Aplix Corp (3727) AI Stock Analysis

• Market Cap: ¥4.19B
• Dividend Yield: 1.52%
• Average Volume (3M): 965.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -18.74%
• EPS Growth: -14.72%
• Country: JP
• Employees: 51
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -11.09
• Shares Outstanding: 21,936,130
• 10 Day Avg. Volume: 267,810
• 30 Day Avg. Volume: 965,893
• PEG Ratio: 0.13
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 12.29
• 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: 56 Neutral
• Price Target: ¥197.00 ▲(23.13% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by weakening fundamentals (declining revenue and a return to net losses) despite a conservative, low-leverage balance sheet and still-positive but choppier cash generation. Technicals are mixed with longer-term trend support but weaker near-term positioning, while valuation is constrained by a negative P/E and only a modest dividend yield.

Positive Factors

Conservative balance sheet

A low debt-to-equity (~0.19 in 2025) gives the company durable financial flexibility. That conservative leverage reduces refinancing risk, supports R&D and service commitments during revenue cycles, and provides capacity to absorb cyclical weakness without forcing distress sales.

Positive cash generation

Sustained positive operating and free cash flow in 2025 demonstrates the business can generate internal funding. Even though FCF fell, ongoing cash generation supports operations, funds product maintenance and customer projects, and cushions investment in platform development.

Embedded/IoT software niche

Aplix's focus on embedded and IoT software targets durable structural demand as devices proliferate. Licensing plus services for device makers creates recurring and project-based revenue streams that can scale with industrial and consumer IoT adoption over multiple years.

Negative Factors

Revenue decline trend

Slipping revenue reduces scale benefits and pressures the unit economics of a software licensing and services model. Persistent top-line decline limits reinvestment capacity, compresses margins over time, and raises the risk that fixed-cost absorption will further erode profitability.

Return to net loss

A reversion to net losses after multi-year profitability signals structural margin pressure or revenue mix shifts. Losses undermine retained earnings and ROE, constrain strategic spending, and can force tougher cost cuts that damage long-term product and service competitiveness.

Volatile, weakening free cash flow

Material FCF volatility and a meaningful year-over-year decline reduce financial predictability. That unpredictability limits the company's ability to fund development, sustain customer support, or smooth dividends without relying on external financing, raising vulnerability to demand shocks.

Aplix Corp Business Overview & Revenue Model

Company Description

Aplix Corporation, together with its subsidiaries, engages in the technology business in Japan. It operates in three segments: Aplix IoT Platform Business, Engineering Service Business, and MVNO Business. The company offers MyBeacon series, a Bluetooth smart product that supports Bluetooth Low Energy; Neutrix Cloud, a cloud storage service; box, a cloud content management platform that enables collaboration for companies and organizations; Next set, a solution that provides workflow and document management services; and HARPS, a platform that monitors the usage and replacement of water purifier filters, etc. by connecting flow sensors and TDS sensors. It also provides AORINO, an AI drive recorder with communication function; unio, an Internet-of-Things data communication service for corporations; and THE WiFi, a mobile WiFi router device. In addition, the company provides mobile phones and SIM cards. The company was formerly known as Aplix IP Holdings Corporation and changed its name to Aplix Corporation in April 2017. Aplix Corporation was founded in 1986 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Aplix Corp generates revenue primarily through the sale of its adhesive products to various industries, including automotive, electronics, and construction. The company has established key partnerships with major manufacturers in these sectors, allowing it to secure long-term contracts and bulk orders. Additionally, Aplix invests in research and development to create innovative solutions that meet evolving market demands, which helps to maintain its competitive edge. The company also benefits from a strong distribution network that ensures its products reach a wide customer base, contributing to consistent sales and revenue growth.

Aplix Corp Financial Statement Overview

Summary

Balance sheet strength is a key positive with low leverage (debt-to-equity ~0.19 in 2025). However, operating performance weakened: revenue declined (~-6.8% in 2025) and the company returned to a net loss in 2025 (net margin ~-4.8%). Cash flow stayed positive but free cash flow fell and remains volatile.

Income Statement

Revenue has been drifting lower recently (down ~6.8% in 2025 after being roughly flat/down in 2024), which pressures scale. Profitability is mixed: gross margin improved over time and held at a solid ~33.6% in 2025, but operating profitability compressed versus 2023–2024 and the company slipped back to a net loss in 2025 (net margin ~-4.8%) after being profitable in 2022–2024. Overall, the business shows some margin resilience at the gross level, but earnings consistency is a clear weak point.

Balance Sheet

Leverage looks conservative, with debt-to-equity staying low (~0.19 in 2025 and ~0.06–0.21 over 2021–2024), which reduces financial risk. Equity remains sizable relative to the asset base, supporting balance-sheet stability. The main drawback is returns have weakened alongside earnings—return on equity turned negative in 2025 after positive levels in 2022–2024—so the balance sheet is strong, but current profitability is not generating attractive shareholder returns.

Cash Flow

Cash generation is generally positive in recent years: operating cash flow and free cash flow were both positive in 2025, and free cash flow was also positive in 2021–2024 (after a negative 2020). However, free cash flow has been volatile and declined in 2025 (down ~28.5%), and cash flow conversion versus accounting earnings has been inconsistent across the period. Overall, liquidity looks workable, but the trajectory is choppy and weakening most recently.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.87B	3.71B	3.76B	3.50B	3.50B
Gross Profit	964.51M	1.06B	858.00M	742.74M	711.82M
EBITDA	236.82M	346.43M	376.00M	154.84M	8.55M
Net Income	-137.41M	157.08M	336.04M	185.66M	-106.74M
Balance Sheet
Total Assets	3.52B	3.89B	3.27B	2.96B	2.77B
Cash, Cash Equivalents and Short-Term Investments	1.33B	1.32B	1.81B	1.47B	1.34B
Total Debt	438.49M	550.65M	149.51M	167.14M	200.00M
Total Liabilities	1.17B	1.29B	718.77M	750.60M	713.00M
Stockholders Equity	2.35B	2.59B	2.55B	2.20B	2.05B
Cash Flow
Free Cash Flow	283.36M	176.07M	249.79M	431.93M	43.01M
Operating Cash Flow	283.36M	316.59M	251.81M	435.03M	59.86M
Investing Cash Flow	-87.40M	-1.06B	-82.69M	-82.69M	-34.75M
Financing Cash Flow	-186.06M	258.59M	-17.84M	-17.84M	3.06M

Aplix Corp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 160.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3727, the sentiment is Neutral. The current price of 160 is below the 20-day moving average (MA) of 198.25, below the 50-day MA of 186.47, and below the 200-day MA of 171.14, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 47.39 is Neutral, neither overbought nor oversold. The STOCH value of 51.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3727.

Aplix Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3826	70 Outperform	¥5.52B	7.44	―	2.28%	―	―
5256	69 Neutral	¥2.91B	16.32	―	―	13.48%	61.77%
3917	66 Neutral	¥4.90B	8.00	―	―	7.40%	―
5033	66 Neutral	¥4.90B	13.29	―	―	7.60%	19.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3727	56 Neutral	¥4.19B	-30.25	―	1.52%	-18.74%	-14.72%
3653	54 Neutral	¥4.49B	-56.31	―	―	1.78%	-125.35%