HEROZ, Inc. (4382) AI Stock Analysis

• Market Cap: ¥16.31B
• Dividend Yield: N/A
• Average Volume (3M): 43.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: 17.40%
• EPS Growth: 59.85%
• Country: JP
• Employees: 256
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): -26.09
• Shares Outstanding: 15,174,468
• 10 Day Avg. Volume: 45,010
• 30 Day Avg. Volume: 43,403
• PEG Ratio: -0.57
• Price to Book (P/B): 3.23
• 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: 47 Neutral
• Price Target: ―

HEROZ, Inc. faces significant challenges with its financial performance due to declining profitability and cash flow, despite strong revenue growth. Technical indicators suggest a bearish trend, and the negative P/E ratio impacts valuation attractiveness. Without positive factors from earnings calls or corporate events, the stock's outlook remains cautious.

HEROZ, Inc. Business Overview & Revenue Model

Company Description

HEROZ, Inc. (4382) is a Japanese technology company specializing in artificial intelligence (AI) and machine learning solutions. The company operates in sectors such as gaming, finance, and logistics, leveraging its expertise to develop AI-driven applications and services. One of its notable offerings is the development of AI engines for competitive board games, which are used to enhance gaming experiences and provide advanced analytical capabilities.

How the Company Makes Money

HEROZ, Inc. generates revenue through the development and licensing of its AI technologies across various industries. Key revenue streams include licensing fees from gaming companies that utilize HEROZ's AI engines to enhance their gaming platforms. Additionally, the company offers AI-driven solutions to financial institutions, providing predictive analytics and algorithmic strategies. Partnerships with logistics companies to optimize operations and improve efficiency also contribute to its earnings. The company's diverse application of AI technology across different sectors allows it to capitalize on the growing demand for intelligent solutions.

HEROZ, Inc. Financial Statement Overview

Summary

HEROZ, Inc. shows strong revenue growth but faces challenges with declining profitability and reduced cash flow. The balance sheet is stable with low leverage, but the decrease in stockholders' equity suggests potential stress.

Income Statement

HEROZ, Inc. has shown significant revenue growth with a notable increase from ¥1,482 million in 2022 to ¥4,841 million in 2024, indicating a positive trajectory in sales. However, the company is experiencing declining profitability, as evidenced by negative net income and EBITDA margins in recent periods. The gross profit margin has also decreased slightly from previous years, suggesting rising costs or pricing pressure.

Balance Sheet

HEROZ, Inc. maintains a strong equity position with a high equity ratio of 62.3% in 2024, reflecting financial stability. The company's debt-to-equity ratio remains low at 0.29, indicating prudent leverage management. However, stockholders' equity has decreased over the past year, indicating potential stress on equity resources.

Cash Flow

The cash flow statement reveals fluctuations in free cash flow, with a decline from ¥387 million in 2023 to ¥20 million in 2024, highlighting challenges in maintaining cash generation. Operating cash flow remains positive, but the reduction in free cash flow suggests increasing capital expenditures or declining profitability.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
5.33B	4.84B	2.98B	1.48B	1.56B	1.54B
	Gross Profit
2.47B	2.39B	1.35B	558.99M	705.26M	767.48M
	EBIT
287.77M	451.35M	257.89M	34.79M	294.18M	459.08M
	EBITDA
-486.89M	-343.40M	-168.66M	240.52M	367.03M	438.52M
	Net Income Common Stockholders
-1.22B	-1.13B	-574.33M	49.40M	207.15M	255.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.00B	2.74B	3.80B	3.66B	5.55B	5.56B
	Total Assets
8.11B	7.69B	8.67B	6.64B	6.55B	6.41B
	Total Debt
1.95B	1.40B	1.50B	0.00	0.00	0.00
	Net Debt
-26.00M	-1.33B	-2.30B	-3.66B	-5.55B	-5.56B
	Total Liabilities
2.87B	2.55B	2.59B	194.63M	143.50M	226.12M
	Stockholders Equity
4.78B	4.79B	5.87B	6.44B	6.40B	6.18B
Cash Flow		Free Cash Flow
0.00	20.80M	387.11M	186.17M	-18.82M	198.21M
	Operating Cash Flow
0.00	464.00M	483.38M	198.15M	360.70M	243.50M
	Investing Cash Flow
0.00	-1.22B	-144.47M	-2.09B	-384.52M	-78.46M
	Financing Cash Flow
0.00	-303.96M	-200.78M	1.00K	15.25M	3.90B

HEROZ, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1075.00
• 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:4382, the sentiment is Positive. The current price of 1075 is above the 20-day moving average (MA) of 1036.90, above the 50-day MA of 976.56, and above the 200-day MA of 1021.25, indicating a bullish trend. The MACD of 23.94 indicates Negative momentum. The RSI at 57.81 is Neutral, neither overbought nor oversold. The STOCH value of 60.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4382.

HEROZ, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4495	78 Outperform	¥9.66B	16.61		1.76%	16.72%	18.48%
4168	76 Outperform	¥10.55B	16.78		―	11.74%	158.89%
4011	67 Neutral	¥12.42B	75.10		―	25.52%	282.24%
Sector *	62 Neutral	$11.75B	10.58	-7.10%	2.91%	7.47%	-7.95%
3905	52 Neutral	¥36.20B	―		―	32.00%	55.21%
4382	47 Neutral	¥16.31B	―		―	17.40%	59.85%
4192	45 Neutral	¥18.08B	―		―	26.31%	-56.42%

HEROZ, Inc. Corporate Events

HEROZ, Inc. Reports Extraordinary Loss Amid SaaS Market Expansion

HEROZ, Inc. announced an extraordinary loss due to impairment in software assets related to its group company, StrategIT, Inc., impacting its financial results for the fiscal year ending April 2025. Despite the loss, the company continues to invest in its product, JOINT iPaaS for SaaS, aiming to leverage its AI expertise and expand its recurring revenue model in the growing SaaS market.

HEROZ, Inc. Reports Increased Sales but Declining Profits for Nine-Month Period

HEROZ, Inc. reported its consolidated financial results for the nine months ending January 31, 2025, showing a 19.7% increase in net sales compared to the previous year. Despite the rise in sales, the company experienced a significant decline in profitability, with operating profit and ordinary profit decreasing by 60.7% and 73.3% respectively, and a net loss attributable to owners of the parent company. The financial results indicate challenges in maintaining profitability despite revenue growth, which may impact stakeholder confidence and the company’s market positioning.