NIX, INC. (4243) AI Stock Analysis

• Market Cap: ¥2.21B
• Dividend Yield: 2.53%
• Average Volume (3M): 10.35K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.42
• Revenue Growth: 0.37%
• EPS Growth: 6.53%
• Country: JP
• Employees: 157
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 36.61
• Shares Outstanding: 2,323,000
• 10 Day Avg. Volume: 28,530
• 30 Day Avg. Volume: 10,346
• PEG Ratio: 1.46
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 15.40
• 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: 69 Neutral
• Price Target: ¥1,031.00 ▲(31.34% Upside)
• Action: Downgraded Date: 12/18/25
• Date: Action: Downgraded 12/18/25

NIX, INC. shows strong financial performance with solid revenue growth and a robust balance sheet, which are the most significant factors in its overall score. The valuation is favorable, with a low P/E ratio and an attractive dividend yield, enhancing its appeal. However, technical indicators suggest bearish momentum, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Balance Sheet Strength

Very low leverage and a high equity ratio provide durable financial flexibility, enabling the company to fund operations, pursue strategic investments, and weather downturns without relying on costly external borrowing. This supports long-term solvency and strategic optionality.

High Gross Margin

A sustained gross margin near 43% suggests persistent pricing power and effective control of direct costs. That margin buffer helps protect operating profitability against revenue variability and supports reinvestment in product development and client services over multiple quarters.

Operating Cash Generation

Strong operating cash conversion versus net income shows the business reliably turns accounting profits into cash. This durable cash generation supports working capital, servicing obligations, and funding recurring-service growth or dividends without needing new external financing.

Negative Factors

Declining Free Cash Flow

A steep drop in free cash flow growth materially reduces internal funding for capex, product development, and debt repayment. If sustained, this trend could constrain strategic investments, limit dividend flexibility, and force reliance on external capital for growth initiatives.

Earnings (EPS) Contraction

A more than 20% decline in EPS signals meaningful pressure on underlying profitability or one-off impacts. Persistent EPS contraction erodes retained earnings, hampers reinvestment capacity, and may reflect structural demand or margin issues that could weigh on medium-term shareholder returns.

Low Net Profit Margin

A modest net margin around 4.4% leaves limited room to absorb cost inflation or competitive pricing pressure. Over time, low net profitability constrains free cash flow potential and makes it harder to finance growth or sustain dividends without improving operating efficiency or revenue mix.

NIX, INC. Business Overview & Revenue Model

Company Description

NIX, INC. (4243) is a technology-driven company specializing in innovative software solutions and digital services aimed at enhancing operational efficiency across various sectors. With a focus on software development, IT consulting, and system integration, NIX, INC. serves clients in industries such as finance, healthcare, and telecommunications. The company prides itself on delivering customized solutions that leverage cutting-edge technologies, including artificial intelligence and cloud computing, to meet the unique needs of its diverse clientele.

How the Company Makes Money

NIX, INC. generates revenue primarily through its software development and IT consulting services, which are billed on a project basis or through long-term contracts with clients. The company has key revenue streams from custom software solutions, which cater to specific industry needs, and ongoing maintenance and support services that ensure client satisfaction and retention. Additionally, NIX, INC. has formed strategic partnerships with leading technology providers, enhancing its service offerings and expanding its market reach. The company also benefits from recurring revenue through subscription-based services related to its proprietary software products, further stabilizing its income. Factors contributing to its earnings include a robust client base, a reputation for quality service, and an increasing demand for digital transformation solutions across various sectors.

NIX, INC. Financial Statement Overview

Summary

NIX, INC. demonstrates solid financial health with consistent revenue growth and strong gross profit margins. The balance sheet reflects low leverage and a strong equity position, enhancing financial stability. However, the decline in free cash flow growth is a concern that needs addressing to ensure long-term financial sustainability.

Income Statement

NIX, INC. has shown consistent revenue growth over the years, with a slight increase of 1.54% in the most recent period. The gross profit margin remains strong at 42.95%, indicating efficient cost management. However, the net profit margin has slightly decreased to 4.41%, suggesting increased expenses or other financial pressures. The EBIT and EBITDA margins are stable, reflecting solid operational performance.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.044, indicating low leverage and financial stability. The return on equity is moderate at 4.34%, showing decent profitability relative to shareholder equity. The equity ratio stands at 74.68%, suggesting a strong equity base relative to total assets, which enhances financial resilience.

Cash Flow

Operating cash flow is robust, with a favorable operating cash flow to net income ratio of 1.50, indicating strong cash generation relative to net income. However, the free cash flow has decreased, with a negative growth rate of -50.31%, which could impact future investments and debt repayments. The free cash flow to net income ratio is 0.62, showing a reasonable conversion of profits into cash.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	4.40B	4.39B	4.52B	4.47B	4.07B
Gross Profit	1.89B	1.95B	2.06B	1.91B	1.76B
EBITDA	458.14M	444.17M	352.38M	433.52M	381.41M
Net Income	194.09M	182.21M	156.82M	214.84M	197.44M
Balance Sheet
Total Assets	5.99B	5.91B	5.76B	5.93B	5.73B
Cash, Cash Equivalents and Short-Term Investments	2.11B	2.05B	1.82B	1.84B	1.86B
Total Debt	197.03M	249.52M	226.52M	466.73M	457.06M
Total Liabilities	1.52B	1.63B	1.60B	1.91B	2.03B
Stockholders Equity	4.47B	4.28B	4.16B	4.02B	3.70B
Cash Flow
Free Cash Flow	119.77M	241.02M	255.88M	-55.89M	138.33M
Operating Cash Flow	291.21M	374.08M	348.24M	126.75M	280.28M
Investing Cash Flow	-335.93M	-94.24M	-103.60M	-49.09M	-113.92M
Financing Cash Flow	-105.13M	-30.13M	-286.78M	-32.57M	49.76M

NIX, INC. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 785.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 785 is below the 20-day moving average (MA) of 896.75, below the 50-day MA of 851.22, and below the 200-day MA of 792.37, indicating a bullish trend. The MACD of 27.78 indicates Negative momentum. The RSI at 68.71 is Neutral, neither overbought nor oversold. The STOCH value of 79.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4243.

NIX, INC. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4623	72 Outperform	¥6.62B	10.75	―	3.50%	-8.27%	-3.23%
4629	70 Outperform	¥8.11B	9.05	―	2.51%	2.26%	51.04%
4243	69 Neutral	¥2.21B	10.09	―	2.53%	0.37%	6.53%
4624	66 Neutral	¥6.03B	11.55	―	1.39%	2.67%	37.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4616	51 Neutral	¥1.99B	27.45	―	2.34%	-2.27%	-12.76%
4615	44 Neutral	¥4.25B	-10.44	―	―	8.66%	-239.07%