CERES INC. (3696) AI Stock Analysis

• Market Cap: ¥27.68B
• Dividend Yield: 2.5%
• Average Volume (3M): 427.71K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.47
• Revenue Growth: 16.95%
• EPS Growth: 203.14%
• Country: JP
• Employees: 669
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 139.74
• Shares Outstanding: 12,116,500
• 10 Day Avg. Volume: 448,010
• 30 Day Avg. Volume: 427,706
• PEG Ratio: 0.11
• Price to Book (P/B): 3.20
• Price to Sales (P/S): 1.29
• P/FCF Ratio: 89.81
• 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: ¥2,626.00
• Price Target Upside: 10.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥2,626.00 ▲(10.71% Upside)

CERES INC. has a strong financial foundation with impressive revenue growth and profitability. However, technical indicators suggest a bearish trend, and there is room for improvement in cash flow management. The stock is fairly valued with a decent dividend yield, making it an attractive option for income-focused investors.

CERES INC. Business Overview & Revenue Model

Company Description

Ceres Inc. engages in the mobile and financial services in Japan. The company offers smartphone advertising media services with point site name Moppy that provides its users with given points that can be exchanged for cash or electronic money; and content media, which operates sites in various fields, such as smartphone games and real estate for investment, as well as provides the latest information. It also provides cryptocurrency/blockchain related, online factoring, and investment development services. The company was incorporated in 2005 and is based in Tokyo, Japan.

How the Company Makes Money

CERES INC. generates revenue through a combination of digital advertising services, media management, and digital content delivery. The company earns money by providing advertising solutions that help businesses increase their visibility and customer engagement through mobile and online platforms. Key revenue streams include fees from advertising placements, media management services, and content distribution. Additionally, CERES INC. may establish partnerships with other technology and media companies to enhance its service offerings and reach a broader audience, thereby contributing to its earnings.

CERES INC. Financial Statement Overview

Summary

CERES INC. shows strong financial performance with robust revenue growth and improving profitability margins. The balance sheet is healthy with balanced leverage, but cash flow management needs improvement, particularly in cash conversion efficiency.

Income Statement

CERES INC. demonstrates strong financial performance with consistent revenue growth and improving profitability. The gross profit margin has increased to 48.1%, and the net profit margin has improved to 5.3% over the past year. Revenue growth rate is impressive at 15.1% from the previous year, indicating robust top-line expansion. EBIT margin is also solid at 8.0%, reflecting efficient operations.

Balance Sheet

The balance sheet shows a healthy equity base with a debt-to-equity ratio of 0.85, indicating balanced leverage. Return on Equity (ROE) is fairly strong at 13.3%, demonstrating effective utilization of equity. The equity ratio stands at 33.8%, reflecting moderate financial stability. Despite increased liabilities, the company maintains a cautious approach to debt.

Cash Flow

CERES INC.'s cash flow statements reveal a decline in operating cash flow to net income ratio, now at 0.49, suggesting potential inefficiencies in cash generation. However, free cash flow remains positive, albeit with a negative growth rate of -28.8%, indicating room for improvement in cash management. Free cash flow to net income ratio is at 0.27, showing modest cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.67B	27.71B	24.07B	20.54B	23.40B	20.21B
Gross Profit	13.29B	13.34B	10.59B	8.06B	7.77B	6.25B
EBITDA	2.26B	2.88B	1.33B	1.12B	4.32B	1.76B
Net Income	590.64M	1.48B	451.15M	46.61M	2.78B	744.60M
Balance Sheet
Total Assets	32.69B	32.98B	25.92B	22.60B	20.23B	16.23B
Cash, Cash Equivalents and Short-Term Investments	13.77B	14.13B	11.09B	9.29B	9.14B	7.89B
Total Debt	10.08B	9.52B	7.36B	5.89B	4.22B	3.82B
Total Liabilities	20.65B	20.25B	15.87B	12.90B	10.41B	9.14B
Stockholders Equity	10.37B	11.15B	9.19B	8.88B	9.08B	6.52B
Cash Flow
Free Cash Flow	0.00	397.00M	557.52M	-314.19M	983.77M	1.86B
Operating Cash Flow	0.00	722.00M	1.06B	101.78M	1.16B	2.26B
Investing Cash Flow	0.00	-518.00M	-738.91M	-1.69B	-787.23M	-482.52M
Financing Cash Flow	0.00	3.27B	1.23B	1.19B	408.15M	363.41M

CERES INC. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2372.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3696, the sentiment is Negative. The current price of 2372 is below the 20-day moving average (MA) of 2525.70, below the 50-day MA of 2471.86, and below the 200-day MA of 2518.80, indicating a bearish trend. The MACD of 7.39 indicates Positive momentum. The RSI at 43.39 is Neutral, neither overbought nor oversold. The STOCH value of 9.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3696.

CERES INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4439	75 Outperform	¥31.28B	12.94	20.33%	0.91%	27.21%	6.90%
3696	71 Outperform	¥27.68B	11.57	―	2.50%	16.95%	203.14%
2462	68 Neutral	¥28.44B	13.56	11.78%	3.95%	3.09%	-14.32%
4685	67 Neutral	¥42.07B	11.80	17.66%	2.88%	19.82%	38.84%
9564	67 Neutral	¥16.17B	24.25	14.90%	1.06%	24.54%	31.33%
9248	46 Neutral	¥14.99B	-25.96	-0.95%	3.60%	8.90%	-441.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

CERES INC. Corporate Events

CERES INC. Completes Acquisition of ‘Point Income’ and ‘AD-LEAP’

CERES INC. has completed the acquisition of the ‘Point Income’ online rewards site and the ‘AD-LEAP’ affiliate program from FIVEGATE Inc. This transaction will now be reflected in CERES INC.’s consolidated financial results, with potential impacts on the company’s fiscal year ending December 31, 2025, still under evaluation.

The most recent analyst rating on (JP:3696) stock is a Buy with a Yen2806.00 price target. To see the full list of analyst forecasts on CERES INC. stock, see the JP:3696 Stock Forecast page.

CERES INC. Acquires ‘Point Income’ to Boost Market Share

CERES INC. has acquired the ‘Point Income’ online rewards platform and ‘AD-LEAP’ affiliate program from FIVEGATE Inc. for approximately ¥200 million. This acquisition, scheduled for integration on September 1, 2025, is part of CERES’s strategy to expand its market share in the point media market and enhance its mobile services, aiming to realize synergies and strengthen earnings power.

CERES INC. Acquires ‘Point Income’ to Boost Market Share

CERES INC. announced its acquisition of the ‘Point Income’ online rewards platform and the ‘AD-LEAP’ affiliate advertising program from FIVEGATE Inc. This strategic move aims to expand CERES INC.’s market share in Japan’s point media sector by integrating these platforms with its existing services, thereby strengthening its competitive position and enhancing value for advertisers. The acquisition is expected to optimize ad placement efficiency and improve the profitability of CERES INC.’s point media operations.

CERES INC. Forms Strategic Alliance with CyberBuzz to Boost Digital Marketing

CERES INC. has announced a strategic capital and business alliance with CyberBuzz, Inc., acquiring 19.14% of its shares. This move aims to enhance CERES INC.’s competitiveness in the expanding influencer marketing market in Japan by integrating their digital marketing assets and expertise, particularly in TikTok commerce and affiliate marketing, to create new revenue opportunities.

CERES INC. Expands into TikTok Shop with New Support Services

CERES INC.’s subsidiary, studio15 Inc., has launched support services for TikTok Shop in Japan, following the platform’s official launch. Studio15 has obtained three partner certifications, enhancing its ability to manage creators and promote sales through TikTok. This move aligns with CERES INC.’s strategy to leverage video commerce as a growth opportunity, integrating its media, affiliate, and D2C operations to strengthen its market position. While the immediate financial impact is minimal, the expansion into TikTok Shop is expected to boost profitability and corporate value in the medium to long term.

CERES INC. Acquires M Corporation to Boost D2C Business

CERES INC. has announced the acquisition of M Corporation, a company specializing in cosmetic products, to strengthen its D2C business. This strategic move aims to enhance CERES INC.’s vertically integrated model by incorporating M Corporation’s differentiated beauty brand, ‘Stem beauté,’ which uses advanced stem cell technology. The acquisition is expected to bolster the company’s revenue base and foster sustainable growth through collaboration in product development and distribution, although it is not anticipated to significantly impact financial results for the fiscal year ending December 31, 2025.