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Appirits Inc. (JP:4174)
:4174
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Appirits Inc.
(4174)
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Rating:55Neutral
Price Target:
¥744.00
▲(7.98% Upside)
The overall stock score of 55 reflects the company's strong revenue growth but is tempered by declining profit margins and negative free cash flow. The technical analysis indicates a bearish trend, though there are signs of potential reversal. Valuation is a concern due to the negative P/E ratio, but the dividend yield offers some compensation.
Appirits Inc. (4174) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.88B
Dividend Yield3.19%
Average Volume (3M)9.89K
Price to Earnings (P/E)98.5
Beta (1Y)0.63
Revenue Growth16.83%
EPS Growth-86.95%
CountryJP
Employees720
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-6.38
Shares Outstanding4,189,662
10 Day Avg. Volume3,780
30 Day Avg. Volume9,890
Financial Highlights & Ratios
PEG Ratio-0.79
Price to Book (P/B)1.34
Price to Sales (P/S)0.36
P/FCF Ratio-18.36
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Appirits Inc. Business Overview & Revenue Model
Company DescriptionAppirits Inc. develops and sells web services and related consulting services. Its services also cover infrastructure construction, maintenance, and monitoring of various web service systems; contract development of various web service systems; and planning, design, development, and operation of online games. In addition, its solutions include AWS implementation design/development, Smartphone application development, EC order/inventory centralized management ASP, and in-site search ASP. Further, it provides web marketing design services, such as UX and UI design and production, and SEO and SEM consulting services, as well as Google Analytics data solutions, training, and support desk services; smartphone-enabled and app development services; security services, including security, web application, platform, and smartphone application diagnostics services, as well as software testing and cloud based web application firewall services; and dispatch and staffing services. Appirits Inc. was founded in 2000 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyAppirits Inc. generates revenue primarily through its online gaming segment. The company earns money from in-game purchases, subscriptions, and advertisements within its games. Players often purchase virtual goods or upgrades to enhance their gaming experience, contributing significantly to the company's income. Additionally, Appirits provides web system development services, which involve creating tailored software solutions for businesses. This segment generates revenue through project-based contracts and long-term maintenance agreements. The company's earnings are further supported by strategic partnerships and collaborations that expand its reach and enhance its product offerings.
Appirits Inc. Financial Statement Overview
Summary
Appirits Inc. demonstrates strong revenue growth, but declining profit margins and negative free cash flow raise concerns about profitability and cash management. The balance sheet remains stable with moderate leverage, indicating potential for stability and growth if operational efficiencies are improved.Income Statement
The company exhibits a strong revenue growth with a noticeable increase from ¥3.88 billion in 2021 to ¥9.01 billion in 2025. However, the gross profit margin has declined from approximately 30.4% in 2021 to 21.0% in 2025, indicating rising costs or pricing pressure. Net profit margin also decreased significantly from 3.2% in 2021 to 0.5% in 2025. This suggests challenges in maintaining profitability despite revenue growth.65
Positive
Balance Sheet
The debt-to-equity ratio increased, indicating higher leverage, yet remains manageable with substantial equity backing. Stockholders' equity has consistently grown, reaching ¥2.39 billion in 2025, showing strong asset backing. The equity ratio remains stable at about 41.6% in 2025, reflecting a balanced financial structure.70
Positive
Cash Flow
Free cash flow has turned negative in 2025, indicating potential liquidity issues, as it dropped from ¥207.7 million in 2024 to negative ¥175.2 million. Moreover, the operating cash flow to net income ratio has significantly decreased, highlighting inefficiencies in converting income to cash. Although operating cash flow remains positive, it has significantly decreased from previous years.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.94B | 9.01B | 8.43B | 7.32B | 4.80B | 3.89B |
| Gross Profit | 1.96B | 1.89B | 2.03B | 1.75B | 1.19B | 1.18B |
| EBITDA | 295.83M | 332.42M | 750.32M | 578.39M | 240.77M | 264.69M |
| Net Income | 26.33M | 45.97M | 386.32M | 210.21M | 109.21M | 125.60M |
Balance Sheet | ||||||
| Total Assets | 5.72B | 5.76B | 4.59B | 4.20B | 2.82B | 2.08B |
| Cash, Cash Equivalents and Short-Term Investments | 1.87B | 2.29B | 1.74B | 1.82B | 1.44B | 1.03B |
| Total Debt | 1.62B | 1.77B | 797.50M | 607.50M | 312.81M | 43.12M |
| Total Liabilities | 3.38B | 3.37B | 2.12B | 2.08B | 891.32M | 545.99M |
| Stockholders Equity | 2.34B | 2.39B | 2.47B | 2.12B | 1.92B | 1.53B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -175.24M | 207.75M | 477.65M | 208.81M | 149.47M |
| Operating Cash Flow | 0.00 | 10.13M | 251.69M | 535.67M | 307.66M | 173.87M |
| Investing Cash Flow | 0.00 | -160.99M | -462.81M | -254.91M | -426.43M | -89.78M |
| Financing Cash Flow | 0.00 | 702.65M | 130.88M | 102.50M | 525.03M | -60.05M |
Appirits Inc. Technical Analysis
Negative
689.00
Price Trends
733.78
Negative
746.29
Negative
770.30
Negative
Market Momentum
-12.20
Negative
39.88
Neutral
29.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4174, the sentiment is Negative. The current price of 689 is below the 20-day moving average (MA) of 696.85, below the 50-day MA of 733.78, and below the 200-day MA of 770.30, indicating a bearish trend. The MACD of -12.20 indicates Negative momentum. The RSI at 39.88 is Neutral, neither overbought nor oversold. The STOCH value of 29.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4174.
Appirits Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | ¥3.31B | 26.99 | ― | 0.64% | 3.52% | 65.21% | |
62 Neutral | ¥3.32B | 17.13 | ― | 3.85% | 42.88% | -5.21% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | ¥4.84B | 31.00 | ― | ― | 1.83% | -20.00% | |
55 Neutral | ¥2.88B | 98.54 | ― | 3.19% | 16.83% | -86.95% |
* Technology Sector Average
JP:4174
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686.00
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Lancers, Inc.
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HOUSEI Inc.
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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.