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AI, Inc. (4388) AI Stock Analysis

JP:4388

AI, Inc.

(TSE/TYO:4388)

Select Model
Rating:66Neutral
Price Target:JPY 406.00â–²(22.29% Upside)
Action:reiterated
Date:09/17/26

The company's financial foundation is solid, driven by impressive revenue growth and a pristine balance sheet with minimal debt. However, declining cash flow generation and compressed margins are significant concerns that weigh on the overall score. Technicals show near-term strength, but the stock faces resistance below its long-term average, while the valuation remains fair.

Positive Factors
Conservative Balance SheetDebt-to-equity of about 0.04 and a ¥2.22B equity base indicate conservative capitalization. This reduces balance-sheet strain and preserves flexibility to fund operations, invest in growth, or absorb weaker periods over the next several quarters without heavy reliance on borrowing.
Negative Factors
Margin VolatilityNet margin recovered to about 6.0% but remains below the much stronger levels of 2021–2022, while gross margin has also declined from earlier peaks. This weaker and volatile margin profile may limit earnings scalability and make profitability less predictable.

AI, Inc. (4388) vs. iShares MSCI Japan ETF (EWJ)

-40%-30%-20%-10%0%10%20%30%JP:4388-30.10%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 2.02B
Dividend Yield
1.20%
Average Volume (3M)
9,843
Price to Earnings (P/E)
14.4
Beta (1Y)
0.49
Revenue Growth
8.90%
EPS Growth
―
Country
Japan
Employees
114
Sector
General
Sector Strength
55
Industry
Communication Equipment

AI, Inc. Business Overview & Revenue Model

Company Description

Headquartered in Tokyo, Japan, AI,Inc. specializes in developing and supplying a variety of speech synthesis engines and solutions within Japan. Established in 2003, the company also provides consulting and services related to peripheral systems.

AI, Inc. Financial Statement Overview

Summary

Strong revenue growth and a robust, low-debt balance sheet are offset by declining cash flow and compressed margins. The overall financial picture is stable but shows operational efficiency challenges.

Income Statement

65Positive

Balance Sheet

85Very Positive

Cash Flow

50Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue1.82B1.85B1.49B734.98M634.00M756.57M
Gross Profit908.75M975.77M749.19M513.90M475.42M604.30M
EBITDA240.52M214.19M31.42M119.35M31.73M122.75M
Net Income142.16M110.96M-15.69M109.72M16.37M83.76M
Balance Sheet
Total Assets2.51B2.55B2.96B1.71B1.39B1.35B
Cash, Cash Equivalents and Short-Term Investments1.39B1.48B1.59B575.20M1.24B1.18B
Total Debt95.25M96.01M129.03M246.39M152.11M2.80M
Total Liabilities337.55M324.83M443.16M409.26M202.45M75.36M
Stockholders Equity2.17B2.22B2.36B1.30B1.19B1.28B
Cash Flow
Free Cash Flow054.08M74.01M167.66M12.94M121.71M
Operating Cash Flow076.92M101.73M169.61M18.16M130.56M
Investing Cash Flow0-417.72M-245.08M-1.04B-5.21M-8.85M
Financing Cash Flow0-271.25M-382.07M90.83M44.38M-43.59M

AI, Inc. Technical Analysis

Technical Analysis SentimentNegative
Last Price332.00

Price Trends

50DMA359.90Negative
100DMA362.17Negative
200DMA383.91Negative

Market Momentum

MACD-6.98Positive
RSI24.58Positive
STOCH18.59Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4388, the sentiment is Negative. The current price of 332.00 is below the 20-day moving average (MA) of 345.50, below the 50-day MA of 359.90, and below the 200-day MA of 383.91, indicating a bearish trend. The MACD of -6.98 indicates Positive momentum. The RSI at 24.58 is Positive, neither overbought nor oversold. The STOCH value of 18.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4388.

AI, Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:4388 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3773JP:377373OutperformJPY 18.59B8.89―3.31%14.54%28.01%
JP:4441JP:444168NeutralJPY 16.41B25.21―2.59%24.30%-3.68%
JP:1724JP:172467NeutralJPY 3.18B9.95―3.88%-11.84%-30.65%
JP:4388JP:438866NeutralJPY 2.03B14.44―1.20%8.90%―
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:4392JP:439254NeutralJPY 24.07B27.35―1.38%11.47%―
JP:6522JP:652242NeutralJPY 7.04B-22.58――-8.98%-41.55%

* General Sector Average

Performance Comparison

0%200%400%600%JP:4388JP:1724JP:3773JP:4392JP:4441JP:6522Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:4388 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:4388AI, Inc.333.00-146.36-30.53%
JP:1724Synclayer Inc.721.0050.467.53%
JP:3773Advanced Media, Inc.1011.00-31.82-3.05%
JP:4392Future Innovation Group, Inc.724.00422.23139.92%
JP:4441Tobila Systems, Inc.1547.00640.0370.57%
JP:6522Asterisk Inc.766.00415.00118.23%
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 17, 2026