Retty Inc. (7356) AI Stock Analysis

• Market Cap: ¥3.51B
• Dividend Yield: N/A
• Average Volume (3M): 417.77K
• Price to Earnings (P/E): 300.6
• Beta (1Y): 0.54
• Revenue Growth: 6.67%
• EPS Growth: N/A
• Country: JP
• Employees: 96
• Sector: Communication Services
• Sector Strength: 92
• Industry: Internet Content & Information
• EPS (TTM): -1.37
• Shares Outstanding: 14,981,674
• 10 Day Avg. Volume: 231,690
• 30 Day Avg. Volume: 417,766
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥256.00
• Price Target Upside: 9.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: ¥256.00 ▲(9.40% Upside)

Retty Inc.'s overall stock score is primarily impacted by its weak financial performance, with significant risks due to high leverage and ongoing losses. Technical analysis shows a bullish trend, offering some optimism. However, the challenging valuation with a negative P/E ratio underscores the need for caution. Without earnings call data or corporate events, the score reflects the substantial financial and valuation concerns offset by positive technical indicators.

Retty Inc. Business Overview & Revenue Model

Company Description

Retty Inc. is a Japanese company operating in the internet services sector, primarily focused on the development and management of a social networking service dedicated to restaurant reviews and recommendations. The platform allows users to share their dining experiences and discover new restaurants through personalized recommendations and user-generated content. Retty Inc. aims to enhance the dining experiences of its users by providing a reliable and engaging platform for restaurant discovery.

How the Company Makes Money

Retty Inc. generates revenue primarily through advertising and premium services. The company offers advertising opportunities for restaurants and food-related businesses to promote their services on the platform, leveraging its user base to drive visibility and customer engagement. Additionally, Retty Inc. may offer premium subscription services for restaurants, providing enhanced features such as advanced analytics, customer engagement tools, and priority listings. These revenue streams are supported by strategic partnerships with restaurants and food industry stakeholders, contributing to the company's earnings by expanding its network and service offerings.

Retty Inc. Financial Statement Overview

Summary

Retty Inc. faces significant financial challenges with declining revenue, persistent losses, and cash flow issues. Despite a solid gross profit margin, the company's high leverage and negative profitability raise concerns about its financial stability and ability to sustain operations.

Income Statement

Retty Inc.'s income statement shows declining revenue and persistent net losses. The TTM gross profit margin stands at 67.6%, indicating good cost management, but the net profit margin is negative at -4.6% due to substantial losses. Revenue has decreased over the years, with a TTM revenue of ¥1.6 billion compared to ¥2.2 billion in 2020, signaling a negative growth trajectory. The EBIT and EBITDA margins are also negative, reflecting challenges in achieving operational profitability.

Balance Sheet

The balance sheet highlights a moderate debt-to-equity ratio of approximately 1.82, indicating significant leverage. Stockholders' equity is positive but has declined over the years. The equity ratio is 29.2%, suggesting a balanced but leveraged capital structure. Despite having cash reserves, the company faces risks due to high liabilities compared to equity, which could impact financial stability.

Cash Flow

Retty Inc.'s cash flow statements reveal ongoing challenges in generating positive cash flows. The operating cash flow is consistently negative, and the free cash flow has not improved, with a TTM free cash flow of zero. The operating cash flow to net income ratio is not calculable due to zero operating cash flow, further highlighting cash management issues. These factors indicate significant risks in liquidity and cash management.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	1.62B	1.56B	1.56B	1.72B	1.94B	2.22B
Gross Profit	1.11B	1.10B	947.45M	905.80M	1.26B	1.42B
EBITDA	-22.30M	-87.38M	-600.90M	-783.82M	-279.06M	-198.85M
Net Income	-15.24M	-79.95M	-612.20M	-859.68M	-358.59M	-324.03M
Balance Sheet
Total Assets	994.54M	1.07B	1.27B	1.67B	1.73B	1.53B
Cash, Cash Equivalents and Short-Term Investments	507.60M	660.31M	872.61M	894.62M	629.16M	459.20M
Total Debt	510.95M	596.33M	701.60M	1.18B	378.67M	739.33M
Total Liabilities	653.14M	753.05M	878.26M	1.37B	613.75M	1.10B
Stockholders Equity	341.40M	314.61M	392.94M	304.93M	1.11B	429.53M
Cash Flow
Free Cash Flow	0.00	-107.08M	-293.40M	-571.31M	-444.68M	-659.61M
Operating Cash Flow	0.00	-105.85M	-284.40M	-558.22M	-439.73M	-626.04M
Investing Cash Flow	0.00	-1.22M	42.64M	-8.74M	-61.19M	-36.85M
Financing Cash Flow	0.00	-105.21M	219.75M	832.33M	671.48M	731.43M

Retty Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 234.00
• 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:7356, the sentiment is Positive. The current price of 234 is above the 20-day moving average (MA) of 221.10, above the 50-day MA of 199.24, and above the 200-day MA of 161.85, indicating a bullish trend. The MACD of 10.31 indicates Positive momentum. The RSI at 58.53 is Neutral, neither overbought nor oversold. The STOCH value of 66.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7356.

Retty Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3930	76 Outperform	¥4.25B	14.70		―	19.99%	4285.55%
3770	72 Outperform	¥4.30B	32.00		1.15%	-1.29%	-4.45%
3645	62 Neutral	¥2.76B	―		0.96%	15.64%	-1257.26%
Sector *	60 Neutral	$44.07B	1.90	-11.99%	3.99%	2.50%	-38.33%
3845	58 Neutral	¥3.22B	―		―	-26.88%	26.91%
7356	53 Neutral	¥3.51B	300.58		―	6.67%	―
6048	46 Neutral	¥1.39B	―		―	-27.31%	40.63%