ABEJA,Inc. (5574) AI Stock Analysis

• Market Cap: ¥32.37B
• Dividend Yield: N/A
• Average Volume (3M): 154.15K
• Price to Earnings (P/E): 74.4
• Beta (1Y): 1.38
• Revenue Growth: 25.51%
• EPS Growth: 95.13%
• Country: JP
• Employees: 125
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 37.54
• Shares Outstanding: 9,764,800
• 10 Day Avg. Volume: 149,180
• 30 Day Avg. Volume: 154,150
• 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: ¥3,465.00
• Price Target Upside: 5.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ¥3,465.00 ▲(5.00% Upside)

ABEJA, Inc.'s strong financial stability is offset by challenges in revenue growth and cash flow generation. Technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. These factors collectively result in a moderate stock score.

ABEJA,Inc. Business Overview & Revenue Model

Company Description

ABEJA, Inc. engages in the digital platform business. The company offers ABEJA platform, a software group that provides processes from design, development, construction, operation, and enhancement according to the needs of client companies, as well as that allows customers to use the software and platforms, such as software as a service and platform as a service; and digital version of electronics manufacturing service. It also offers DX human resource development support and artificial intelligence related services. In addition, the company provides ABEJA Insight tool for retail and other stores. ABEJA, Inc. was incorporated in 2012 and is based in Tokyo, Japan.

How the Company Makes Money

ABEJA, Inc. generates revenue through a combination of subscription-based services, licensing its AI platform, and providing customized AI solutions to businesses. The company partners with enterprises across various sectors to integrate AI technology into their operations, which often involves long-term contracts and ongoing service agreements. Additionally, ABEJA collaborates with other technology providers and industry leaders to expand its market reach and enhance its product offerings, contributing to its revenue streams.

ABEJA,Inc. Financial Statement Overview

Summary

ABEJA, Inc. demonstrates a strong financial position with a solid balance sheet and robust gross profit margins. However, challenges in sustaining revenue growth and generating positive cash flow from operations are evident. The low debt levels and strong equity provide a buffer against financial instability.

Income Statement

ABEJA, Inc. has shown a strong gross profit margin indicating efficient cost management, although there has been a decline in net profit margin due to lower net income. Revenue has slightly decreased year-over-year, indicating a need for growth strategies. The EBIT margin has decreased, but remains positive, suggesting operational efficiency. Overall, the income statement reflects solid profitability but indicates challenges in maintaining revenue growth.

Balance Sheet

The company maintains a strong equity position with a high equity ratio, signaling financial stability. The debt-to-equity ratio is very low, reflecting minimal reliance on debt, which reduces financial risk. Return on equity has decreased due to lower net income, but the overall balance sheet remains robust with ample cash reserves.

Cash Flow

ABEJA, Inc. experienced a significant decline in operating cash flow and free cash flow, indicating challenges in generating cash from operations. The free cash flow to net income ratio is negative, highlighting cash flow concerns. However, the company has positive financing cash flow, possibly indicating external funding support.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.15B	2.77B	2.78B	1.98B	1.26B
Gross Profit	2.02B	1.84B	1.73B	1.18B	581.30M
EBITDA	384.91M	292.77M	380.19M	-193.75M	-347.81M
Net Income	292.25M	218.71M	421.60M	-196.37M	-350.43M
Balance Sheet
Total Assets	4.72B	4.24B	4.11B	2.16B	2.38B
Cash, Cash Equivalents and Short-Term Investments	3.65B	2.87B	3.54B	1.84B	2.11B
Total Debt	0.00	118.55M	80.00M	80.00M	80.00M
Total Liabilities	550.39M	341.76M	628.61M	366.09M	392.61M
Stockholders Equity	4.17B	3.90B	3.48B	1.79B	1.99B
Cash Flow
Free Cash Flow	0.00	-773.66M	459.89M	-267.56M	-152.76M
Operating Cash Flow	0.00	-760.01M	460.53M	-253.49M	-152.76M
Investing Cash Flow	0.00	-28.57M	-5.64M	-14.06M	405.34M
Financing Cash Flow	0.00	116.95M	1.24B	3.96M	-37.41M

ABEJA,Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3300.00
• 50DMA: Negative
• 100DMA: Negative
• 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:5574, the sentiment is Negative. The current price of 3300 is below the 20-day moving average (MA) of 3306.00, below the 50-day MA of 3500.80, and above the 200-day MA of 2800.50, indicating a neutral trend. The MACD of -29.62 indicates Negative momentum. The RSI at 46.53 is Neutral, neither overbought nor oversold. The STOCH value of 47.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5574.

ABEJA,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3984	77 Outperform	33.14B	23.10	0.00%	0.68%	17.26%	20.28%
4396	76 Outperform	32.70B	22.27	24.25%	1.56%	22.28%	19.79%
2349	75 Outperform	25.49B	10.74	11.00%	1.22%	9.56%	7.39%
3393	74 Outperform	27.66B	14.17	25.81%	4.08%	13.54%	15.43%
3655	73 Outperform	30.89B	28.31	0.00%	0.57%	11.47%	17.94%
5574	60 Neutral	¥32.37B	74.36		―	25.51%	95.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%