NIX, INC. (4243) AI Stock Analysis

• Market Cap: ¥1.86B
• Dividend Yield: 2.54%
• Average Volume (3M): 10.35K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.37
• Revenue Growth: 0.37%
• EPS Growth: 6.53%
• Country: JP
• Employees: 157
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 21.34
• Shares Outstanding: 2,323,000
• 10 Day Avg. Volume: 28,530
• 30 Day Avg. Volume: 10,346
• PEG Ratio: 0.57
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 6.90
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥983.00 ▲(25.06% Upside)

NIX, INC. receives a strong overall stock score due to its solid financial performance and positive technical indicators. The company's stable balance sheet and effective cash flow management are significant strengths, although attention is needed to address declining revenue. The stock's fair valuation and attractive dividend yield further enhance its investment appeal.

Positive Factors

Strong Profitability Margins

Consistent profitability margins indicate efficient cost management and pricing power, supporting long-term financial health and competitiveness.

Stable Balance Sheet

A strong equity position and low leverage enhance financial stability, reducing risk and providing flexibility for future investments.

Cash Generation Ability

Strong cash generation supports operational needs and growth initiatives, ensuring the company can sustain and expand its business model.

Negative Factors

Declining Revenue

Decreasing revenue may indicate challenges in market demand or competitive pressures, potentially impacting long-term growth prospects.

Decreased Free Cash Flow

Reduced free cash flow limits the company's ability to invest in growth opportunities and may constrain strategic initiatives over time.

Modest Return on Equity

A modest return on equity suggests the company may not be fully optimizing its equity base to generate shareholder value, impacting investor appeal.

NIX, INC. Business Overview & Revenue Model

Company Description

NIX, INC. (4243) is a technology-driven company specializing in providing innovative solutions in the fields of software development and digital services. The company operates primarily within the tech sector, focusing on areas such as cloud computing, artificial intelligence, and cybersecurity. NIX offers a range of products and services including custom software development, IT consulting, and managed services, catering to a diverse clientele that spans various industries.

How the Company Makes Money

NIX, INC. generates revenue primarily through its service offerings, which include custom software development projects and ongoing IT consulting services. The company typically operates on a project-based model, charging clients based on the scope and complexity of the solutions provided. Additionally, NIX benefits from recurring revenue through managed services agreements, where clients pay for ongoing support and maintenance of their IT systems. Significant partnerships with cloud service providers and tech platforms enhance its service capabilities and broaden its market reach, contributing positively to its revenue streams.

NIX, INC. Financial Statement Overview

Summary

NIX, INC. demonstrates solid financial health with strong profitability margins and a stable balance sheet. The company shows effective cash flow management, though declining revenue and free cash flow warrant attention. Overall, NIX, INC. is well-positioned in the Chemicals - Specialty industry, with a strong equity base and low leverage, but should focus on reversing the revenue decline to sustain growth.

Income Statement

NIX, INC. has shown a stable gross profit margin over the years, maintaining around 44% in the latest period. The net profit margin improved to 4.15% from 3.47% in the previous year, indicating better profitability. However, revenue has decreased by 2.87% from the prior year, which is a concern. EBIT and EBITDA margins are healthy at 4.94% and 9.16%, respectively, suggesting efficient operations despite the revenue decline.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 72.34%, indicating financial stability. The debt-to-equity ratio is low at 0.06, reflecting minimal leverage and reduced financial risk. Return on equity is modest at 4.26%, showing room for improvement in generating returns for shareholders.

Cash Flow

Operating cash flow to net income ratio is robust at 2.05, indicating strong cash generation relative to net income. However, free cash flow decreased by 5.79% from the previous year, which could impact future investments. The free cash flow to net income ratio stands at 1.32, suggesting adequate cash flow to support net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.34B	4.39B	4.52B	4.47B	4.07B	3.58B
Gross Profit	1.89B	1.95B	2.06B	1.91B	1.76B	1.52B
EBITDA	425.52M	444.17M	352.38M	433.52M	381.41M	125.49M
Net Income	193.70M	182.21M	156.82M	214.84M	197.44M	-26.44M
Balance Sheet
Total Assets	5.89B	5.91B	5.76B	5.93B	5.73B	5.14B
Cash, Cash Equivalents and Short-Term Investments	1.96B	2.05B	1.82B	1.84B	1.86B	1.53B
Total Debt	226.54M	249.52M	226.52M	466.73M	457.06M	385.07M
Total Liabilities	1.50B	1.63B	1.60B	1.91B	2.03B	1.65B
Stockholders Equity	4.39B	4.28B	4.16B	4.02B	3.70B	3.49B
Cash Flow
Free Cash Flow	0.00	241.02M	255.88M	-55.89M	138.33M	78.17M
Operating Cash Flow	0.00	374.08M	348.24M	126.75M	280.28M	227.88M
Investing Cash Flow	0.00	-94.24M	-103.60M	-49.09M	-113.92M	-209.46M
Financing Cash Flow	0.00	-30.13M	-286.78M	-32.57M	49.76M	-10.67M

NIX, INC. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 786.00
• 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:4243, the sentiment is Neutral. The current price of 786 is below the 20-day moving average (MA) of 798.15, below the 50-day MA of 804.66, and above the 200-day MA of 755.25, indicating a neutral trend. The MACD of -4.04 indicates Positive momentum. The RSI at 42.06 is Neutral, neither overbought nor oversold. The STOCH value of 23.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4243.

NIX, INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4243	80 Outperform	¥1.86B	9.60	―	2.54%	0.37%	6.53%
4361	79 Outperform	¥1.95B	8.11	―	4.15%	-0.77%	-29.54%
7877	74 Outperform	¥2.34B	10.74	―	2.90%	-1.81%	144.79%
4616	71 Outperform	¥2.11B	17.56	―	2.08%	-2.27%	-12.76%
5199	64 Neutral	¥2.56B	11.59	―	4.00%	-4.09%	59.57%
4098	63 Neutral	¥2.48B	18.18	―	1.19%	-1.01%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%