Aeria Inc. (3758) AI Stock Analysis

• Market Cap: ¥5.51B
• Dividend Yield: 1.94%
• Average Volume (3M): 71.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -9.05%
• EPS Growth: -27.30%
• Country: JP
• Employees: 484
• Sector: Communication Services
• Sector Strength: 86
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 9.02
• Shares Outstanding: 21,249,428
• 10 Day Avg. Volume: 32,830
• 30 Day Avg. Volume: 71,896
• PEG Ratio: 0.05
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 44 Neutral
• Price Target: ―

Aeria Inc. has a low overall stock score due to major financial performance issues, including declining revenues, negative cash flows, and enhanced leverage. Technical analysis also shows a persistent bearish trend, further weighing down the score. The negative P/E ratio adds to valuation concerns despite a modest dividend yield.

Aeria Inc. Business Overview & Revenue Model

Company Description

Aeria Inc. offers content and information technology services. It operates through IT Service, Content, and Asset Management segments. The company develops, distributes, and operates games for smartphones and tablets; offers data services; and rents and sells real estate properties, as well as invests in companies. The company was founded in 2002 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Aeria Inc. makes money through several revenue streams. The primary source of income is from in-game purchases within its free-to-play mobile and online games, where players can buy virtual goods, enhancements, and other digital items. Additional revenue comes from advertising, where the company monetizes its gaming platforms through partnerships with advertisers, providing ad space and promotional opportunities. The company also earns from licensing agreements, distributing digital content, and collaborating with other game developers and publishers to expand its gaming portfolio and reach.

Aeria Inc. Financial Statement Overview

Summary

Aeria Inc. is facing significant financial challenges with declining revenues, negative profitability, and increased leverage. Despite a strong cash position, operational inefficiencies and financial pressures highlight the need for strategic restructuring.

Income Statement

Aeria Inc. has experienced a significant decline in revenue from 2019 to 2024, with current figures showing a sharp drop in total revenue by approximately 32% since 2019. The gross profit margin has also decreased, indicating reduced profitability, while net profit margins have turned negative in recent years, with a significant net loss in 2024. The EBIT and EBITDA margins have deteriorated significantly, reflecting operational challenges and cost pressures.

Balance Sheet

The balance sheet shows moderate strength with a fair equity ratio and manageable debt levels. However, the debt-to-equity ratio has increased over the years, reflecting higher leverage, while the decline in stockholders' equity suggests potential financial constraints. The company maintains a strong cash position, which provides some buffer against volatility.

Cash Flow

The cash flow statement reveals significant challenges with consistent negative free cash flow over recent years. The operating cash flow ratio to net income is negative, indicating cash outflows in operations that are not adequately covered by earnings. Free cash flow remains severely negative, suggesting issues in generating cash from core operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
19.16B	22.67B	20.59B	21.54B	25.70B
	Gross Profit
6.19B	6.74B	7.22B	9.00B	10.00B
	EBIT
-42.00M	477.00M	835.00M	839.00M	364.00M
	EBITDA
-60.00M	1.04B	1.05B	1.24B	-3.15B
	Net Income Common Stockholders
-739.00M	480.00M	172.00M	586.00M	-4.56B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.31B	8.76B	9.46B	9.72B	8.34B
	Total Assets
20.26B	21.14B	20.37B	19.24B	19.39B
	Total Debt
7.45B	7.01B	5.80B	4.91B	5.46B
	Net Debt
-803.00M	-1.75B	-3.66B	-4.80B	-2.88B
	Total Liabilities
11.68B	11.46B	11.08B	10.09B	10.56B
	Stockholders Equity
8.39B	9.53B	9.14B	9.02B	8.58B
Cash Flow		Free Cash Flow
-396.00M	-2.01B	-1.33B	1.88B	-338.00M
	Operating Cash Flow
-327.00M	-1.98B	-1.08B	2.05B	-192.00M
	Investing Cash Flow
-464.00M	168.00M	-51.00M	159.00M	-71.00M
	Financing Cash Flow
20.00M	1.10B	867.00M	-864.00M	-1.60B

Aeria Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 258.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3758, the sentiment is Positive. The current price of 258 is above the 20-day moving average (MA) of 249.45, above the 50-day MA of 244.00, and above the 200-day MA of 251.66, indicating a bullish trend. The MACD of 4.64 indicates Negative momentum. The RSI at 70.38 is Negative, neither overbought nor oversold. The STOCH value of 88.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3758.

Aeria Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3851	67 Neutral	¥4.17B	41.88		0.61%	-21.35%	-85.46%
3760	67 Neutral	¥6.57B	4.64		1.52%	16.25%	-27.48%
Sector *	60 Neutral	$14.21B	6.47	-3.76%	3.69%	2.48%	-35.46%
3758	44 Neutral	¥5.51B	―		1.94%	-9.05%	-27.30%
3656	41 Neutral	¥6.15B	―		―	-11.13%	28.02%
3672	41 Neutral	¥2.36B	―		―	-22.25%	-14.77%
3810	36 Underperform	¥5.25B	―		―	-17.67%	26.46%