Aplix Corp (3727) AI Stock Analysis

• Market Cap: ¥4.08B
• Dividend Yield: 1.52%
• Average Volume (3M): 965.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• 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: ¥185.00 ▲(15.63% 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 leverage / strong balance sheet

Low debt and a conservative capital structure materially reduce refinancing and solvency risk, giving management flexibility to fund product development, support customers, or pursue small M&A. This stable balance sheet supports durability through cyclical revenue troughs.

Consistent positive cash generation

Recurring positive operating and free cash flows demonstrate the business’s ability to convert license and services revenue to spendable cash. Even with volatility, this cash generation underpins dividends, R&D and customer support without immediate financing.

Gross margin resilience

A mid-30s gross margin is consistent with software and services economics, indicating structural pricing power and scalable cost of goods. If revenue stabilizes, these margins can support a recovery in operating profit as fixed costs are leveraged over a larger base.

Negative Factors

Declining revenue trend

Sustained revenue contraction reduces scale benefits, pressures fixed-cost absorption, and limits the addressable customer spend for licensing and services. Continued declines make reinvesting in product development and sales harder and weaken long-term growth prospects.

Return to net loss and weakened returns

Reverting to net losses and negative ROE signals the business currently fails to deliver shareholder returns from operations. This reduces retained earnings, constrains strategic reinvestment capacity, and undermines the firm's ability to fund growth without external capital.

Choppy and declining free cash flow

Material FCF volatility and a recent 28.5% decline hamper predictable reinvestment in R&D, customer projects and support. This variability increases operational risk, complicates budgeting, and makes sustaining long-term product roadmaps and sales investments more difficult.

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 makes money primarily by licensing its software and providing related development/engineering services to customers that integrate its technologies into their products. Key revenue streams typically include (1) software license fees for the use of Aplix-developed embedded/IoT software components and platforms, which may be charged per device, per project, or under other contractual licensing terms; (2) maintenance, support, and update fees tied to ongoing use of its software; and (3) professional services such as customization, integration support, and contracted development work for customers adopting its software in their devices or systems. null

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	2.80B
Cash, Cash Equivalents and Short-Term Investments	1.33B	1.32B	1.81B	1.47B	1.34B
Total Debt	435.46M	550.65M	131.88M	149.51M	200.00M
Total Liabilities	1.17B	1.29B	718.76M	750.60M	744.25M
Stockholders Equity	2.35B	2.59B	2.55B	2.20B	2.05B
Cash Flow
Free Cash Flow	283.36M	176.07M	0.00	431.93M	43.01M
Operating Cash Flow	283.36M	316.59M	0.00	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: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 187.25, below the 50-day MA of 192.74, and below the 200-day MA of 173.31, indicating a neutral trend. The MACD of -1.74 indicates Negative momentum. The RSI at 47.98 is Neutral, neither overbought nor oversold. The STOCH value of 71.35 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
5256	69 Neutral	¥2.76B	27.18	―	―	13.48%	61.77%
3917	66 Neutral	¥4.72B	62.68	―	―	7.40%	―
5033	66 Neutral	¥4.86B	21.99	―	―	7.60%	19.13%
3826	64 Neutral	¥4.98B	9.17	―	2.28%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3727	56 Neutral	¥4.08B	-25.34	―	1.52%	-18.74%	-14.72%
3653	54 Neutral	¥3.50B	-2.76	―	―	1.78%	-125.35%