Basis Corporation (4068) AI Stock Analysis

• Market Cap: ¥3.83B
• Dividend Yield: N/A
• Average Volume (3M): 3.60K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 0.28
• Revenue Growth: 30.73%
• EPS Growth: N/A
• Country: JP
• Employees: 568
• Sector: Technology
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): 28.17
• Shares Outstanding: 1,880,819
• 10 Day Avg. Volume: 4,440
• 30 Day Avg. Volume: 3,596
• PEG Ratio: -0.97
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -578.09
• 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: 54 Neutral
• 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 Business Overview & Revenue Model

Company Description

Basis 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 Money

Basis 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

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

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

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.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	6.82B	6.86B	6.26B	4.89B	3.26B
Gross Profit	1.60B	1.68B	1.56B	1.36B	970.19M
EBITDA	114.69M	458.88M	520.81M	379.75M	134.28M
Net Income	13.16M	280.17M	324.81M	238.55M	69.98M
Balance Sheet
Total Assets	3.94B	3.55B	3.03B	2.67B	1.70B
Cash, Cash Equivalents and Short-Term Investments	970.86M	1.06B	873.87M	935.20M	764.03M
Total Debt	988.75M	800.00M	545.00M	605.00M	665.00M
Total Liabilities	1.97B	1.60B	1.36B	1.44B	1.07B
Stockholders Equity	1.97B	1.95B	1.67B	1.24B	630.91M
Cash Flow
Free Cash Flow	-2.40M	-7.12M	-23.85M	-124.68M	179.92M
Operating Cash Flow	38.96M	73.74M	2.42M	-100.29M	206.04M
Investing Cash Flow	-317.27M	-146.55M	-97.70M	-35.69M	-35.05M
Financing Cash Flow	187.50M	260.61M	33.95M	307.14M	-60.00M

Basis Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1989.00
• 50DMA: Negative
• 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: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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7120	78 Outperform	¥4.14B	7.63		4.30%	4.70%	38.61%
4450	69 Neutral	¥4.24B	11.77		1.82%	17.68%	-31.19%
4416	64 Neutral	¥4.42B	331.25		―	-2.43%	-78.05%
Sector *	63 Neutral	$34.07B	6.13	-11.73%	1.80%	5.33%	-18.31%
3682	63 Neutral	¥4.07B	18.48		3.28%	9.26%	1.71%
4068	54 Neutral	¥3.83B	26.82		―	30.73%	―
5255	48 Neutral	¥10.86B	―		―	-32.31%	-226.05%