Akatsuki, Inc. (3932) AI Stock Analysis

• Market Cap: ¥48.95B
• Dividend Yield: 2.36%
• Average Volume (3M): 58.14K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.45
• Revenue Growth: 1.15%
• EPS Growth: 1150.40%
• Country: JP
• Employees: 539
• Sector: Communication Services
• Sector Strength: 81
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 63.10
• Shares Outstanding: 14,517,100
• 10 Day Avg. Volume: 47,450
• 30 Day Avg. Volume: 58,140
• PEG Ratio: -4.47
• Price to Book (P/B): 1.22
• 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

Akatsuki, Inc. has a strong financial foundation with solid profitability and a conservative balance sheet. Nonetheless, declining revenue and cash flow issues pose risks to future performance. The technical analysis reflects mixed signals, with bearish short-term momentum against a long-term upward trend. The high P/E ratio highlights valuation concerns, though a reasonable dividend yield offers some compensation.

Akatsuki, Inc. Business Overview & Revenue Model

Company Description

Akatsuki Inc. engages in the mobile game and live experience businesses primarily in Japan. It develops mobiles games. The company also operates Asobuild, an entertainment facility service site; Pong!Pong!, a ping pong table activity and projection mapping service site; Sotoasobi, a service site to provide reservations for outdoor and leisure activities; and Daigomi, a Cheese restaurants. In addition, it provides Crayon, an app development support services to artists, creators, and athletes; a media franchise project of both music and audio drama CDs on themes of Jazz; and operates Kumarba Channel, an education and entertainment channel distributed through YouTube platform. The company was founded in 2010 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Akatsuki, Inc. generates revenue primarily through its mobile gaming segment. The company develops and publishes free-to-play mobile games that monetize through in-game purchases, such as virtual goods and currency, which enhance the user experience. In addition to microtransactions, the company may generate income through advertising partnerships within its games, where advertisers pay to reach Akatsuki's user base. Additionally, Akatsuki expands its revenue streams through strategic collaborations and partnerships in the entertainment and media sectors, which may include licensing deals, co-productions, and distribution agreements. These efforts help diversify its income sources beyond mobile gaming.

Akatsuki, Inc. Financial Statement Overview

Summary

Akatsuki, Inc. exhibits robust profitability metrics and a strong balance sheet, characterized by high equity and low leverage. However, declining revenue and net income trends, coupled with cash flow management issues, suggest potential operational and strategic challenges that need addressing for sustainable growth.

Income Statement

The company's gross profit margin for TTM is strong at 54.37%, indicating efficient production. However, its net profit margin of 5.80% reflects declining profitability from previous years. Revenue has been decreasing over the years, with a notable drop of 3.79% from 2023 to 2024 TTM. Despite solid EBIT and EBITDA margins of 10.88% and 10.89% respectively, the declining revenue trend poses a concern for future earnings potential.

Balance Sheet

The balance sheet shows solid stability with a debt-to-equity ratio of 0.18, suggesting conservative leverage. The equity ratio stands at 76.75%, indicating a strong equity base relative to total assets. The company maintains a healthy return on equity of 3.38% for TTM, albeit lower than previous years, reflecting the impact of declining net income.

Cash Flow

The cash flow statement reveals weaknesses, with no reported free cash flow for TTM. The previous free cash flow growth rate is negative, reflecting operational challenges. Operating cash flow to net income ratio and free cash flow to net income ratio are unavailable for TTM, highlighting potential cash management issues.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
23.30B	23.97B	24.34B	26.27B	31.10B	32.05B
	Gross Profit
12.67B	13.49B	14.35B	15.50B	18.94B	21.60B
	EBIT
2.54B	2.68B	5.70B	7.45B	11.29B	11.05B
	EBITDA
2.54B	2.43B	5.85B	7.71B	11.41B	11.36B
	Net Income Common Stockholders
1.35B	1.29B	1.34B	5.19B	6.34B	6.62B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
34.33B	30.96B	34.07B	25.72B	30.99B	26.31B
	Total Assets
52.10B	52.04B	53.16B	46.08B	46.05B	42.37B
	Total Debt
7.10B	7.10B	10.20B	4.21B	5.31B	7.81B
	Net Debt
-27.23B	-23.86B	-23.87B	-21.52B	-22.68B	-18.50B
	Total Liabilities
12.08B	11.83B	14.41B	7.84B	10.28B	12.14B
	Stockholders Equity
40.00B	40.19B	38.73B	38.23B	35.77B	30.22B
Cash Flow		Free Cash Flow
0.00	-325.00M	4.63B	3.90B	9.93B	6.30B
	Operating Cash Flow
0.00	-84.00M	5.05B	4.79B	10.01B	7.27B
	Investing Cash Flow
0.00	-77.00M	1.19B	-3.01B	-4.77B	-4.63B
	Financing Cash Flow
0.00	-3.23B	4.94B	-4.19B	-3.53B	-612.00M

Akatsuki, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3395.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3932, the sentiment is Positive. The current price of 3395 is above the 20-day moving average (MA) of 3288.20, above the 50-day MA of 3097.84, and above the 200-day MA of 2543.88, indicating a bullish trend. The MACD of 98.83 indicates Negative momentum. The RSI at 58.46 is Neutral, neither overbought nor oversold. The STOCH value of 60.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3932.

Akatsuki, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3635	72 Outperform	¥828.19B	20.79		2.42%	-1.70%	11.29%
3932	64 Neutral	¥48.95B	29.74		2.36%	1.15%	1150.40%
Sector *	60 Neutral	$13.44B	7.15	-2.73%	3.79%	2.11%	-39.64%
3656	41 Neutral	¥5.83B	―		―	-22.49%	-39.46%