Arent, Inc. (5254) AI Stock Analysis

• Market Cap: ¥31.77B
• Dividend Yield: N/A
• Average Volume (3M): 30.08K
• Price to Earnings (P/E): 48.2
• Beta (1Y): 0.86
• Revenue Growth: 37.05%
• EPS Growth: -4.93%
• Country: JP
• Employees: 153
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 23.93
• Shares Outstanding: 6,538,085
• 10 Day Avg. Volume: 18,440
• 30 Day Avg. Volume: 30,083
• 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: ¥5,428.00
• Price Target Upside: 11.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ¥5,428.00 ▲(11.69% Upside)

Arent, Inc. scores well on financial performance due to strong revenue growth and profitability, which is the most significant factor. Technical analysis provides mixed signals, indicating stability but lacking strong momentum. The high P/E ratio suggests the stock is overvalued, which is a concern for potential investors. Overall, the stock is positioned for growth but may face valuation challenges.

Arent, Inc. Business Overview & Revenue Model

Company Description

Arent Inc. engages in the development of SaaS based solutions for construction industry in Japan. The company offers Lightning BIM software for architecture and structure industry; and PlantStream software for plant industry. It also provides consulting services. The company was incorporated in 2012 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Arent, Inc. generates revenue through multiple streams including software licensing, subscription services, and consulting fees. The company offers proprietary software products that are licensed to businesses on a subscription basis, providing a steady stream of recurring revenue. Additionally, Arent, Inc. engages in consulting services, helping organizations implement and optimize their technology solutions, which contributes to its revenue. Strategic partnerships with other technology firms and service providers enhance its offerings and market reach, further driving sales and profitability. The company's focus on innovative technology and client-centric solutions allows it to capture significant market demand and grow its earnings.

Arent, Inc. Financial Statement Overview

Summary

Arent, Inc. exhibits strong financial performance with robust revenue growth and profitability metrics. The company maintains a solid balance sheet with low leverage and effective equity utilization. Cash flow generation is strong, supporting operational and strategic flexibility. Minor concerns include a slight decline in net income and stockholders' equity growth.

Income Statement

Arent, Inc. has demonstrated strong revenue growth with a 26.18% increase in the latest year, indicating robust demand for its software applications. The company maintains healthy profitability metrics, with a gross profit margin of 63.36% and a net profit margin of 15.72%. The EBIT margin is also strong at 41.97%, showcasing efficient operational management. However, the slight decline in net income compared to the previous year suggests potential cost pressures or increased competition.

Balance Sheet

The balance sheet of Arent, Inc. reflects a solid financial position with a low debt-to-equity ratio of 0.067, indicating conservative leverage. The return on equity is commendable at 13.20%, reflecting effective use of shareholder funds. The equity ratio stands at 78.89%, highlighting a strong equity base relative to total assets. However, the decrease in stockholders' equity growth compared to previous years could be a concern if it continues.

Cash Flow

Arent, Inc. shows strong cash flow management with a significant increase in free cash flow, marked by an 'Infinity' growth rate due to a low base effect. The operating cash flow to net income ratio of 1.31 indicates efficient cash generation relative to net income. The free cash flow to net income ratio of 1.26 further underscores the company's ability to convert profits into cash. However, the slight decline in operating cash flow compared to the previous year warrants monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.90B	4.03B	2.94B	2.02B	1.01B	722.03M
Gross Profit	2.60B	2.55B	1.70B	1.07B	501.99M	360.99M
EBITDA	1.33B	1.18B	991.61M	547.98M	36.74M	74.14M
Net Income	722.19M	633.50M	658.16M	317.98M	-48.05M	-19.52M
Balance Sheet
Total Assets	5.93B	6.08B	5.06B	4.52B	3.06B	2.18B
Cash, Cash Equivalents and Short-Term Investments	3.63B	3.83B	3.85B	3.21B	1.93B	1.22B
Total Debt	350.19M	322.77M	394.71M	565.02M	813.23M	1.10B
Total Liabilities	1.27B	1.28B	935.19M	1.05B	1.07B	1.34B
Stockholders Equity	4.65B	4.80B	4.12B	3.46B	1.98B	832.61M
Cash Flow
Free Cash Flow	0.00	797.72M	829.71M	823.00M	150.67M	226.71M
Operating Cash Flow	0.00	827.55M	850.22M	833.68M	170.71M	239.57M
Investing Cash Flow	0.00	-828.21M	-43.30M	-454.62M	-368.34M	-971.16M
Financing Cash Flow	0.00	-19.55M	-168.81M	904.64M	906.69M	1.01B

Arent, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4860.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5254, the sentiment is Negative. The current price of 4860 is below the 20-day moving average (MA) of 4964.00, below the 50-day MA of 4954.40, and below the 200-day MA of 5207.88, indicating a bearish trend. The MACD of -44.31 indicates Positive momentum. The RSI at 35.56 is Neutral, neither overbought nor oversold. The STOCH value of 11.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5254.

Arent, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3763	82 Outperform	38.49B	17.84	―	1.78%	12.63%	45.75%
3771	81 Outperform	35.02B	15.40	18.58%	2.86%	11.38%	17.85%
4058	76 Outperform	33.68B	33.69	―	0.46%	43.96%	57.76%
3835	74 Outperform	23.40B	18.70	―	2.72%	5.96%	11.80%
5254	68 Neutral	¥31.77B	48.16	―	―	37.05%	-4.93%
4826	68 Neutral	30.71B	18.77	10.30%	3.06%	4.53%	59.88%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%