Basis Corporation (4068) AI Stock Analysis

• Market Cap: ¥3.34B
• Dividend Yield: N/A
• Average Volume (3M): 5.15K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.23
• Revenue Growth: 9.33%
• EPS Growth: 133.75%
• Country: JP
• Employees: 568
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 1,889,679
• 10 Day Avg. Volume: 2,290
• 30 Day Avg. Volume: 5,153
• PEG Ratio: 0.08
• 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 ▲(10.01% Upside)
• Action: Reiterated Date: 10/25/25
• Date: Action: Reiterated 10/25/25

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 engages in the construction and operation of communication infrastructure centered on mobile phones. The company offers mobile and IoT infrastructure network engineering. It provides services for the chain of communication infrastructure construction, which includes project management, radio wave area design and optimization, integration, operation monitoring and maintenance, and mobile phone base station installation work. The company was founded in 2000 and is based in Tokyo, Japan.

How the Company Makes Money

Basis Corporation generates revenue primarily through the sale of software licenses and subscriptions for its cloud-based platforms. These recurring revenue streams are bolstered by offering implementation services, technical support, and ongoing maintenance contracts. Additionally, the company earns revenue from consulting services that help clients optimize their use of the software. Partnerships with major technology providers and industry leaders also enhance its offerings, allowing for bundled services that attract larger clients and expand its market reach.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2022	Jun 2021
Income Statement
Total Revenue	7.98B	6.82B	6.86B	6.26B	4.89B
Gross Profit	1.81B	1.55B	1.66B	1.53B	1.35B
EBITDA	248.86M	133.10M	404.92M	521.30M	392.85M
Net Income	96.64M	17.29M	280.17M	324.81M	238.55M
Balance Sheet
Total Assets	3.73B	3.99B	3.55B	3.03B	2.67B
Cash, Cash Equivalents and Short-Term Investments	917.63M	970.86M	1.06B	873.87M	935.20M
Total Debt	543.75M	988.75M	800.00M	545.00M	605.00M
Total Liabilities	1.68B	2.02B	1.60B	1.36B	1.44B
Stockholders Equity	2.05B	1.97B	1.95B	1.67B	1.24B
Cash Flow
Free Cash Flow	458.20M	34.54M	32.95M	-965.00K	-100.29M
Operating Cash Flow	464.98M	38.96M	73.74M	2.42M	-100.29M
Investing Cash Flow	-52.16M	-317.27M	-146.55M	-97.70M	-35.69M
Financing Cash Flow	-466.04M	187.50M	260.61M	33.95M	307.14M

Basis Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1729.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1729 is below the 20-day moving average (MA) of 1773.75, below the 50-day MA of 1776.22, and below the 200-day MA of 1871.28, indicating a bearish trend. The MACD of -6.78 indicates Positive momentum. The RSI at 47.92 is Neutral, neither overbought nor oversold. The STOCH value of 49.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4068.

Basis Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4335	81 Outperform	¥2.94B	8.12	―	3.28%	9.68%	25.15%
4421	79 Outperform	¥2.84B	22.68	―	2.86%	5.74%	5.97%
4068	66 Neutral	¥3.34B	11.79	―	―	9.33%	133.75%
4736	66 Neutral	¥3.08B	30.93	―	1.54%	7.59%	16.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5250	60 Neutral	¥3.90B	49.52	―	1.74%	―	―
4416	57 Neutral	¥2.50B	268.52	―	―	5.05%	-50.80%