Basis Corporation (4068) AI Stock Analysis

• Market Cap: ¥3.35B
• Dividend Yield: N/A
• Average Volume (3M): 5.15K
• Price to Earnings (P/E): 34.1
• Beta (1Y): 0.20
• Revenue Growth: 9.33%
• EPS Growth: 133.75%
• Country: JP
• Employees: 568
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.89
• Shares Outstanding: 1,889,679
• 10 Day Avg. Volume: 2,290
• 30 Day Avg. Volume: 5,153
• PEG Ratio: 0.06
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 8.10
• 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: 66 Neutral
• Price Target: ¥1,902.00 ▲(4.33% Upside)

Basis Corporation's strong financial performance is the primary driver of its stock score, supported by robust revenue growth and profitability. However, technical indicators point to weak market momentum, and the high P/E ratio suggests the stock may be overvalued. The absence of a dividend yield further impacts its attractiveness.

Positive Factors

Revenue Growth

The consistent revenue growth of 17.03% reflects strong market demand and effective sales strategies, supporting long-term business expansion and sustainability.

Balance Sheet Health

A low debt-to-equity ratio of 0.27 indicates financial stability and low leverage, providing the company with flexibility to invest in growth opportunities.

Cash Generation

Strong free cash flow growth highlights the company's ability to generate cash efficiently, supporting reinvestment in R&D and strategic initiatives.

Negative Factors

Operational Efficiency

Modest EBIT and EBITDA margins indicate potential inefficiencies in operations, which could impact profitability if not addressed through cost management.

Debt Management

An increase in total debt, despite low leverage, requires careful management to avoid future financial strain and maintain balance sheet health.

Free Cash Flow Management

Negative free cash flow to net income ratios in the past suggest historical challenges in cash flow management, which could affect future liquidity if not improved.

Basis Corporation Business Overview & Revenue Model

Company Description

Basis Corporation (4068) is a leading provider of innovative technology solutions specializing in data analytics and software development. The company operates primarily in the information technology sector, delivering products and services that enhance business operations and decision-making processes for clients across various industries. With a strong focus on artificial intelligence and machine learning, Basis Corporation develops custom software applications, data integration tools, and analytics platforms designed to optimize performance and drive efficiency.

How the Company Makes Money

Basis Corporation generates revenue through multiple streams, primarily from the sale of software licenses and subscription-based services. The company offers a range of proprietary software products that are sold directly to businesses, along with ongoing support and maintenance contracts that provide a steady income stream. Additionally, Basis Corporation engages in consulting services, helping organizations implement and customize their technology solutions, which contributes to its earnings. Strategic partnerships with other technology firms and data providers enhance its product offerings and market reach, further bolstering revenue potential. The company also invests in research and development to innovate new solutions, ensuring a competitive edge and sustained financial growth.

Basis Corporation Financial Statement Overview

Summary

Basis Corporation exhibits strong financial health with impressive revenue growth and profitability improvements. The balance sheet is stable with low leverage, and cash flow generation has significantly improved. However, there is room for operational efficiency enhancements and careful debt management.

Income Statement

Basis Corporation has demonstrated strong revenue growth with a 17.03% increase in the latest year, indicating a positive trajectory. The gross profit margin is healthy, and there is a significant improvement in net profit margin from previous years, showcasing enhanced profitability. However, the EBIT and EBITDA margins are relatively modest, suggesting room for operational efficiency improvements.

Balance Sheet

The company maintains a solid equity base with a debt-to-equity ratio of 0.27, reflecting low leverage and financial stability. Return on equity has improved, indicating effective use of equity capital. The equity ratio is strong, suggesting a well-capitalized balance sheet. However, the total debt has increased slightly, which could be a potential risk if not managed properly.

Cash Flow

Basis Corporation has shown remarkable free cash flow growth, indicating robust cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting efficient cash conversion. However, the free cash flow to net income ratio has been negative in previous years, highlighting past challenges in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.11B	7.98B	6.82B	6.86B	6.26B	4.89B
Gross Profit	1.84B	1.81B	1.60B	1.68B	1.56B	1.36B
EBITDA	316.24M	245.79M	114.69M	458.88M	520.81M	379.75M
Net Income	140.13M	96.64M	13.16M	280.17M	324.81M	238.55M
Balance Sheet
Total Assets	3.74B	3.72B	3.94B	3.55B	3.03B	2.67B
Cash, Cash Equivalents and Short-Term Investments	878.58M	917.63M	970.86M	1.06B	873.87M	935.20M
Total Debt	655.00M	543.75M	988.75M	800.00M	545.00M	605.00M
Total Liabilities	1.69B	1.67B	1.97B	1.60B	1.36B	1.44B
Stockholders Equity	2.05B	2.05B	1.97B	1.95B	1.67B	1.24B
Cash Flow
Free Cash Flow	0.00	458.20M	-2.40M	-7.12M	-23.85M	-124.68M
Operating Cash Flow	0.00	464.98M	38.96M	73.74M	2.42M	-100.29M
Investing Cash Flow	0.00	-52.16M	-317.27M	-146.55M	-97.70M	-35.69M
Financing Cash Flow	0.00	-466.04M	187.50M	260.61M	33.95M	307.14M

Basis Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1823.00
• 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:4068, the sentiment is Positive. The current price of 1823 is above the 20-day moving average (MA) of 1783.10, above the 50-day MA of 1799.22, and below the 200-day MA of 1863.37, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 52.79 is Neutral, neither overbought nor oversold. The STOCH value of 67.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4068.

Basis Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7120	84 Outperform	¥4.90B	8.54	―	3.62%	6.56%	46.55%
4068	66 Neutral	¥3.35B	34.14	―	―	9.33%	133.75%
3682	63 Neutral	¥4.32B	17.48	―	3.19%	1.14%	23.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4450	61 Neutral	¥6.51B	13.97	―	1.11%	22.22%	28.14%
4416	57 Neutral	¥3.86B	87.61	―	―	5.05%	-50.80%
5255	46 Neutral	¥10.47B	-1.39	―	―	-29.41%	79.74%