TRaaS On Product Inc. (6696) AI Stock Analysis

• Market Cap: ¥2.48B
• Dividend Yield: N/A
• Average Volume (3M): 128.53K
• Price to Earnings (P/E): 127.4
• Beta (1Y): 0.94
• Revenue Growth: 48.14%
• EPS Growth: N/A
• Country: JP
• Employees: 45
• Sector: Technology
• Sector Strength: 83
• Industry: Communication Equipment
• EPS (TTM): 1.49
• Shares Outstanding: 4,824,991
• 10 Day Avg. Volume: 228,450
• 30 Day Avg. Volume: 128,530
• PEG Ratio: 506.43
• Price to Book (P/B): 6.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: ―

TRaaS On Product Inc. is experiencing a strong financial recovery with substantial improvements in profitability and cash flow, supported by a solid equity position and low leverage. However, the stock's high valuation poses a significant risk, as indicated by an unusually high P/E ratio and lack of dividend yield. While technical indicators show positive momentum, the stock might be overbought, suggesting caution. The overall score reflects a balance between robust financial health and the risks associated with its current valuation.

TRaaS On Product Inc. Business Overview & Revenue Model

Company Description

TRaaS On Product Inc. manufactures and sells various devices to connect people and things with AI and IoT digital technologies. The company offers SHISA, an automatic check-in system for lodging personal equipment with personal identification function; TRA-DeCA that detects danger by comparing person with the database; and Cygnus in which various applications can be installed in the terminal according to the intended use. It also provides NGH that manages information on accommodation facilities and contents, such as guest room services; T-signage that distributes programs; STB, which can be used to receive and watch TV programs, as well as can used as function- specific computer, video playback, video conferencing, IP broadcasting, digital signages, IOT gateways, etc.; and SHISA, an outdoor digital signage. The company was formerly known as P3, Inc. and changed its name to TRaaS On Product Inc. in April 2022. TRaaS On Product Inc. was founded in 1995 and is headquartered in Tokyo, Japan.

How the Company Makes Money

TRaaS On Product Inc. Financial Statement Overview

Summary

TRaaS On Product Inc. demonstrates a positive financial turnaround, with notable improvements in profitability, revenue growth, and cash flow generation. The company benefits from a solid equity base and low leverage, ensuring financial stability. Despite these strengths, operational efficiency remains an area for improvement, as reflected in modest EBIT and EBITDA margins.

Income Statement

TRaaS On Product Inc.'s income statement shows significant improvement in profitability metrics over the past year. The gross profit margin has increased to 57.8% from 54.4% the previous year, indicating better cost management. Net profit margin improved to 0.6% from a negative position, reflecting a return to profitability. Revenue growth of 32.4% over the past year is a positive sign, pointing to strong sales momentum. However, EBIT and EBITDA margins remain low at 1.3% and 7.2%, respectively, suggesting operational inefficiencies still exist despite the turnaround.

Balance Sheet

The balance sheet of TRaaS On Product Inc. indicates a strong equity position with a debt-to-equity ratio of 0.15, showcasing conservative leverage. The return on equity stands at 0.6%, an improvement from negative returns in previous years, which suggests a recovering profitability trajectory. The equity ratio is robust at 75.9%, indicating financial stability and a strong asset base funded by equity. Overall, the balance sheet reflects a solid financial foundation with low risk.

Cash Flow

The cash flow statement of TRaaS On Product Inc. reveals significant improvement in cash generation. The operating cash flow to net income ratio is 11.9, highlighting strong cash conversion from earnings. Free cash flow has turned positive, with a substantial growth rate of 119.0% year-on-year, enhancing financial flexibility. The free cash flow to net income ratio of 10.4 indicates efficient use of cash generated. However, the high financing cash flow previously indicates reliance on external funding, which requires continued monitoring.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
341.15M	411.49M	310.96M	496.49M	404.57M	586.41M
	Gross Profit
178.47M	237.74M	169.16M	235.23M	81.21M	205.40M
	EBIT
-50.17M	5.28M	-69.43M	-6.47M	-356.58M	-288.57M
	EBITDA
-42.13M	29.51M	-67.32M	-8.14M	-436.91M	-327.00M
	Net Income Common Stockholders
-57.36M	2.35M	-85.81M	-16.80M	-517.84M	-367.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.02B	314.85M	330.10M	388.68M	120.10M	473.02M
	Total Assets
1.29B	542.47M	513.34M	527.91M	298.88M	935.56M
	Total Debt
0.00	60.00M	60.23M	158.62M	61.98M	101.98M
	Net Debt
-1.02B	-254.85M	-269.87M	-230.07M	-58.12M	-371.04M
	Total Liabilities
29.31M	130.40M	105.23M	200.01M	89.71M	209.24M
	Stockholders Equity
1.26B	412.07M	408.11M	327.90M	209.17M	726.32M
Cash Flow		Free Cash Flow
15.93M	24.39M	-128.24M	-1.29M	-301.06M	-190.51M
	Operating Cash Flow
15.93M	28.02M	-72.56M	18.13M	-263.08M	-116.22M
	Investing Cash Flow
0.00	-45.20M	-53.96M	24.25M	89.46M	-237.01M
	Financing Cash Flow
0.00	1.39M	67.83M	225.22M	-40.08M	108.34M

TRaaS On Product Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 513.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6696, the sentiment is Neutral. The current price of 513 is below the 20-day moving average (MA) of 538.10, above the 50-day MA of 500.22, and above the 200-day MA of 432.19, indicating a neutral trend. The MACD of 10.83 indicates Positive momentum. The RSI at 44.74 is Neutral, neither overbought nor oversold. The STOCH value of 31.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6696.

TRaaS On Product Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6822	79 Outperform	¥3.51B	3.39		―	3.30%	37.00%
6696	63 Neutral	¥2.48B	127.43		―	48.14%	―
4388	62 Neutral	¥3.01B	20.87		―	102.19%	-112.09%
Sector *	62 Neutral	$11.80B	10.37	-7.29%	2.91%	7.39%	-7.96%
6778	58 Neutral	¥5.88B	560.47		3.15%	-22.01%	―
6634	56 Neutral	¥5.62B	―		―	220.67%	71.37%
6522	47 Neutral	¥3.10B	―		―	15.83%	38.72%