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

Writeup Co., Ltd.

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AI, Inc.

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Eltes Co., Ltd.

Hotto Link, Inc.

Tecmira Holdings, Inc.

Why is AI, Inc. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 12.65% and Operating profit at -16.81% over the last 5 years

With a growth in Operating Profit of 26.62%, the company declared Very Positive results in Dec 25

The company has declared positive results for the last 2 consecutive quarters
NET SALES(HY) At JPY 932.99 MM has Grown at 39.83%
RAW MATERIAL COST(Y) Fallen by -16.33% (YoY)
CASH AND EQV(HY) Highest at JPY 2,811.82 MM

With ROE of 5.19%, it has a risky valuation with a 1.33 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 -20.45%, its profits have fallen by -2.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -20.45% 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 hold?

Overall Portfolio exposure to AI, Inc. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is AI, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

AI, Inc.

-20.45%

-1.26

42.36%

Japan Nikkei 225

38.94%

1.38

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.65%

EBIT Growth (5y)

-16.81%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.62

Sales to Capital Employed (avg)

0.55

Tax Ratio

8.26%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

74.04%

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

1.33

EV to EBIT

15.24

EV to EBITDA

10.50

EV to Capital Employed

1.86

EV to Sales

1.12

PEG Ratio

Dividend Yield

ROCE (Latest)

12.18%

ROE (Latest)

5.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

21What is working for the Company

NET SALES(HY)

At JPY 932.99 MM has Grown at 39.83%

RAW MATERIAL COST(Y)

Fallen by -16.33% (YoY

CASH AND EQV(HY)

Highest at JPY 2,811.82 MM

OPERATING PROFIT(Q)

Highest at JPY 128.8 MM

OPERATING PROFIT MARGIN(Q)

Highest at 24.71 %

PRE-TAX PROFIT(Q)

Highest at JPY 75.63 MM

NET PROFIT(Q)

Highest at JPY 72.94 MM

-8What is not working for the Company

INTEREST(HY)

At JPY 1.16 MM has Grown at 111.5%

Here's what is working for AI, Inc.

Net Sales

At JPY 932.99 MM has Grown at 39.83%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 75.63 MM has Grown at 138.92%

over average net sales of the previous four periods of JPY 31.65 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 72.94 MM has Grown at 120.91%

over average net sales of the previous four periods of JPY 33.02 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Operating Profit

Highest at JPY 128.8 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 24.71 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 75.63 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 72.94 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 2,811.82 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -16.33% (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

Depreciation

Highest at JPY 28.25 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

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

Interest

At JPY 1.16 MM has Grown at 111.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)