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Basis Corporation (JP:4068)
:4068
Japanese Market

Basis Corporation (4068) AI Stock Analysis

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JP

Basis Corporation

(4068)

Rating:54Neutral
Price Target:
¥2,109.00
▲(6.03%Upside)
Basis Corporation's overall stock score is driven primarily by its significant financial challenges, including weakened profitability and cash flow issues. While the technical analysis shows some positive trends with the stock trading above major moving averages, the valuation suggests potential overvaluation. The lack of earnings call and corporate event data limited further insights.

Basis Corporation (4068) vs. iShares MSCI Japan ETF (EWJ)

Basis Corporation Business Overview & Revenue Model

Company DescriptionBasis Corporation (4068) is a technology-driven company operating in the semiconductor industry. It specializes in designing, manufacturing, and distributing integrated circuits and semiconductor devices that are essential components in a wide range of electronic products. The company serves various sectors, including consumer electronics, automotive, telecommunications, and industrial applications, providing innovative solutions that enhance device performance and efficiency.
How the Company Makes MoneyBasis Corporation generates revenue primarily through the sale of its semiconductor products to original equipment manufacturers (OEMs) and other businesses that integrate these components into their electronic devices. Key revenue streams include product sales, licensing of proprietary technologies, and providing design and engineering services. The company may also form strategic partnerships with other technology firms to co-develop new products, which can lead to additional revenue through shared sales and licensing agreements. Factors contributing to its earnings include the growing demand for electronic devices globally and technological advancements driving the need for more sophisticated semiconductor solutions.

Basis Corporation Financial Statement Overview

Summary
Overall, Basis Corporation faces significant financial challenges. Profitability has weakened, with declining margins and negative revenue growth. The balance sheet remains relatively stable, with a reasonable debt-to-equity ratio and a strong equity position. However, cash flow issues persist, suggesting difficulties in translating profits into liquidity.
Income Statement
45
Neutral
The income statement reflects challenges, with a noticeable decline in key profitability metrics. The gross profit margin is approximately 23.4%, and the net profit margin is only 0.2%, indicating pressure on profitability. The revenue growth rate is negative, showing a decrease of about 0.6% from the previous year. EBIT and EBITDA margins have also significantly decreased, implying reduced operational efficiency.
Balance Sheet
65
Positive
The balance sheet shows moderate stability. The debt-to-equity ratio is 0.5, reflecting a manageable level of leverage. Return on equity (ROE) is low at 0.7%, suggesting weak returns on shareholder investments. However, the equity ratio of 50% indicates a solid equity base relative to total assets.
Cash Flow
40
Negative
The cash flow statement reveals concerning trends, with negative free cash flow growth and a free cash flow to net income ratio of -0.18, indicating challenges in converting profits into free cash. The operating cash flow to net income ratio is 2.96, showing some ability to generate cash from operations despite low profitability.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue6.82B6.86B6.26B4.89B3.26B
Gross Profit1.60B1.68B1.56B1.36B970.19M
EBITDA114.69M458.88M520.81M379.75M134.28M
Net Income13.16M280.17M324.81M238.55M69.98M
Balance Sheet
Total Assets3.94B3.55B3.03B2.67B1.70B
Cash, Cash Equivalents and Short-Term Investments970.86M1.06B873.87M935.20M764.03M
Total Debt988.75M800.00M545.00M605.00M665.00M
Total Liabilities1.97B1.60B1.36B1.44B1.07B
Stockholders Equity1.97B1.95B1.67B1.24B630.91M
Cash Flow
Free Cash Flow-2.40M-7.12M-23.85M-124.68M179.92M
Operating Cash Flow38.96M73.74M2.42M-100.29M206.04M
Investing Cash Flow-317.27M-146.55M-97.70M-35.69M-35.05M
Financing Cash Flow187.50M260.61M33.95M307.14M-60.00M

Basis Corporation Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1989.00
Price Trends
50DMA
2062.82
Negative
100DMA
1816.38
Positive
200DMA
1489.11
Positive
Market Momentum
MACD
-12.54
Positive
RSI
41.21
Neutral
STOCH
22.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4068, the sentiment is Neutral. The current price of 1989 is below the 20-day moving average (MA) of 2023.35, below the 50-day MA of 2062.82, and above the 200-day MA of 1489.11, indicating a neutral trend. The MACD of -12.54 indicates Positive momentum. The RSI at 41.21 is Neutral, neither overbought nor oversold. The STOCH value of 22.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4068.

Basis Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥4.14B7.63
4.30%4.70%38.61%
69
Neutral
¥4.24B11.77
1.82%17.68%-31.19%
64
Neutral
¥4.42B331.25
-2.43%-78.05%
63
Neutral
$34.07B6.13-11.73%1.80%5.33%-18.31%
63
Neutral
¥4.07B18.48
3.28%9.26%1.71%
54
Neutral
¥3.83B26.82
30.73%
48
Neutral
¥10.86B
-32.31%-226.05%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4068
Basis Corporation
1,989.00
720.00
56.74%
JP:3682
Encourage Technologies Co., Ltd.
610.00
-24.94
-3.93%
JP:4416
True Data Inc.
913.00
439.00
92.62%
JP:4450
Power Solutions Ltd.
1,365.00
-180.70
-11.69%
JP:5255
Monstarlab Holdings Inc.
168.00
-114.00
-40.43%
JP:7120
SHINKO Inc.
2,257.00
183.73
8.86%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 05, 2025