PIXTA, Inc. (3416) AI Stock Analysis

• Market Cap: ¥2.15B
• Dividend Yield: 4.41%
• Average Volume (3M): 3.49K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.47
• Revenue Growth: -10.69%
• EPS Growth: -60.56%
• Country: JP
• Employees: 116
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 14.99
• Shares Outstanding: 2,296,640
• 10 Day Avg. Volume: 4,400
• 30 Day Avg. Volume: 3,493
• PEG Ratio: -0.24
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.62
• P/FCF Ratio: -11.53
• 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: 58 Neutral
• Price Target: ¥933.00 ▼(-2.81% Downside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is held back primarily by deteriorating 2025 profitability and especially negative operating/free cash flow, despite a resilient, low-leverage balance sheet. Technical indicators also point to a weak trend (below key moving averages and negative MACD). A moderate P/E and strong dividend yield provide partial support.

Positive Factors

Low leverage / strong balance sheet

PIXTA’s extremely low leverage and solid equity base provide durable financial flexibility to absorb earnings volatility, fund product or market investments, and withstand cyclical shocks without needing immediate external financing. This structural strength supports multi-quarter strategic execution and risk management.

Healthy gross margins

A gross margin near 56% reflects the digital marketplace’s low incremental cost to deliver content and supports long-term profitability potential. Even if operating costs fluctuate, high gross margin gives management scope to invest in marketing or product development while preserving the ability to restore operating margins over several quarters.

Marketplace, scalable business model

PIXTA’s platform model scales with content and users: marketplace network effects, recurring licensing and commission revenue, and potential subscription/enterprise contracts support durable revenue engines. This structural model enables margin expansion as fixed platform costs are spread over greater volume over time.

Negative Factors

Negative operating and free cash flow

A swing to negative operating and free cash flow increases execution risk: it constrains reinvestment and forces reliance on the balance sheet for financing. Persistent cash conversion problems can impair product investment, dividend coverage, or M&A options over the next several quarters if not reversed.

Revenue decline and margin compression

A meaningful revenue drop alongside sharp operating and net margin deterioration signals structural demand weakness or rising cost pressure. If these trends persist, they could erode economy of scale benefits, reduce cash generation, and make multi-quarter recovery of profitability more challenging for management.

Volatile revenue and EPS trends

Large swings in top-line and EPS indicate low predictability of performance and higher forecasting risk. Volatility complicates long-range planning for content investment and creator incentives, and increases the chance that temporary setbacks become structural without consistent demand recovery or margin remediation.

PIXTA, Inc. Business Overview & Revenue Model

Company Description

PIXTA Inc. operates an online marketplace site of stock photos, illustrations, vectors, and footage in Japan. The company serves designers, web directors, publishers, or other creative professionals. PIXTA Inc. was incorporated in 2005 and is based in Tokyo, Japan.

How the Company Makes Money

PIXTA generates revenue primarily through the sale of stock content licenses. Customers can purchase credits or subscriptions to access and download images, videos, and illustrations from its extensive library. The company offers various pricing models, including pay-per-download and subscription plans, which cater to different user needs. Additionally, PIXTA earns revenue by providing a platform for content creators to sell their work, taking a commission on each sale. Strategic partnerships with businesses and collaborations with creative agencies also contribute to its earnings, as they expand its reach and enhance the service offerings to clients.

PIXTA, Inc. Financial Statement Overview

Summary

Mixed fundamentals: a very strong, low-leverage balance sheet (Score 82) is offset by weaker 2025 profitability (Income Statement Score 62; sharp margin compression) and notably poor cash generation (Cash Flow Score 38; negative operating and free cash flow), increasing near-term earnings and cash-conversion risk.

Income Statement

Revenue has been volatile, with a decline in 2025 (-9.1%) after a strong 2024, and profitability materially compressed: net margin fell to ~3.5% in 2025 from ~13.6% in 2024, with EBIT margin also down sharply (~5.7% vs. ~19.8%). The business still maintains healthy gross margin (~55.9% in 2025), but the sharp step-down in operating and net profitability suggests either cost pressure or weaker demand, creating near-term earnings risk despite prior-year strength.

Balance Sheet

The balance sheet is conservatively financed, with extremely low leverage in 2025 (debt-to-equity ~0.001) and solid equity backing (equity ~¥1.19B against assets ~¥2.41B). While returns on equity fell meaningfully in 2025 (~7.8%) from 2024’s unusually high level (~33.9%), the overall capital structure looks resilient and provides flexibility to absorb earnings volatility.

Cash Flow

Cash generation weakened significantly in 2025, with operating cash flow turning negative (~-¥138M) and free cash flow also negative (~-¥144M) after strong positive cash flows in 2023–2024. This divergence versus positive net income in 2025 raises execution risk around working capital timing or cash conversion, and it reduces near-term financial flexibility even though prior years showed good free cash flow relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.93B	2.66B	2.88B	2.62B	2.79B	2.81B
Gross Profit	1.83B	1.49B	1.90B	1.71B	1.85B	1.81B
EBITDA	526.22M	179.37M	596.91M	388.48M	237.33M	222.11M
Net Income	342.25M	92.66M	393.05M	261.56M	121.83M	184.15M
Balance Sheet
Total Assets	2.34B	2.41B	2.61B	2.31B	2.34B	2.44B
Cash, Cash Equivalents and Short-Term Investments	1.65B	1.51B	1.83B	1.51B	1.41B	1.50B
Total Debt	0.00	785.00K	19.96M	59.97M	120.23M	209.03M
Total Liabilities	1.19B	1.20B	1.45B	1.32B	1.43B	1.55B
Stockholders Equity	1.15B	1.19B	1.16B	988.52M	909.39M	887.02M
Cash Flow
Free Cash Flow	0.00	-144.43M	566.22M	255.52M	129.64M	341.44M
Operating Cash Flow	0.00	-138.32M	586.01M	285.60M	167.88M	373.75M
Investing Cash Flow	0.00	-79.55M	17.47M	33.00K	-56.24M	10.71M
Financing Cash Flow	0.00	-97.38M	-268.76M	-246.89M	-200.61M	-120.59M

PIXTA, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 960.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3416, the sentiment is Positive. The current price of 960 is above the 20-day moving average (MA) of 908.70, above the 50-day MA of 932.24, and above the 200-day MA of 949.70, indicating a neutral trend. The MACD of -5.02 indicates Negative momentum. The RSI at 59.78 is Neutral, neither overbought nor oversold. The STOCH value of 79.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3416.

PIXTA, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7110	78 Outperform	¥15.85B	18.48	―	2.22%	26.29%	28.62%
3179	66 Neutral	¥24.99B	17.26	―	3.53%	-2.73%	-51.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
4017	61 Neutral	¥1.60B	41.15	―	―	-0.97%	-6.95%
3660	59 Neutral	¥48.32B	17.51	14.53%	0.21%	23.01%	34.28%
3416	58 Neutral	¥2.15B	17.50	―	4.41%	-10.69%	-60.56%
4449	57 Neutral	¥30.82B	32.87	―	0.82%	49.28%	-117.98%