Innovation, Inc. AI Stock Analysis
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Innovation, Inc. (3970) AI Stock Analysis
Innovation, Inc.
(TSE/TYO:3970)
The stock scores 49.7, reflecting significant concerns about profitability and leverage, partially offset by strong revenue growth and recent price momentum. The negative P/E and high dividend yield present a risky valuation. Investors should monitor the company's ability to return to profitability and manage its debt.
Innovation, Inc. (3970) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 2.03B
- Dividend Yield
- 5.29%
- Average Volume (3M)
- 6,390
- Price to Earnings (P/E)
- -6.3
- Beta (1Y)
- 0.27
- Revenue Growth
- 19.74%
- EPS Growth
- -202.56%
- Country
- Japan
- Employees
- 333
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Information Technology Services
Innovation, Inc. Business Overview & Revenue Model
Company Description
Innovation Inc., founded in 2000 and headquartered in Tokyo, Japan, delivers comprehensive business-to-business (B2B) sales and marketing support. The company's offerings encompass digital media services, cloud-based solutions for managing sales coll...
Innovation, Inc. Financial Statement Overview
Summary
Revenue growth strong (21.8% in FY2026) and gross margin improved to 50.2%, but net loss of ¥457M and negative operating profit raise concerns. Debt increased, equity declined, and cash flow coverage of debt is low. Mixed financial health.
Income Statement
48NeutralBalance Sheet
42NeutralCash Flow
46Neutral| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.85B | 6.97B | 5.34B | 4.81B | 4.57B | 4.38B |
| Gross Profit | 3.52B | 3.50B | 2.31B | 2.07B | 2.01B | 2.23B |
| EBITDA | 402.63M | 205.65M | 381.94M | 492.07M | 254.95M | 804.53M |
| Net Income | -324.94M | -457.00M | 67.48M | 244.52M | 62.79M | 448.08M |
Balance Sheet | ||||||
| Total Assets | 7.15B | 7.85B | 8.32B | 4.68B | 3.80B | 3.77B |
| Cash, Cash Equivalents and Short-Term Investments | 3.05B | 3.42B | 3.74B | 3.45B | 2.37B | 2.18B |
| Total Debt | 2.25B | 2.41B | 2.60B | 300.00M | 0 | 0 |
| Total Liabilities | 3.65B | 4.20B | 4.25B | 1.11B | 614.63M | 747.64M |
| Stockholders Equity | 2.73B | 2.90B | 3.39B | 3.53B | 3.16B | 2.98B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 155.17M | 102.65M | 275.36M | -758.00K | 337.81M |
| Operating Cash Flow | 0 | 253.13M | 73.06M | 345.30M | 113.19M | 466.46M |
| Investing Cash Flow | 0 | -291.78M | -1.70B | 236.38M | -191.93M | -283.61M |
| Financing Cash Flow | 0 | -338.49M | 1.92B | 403.47M | 131.49M | -17.00K |
Innovation, Inc. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3970, the sentiment is Negative. The current price of 756.00 is below the 20-day moving average (MA) of 785.45, below the 50-day MA of 815.20, and below the 200-day MA of 843.86, indicating a bearish trend. The MACD of -17.93 indicates Positive momentum. The RSI at 34.98 is Neutral, neither overbought nor oversold. The STOCH value of 37.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3970.
Innovation, Inc. Peers Comparison
Overall Rating
JP:367081Outperform
JP:442175Outperform
JP:363474Outperform
JP:441655Neutral- JP:397049.7Neutral
JP:481447Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:3670 | 81Outperform | JPY 1.98B | 6.30 | ― | 3.93% | 7.22% | -7.86% |
| JP:4421 | 75Outperform | JPY 2.69B | 12.02 | ― | 3.11% | 5.77% | -7.65% |
| JP:3634 | 74Outperform | JPY 1.43B | 15.84 | ― | 1.05% | -2.71% | ― |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| JP:4416 | 55Neutral | JPY 1.68B | 21.24 | ― | ― | 23.07% | 2166.40% |
| JP:3970 | 50Neutral | JPY 2.06B | -6.26 | ― | 5.29% | 19.74% | -202.56% |
| JP:4814 | 47Neutral | JPY 1.97B | -4.32 | ― | ― | -2.19% | -302.00% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:3970 | Innovation, Inc. | 756.00 | -163.80 | -17.81% | |
| JP:3634 | Sockets Inc. | 573.00 | -145.09 | -20.20% | |
| JP:3670 | Kyoritsu Computer & Communication Co., Ltd. | 1654.00 | -310.74 | -15.82% | |
| JP:4416 | True Data Inc. | 345.00 | -420.00 | -54.90% | |
| JP:4421 | D.I.System Co.,Ltd. | 899.00 | -55.00 | -5.76% | |
| JP:4814 | Nextware Ltd. | 152.00 | -31.00 | -16.94% |
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: Aug 17, 2026