Quantum Solutions Co.,Ltd. (2338) AI Stock Analysis

5 Followers

Quantum Solutions Co.,Ltd.

(TSE/TYO:2338)

Select Model

Rating:37Underperform

Price Target:JPY 87.00▼(-13.86% Downside)

Action:reiterated

Date:11/11/26

The overall score of 37 reflects a company in severe financial distress. The most significant factor is the critical financial performance, marked by a record net loss, negative equity, and persistent cash burn that threatens solvency. This is compounded by a deeply bearish technical trend with the stock trading well below all major moving averages. Valuation metrics are rendered useless by negative earnings, offering no support. The combination of fundamental insolvency risk and weak market momentum results in the lowest possible score.

Positive Factors

Historically strong gross profitStrong gross profit relative to revenue in several historical periods indicates the company has at times generated value above direct costs. If this characteristic can be restored alongside cost control, it could provide a foundation for improving operating performance and supporting future profitability.

Negative Factors

Persistent and deepening lossesPersistent operating and net losses show that the business has not converted revenue and gross profit into sustainable earnings. The sharp 2026 deterioration materially weakens internal funding capacity and makes a durable recovery dependent on reversing the cost structure and restoring operating leverage.

Quantum Solutions Co.,Ltd. (2338) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.26B
Dividend Yield: ―
Average Volume (3M): 262.00K
Price to Earnings (P/E): -2.0
Beta (1Y): -0.05
Revenue Growth: -12.33%
EPS Growth: -327.26%
Country: Japan
Employees: 41
Sector: Technology
Sector Strength: 61
Industry: Information Technology Services

Quantum Solutions Co.,Ltd. Business Overview & Revenue Model

Company Description

Quantum Solutions Co.,Ltd. engages in providing comprehensive hardware and software AI solutions for businesses and individuals. It is involved in provision of ai infrastructure services; development of next-generation game and game content; testing...

Quantum Solutions Co.,Ltd. Financial Statement Overview

Summary

Financial health is critically distressed. The Income Statement (Score 5) shows volatile revenue and a record net loss of ¥2.5B. The Balance Sheet (Score 1) reveals negative equity (-¥343M) and debt exceeding assets, indicating severe solvency risk. Cash Flow (Score 2) has been negative for six consecutive years, with an unsustainable cash burn of ¥705M. This combination of persistent losses, negative equity, and continuous cash burn warrants the lowest possible score.

Income Statement

5Very Negative

Balance Sheet

1Very Negative

Cash Flow

2Very Negative

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	238.80M	266.76M	698.09M	205.24M	264.29M	256.51M
Gross Profit	163.78M	186.99M	640.86M	139.31M	177.15M	192.17M
EBITDA	-2.30B	-2.50B	-316.06M	-904.92M	-931.65M	-278.55M
Net Income	-2.39B	-2.55B	-317.24M	-902.42M	-954.36M	-280.88M
Balance Sheet
Total Assets	3.48B	2.70B	324.49M	1.15B	468.70M	1.08B
Cash, Cash Equivalents and Short-Term Investments	1.80B	192.47M	136.13M	137.11M	236.34M	507.85M
Total Debt	3.22B	2.84B	0	0	0	0
Total Liabilities	3.47B	3.05B	86.99M	1.13B	72.04M	72.68M
Stockholders Equity	2.98M	-343.09M	238.00M	16.68M	396.00M	1.01B
Cash Flow
Free Cash Flow	0	-718.35M	-520.99M	-659.43M	-379.05M	-471.50M
Operating Cash Flow	0	-704.74M	-520.78M	-657.39M	-379.05M	-277.75M
Investing Cash Flow	0	-3.99B	-11.81M	-128.74M	-477.41M	-218.75M
Financing Cash Flow	0	4.75B	531.51M	681.45M	583.37M	195.15M

Quantum Solutions Co.,Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price101.00

Price Trends

50DMA106.80Negative

100DMA115.43Negative

200DMA129.94Negative

Market Momentum

MACD-3.58Negative

RSI52.41Neutral

STOCH63.61Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2338, the sentiment is Neutral. The current price of 101.00 is above the 20-day moving average (MA) of 96.65, below the 50-day MA of 106.80, and below the 200-day MA of 129.94, indicating a neutral trend. The MACD of -3.58 indicates Negative momentum. The RSI at 52.41 is Neutral, neither overbought nor oversold. The STOCH value of 63.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2338.

Quantum Solutions Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:2338 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3799	83Outperform	JPY 7.97B	16.20	―	3.69%	1.80%	-52.48%
JP:4752	83Outperform	JPY 7.08B	8.46	―	4.13%	7.77%	5.97%
JP:3940	71Outperform	JPY 5.98B	15.95	―	2.77%	-2.56%	-7.81%
JP:2332	65Neutral	JPY 8.69B	10.61	―	3.61%	15.24%	7.17%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:4056	42Neutral	JPY 2.97B	-7.85	―	―	13.32%	-932.70%
JP:2338	37Underperform	JPY 5.43B	-2.00	―	―	-12.33%	-327.26%

* Technology Sector Average

Performance Comparison

JP:2338 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2338	Quantum Solutions Co.,Ltd.	101.00	-369.00	-78.51%
JP:2332	Quest Co., Ltd.	1605.00	116.24	7.81%
JP:3799	Keyware Solutions Inc.	1003.00	-71.52	-6.66%
JP:3940	Nomura System Corporation Co., Ltd.	127.00	-2.75	-2.12%
JP:4056	Neural Group Inc.	169.00	-279.00	-62.28%
JP:4752	Showa System Engineering Corporation	1590.00	-18.05	-1.12%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 11, 2026

Quantum Solutions Co.,Ltd. AI Stock Analysis