Advanced Media Inc

Advanced Media Inc maintains a strong liquidity position, with cash and equivalents amounting to ¥7.25 billion, representing 45.8% of total assets. The company's liquidity FPT (free cash flow to total liabilities) is robust, and its current ratio of 3.6 indicates a solid ability to meet short-term obligations. The debt-to-equity ratio of 0.24 suggests a conservative capital structure, with long-term debt at ¥2.68 billion and total equity at ¥11.26 billion.

Profitability metrics show a return on equity (ROE) of 2.97% and a return on assets (ROA) of 2.11%, both below the median for the Software industry. The company's operating margin is 12.8%, and net margin is 2.0%, indicating room for improvement in cost management and pricing power. Gross profit of ¥1.23 billion supports a gross margin of 73.7%, which is in line with industry norms.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic shifts and regulatory changes. No material revenue concentration by geography is reported, but the absence of segmental or geographic breakdowns limits visibility into risk distribution.

Advanced Media Inc reported revenue of ¥1.67 billion in the latest period, with a year-over-year growth rate of 12.3%. Analysts estimate revenue of ¥6.88 billion for the current fiscal year, suggesting a 33.3% increase from the previous year's actual revenue of ¥6.67 billion. The company's net income of ¥334.2 million reflects a 15.7% growth compared to the prior year, driven by improved operating efficiency and higher sales volumes.

The company's risk profile is characterized by low liquidity and dilution risk. No immediate filing-based liquidity or dilution flags were detected, and the capital structure remains stable with no near-term pressure for equity issuance. The absence of dilution risk is supported by the fact that shares outstanding (basic and diluted) are identical, indicating no dilutive instruments are currently in play.

Recent events include the release of the latest financial results, which exceeded analyst estimates for both revenue and EPS. The company's EPS of ¥90.40 outperformed the mean estimate of ¥83.00, and revenue of ¥6.67 billion surpassed the mean estimate of ¥6.88 billion. These results suggest strong operational performance and market acceptance of the company's offerings.

Net income surged 40.1% year-over-year to JPY 1.4 billion in fiscal 2025, demonstrating strong profitability growth.

Revenue grew at a 10.7% compound annual growth rate over four years, showing consistent top-line expansion.

Cash conversion ratio of 4.47 is best-in-class compared to the cohort median of 0.92, reflecting high earnings quality.

Debt-to-equity ratio of 0.24 is below the cohort median of 0.05, indicating higher relative leverage than peers.

Return on equity of 3.0% lags significantly behind major peers like Microsoft, which reports an ROE of 23.7%.

Free cash flow declined 42.6% year-over-year in fiscal 2025, raising concerns about cash generation sustainability.

Revenue ¥1.84B, +15,3% YoY; Operating income +74,3% YoY.

• ▍Revenue ¥1.84B, +15,3% YoY
• ▍Operating income +74,3% YoY
• ▍Net income +76,8% YoY
• ▍Net margin 18.4%

Revenue ¥1.67B, −1,0% YoY; Operating income −35,3% YoY.

• ▍Revenue ¥1.67B, −1,0% YoY
• ▍Operating income −35,3% YoY
• ▍Net income +38,9% YoY
• ▍Net margin 28.3%

Revenue ¥1.51B, +1,8% YoY; Operating income −28,3% YoY.

• ▍Revenue ¥1.51B, +1,8% YoY
• ▍Operating income −28,3% YoY
• ▍Net income −11,2% YoY
• ▍Net margin 12.2%

Revenue ¥1.90B, +13,7% YoY; Operating income +118,7% YoY.

• ▍Revenue ¥1.90B, +13,7% YoY
• ▍Operating income +118,7% YoY
• ▍Net income +100,5% YoY
• ▍Net margin 35.2%

Revenue ¥1.60B; Operating income ¥255.0M.

• ▍Revenue ¥1.60B
• ▍Operating income ¥255.0M
• ▍Net margin 12.0%

Revenue ¥1.68B; Operating income ¥464.2M.

• ▍Revenue ¥1.68B
• ▍Operating income ¥464.2M
• ▍Net margin 20.2%

Revenue ¥1.48B; Operating income ¥265.3M.

• ▍Revenue ¥1.48B
• ▍Operating income ¥265.3M
• ▍Net margin 14.0%

Revenue ¥1.67B; Operating income ¥213.5M.

• ▍Revenue ¥1.67B
• ▍Operating income ¥213.5M
• ▍Net margin 20.0%

Revenue ¥6.67B, +11,1% YoY; Operating income +23,2% YoY.

• ▍Revenue ¥6.67B, +11,1% YoY
• ▍Operating income +23,2% YoY
• ▍Net income +40,1% YoY
• ▍Free cash flow +42,6% YoY
• ▍Net margin 21.1%

Revenue ¥6.00B, +15,9% YoY; Operating income +7,0% YoY.

• ▍Revenue ¥6.00B, +15,9% YoY
• ▍Operating income +7,0% YoY
• ▍Net income +15,9% YoY
• ▍Free cash flow −29,6% YoY
• ▍Net margin 16.8%

Revenue ¥5.18B, +16,1% YoY; Operating income +79,7% YoY.

• ▍Revenue ¥5.18B, +16,1% YoY
• ▍Operating income +79,7% YoY
• ▍Net income +93,6% YoY
• ▍Free cash flow +127,6% YoY
• ▍Net margin 16.8%

Revenue ¥4.46B, +0,7% YoY; Operating income −6,0% YoY.

• ▍Revenue ¥4.46B, +0,7% YoY
• ▍Operating income −6,0% YoY
• ▍Net income −28,1% YoY
• ▍Free cash flow −36,0% YoY
• ▍Net margin 10.0%