AIAI Group Corp

AIAI Group Corp maintains a liquidity position with a current ratio of 1.25 and a price-to-book ratio of 2.45, indicating moderate leverage and asset valuation. The company's cash and equivalents amount to ¥1,668,498,000, but this is offset by long-term debt of ¥7,860,349,000, resulting in a debt-to-equity ratio of 4.5. This suggests a high reliance on debt financing, which could pose liquidity risks if cash flows decline.

Profitability metrics show a return on equity of 16.53% and a return on assets of 2.47%, which are relatively strong for the Personal Services industry. However, the company's operating income of ¥18,358,000 is significantly lower than its net income of ¥288,445,000, indicating potential non-operating income sources or cost reductions. The gross profit of ¥544,109,000 represents 17.03% of total revenue, suggesting a moderate margin structure.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements. There is no geographic diversification data available, but the company's operations are primarily based in Japan. This concentration could expose the company to regional economic or regulatory risks.

AIAI Group Corp's revenue growth has been modest, with a reported revenue of ¥3,194,659,000 in the latest period. The company's operating cash flow of ¥1,767,371,000 supports its capital expenditures of ¥575,590,000, indicating a focus on maintaining and expanding its service offerings. The capital expenditure to operating cash flow ratio of 0.325 suggests a conservative approach to reinvestment.

The company's risk assessment indicates a medium liquidity risk and a low dilution risk. The key flag of negative net cash after subtracting total debt highlights the need for careful debt management. The company's valuation multiples, including a price-to-earnings ratio of 14.81 and an enterprise value-to-revenue ratio of 3.28, suggest a relatively modest valuation compared to industry peers.

Recent financial filings and investor relations data show that the company's last actual EPS was 65.31 JPY, and its last actual revenue was ¥13,071,340,000. These figures indicate a significant discrepancy from the reported financial snapshot, suggesting potential volatility or seasonal factors affecting the company's performance.

Revenue grew steadily from 10.8 billion JPY in 2023 to 14.6 billion JPY in 2026, demonstrating consistent top-line expansion.

Net income surged from a 506 million JPY loss in 2023 to 621 million JPY profit in 2026, showing strong profitability recovery.

Cash conversion ratio of 6.13 is best-in-class compared to the cohort median of 1.89, highlighting exceptional cash generation.

Net margin of 9.0% exceeds the Personal Services cohort median of 3.5%, reflecting strong bottom-line performance relative to peers.

Debt-to-equity ratio of 4.5 is in the bottom quartile of the cohort, signaling significantly higher financial leverage and risk.

Long-term debt spiked to 19.5 billion JPY in 2026, nearly doubling from 7.9 billion JPY in 2024, increasing solvency concerns.

Operating margin of 0.6% falls in the bottom quartile of the Personal Services cohort, indicating weak operational efficiency.

The company faces high credit risk according to risk flags, suggesting potential difficulties in meeting financial obligations.

Return on invested capital is merely 0.2%, suggesting the company generates minimal value above its cost of capital.

Revenue ¥3.49B, +15,4% YoY; Operating income +314,5% YoY.

• ▍Revenue ¥3.49B, +15,4% YoY
• ▍Operating income +314,5% YoY
• ▍Net income +720,6% YoY
• ▍Net margin 3.2%

Revenue ¥3.39B, +12,6% YoY; Operating income +10,1% YoY.

• ▍Revenue ¥3.39B, +12,6% YoY
• ▍Operating income +10,1% YoY
• ▍Net income −33,4% YoY
• ▍Net margin 4.0%

Revenue ¥3.91B, +22,5% YoY; Operating income +104,0% YoY.

• ▍Revenue ¥3.91B, +22,5% YoY
• ▍Operating income +104,0% YoY
• ▍Net income −52,9% YoY
• ▍Net margin 3.5%

Revenue ¥3.13B; Operating income ¥187.0M.

• ▍Revenue ¥3.13B
• ▍Operating income ¥187.0M
• ▍Net margin 3.2%

Revenue ¥3.02B; Operating income ¥53.1M.

• ▍Revenue ¥3.02B
• ▍Operating income ¥53.1M
• ▍Net margin -0.6%

Revenue ¥3.01B; Operating income ¥152.4M.

• ▍Revenue ¥3.01B
• ▍Operating income ¥152.4M
• ▍Net margin 6.8%

Revenue ¥3.19B; Operating income ¥18.4M.

• ▍Revenue ¥3.19B
• ▍Operating income ¥18.4M
• ▍Net margin 9.0%

Revenue ¥14.63B, +11,9% YoY; Operating income +145,1% YoY.

• ▍Revenue ¥14.63B, +11,9% YoY
• ▍Operating income +145,1% YoY
• ▍Net income +47,4% YoY
• ▍Free cash flow +26,1% YoY
• ▍Net margin 4.2%

Revenue ¥13.07B, +10,6% YoY; Operating income +153,5% YoY.

• ▍Revenue ¥13.07B, +10,6% YoY
• ▍Operating income +153,5% YoY
• ▍Net income +19,4% YoY
• ▍Free cash flow +53,0% YoY
• ▍Net margin 3.2%

Revenue ¥11.82B, +9,2% YoY; Operating income +128,5% YoY.

• ▍Revenue ¥11.82B, +9,2% YoY
• ▍Operating income +128,5% YoY
• ▍Net income +169,8% YoY
• ▍Free cash flow +185,2% YoY
• ▍Net margin 3.0%

Revenue ¥10.82B, −9,6% YoY; Operating income −7,1% YoY.

• ▍Revenue ¥10.82B, −9,6% YoY
• ▍Operating income −7,1% YoY
• ▍Net income −534,0% YoY
• ▍Net margin -4.7%