HEROZ, Inc. (4382) AI Stock Analysis

• Market Cap: ¥16.67B
• Dividend Yield: N/A
• Average Volume (3M): 77.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 17.83%
• EPS Growth: 87.36%
• Country: JP
• Employees: 256
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.76
• Shares Outstanding: 15,209,725
• 10 Day Avg. Volume: 111,020
• 30 Day Avg. Volume: 77,086
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,162.00
• Price Target Upside: 4.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: ¥1,162.00 ▲(4.68% Upside)

HEROZ, Inc. faces significant challenges in profitability and cash flow management, which weigh heavily on its financial performance score. Technical analysis shows positive momentum, but the valuation is unattractive due to negative earnings. The absence of earnings call data and corporate events limits additional insights.

HEROZ, Inc. Business Overview & Revenue Model

Company Description

HEROZ, Inc. engages in planning, developing, and operating of intellectual games for smartphones in Japan and internationally. It uses its artificial intelligence technology to develop various smartphone apps, such as Shogi Wars, CHESS HEROZ, and BackgammonAce. The company was incorporated in 2009 and is based in Tokyo, Japan.

How the Company Makes Money

HEROZ generates revenue through multiple streams, including the sale of its AI-based gaming products, licensing agreements, and consulting services in AI implementation. The company earns significant income from its proprietary gaming titles, which are monetized through in-game purchases and advertising. Additionally, HEROZ establishes partnerships with various enterprises to provide customized AI solutions, which contribute to its consulting revenue. The growing demand for AI technologies across different sectors has further enhanced its earnings potential.

HEROZ, Inc. Financial Statement Overview

Summary

HEROZ, Inc. shows revenue growth but struggles with profitability, as indicated by a negative net profit margin and declining EBIT margin. The balance sheet is relatively strong with manageable leverage, but cash flow management is a concern due to negative free cash flow and low conversion of earnings into cash.

Income Statement

HEROZ, Inc. has shown a positive revenue growth rate of 11.2% in the latest year, indicating a strong top-line performance. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -3.0% and a declining EBIT margin. The gross profit margin has decreased slightly, which may suggest rising costs or pricing pressures.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.44, indicating a rise in leverage, but it remains at a manageable level. The return on equity is negative at -3.8%, reflecting the company's current unprofitability. However, the equity ratio is strong, suggesting a solid capital structure with a high proportion of equity financing.

Cash Flow

HEROZ, Inc. faces challenges in cash flow management, with a negative free cash flow and a concerning free cash flow to net income ratio of -0.91. The operating cash flow to net income ratio is low, indicating potential issues in converting earnings into cash. The free cash flow growth rate is not meaningful due to negative values.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.56B	5.93B	4.84B	2.98B	1.48B	1.56B
Gross Profit	2.53B	2.69B	2.39B	1.35B	558.99M	705.26M
EBITDA	334.86M	566.25M	-343.40M	-168.66M	240.52M	367.03M
Net Income	-393.13M	-177.71M	-1.13B	-574.33M	49.40M	207.15M
Balance Sheet
Total Assets	7.95B	8.15B	7.69B	8.67B	6.64B	6.55B
Cash, Cash Equivalents and Short-Term Investments	2.90B	1.73B	2.74B	3.80B	3.66B	5.55B
Total Debt	1.86B	2.05B	1.40B	1.50B	0.00	0.00
Total Liabilities	2.75B	2.95B	2.55B	2.59B	194.63M	143.50M
Stockholders Equity	4.70B	4.64B	4.79B	5.87B	6.44B	6.40B
Cash Flow
Free Cash Flow	0.00	-200.24M	20.80M	387.11M	186.17M	-18.82M
Operating Cash Flow	0.00	219.03M	464.00M	483.38M	198.15M	360.70M
Investing Cash Flow	0.00	-479.27M	-1.22B	-144.47M	-2.09B	-384.52M
Financing Cash Flow	0.00	664.63M	-303.96M	-200.78M	1.00K	15.25M

HEROZ, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1110.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4382, the sentiment is Neutral. The current price of 1110 is below the 20-day moving average (MA) of 1121.85, above the 50-day MA of 1091.24, and above the 200-day MA of 1026.45, indicating a neutral trend. The MACD of 3.69 indicates Positive momentum. The RSI at 45.94 is Neutral, neither overbought nor oversold. The STOCH value of 18.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	14.29B	23.90	―	1.26%	27.15%	24.58%
4168	69 Neutral	13.22B	17.10	34.20%	0.59%	12.09%	141.99%
4011	67 Neutral	14.06B	117.84	―	―	28.99%	-16.50%
3905	54 Neutral	60.72B	-55.38	-27.47%	―	32.51%	40.51%
4382	53 Neutral	¥16.67B	―	―	―	17.83%	87.36%
4192	41 Neutral	15.48B	-33.74	-29.17%	―	24.80%	12.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

HEROZ, Inc. Corporate Events

HEROZ, Inc. Reports Strong Quarterly Growth Amid AI Expansion

HEROZ, Inc. reported a positive financial performance for the three months ended July 31, 2025, with significant year-on-year growth in net sales and profits. The company achieved a 7.9% increase in net sales and a notable rise in operating and ordinary profits, reflecting its strong market positioning and effective operational strategies. Despite a slight loss attributable to the owners of the parent, the company’s financial outlook remains optimistic with a forecasted increase in net sales and profits for the full year ending April 30, 2026.

The most recent analyst rating on (JP:4382) stock is a Hold with a Yen1150.00 price target. To see the full list of analyst forecasts on HEROZ, Inc. stock, see the JP:4382 Stock Forecast page.

HEROZ, Inc. Issues New Shares for Restricted Stock Compensation

HEROZ, Inc. announced the issuance of new shares as compensation for restricted stock to align the interests of its directors, executive officers, and employees with those of shareholders. This move aims to motivate key personnel by sharing stock price fluctuation risks and enhancing corporate value, with minimal dilution of 0.22% of the total issued shares.

The most recent analyst rating on (JP:4382) stock is a Hold with a Yen1073.00 price target. To see the full list of analyst forecasts on HEROZ, Inc. stock, see the JP:4382 Stock Forecast page.

HEROZ, Inc. Reports Increased Net Sales Despite Profit Decline

HEROZ, Inc. reported its consolidated financial results for the fiscal year ended April 30, 2025, showing a 22.5% increase in net sales compared to the previous year, despite a decline in operating and ordinary profits. The company anticipates further growth in the upcoming fiscal year, with projected increases in net sales and profits, indicating a positive outlook for stakeholders.