AXIS CO LTD. (4012) AI Stock Analysis

• Market Cap: ¥6.13B
• Dividend Yield: 1.66%
• Average Volume (3M): 18.70K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.37
• Revenue Growth: 8.16%
• EPS Growth: 5.69%
• Country: JP
• Employees: 430
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 55.17
• Shares Outstanding: 4,383,000
• 10 Day Avg. Volume: 8,690
• 30 Day Avg. Volume: 18,696
• PEG Ratio: 0.38
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 10.37
• 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: 79 Outperform
• Price Target: ¥1,709.00 ▲(14.47% Upside)

The score is driven primarily by strong financial quality (low leverage, solid profitability improvement, strong ROE) and favorable valuation (low P/E with a ~3% dividend). This is tempered by mixed technical signals, with negative MACD and the stock still below its 100/200-day averages despite better near-term momentum.

Positive Factors

Strong Balance Sheet

A strong balance sheet with zero debt enhances financial stability and provides flexibility for future investments or downturns.

Revenue Growth

Consistent revenue growth indicates a robust market position and effective business strategies, supporting long-term sustainability.

Profitability Improvement

Improved profitability reflects efficient operations and cost management, enhancing the company's ability to generate returns.

Negative Factors

Margin Volatility

Margin volatility suggests potential cost pressures or unfavorable mix effects, which could impact future profitability.

Cash Conversion Drag

Suboptimal cash conversion indicates inefficiencies in cash management, potentially limiting reinvestment capabilities.

Profit Decline

A decline in profit amidst sales growth suggests increased costs or competitive pressures, which could affect future earnings.

AXIS CO LTD. Business Overview & Revenue Model

Company Description

Axis Co.,Ltd. provides research, development, and consultation on computer systems. It offers cloud, robotic process automation, AI/blockchain, IoT, smartphone application development, and core system development services. The company was founded in 1991 and is headquartered in Tokyo, Japan.

How the Company Makes Money

AXIS CO LTD. generates revenue through the sale of its technology products and solutions to clients in the automotive and industrial sectors. The company's key revenue streams include the manufacturing and distribution of vision systems, sensors, and related electronic components, which are integral to modern automotive and industrial applications. Additionally, AXIS CO LTD. may engage in strategic partnerships and collaborations with other technology firms to enhance its product offerings and expand its market reach, further contributing to its earnings.

AXIS CO LTD. Financial Statement Overview

Summary

Strong overall fundamentals supported by high Income Statement (84) and Balance Sheet (92) scores: multi-year revenue growth, improved net margin (~8% in 2024), strong ROE (~15–17%), and zero debt in 2022–2024. Main offsets are moderating growth after 2021–2022, some margin compression from prior peaks, and weaker operating cash conversion despite strong 2024 free cash flow (Cash Flow score 78).

Income Statement

AXIS CO LTD. shows a solid multi-year growth and profitability profile. Revenue expanded from 2019 to 2024, with strong growth in 2021–2022 and a more moderate +4.5% in 2024. Profitability improved meaningfully versus 2019, with net margin rising to ~8.0% in 2024 (from ~3.8% in 2019) and operating profitability remaining healthy (2024 operating margin ~10.6%). The key weakness is margin volatility—gross and operating margins peaked around 2021 and have since eased, suggesting incremental cost pressure or mix effects even as earnings continue to grow.

Balance Sheet

The balance sheet is notably conservative, with zero total debt in recent years (2022–2024) and effectively no leverage overall (very low debt-to-equity historically). Equity has grown steadily alongside assets, and returns on shareholder capital are strong for the period (return on equity ~15–17% in 2021–2024, ~16.8% in 2024). The main limitation is that the dataset does not provide liquidity or working-capital details, but based on the available figures, financial risk from leverage appears low.

Cash Flow

Cash generation is generally supportive: free cash flow is consistently close to reported earnings (about ~1.0x net income in 2024), indicating good earnings quality. Free cash flow jumped sharply in 2024 (very high growth versus 2023), which is a positive inflection. However, operating cash flow relative to net income remains below 1x across the years shown (about ~0.61x in 2024), implying some cash conversion drag likely tied to timing/working-capital movements, and cash flow growth has been choppy (including declines in 2021 and a slight dip in 2023).

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.84B	7.43B	6.58B	4.92B	4.77B	3.72B
Gross Profit	1.46B	1.85B	1.62B	1.30B	1.29B	941.08M
EBITDA	667.31M	835.88M	701.89M	568.39M	568.81M	389.44M
Net Income	471.00M	597.78M	462.43M	379.35M	349.23M	258.70M
Balance Sheet
Total Assets	4.89B	4.77B	4.06B	3.38B	3.10B	2.49B
Cash, Cash Equivalents and Short-Term Investments	3.21B	3.02B	2.47B	1.94B	1.77B	1.71B
Total Debt	0.00	0.00	0.00	0.00	116.66M	0.00
Total Liabilities	1.18B	1.21B	1.06B	943.91M	939.18M	681.32M
Stockholders Equity	3.71B	3.56B	3.00B	2.54B	2.16B	1.81B
Cash Flow
Free Cash Flow	0.00	555.43M	436.98M	446.66M	312.04M	440.73M
Operating Cash Flow	0.00	556.82M	478.16M	473.23M	318.83M	446.52M
Investing Cash Flow	0.00	34.96M	-66.06M	-61.69M	-243.80M	-6.11M
Financing Cash Flow	0.00	-37.22M	-9.56M	-119.19M	-15.20M	56.19M

AXIS CO LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1493.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4012, the sentiment is Positive. The current price of 1493 is above the 20-day moving average (MA) of 1487.00, above the 50-day MA of 1476.52, and below the 200-day MA of 1519.21, indicating a bullish trend. The MACD of -1.53 indicates Negative momentum. The RSI at 72.63 is Negative, neither overbought nor oversold. The STOCH value of 46.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4012.

AXIS CO LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4012	79 Outperform	¥6.13B	9.47	―	1.66%	8.16%	5.69%
5599	76 Outperform	¥12.31B	33.29	―	―	18.39%	37.21%
2488	73 Outperform	¥6.89B	11.03	―	2.78%	13.58%	20.32%
5578	68 Neutral	¥11.20B	18.07	―	0.55%	27.16%	29.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1447	57 Neutral	¥9.60B	45.12	―	―	2.32%	126.46%

AXIS CO LTD. Corporate Events

AXIS CO., LTD. Reports Modest Growth in 2025 Financial Results

AXIS CO., LTD. reported non-consolidated financial results for the nine months ending September 30, 2025, showing a modest increase in net sales by 8% year-on-year, reaching 5,944 million yen. Despite the growth in sales, the company’s profit slightly decreased by 0.5%, indicating a challenging market environment. The company maintains a strong equity-to-asset ratio of 75.4%, reflecting a stable financial position. The forecast for the full year ending December 31, 2025, anticipates continued growth in net sales and profits, with no revisions to previously announced forecasts, suggesting confidence in achieving these targets.