AI, Inc. (4388) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Tecmira Holdings, Inc.

AI, Inc.

Tose Co., Ltd.

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Silicon Studio Corp.

Hotto Link, Inc.

Eltes Co., Ltd.

Why is AI, Inc. ?

Weak Long Term Fundamental Strength with a -14.76% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 17.11% and Operating profit at -14.76% over the last 5 years

Negative results in Jun 26

INTEREST(HY) At JPY 1.22 MM has Grown at 16.06%
PRE-TAX PROFIT(Q) At JPY -31.4 MM has Fallen at -206.07%
NET PROFIT(Q) At JPY -16.02 MM has Fallen at -152.4%

With ROE of 6.79%, it has a expensive valuation with a 1.11 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -23.35%, its profits have risen by 33.4% ; the PEG ratio of the company is 0.5

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -23.35% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is AI, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

AI, Inc.

-22.25%

-1.83

31.09%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.11%

EBIT Growth (5y)

-14.76%

EBIT to Interest (avg)

59.18

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.62

Sales to Capital Employed (avg)

0.63

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

22.51%

Pledged Shares

Institutional Holding

ROCE (avg)

32.56%

ROE (avg)

8.09%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.11

EV to EBIT

7.69

EV to EBITDA

4.43

EV to Capital Employed

1.30

EV to Sales

0.55

PEG Ratio

0.49

Dividend Yield

ROCE (Latest)

16.87%

ROE (Latest)

6.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.57% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 163.94 times

-21What is not working for the Company

INTEREST(HY)

At JPY 1.22 MM has Grown at 16.06%

PRE-TAX PROFIT(Q)

At JPY -31.4 MM has Fallen at -206.07%

NET PROFIT(Q)

At JPY -16.02 MM has Fallen at -152.4%

NET SALES(Q)

Lowest at JPY 363.94 MM

OPERATING PROFIT(Q)

Lowest at JPY -4.17 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.15 %

Here's what is working for AI, Inc.

Inventory Turnover Ratio

Highest at 163.94 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -5.57% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for AI, Inc.

Net Sales

At JPY 363.94 MM has Fallen at -21.31%

over average net sales of the previous four periods of JPY 462.51 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY -31.4 MM has Fallen at -206.07%

over average net sales of the previous four periods of JPY 29.6 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -16.02 MM has Fallen at -152.4%

over average net sales of the previous four periods of JPY 30.58 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 1.22 MM has Grown at 16.06%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 363.94 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY -4.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -1.15 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales