling sustainable growth and funding without heavy external financing.

Negative Factors

Compressing profit margins

Narrowing net and operating margins signal structural pressure on profitability, likely from higher operating costs or pricing dynamics. Persistently thin margins limit retained earnings, constrain reinvestment capacity, and reduce buffer against cyclicality in ad spend.

Volatile free cash flow growth

Irregular FCF growth complicates multi-quarter planning and capital allocation. Volatility undermines predictability for R&D and sales investments, raises the risk of funding shortfalls in weaker periods, and makes it harder to commit to multi-year strategic initiatives.

Weak shareholder returns

A declining ROE around mid-single digits suggests the company struggles to generate attractive returns on invested capital. Low ROE can impede ability to finance growth from internal returns and may signal inefficiencies in asset utilization or pricing power over the medium term.

MicroAd, Inc. Business Overview & Revenue Model

Company Description

MicroAd, Inc. operates an advertising platform that connects advertisers and the media in Japan. It offers Universe Ads, an advertising platform that accelerates data marketing; and MicroAd COMPASS, a supply-side platform that enhances ad value for advertisers and media, as well as other advertising services. The company was founded in 2007 and is based in Tokyo, Japan. MicroAd, Inc. operates as a subsidiary of CyberAgent Inc.

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 consistent revenue growth and improved leverage ratios, but faces challenges in profitability and cash flow stability. The company needs to enhance operational efficiency and stabilize cash flow.

Income Statement

MicroAd, Inc. has shown consistent revenue growth over the years, with a recent annual growth rate of 3.997%. However, the net profit margin has decreased to 1.24% from previous years, indicating pressure on profitability. The gross profit margin remains stable at around 30.68%, but the EBIT and EBITDA margins have seen a decline, suggesting increased operational costs or reduced efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.77, indicating a more balanced leverage compared to previous years. Return on equity has decreased to 5.53%, which is a concern for shareholders. The equity ratio stands at 38.59%, reflecting a stable capital structure with room for improvement in asset utilization.

Cash Flow

Operating cash flow has improved significantly, but the free cash flow to net income ratio is high at 0.89, indicating strong cash generation relative to net income. However, the free cash flow growth rate has been volatile, with a significant improvement from previous negative figures.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	15.07B	15.67B	13.71B	12.87B	12.23B	11.67B
Gross Profit	4.54B	4.81B	4.08B	4.13B	3.79B	3.00B
EBITDA	651.49M	396.60M	633.97M	957.90M	643.04M	224.64M
Net Income	87.21M	195.08M	282.66M	565.26M	496.41M	-38.86M
Balance Sheet
Total Assets	8.60B	9.15B	8.39B	6.84B	5.93B	4.23B
Cash, Cash Equivalents and Short-Term Investments	2.36B	2.51B	2.48B	2.98B	3.30B	2.16B
Total Debt	2.69B	2.72B	2.47B	1.19B	918.35M	938.18M
Total Liabilities	4.82B	5.25B	4.50B	3.11B	3.05B	2.76B
Stockholders Equity	3.42B	3.53B	3.28B	3.11B	2.32B	928.74M
Cash Flow
Free Cash Flow	0.00	697.38M	-115.22M	-210.68M	405.24M	-111.60M
Operating Cash Flow	0.00	781.67M	338.35M	266.44M	713.97M	31.41M
Investing Cash Flow	0.00	-1.15B	-1.81B	-1.02B	-413.27M	-185.56M
Financing Cash Flow	0.00	162.04M	997.74M	421.71M	681.09M	300.54M

MicroAd, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 634.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 634 is below the 20-day moving average (MA) of 744.80, below the 50-day MA of 654.16, and above the 200-day MA of 512.85, indicating a bullish trend. The MACD of 31.65 indicates Positive momentum. The RSI at 58.86 is Neutral, neither overbought nor oversold. The STOCH value of 64.63 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
9553	69 Neutral	¥21.71B	109.38	―	―	14.28%	-30.60%
4397	68 Neutral	¥7.81B	19.39	―	―	11.32%	―
153A	66 Neutral	¥7.37B	22.38	―	―	14.92%	2.55%
4193	63 Neutral	¥11.24B	35.95	―	2.81%	12.49%	-57.87%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3777	54 Neutral	¥17.66B	-85.43	―	―	-62.84%	-27.61%
9561	41 Neutral	¥3.93B	-7.06	―	―	3.34%	-219.24%