MicroAd, Inc. (9553) AI Stock Analysis

• Market Cap: ¥23.68B
• Dividend Yield: N/A
• Average Volume (3M): 371.60K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.85
• Revenue Growth: 14.28%
• EPS Growth: -30.60%
• Country: JP
• Employees: 418
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 11.13
• 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: 68 Neutral
• Price Target: ¥1,004.00 ▲(58.36% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is driven by solid technical momentum and generally stable financials (improving leverage and good cash conversion), but is held back by weak profitability (very low net margin and declining operating margins) and a rich valuation (P/E ~44 with no dividend yield provided).

Positive Factors

Consistent Revenue Growth

Steady ~4% annual revenue growth indicates consistent demand for MicroAd's digital advertising services. Persistent top-line growth supports predictable cash flow, underpins capacity to invest in product development and sales, and sustains market presence across ad tech cycles.

Improved Leverage / Balance Sheet

A reduced debt-to-equity (0.77) and a stable equity ratio (~38.6%) lower financial risk and enhance flexibility. Stronger leverage position provides durable capacity to fund strategic investments, absorb cyclical ad-market swings, and avoid urgent external financing in stressed periods.

Solid Cash Generation

Improved operating cash flow and a high free-cash-flow-to-net-income (0.89) show the business converts earnings into cash effectively. Reliable cash generation supports reinvestment in product, working capital needs, and reduces reliance on debt for sustaining operations over the medium term.

Negative Factors

Weak Profitability / Declining Margins

A very low net margin (1.24%) and shrinking EBIT/EBITDA margins signal limited ability to turn revenue into durable profits. Margin compression reduces internal funding for R&D and sales, heightens sensitivity to pricing pressure, and constrains long-term earnings resilience.

Low Return on Equity

ROE at ~5.5% reflects modest returns on shareholder capital and a declining trend undermines capital efficiency. Persistently low ROE can limit shareholder value creation, reduce attractiveness for reinvestment, and indicate challenges converting assets into profitable growth.

Volatile Free Cash Flow Growth

While FCF is currently healthy relative to net income, historical volatility in FCF growth creates uncertainty for long-term planning. Irregular cash flow patterns complicate capex, acquisition, or dividend strategies and raise resilience concerns if revenue or margins weaken.

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

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MicroAd, Inc. Financial Statement Overview

Summary

Revenue growth has been consistent (recent annual growth ~4%) and leverage improved (debt-to-equity 0.77), but profitability is pressured with a low net margin (1.24%) and declining EBIT/EBITDA margins. Cash generation looks solid versus net income (FCF to net income 0.89), though free cash flow growth has been volatile.

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	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	15.67B	13.71B	12.87B	12.23B	11.67B
Gross Profit	4.81B	4.08B	4.13B	3.79B	3.00B
EBITDA	396.60M	633.97M	957.90M	643.04M	224.64M
Net Income	195.08M	282.66M	565.26M	496.41M	-38.86M
Balance Sheet
Total Assets	9.18B	8.42B	6.84B	5.93B	5.38B
Cash, Cash Equivalents and Short-Term Investments	2.51B	2.48B	2.98B	3.30B	2.16B
Total Debt	2.72B	2.47B	1.19B	918.35M	938.18M
Total Liabilities	5.28B	4.52B	3.11B	3.05B	3.91B
Stockholders Equity	3.53B	3.28B	3.11B	2.32B	928.74M
Cash Flow
Free Cash Flow	697.38M	-115.22M	-210.68M	405.24M	-111.60M
Operating Cash Flow	781.67M	338.35M	266.44M	713.97M	31.41M
Investing Cash Flow	-1.15B	-1.81B	-1.02B	-413.27M	-185.56M
Financing Cash Flow	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 850.45, below the 50-day MA of 793.94, and above the 200-day MA of 592.29, indicating a bullish trend. The MACD of 25.64 indicates Positive momentum. The RSI at 52.62 is Neutral, neither overbought nor oversold. The STOCH value of 38.57 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
4477	73 Outperform	¥33.96B	20.10	―	―	27.97%	-5.25%
9553	68 Neutral	¥23.68B	15.25	―	―	14.28%	-30.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4165	60 Neutral	¥24.84B	41.34	―	―	21.87%	240.21%
3905	52 Neutral	¥44.07B	16.46	―	―	27.58%	-1.50%
5027	49 Neutral	¥26.49B	39.28	―	―	20.84%	10.41%
6047	48 Neutral	¥12.55B	30.14	―	3.48%	-11.85%	―