AI Storm Co Ltd

AI Storm Co Ltd has a strong liquidity position, with a current ratio of 15.06, indicating that the company holds significantly more current assets than current liabilities. The company maintains no long-term debt and holds JPY 390.4 million in cash and equivalents, which represents a substantial portion of its total assets. This liquidity position is further supported by a debt-to-equity ratio of 0.0, suggesting the company is not leveraged and is not reliant on external financing.

The company's profitability metrics are weak, with a return on equity (ROE) of -0.04% and a return on assets (ROA) of -0.04%, indicating that it is not generating returns for shareholders or effectively utilizing its assets. The operating income is negative at JPY -169,000, and the net income is also negative at JPY -472,000, suggesting the company is currently unprofitable. These figures are below the typical performance of the IT Services & Consulting industry, which generally expects positive returns and operating margins.

AI Storm's revenue is concentrated in a single business segment, as disclosed in its financials, with no geographic breakdown provided in the available data. The absence of geographic diversification could expose the company to regional economic risks, although the extent of this risk is not quantified in the available data.

The company's growth trajectory is not clearly defined in the available data, as there are no forward-looking revenue projections or historical growth rates provided. The current financial performance, characterized by negative operating and net income, suggests that the company may be in a period of operational challenge or strategic investment. Without additional context on future plans or market expansion, it is difficult to assess the company's long-term growth potential.

The risk assessment indicates that AI Storm has low liquidity and dilution risks, with no immediate filing-based flags detected. The company's strong cash position and lack of long-term debt reduce the likelihood of liquidity stress in the near term. However, the negative net income and operating income suggest that the company may need to raise additional capital in the future, which could lead to dilution for existing shareholders. The risk of dilution is currently assessed as low, but this could change if the company's financial performance does not improve.

There are no recent events or filings disclosed in the available data that would indicate significant changes in the company's operations or financial position. The absence of recent events suggests a stable but unremarkable period for the company, with no major strategic initiatives or financial transactions reported.

Revenue surged 86.5% year-over-year to JPY 2.65 billion, demonstrating strong top-line growth momentum.

Operating income jumped 110.2% to JPY 275 million, indicating significant improvement in core operational profitability.

Free cash flow turned positive at JPY 12.4 million, reversing a prior year deficit of JPY 132 million.

The company maintains a zero debt-to-equity ratio, positioning it favorably within the top quartile of its cohort.

Net margin of -0.28% remains significantly below the IT Services cohort median of 3.88%, indicating poor profitability.

Operating margin of -0.1% trails the cohort median of 5.13%, suggesting operational inefficiencies relative to peers.

Return on equity of -0.04% is well below the cohort median of 4.27%, showing weak capital efficiency.

Long-term debt increased substantially to JPY 1.26 billion, raising leverage concerns despite the zero D/E ratio.

The company faces a high credit risk flag, signaling potential difficulties in meeting financial obligations.

Revenue ¥495.6M; Operating income -¥123.0M.

• ▍Revenue ¥495.6M
• ▍Operating income -¥123.0M
• ▍Net margin -27.0%