AXIS CO LTD. (4012) AI Stock Analysis

• Market Cap: ¥6.61B
• Dividend Yield: 1.6%
• Average Volume (3M): 8.28K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.34
• Revenue Growth: 12.97%
• EPS Growth: 25.37%
• Country: JP
• Employees: 430
• Sector: Technology
• Sector Strength: 84
• Industry: Information Technology Services
• EPS (TTM): 40.50
• Shares Outstanding: 4,345,000
• 10 Day Avg. Volume: 4,390
• 30 Day Avg. Volume: 8,283
• PEG Ratio: 1.18
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.20
• 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

• Rating: 77 Outperform
• Price Target: ―

AXIS CO LTD.'s strong financial performance is the most significant positive factor, with robust profitability and no debt enhancing its stability. However, the stock's technical indicators suggest a bearish trend, impacting its attractiveness. The low P/E ratio indicates potential undervaluation, balanced by a moderate dividend yield. The absence of recent earnings call data and corporate events means these factors do not influence the score.

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

AXIS CO LTD. demonstrates strong financial health with robust revenue growth, a healthy Gross Profit Margin, and improving Net Profit Margin. The Balance Sheet is strong, with no debt and high equity, indicating financial stability. Cash flow generation is excellent, supporting operational and growth initiatives.

Income Statement

AXIS CO LTD. demonstrates strong revenue growth, with an annual increase from 2023 to 2024 of approximately 12.96%. The Gross Profit Margin has remained healthy, supporting solid profitability. Net Profit Margin improved to 8.04% in 2024, reflecting efficient cost management and strong earnings performance. EBIT and EBITDA margins are consistent, indicating robust operational efficiency. However, there is a need to maintain this trajectory to safeguard against industry volatility.

Balance Sheet

The company maintains a strong Balance Sheet with zero debt, leading to a Debt-to-Equity Ratio of 0, which is an excellent position. The Equity Ratio is high, underscoring a solid capital structure and financial stability. Return on Equity improved to 16.78% in 2024, indicating effective utilization of equity to generate profits. The company's liquidity position is also strong, supported by significant cash reserves.

Cash Flow

AXIS CO LTD. exhibits a strong Free Cash Flow Growth Rate and a substantial Operating Cash Flow to Net Income Ratio, suggesting well-managed cash conversion. The Free Cash Flow to Net Income Ratio is robust, indicating excellent cash generation relative to earnings. Continuous positive cash flow trends highlight the company's capacity to fund operations and pursue growth opportunities without external financing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.43B	6.58B	5.85B	4.77B	3.72B
	Gross Profit
1.85B	1.62B	1.50B	1.29B	941.08M
	EBIT
790.05M	652.55M	576.65M	505.00M	350.92M
	EBITDA
835.88M	701.89M	568.39M	568.81M	389.44M
	Net Income Common Stockholders
597.78M	462.43M	379.35M	349.23M	258.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.02B	2.47B	2.06B	1.77B	1.71B
	Total Assets
4.77B	4.06B	3.49B	3.10B	2.49B
	Total Debt
0.00	0.00	0.00	116.66M	0.00
	Net Debt
-3.02B	-2.47B	-2.06B	-1.65B	-1.71B
	Total Liabilities
1.21B	1.06B	943.91M	939.18M	681.32M
	Stockholders Equity
3.56B	3.00B	2.54B	2.16B	1.81B
Cash Flow		Free Cash Flow
555.43M	436.98M	446.66M	312.04M	440.73M
	Operating Cash Flow
556.82M	478.16M	473.23M	318.83M	446.52M
	Investing Cash Flow
34.96M	-66.06M	-61.69M	-243.80M	-6.11M
	Financing Cash Flow
-37.22M	-9.56M	-119.19M	-15.20M	56.19M

AXIS CO LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1558.00
• 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:4012, the sentiment is Positive. The current price of 1558 is above the 20-day moving average (MA) of 1549.20, above the 50-day MA of 1499.76, and above the 200-day MA of 1403.25, indicating a bullish trend. The MACD of 11.84 indicates Positive momentum. The RSI at 58.69 is Neutral, neither overbought nor oversold. The STOCH value of 37.18 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
3847	79 Outperform	¥6.95B	10.62		2.85%	3.93%	12.87%
4012	77 Outperform	¥6.61B	10.57		1.60%	12.97%	25.37%
5599	75 Outperform	¥7.12B	23.03		―	―	―
5578	75 Outperform	¥6.84B	29.71		―	12.37%	-27.25%
2488	69 Neutral	¥6.84B	12.34		4.73%	13.09%	61.54%
Sector *	62 Neutral	$11.96B	10.09	-7.50%	3.10%	7.33%	-8.11%
1447	50 Neutral	¥6.40B	183.41		―	-1.47%	-88.74%

AXIS CO LTD. Corporate Events

AXIS CO., LTD. Reports Strong Financial Growth for 2024

AXIS CO., LTD. reported significant growth in its financial performance for the fiscal year ending December 31, 2024, with a 13% increase in net sales, a 21.1% rise in operating profit, and a 29.3% boost in profit. These results highlight the company’s strong operational performance and strategic positioning, resulting in a notable increase in shareholder dividends and a forecast of continued growth in the upcoming fiscal year.