Earlyworks Co., Ltd. Sponsored ADR (ELWS) AI Stock Analysis

• Market Cap: $6.51M
• Dividend Yield: N/A
• Average Volume (3M): 27.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: 371.04%
• EPS Growth: 32.89%
• Country: US
• Employees: 15
• Sector: Technology
• Sector Strength: 69
• Industry: Software - Application
• EPS (TTM): -0.57
• Shares Outstanding: 3,015,380
• 10 Day Avg. Volume: 18,135
• 30 Day Avg. Volume: 27,429
• PEG Ratio: -1.31
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.10
• 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

Earlyworks Co., Ltd. faces substantial financial instability due to ongoing net losses and negative cash flow, significantly impacting its overall stock score. The technical analysis provides some short-term bullish signals, but valuation concerns and unprofitability weigh heavily on the stock's attractiveness. The lack of earnings call data or notable corporate events leaves the financial and technical aspects as primary determinants of the current score.

Earlyworks Co., Ltd. Sponsored ADR Business Overview & Revenue Model

Company Description

Earlyworks Co., Ltd. Sponsored ADR (ELWS) is a company engaged in providing innovative technology solutions within the information technology sector. The company specializes in developing advanced software products and services designed to enhance business operations and drive efficiency. Earlyworks focuses on leveraging cutting-edge technologies to offer solutions that meet the evolving needs of its clients in various industries.

How the Company Makes Money

Earlyworks Co., Ltd. Sponsored ADR Financial Statement Overview

Summary

Earlyworks Co., Ltd. faces significant financial challenges despite revenue growth and a strong gross profit margin. The company is unprofitable with substantial net losses and negative cash flow, indicating a need for strategic adjustments to achieve financial stability. The balance sheet shows manageable debt, but persistent cash flow issues are concerning.

Income Statement

The income statement shows significant challenges with profitability. Despite a substantial revenue increase to $179.36M in the latest year, the company remains unprofitable with a net loss of $336.15M. The gross profit margin is strong at nearly 79%, but high operating expenses lead to negative EBIT and EBITDA margins. Revenue growth is positive, but substantial losses highlight financial instability.

Balance Sheet

The balance sheet reflects a moderately strong equity position with a debt-to-equity ratio of 0.54, indicating manageable leverage. However, the return on equity is negative due to persistent losses. The equity ratio of 57.47% suggests a stable capital structure, yet ongoing losses and liabilities could pose risks to financial health.

Cash Flow

Cash flow analysis reveals significant concerns. Operating cash flow is deeply negative at -$393.86M, reflecting ongoing operational challenges. Free cash flow is also negative, and the free cash flow to net income ratio is unfavorable. Although financing activities have provided substantial cash inflow, reliance on external financing is unsustainable long-term.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement		Total Revenue
179.36M	46.57M	463.72M	216.21M
	Gross Profit
141.77M	16.07M	355.34M	182.67M
	EBIT
-381.49M	-388.43M	-572.12M	-89.13M
	EBITDA
-333.67M	-388.05M	-571.96M	-84.62M
	Net Income Common Stockholders
-336.15M	-382.31M	-602.47M	-70.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
437.91M	177.89M	657.42M	364.26M
	Total Assets
575.57M	453.04M	752.05M	437.23M
	Total Debt
179.27M	195.54M	69.79M	74.73M
	Net Debt
-158.64M	17.65M	-587.63M	-289.53M
	Total Liabilities
244.84M	244.52M	161.23M	114.07M
	Stockholders Equity
330.72M	208.51M	590.82M	323.16M
Cash Flow		Free Cash Flow
-394.20M	-401.36M	99.28M	33.91M
	Operating Cash Flow
-393.86M	-399.74M	100.27M	34.52M
	Investing Cash Flow
-100.34M	-1.63M	3.76M	-611.15K
	Financing Cash Flow
644.85M	-78.41M	189.13M	91.52M

Earlyworks Co., Ltd. Sponsored ADR Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELWS, the sentiment is Positive. The current price of 2.16 is above the 20-day moving average (MA) of 1.98, above the 50-day MA of 2.04, and below the 200-day MA of 2.53, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 67.58 is Neutral, neither overbought nor oversold. The STOCH value of 41.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELWS.

Earlyworks Co., Ltd. Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$11.39B	10.52	-6.21%	2.95%	7.68%	-11.12%
ULY	55 Neutral	$12.19M	0.07		―	-22.61%	-158.44%
ELWS	45 Neutral	$6.51M	―	-75.65%	―	371.04%	32.89%
NVNI	39 Underperform	$16.37M	―		―	―	―
PET	37 Underperform	$7.47M	―	-3036.82%	―	-27.81%	-7.85%
RYDE	37 Underperform	$6.31M	―	230.42%	―	3.69%	-50.95%