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AI, Inc. (JP:4388)
:4388
Japanese Market
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AI, Inc. (4388) AI Stock Analysis

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JP:4388

AI, Inc.

(4388)

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Outperform 72 (OpenAI - Gpt-5.6Sol)
Rating:72Outperform
Price Target:
¥417.00
▲(12.70% Upside)
Action:Upgraded
Date:09/17/26
The score is driven primarily by solid financial performance—especially a strong, low-debt balance sheet and a recovery in growth and profitability—partly tempered by inconsistent cash conversion and margin volatility. Technicals are improving but still mixed due to trading below the 200-day average, while valuation is reasonable with a mid-teens P/E and a modest dividend yield.
Positive Factors
Conservative Balance Sheet
Debt-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 Volatility
Net 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.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Debt-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.
Read all positive factors

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

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
Financials are solid overall, led by a conservatively positioned balance sheet (low leverage, strong equity base) and a meaningful rebound in profitability with accelerating revenue growth. Key offsets are margin volatility versus prior peak years and uneven cash conversion despite positive free cash flow.
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
62
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue1.82B1.85B1.49B734.98M634.00M756.57M
Gross Profit908.75M975.77M749.19M513.90M475.42M604.30M
EBITDA240.52M214.19M31.42M120.75M31.73M122.75M
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 Flow0.0054.08M74.01M167.66M12.94M121.71M
Operating Cash Flow0.0076.92M101.73M169.61M18.16M130.56M
Investing Cash Flow0.00-417.72M-245.08M-1.04B-5.21M-8.85M
Financing Cash Flow0.00-271.25M-382.07M90.83M44.38M-43.59M

AI, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price370.00
Price Trends
50DMA
367.26
Negative
100DMA
371.07
Negative
200DMA
394.38
Negative
Market Momentum
MACD
1.18
Positive
RSI
39.83
Neutral
STOCH
30.13
Neutral
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 370 is below the 20-day moving average (MA) of 372.55, above the 50-day MA of 367.26, and below the 200-day MA of 394.38, indicating a bearish trend. The MACD of 1.18 indicates Positive momentum. The RSI at 39.83 is Neutral, neither overbought nor oversold. The STOCH value of 30.13 is Neutral, 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
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥19.90B9.50―3.10%14.54%28.01%
76
Outperform
¥15.88B24.74―1.42%24.30%-3.68%
72
Outperform
¥2.21B15.78―1.10%8.90%―
67
Neutral
¥3.32B9.94―3.89%-11.84%-30.65%
60
Neutral
¥32.65B37.14―1.02%11.47%―
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
50
Neutral
¥12.88B-84.71――-12.93%-41.92%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4388
AI, Inc.
362.00
-146.14
-28.76%
JP:1724
Synclayer Inc.
720.00
52.35
7.84%
JP:3773
Advanced Media, Inc.
1,082.00
10.19
0.95%
JP:4392
Future Innovation Group, Inc.
982.00
663.79
208.60%
JP:4441
Tobila Systems, Inc.
1,497.00
431.60
40.51%
JP:6522
Asterisk Inc.
1,400.00
997.00
247.39%
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