GRID Inc. (5582) AI Stock Analysis

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GRID Inc.

(TSE/TYO:5582)

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Rating:66Neutral

Price Target:JPY 1,876.00▲(8.00% Upside)

Action:reiterated

Date:08/17/26

The overall score of 66 reflects a mixed outlook. The company's strong balance sheet and revenue growth are key strengths, but margin compression and negative cash flow raise concerns. Technicals show recent improvement but remain below long-term trends. Valuation is fair. Investors should monitor cash flow and margin trends.

Positive Factors

Rapid Revenue GrowthRevenue scaling to 3.12B in 2026 with very strong growth indicates expanding business activity and provides a stronger base for future earnings. If maintained, this trajectory can support reinvestment and operating scale, although durability depends on preserving profitability.

Negative Factors

Negative Latest Cash FlowThe sharp 2026 reversal to negative operating and deeply negative free cash flow raises concern about earnings quality and the cash demands of the business. If persistent, this could increase reliance on cash reserves or financing and reduce flexibility to support ongoing expansion.

GRID Inc. (5582) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 8.36B
Dividend Yield: ―
Average Volume (3M): 19.60K
Price to Earnings (P/E): 24.0
Beta (1Y): 0.70
Revenue Growth: 51.16%
EPS Growth: 14.76%
Country: Japan
Employees: 139
Sector: Technology
Sector Strength: 61
Industry: Software - Application

GRID Inc. Business Overview & Revenue Model

Company Description

Established in 2009 and headquartered in Minato-ku, Japan, GRID Inc. is a technology firm specializing in artificial intelligence. The company provides comprehensive services for AI-powered systems, covering their initial development, market release,...

GRID Inc. Financial Statement Overview

Summary

Strong revenue growth and a rock-solid balance sheet with minimal debt, but margin compression and negative cash flow in the latest year temper the outlook. Overall financial health is good but with operational concerns.

Income Statement

72Positive

Balance Sheet

95Very Positive

Cash Flow

40Negative

Financial statement breakdown
Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2023	Jun 2022
Income Statement
Total Revenue	3.12B	3.12B	2.06B	1.35B	1.65B	910.40M
Gross Profit	1.88B	1.88B	1.52B	954.41M	1.25B	660.65M
EBITDA	529.00M	529.00M	479.38M	245.82M	407.98M	83.43M
Net Income	345.05M	345.05M	298.30M	228.53M	403.75M	91.97M
Balance Sheet
Total Assets	5.14B	5.14B	4.42B	1.58B	4.11B	1.30B
Cash, Cash Equivalents and Short-Term Investments	2.85B	2.85B	3.20B	671.81M	2.90B	618.46M
Total Debt	425.00K	425.00K	5.82M	134.50M	71.63M	194.60M
Total Liabilities	843.52M	843.52M	478.24M	409.74M	467.74M	365.09M
Stockholders Equity	4.29B	4.29B	3.94B	1.17B	3.64B	937.84M
Cash Flow
Free Cash Flow	0	-247.33M	403.14M	113.45M	283.41M	-170.82M
Operating Cash Flow	0	-28.80M	405.95M	150.32M	285.51M	-55.73M
Investing Cash Flow	0	-320.21M	-46.24M	-36.87M	-37.05M	-103.37M
Financing Cash Flow	0	846.00K	-62.41M	-60.10M	1.98B	-5.40M

GRID Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price1737.00

Price Trends

50DMA1964.80Negative

100DMA1945.15Negative

200DMA2132.41Negative

Market Momentum

MACD-67.53Negative

RSI37.91Neutral

STOCH64.97Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5582, the sentiment is Negative. The current price of 1737.00 is below the 20-day moving average (MA) of 1817.40, below the 50-day MA of 1964.80, and below the 200-day MA of 2132.41, indicating a bearish trend. The MACD of -67.53 indicates Negative momentum. The RSI at 37.91 is Neutral, neither overbought nor oversold. The STOCH value of 64.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5582.

GRID Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:5582 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4475	83Outperform	JPY 81.23B	41.66	―	0.46%	17.01%	34.74%
JP:3993	71Outperform	JPY 98.74B	31.29	7.39%	0.30%	77.74%	23.27%
JP:4434	71Outperform	JPY 22.95B	20.67	―	1.31%	23.79%	―
JP:3850	66Neutral	JPY 16.06B	14.79	―	1.99%	23.85%	56.39%
JP:5582	66Neutral	JPY 8.37B	23.99	―	―	51.16%	14.76%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:3778	47Neutral	JPY 126.33B	44.89	―	0.16%	25.84%	71.45%

* Technology Sector Average

Performance Comparison

JP:5582 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5582	GRID Inc.	1737.00	-983.00	-36.14%
JP:3993	PKSHA Technology, Inc.	3335.00	-293.43	-8.09%
JP:3778	SAKURA Internet Inc.	3080.00	60.77	2.01%
JP:3850	NTT Data Intramart Corporation	3245.00	-762.04	-19.02%
JP:4434	Serverworks Co., Ltd.	3050.00	1276.38	71.96%
JP:4475	HENNGE K.K.	2378.00	1039.55	77.67%

GRID Inc. Corporate Events

GRID Inc. Reports Strong Revenue Growth and Sets Ambitious 2027 Outlook

Aug 14, 2026

GRID Inc. reported a 51.2% jump in net sales to ¥3,119 million for the fiscal year ended June 30, 2026, with operating profit up 7.3% to ¥459 million and profit rising 15.7% to ¥345 million, lifting basic earnings per share to ¥72.37. Despite this ea...

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: Aug 17, 2026

GRID Inc. AI Stock Analysis