Appirits Inc. (4174) AI Stock Analysis

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Appirits Inc.

(TSE/TYO:4174)

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Rating:50.8Neutral

Price Target:JPY 992.00▼(-5.88% Downside)

Action:reiterated

Date:09/29/26

The score is held down primarily by weak financial performance—profitability has shifted to losses, cash flow has turned negative, and leverage has risen—despite ongoing revenue growth. Technicals are a meaningful offset with a strong uptrend and positive momentum signals. Valuation is mixed: the negative P/E reflects losses, while the ~2.5% dividend yield offers limited support.

Positive Factors

Consistent Revenue GrowthSustained year-over-year revenue growth shows that Appirits has continued expanding its business despite recent earnings pressure. This indicates ongoing customer demand for its services and provides a base from which management can improve execution, restore margins, and rebuild profitability over the coming periods.

Negative Factors

Sharp Margin CompressionThe substantial gross-margin decline indicates that revenue growth has not translated into comparable economic value for the company. Persistent margin pressure reduces the earnings contribution from each sales yen, limits reinvestment capacity, and makes a return to sustainable profitability dependent on meaningful execution improvement.

Appirits Inc. (4174) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.24B
Dividend Yield: 2.70%
Average Volume (3M): 169.73K
Price to Earnings (P/E): -11.8
Beta (1Y): 0.30
Revenue Growth: -1.83%
EPS Growth: -1386.17%
Country: Japan
Employees: 820
Sector: General
Sector Strength: 55
Industry: Software - Application

Appirits Inc. Business Overview & Revenue Model

Company Description

Appirits Inc. engages in the planning and management of various web services in Japan. The company involves in consulting and access analysis for various web services; development and sale of various web service packages and ASPs; and contract develo...

Appirits Inc. Financial Statement Overview

Summary

Despite consistent revenue growth, profitability and cash generation have deteriorated sharply: gross margin fell materially, the company returned to operating and net losses in 2026, leverage increased (debt roughly in line with equity), and operating/free cash flow weakened to negative recently—raising execution and funding risk.

Income Statement

38Negative

Balance Sheet

41Neutral

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	9.76B	9.96B	9.01B	8.43B	7.32B	4.80B
Gross Profit	1.80B	1.55B	1.89B	2.03B	1.75B	1.19B
EBITDA	32.12M	-136.95M	300.16M	750.32M	578.39M	240.77M
Net Income	-362.66M	-465.33M	45.97M	386.32M	210.21M	109.21M
Balance Sheet
Total Assets	5.82B	5.70B	5.76B	4.59B	4.20B	2.82B
Cash, Cash Equivalents and Short-Term Investments	1.99B	2.12B	2.29B	1.74B	1.82B	1.44B
Total Debt	2.21B	1.87B	1.77B	797.50M	607.50M	312.81M
Total Liabilities	3.93B	3.84B	3.37B	2.12B	2.08B	891.32M
Stockholders Equity	1.90B	1.86B	2.39B	2.47B	2.12B	1.92B
Cash Flow
Free Cash Flow	0	-52.32M	-175.24M	207.75M	477.65M	208.81M
Operating Cash Flow	0	-4.61M	10.13M	251.69M	535.67M	307.66M
Investing Cash Flow	0	-170.10M	-160.99M	-462.81M	-254.91M	-426.43M
Financing Cash Flow	0	-6.27M	702.65M	130.88M	102.50M	525.03M

Appirits Inc. Technical Analysis

Technical Analysis SentimentPositive

Last Price1054.00

Price Trends

50DMA1018.06Positive

100DMA874.98Positive

200DMA751.68Positive

Market Momentum

MACD-16.84Positive

RSI53.11Neutral

STOCH70.00Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4174, the sentiment is Positive. The current price of 1054.00 is above the 20-day moving average (MA) of 1052.95, above the 50-day MA of 1018.06, and above the 200-day MA of 751.68, indicating a bullish trend. The MACD of -16.84 indicates Positive momentum. The RSI at 53.11 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4174.

Appirits Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:4174 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4168	71Outperform	JPY 9.55B	8.50	―	1.96%	12.61%	49.51%
JP:4255	63Neutral	JPY 7.41B	17.85	―	―	20.26%	287.06%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4174	51Neutral	JPY 4.17B	-11.81	―	2.70%	-1.83%	-1386.17%
JP:4199	46Neutral	JPY 1.77B	-5.32	―	―	-16.04%	-150.55%
JP:4424	38Underperform	JPY 1.49B	-13.41	―	―	10.82%	84.33%

* General Sector Average

Performance Comparison

JP:4174 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4174	Appirits Inc.	1054.00	405.67	62.57%
JP:4168	Yappli, Inc.	740.00	-207.93	-21.94%
JP:4199	WonderPlanet Inc.	690.00	-45.00	-6.12%
JP:4255	THECOO Inc.	3550.00	2389.00	205.77%
JP:4424	Amazia, Inc.	224.00	-39.00	-14.83%
JP:387A	Fuller,Inc.	855.00	-933.00	-52.18%

Appirits Inc. Corporate Events

Appirits Returns to Profit, Keeps Outlook and Raises Dividend Slightly

Sep 14, 2026

Appirits Inc. reported consolidated net sales of ¥4.96 billion for the six months ended July 31, 2026, a 3.7% decline year on year, but swung from a loss to a profit with operating income of ¥166 million and profit attributable to owners of parent of...

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.

Date of analysis: Sep 29, 2026

Appirits Inc. AI Stock Analysis