Fixstars (3687) AI Stock Analysis

• Market Cap: ¥45.13B
• Dividend Yield: 1.14%
• Average Volume (3M): 699.04K
• Price to Earnings (P/E): 28.1
• Beta (1Y): 1.23
• Revenue Growth: 20.29%
• EPS Growth: 30.05%
• Country: JP
• Employees: 320
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 13.93
• Shares Outstanding: 33,635,000
• 10 Day Avg. Volume: 558,850
• 30 Day Avg. Volume: 699,036
• PEG Ratio: 1.01
• Price to Book (P/B): 7.17
• Price to Sales (P/S): 6.15
• P/FCF Ratio: 31.64
• 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: 63 Neutral
• Price Target: ¥1,479.00 ▼(-4.58% Downside)
• Action: Downgraded Date: 12/18/25
• Date: Action: Downgraded 12/18/25

Fixstars' strong financial performance is the most significant factor, contributing positively to the overall score. However, bearish technical indicators and a moderate valuation weigh down the score. The absence of earnings call data and corporate events means these factors do not influence the evaluation.

Positive Factors

Financial Strength

Fixstars' documented strong financial profile — consistent revenue growth, robust profitability and effective cash management — indicates durable capacity to fund R&D, sustain services delivery and absorb shocks. This underpins multi-month operational resilience and strategic investment ability.

Cash Generation

Substantial free cash flow growth and efficient operating cash conversion provide lasting financial flexibility: supports recurring product development, funds project staffing variability, and reduces reliance on external financing, improving stability over coming quarters.

Low Leverage

A low debt-to-equity ratio and reduced debt position give Fixstars durable balance-sheet flexibility to invest in tooling, hire engineering talent, and pursue partnerships without heavy interest burdens, lowering refinancing and solvency risk for the medium term.

Negative Factors

Slowing Revenue Growth

A modest 4% latest-period revenue rise and a note that growth has slightly decelerated suggest top-line momentum is weakening. If the deceleration persists, it may constrain reinvestment capacity and pressure margins as operating leverage limits flexibility over the next several quarters.

Asset Utilization

An elevated equity ratio implies potential under‑utilized assets or conservative capital structure. Persistently low asset turnover can cap returns on invested capital, limiting long-term ROA and shareholder return growth unless management improves utilization or deploys capital more efficiently.

Revenue Model Concentration

Heavy reliance on contract engineering and project-based revenue ties performance to client budgets and AI/platform adoption cycles. Limited disclosed recurring licensing mix increases exposure to demand swings and makes medium-term top-line predictability more sensitive to customer procurement trends.

Fixstars Business Overview & Revenue Model

Company Description

Fixstars Corporation (3687) is a technology company based in Japan that specializes in high-performance computing solutions and storage systems. The company operates primarily in the IT and software sectors, focusing on providing innovative products and services that enhance data processing capabilities, particularly in fields such as big data analytics, artificial intelligence, and enterprise storage solutions. Fixstars is known for its expertise in developing software solutions that optimize the performance of hardware systems, thereby enabling clients to achieve greater efficiency in their computing operations.

How the Company Makes Money

Fixstars primarily makes money by providing (1) engineering and development services and (2) software/products related to performance optimization and high-performance computing. A key revenue stream is contract-based work where Fixstars’ engineers optimize customers’ applications and algorithms to run faster on target hardware (e.g., GPU/parallel processors), and/or deliver custom software development projects; these engagements typically generate revenue through project fees (fixed-price or time-and-materials depending on contract terms, if disclosed). Another revenue stream comes from selling licenses/subscriptions and maintenance/support for its software tools and solutions that assist development, profiling, and optimization; this can include recurring revenue from ongoing support contracts and updates (specific product-level pricing/terms: null). The company’s earnings are influenced by customer demand for accelerating AI and compute-heavy workloads and by adoption of advanced computing platforms; partnerships or specific major counterparties contributing materially to revenue: null.

Fixstars Financial Statement Overview

Summary

Fixstars presents a strong financial profile with consistent revenue growth, robust profitability, and effective cash flow management. The company's reduction in debt and strong equity position enhance its financial stability. While the growth rate has slightly slowed, the company's financial health remains solid.

Income Statement

Fixstars has demonstrated consistent revenue growth over the years, with a 4% increase in the latest period. The company maintains strong profitability, evidenced by high gross and net profit margins. EBIT and EBITDA margins are robust, indicating efficient operations. However, the growth rate has slightly decelerated compared to previous years, which could be a point of concern if the trend continues.

Balance Sheet

The balance sheet shows a healthy equity position with a low debt-to-equity ratio, indicating financial stability. The company has significantly reduced its debt over the years, enhancing its equity ratio. Return on equity remains strong, reflecting effective use of shareholders' funds. However, the equity ratio suggests room for improvement in asset utilization.

Cash Flow

Fixstars exhibits strong cash flow management, with substantial growth in free cash flow. The operating cash flow to net income ratio indicates efficient cash generation relative to earnings. The free cash flow to net income ratio is healthy, suggesting good cash conversion. The significant increase in free cash flow growth is a positive indicator of future financial flexibility.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	9.62B	8.00B	7.04B	6.31B	5.50B
Gross Profit	5.01B	4.18B	3.57B	3.03B	2.28B
EBITDA	2.74B	2.45B	2.22B	1.77B	1.06B
Net Income	1.95B	1.49B	1.45B	1.08B	543.17M
Balance Sheet
Total Assets	9.89B	8.75B	8.21B	8.16B	7.40B
Cash, Cash Equivalents and Short-Term Investments	5.23B	5.14B	4.63B	5.06B	4.68B
Total Debt	47.18M	547.15M	1.30B	2.10B	2.94B
Total Liabilities	1.37B	1.80B	2.38B	3.58B	3.75B
Stockholders Equity	8.25B	6.73B	5.64B	4.41B	3.53B
Cash Flow
Free Cash Flow	1.87B	1.77B	681.90M	1.45B	431.04M
Operating Cash Flow	1.98B	1.94B	719.45M	1.49B	864.57M
Investing Cash Flow	-541.47M	-167.22M	-17.99M	43.80M	-487.55M
Financing Cash Flow	-1.13B	-1.24B	-1.13B	-1.29B	-1.31B

Fixstars Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1550.00
• 50DMA: Negative
• 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:3687, the sentiment is Negative. The current price of 1550 is above the 20-day moving average (MA) of 1441.90, above the 50-day MA of 1494.88, and below the 200-day MA of 1773.32, indicating a bearish trend. The MACD of -14.77 indicates Negative momentum. The RSI at 43.08 is Neutral, neither overbought nor oversold. The STOCH value of 39.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3687.

Fixstars Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5586	65 Neutral	¥12.69B	37.90	―	―	25.41%	9.69%
3687	63 Neutral	¥45.13B	28.11	25.26%	1.14%	20.29%	30.05%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5572	59 Neutral	¥8.90B	33.78	―	―	60.41%	-27.67%
4259	53 Neutral	¥54.51B	43.64	―	―	8.98%	-581.59%
3905	52 Neutral	¥44.07B	16.46	―	―	27.58%	-1.50%
4425	44 Neutral	¥22.60B	35.20	―	―	36.08%	-7.71%

Fixstars Corporate Events

Fixstars Posts Higher Sales but Profit Decline and Signals Slower Earnings Growth

Fixstars reported consolidated net sales of ¥2.53 billion for the quarter ended December 31, 2025, up 9.3% year on year, while operating profit declined 10.1% to ¥663 million and profit attributable to owners of parent slipped 2.2% to ¥449 million. The company’s equity ratio remained strong at 85.2%, and it maintained its dividend stance with a full-year forecast of ¥18 per share, despite guiding for modest full-year sales growth of 7.1% and flat operating profit alongside a projected 17.8% decline in full-year profit, indicating pressure on margins and earnings momentum.

Total assets edged down to ¥9.55 billion and net assets to ¥8.32 billion compared with the previous fiscal year-end, reflecting limited balance sheet volatility and continued financial stability. Earnings per share for the quarter were ¥13.93, slightly below the prior-year period, and the unchanged earnings and dividend forecasts suggest management expects steady, but slowing, growth, which may temper investor expectations even as the company preserves a conservative capital structure.

The most recent analyst rating on (JP:3687) stock is a Hold with a Yen1666.00 price target. To see the full list of analyst forecasts on Fixstars stock, see the JP:3687 Stock Forecast page.

Fixstars Completes Treasury Share Disposal for Restricted Stock Compensation

Fixstars Corporation has completed the payment procedures for the disposal of its treasury shares used as restricted stock compensation, following a resolution passed by its Board of Directors on December 17, 2025. The transaction involved the disposal of 50,400 common shares at a price of 1,533 yen per share, for a total value of 77,263,200 yen, allocated as remuneration to four internal directors, marking the formal execution of a share-based compensation scheme aimed at aligning management incentives with shareholder interests.

The most recent analyst rating on (JP:3687) stock is a Hold with a Yen1666.00 price target. To see the full list of analyst forecasts on Fixstars stock, see the JP:3687 Stock Forecast page.