AXYZ Co., Ltd. (1381) AI Stock Analysis

• Market Cap: ¥19.66B
• Dividend Yield: 2.81%
• Average Volume (3M): 1.59K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.11
• Revenue Growth: 5.47%
• EPS Growth: 44.78%
• Country: JP
• Employees: 1,320
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): N/A
• Shares Outstanding: 5,617,500
• 10 Day Avg. Volume: 1,640
• 30 Day Avg. Volume: 1,590
• PEG Ratio: 0.24
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 18.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥3,815.00 ▼(-7.96% Downside)
• Action: Downgraded Date: 03/05/26
• Date: Action: Downgraded 03/05/26

The score is driven primarily by strong financial stability (very low leverage) and favorable valuation (low P/E and solid dividend yield). These positives are tempered by weak technical signals (price below key moving averages and negative MACD) and declining profitability/margin trends with uneven free cash flow.

Positive Factors

Strong balance sheet / very low leverage

Extremely low leverage and a robust equity base give the company lasting financial resilience, lowering default and refinancing risk. This capital strength supports multi-year R&D, capex, and M&A optionality, enabling strategic investments without forcing dilutive financing.

Consistent revenue growth

Sustained top-line expansion indicates durable demand for automation and motion-control offerings across end markets. Ongoing revenue growth supports scale economies, funds product development and sales expansion, and underpins multi-quarter profitability improvement opportunities.

Recurring revenue mix & strategic partnerships

A diversified revenue model—hardware sales plus software licenses, maintenance and partner-driven projects—creates recurring cash streams and deeper customer ties. Partnerships and service revenues enhance stickiness and long-term customer lifetime value versus pure hardware sales.

Negative Factors

Declining gross and net margins

Material margin erosion over multiple years suggests sustained cost pressure or pricing weakness that can structurally reduce return on sales. If margins remain compressed, revenue growth may not translate into proportionate profit or cash generation, limiting reinvestment capacity.

Volatile free cash flow

Inconsistent free cash flow complicates long-term planning: unpredictable FCF undermines reliable funding for capex, R&D, dividends or buybacks. Even with strong operating cash conversion sometimes, volatility raises execution risk for multi-year investments and capital allocation.

Declining return on equity

A falling ROE over several years signals reduced efficiency in converting equity into profits, potentially from margin compression or lower asset turnover. Persistent ROE weakness can deter long-term investor support and imply challenges in delivering attractive shareholder returns.

AXYZ Co., Ltd. Business Overview & Revenue Model

Company Description

AXYZ Co., Ltd., together with its subsidiaries, engages in manufacture and sale of processed foods in Japan and internationally. The company operates through Food, Eating Out, and Energy segments. It offers chicken foods such as fried chicken, stewed liver, and chicken nuggets; zeolite products made from raw zeolite rough; and shirasu balloons made from shirasu soil. It also operates franchise stores under the Kentucky Fried Chicken and Pizza Hut brand; and manufactures and supplies renewable energy. AXYZ Co., Ltd. was incorporated in 1962 and is headquartered in Kagoshima, Japan.

How the Company Makes Money

AYXZ Co., Ltd. generates revenue through several key streams. Primarily, the company earns income from the sale of its automation products and systems to manufacturers and industrial clients. This includes both one-time sales of hardware and ongoing revenue from software licenses and upgrades. Additionally, AXYZ offers maintenance and support services, which provide a steady stream of recurring income. Significant partnerships with major industrial players also contribute to its revenue, as these collaborations often lead to joint ventures, co-development projects, or supply agreements that expand market reach and enhance product offerings.

AXYZ Co., Ltd. Financial Statement Overview

Summary

Solid fundamentals supported by a strong balance sheet (very low leverage and robust equity ratio) and consistent revenue growth (+10.6% latest year). Offsetting this, profitability has weakened over time (gross margin down to 25.2% in 2023; net margin down to 4.8% in 2024) and free cash flow has been volatile despite healthy operating cash generation.

Income Statement

AXYZ Co., Ltd. has shown consistent revenue growth with a 10.6% increase in the latest year, indicating strong market demand. The gross profit margin has decreased over the years, from 34.7% in 2021 to 25.2% in 2023, which could indicate rising costs or pricing pressures. Net profit margin has also declined from 11.4% in 2021 to 4.8% in 2024, suggesting potential challenges in maintaining profitability. However, the company has managed to improve its EBIT and EBITDA margins in the latest year, reflecting operational efficiency improvements.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio, decreasing from 0.0088 in 2022 to 0.0045 in 2024, indicating low leverage and financial stability. Return on equity has shown a downward trend from 13.9% in 2021 to 5.9% in 2024, which may suggest declining efficiency in generating profits from shareholders' equity. The equity ratio remains robust, highlighting a solid capital structure.

Cash Flow

AXYZ Co., Ltd. has experienced significant fluctuations in free cash flow, with a notable growth rate of 'Infinity' in the latest year due to a previous negative free cash flow. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has been inconsistent, reflecting volatility in cash flow management.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	26.43B	25.84B	24.10B	21.73B	21.16B
Gross Profit	6.66B	5.93B	6.01B	6.22B	7.35B
EBITDA	4.31B	3.51B	3.50B	3.76B	4.26B
Net Income	1.72B	1.24B	1.41B	1.94B	2.41B
Balance Sheet
Total Assets	25.07B	24.45B	22.64B	21.41B	20.20B
Cash, Cash Equivalents and Short-Term Investments	7.74B	7.13B	6.16B	6.28B	7.90B
Total Debt	69.00M	94.00M	136.00M	165.00M	89.00M
Total Liabilities	3.47B	3.73B	2.89B	2.64B	2.87B
Stockholders Equity	21.60B	20.72B	19.75B	18.77B	17.33B
Cash Flow
Free Cash Flow	889.00M	1.57B	501.00M	-1.08B	594.00M
Operating Cash Flow	2.92B	3.73B	2.63B	2.03B	2.93B
Investing Cash Flow	-1.72B	-2.18B	-2.18B	-3.12B	-2.33B
Financing Cash Flow	-578.00M	-584.00M	-572.00M	-527.00M	-483.00M

AXYZ Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4145.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1381, the sentiment is Neutral. The current price of 4145 is above the 20-day moving average (MA) of 3990.00, above the 50-day MA of 4115.50, and above the 200-day MA of 3469.07, indicating a neutral trend. The MACD of -38.14 indicates Positive momentum. The RSI at 39.63 is Neutral, neither overbought nor oversold. The STOCH value of 9.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1381.

AXYZ Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1384	78 Outperform	¥26.31B	6.45	―	2.45%	21.60%	116.17%
1381	68 Neutral	¥19.66B	10.14	―	2.81%	5.47%	44.78%
2938	63 Neutral	¥59.83B	22.47	―	0.34%	4.70%	-2.58%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1383	62 Neutral	¥5.25B	98.49	―	0.32%	2.94%	19.68%
1380	57 Neutral	¥4.30B	18.10	―	1.00%	9.52%	―
1382	53 Neutral	¥1.39B	7.64	―	2.77%	-2.80%	-62.18%