NIX, INC. (4243) AI Stock Analysis

• Market Cap: ¥2.00B
• Dividend Yield: 2.53%
• Average Volume (3M): 10.35K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.40
• 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: ¥953.00 ▲(21.40% 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

Gross Margin Strength

A sustained gross profit margin near 43% indicates durable pricing power and efficient project delivery in software and services. Over months this margin supports reinvestment in R&D and talent, cushioning operating variability and underpinning long-term profitability.

Very Low Leverage

Extremely low leverage and a high equity ratio provide financial flexibility and resilience. This structural strength reduces refinancing and interest risks, enabling capital allocation toward growth initiatives or absorbing cyclical downturns without compromising solvency.

Recurring & Contracted Revenue

A business model anchored in project contracts, subscription income and partnerships creates recurring revenue and higher client retention. This structural mix reduces top-line volatility, supports predictable cash flow, and enhances lifetime customer value over months to years.

Negative Factors

Free Cash Flow Decline

A steep FCF decline of ~50% signals weakening cash conversion that can constrain CapEx, R&D, and strategic investments. Persisting reduced FCF would pressure liquidity for growth initiatives and may force trade-offs between investment, dividends, or debt repayment over the medium term.

Thin Net Profit Margin

Despite strong gross margins, a low and slipping net margin implies higher operating expenses or non-operational costs eroding earnings. If structural, this compresses retained earnings and limits ability to fund strategic initiatives or build reserves over coming quarters.

Weak Revenue & EPS Trends

Negative top-line and EPS trends point to demand or execution pressures; a declining revenue base and sharply lower EPS reduce internal funding and weaken returns on investment. If persistent, these trends can slow scale benefits and hinder strategic reinvestment.

NIX, INC. Business Overview & Revenue Model

Company Description

Nix, Inc. develops, manufactures, and sells precision engineering plastics parts, mechanical products, and fasteners in Japan and internationally. The company offers wiring clamps, including recycle fasteners, wiring clamps for single/bundled cables, wiring clamps for flat cables, cable extracting area fixtures, edge treatment products, harness protection tubes, print circuit board accessories, connecting parts, case legs, and locking hole plugs; and mechanical plastic components, such as door latches, dampers, pop in-out mechanisms for IH/microwave oven, racks and pinions, gear units, and torque hinges, log catch mags, and catch mags. It also provides cable markers comprising clip sleeves for UTP cables and general purpose cable markers; and header CCH type and CCH fitting straight series products, as well as protection cap, elbow fitting, pi-type split flow T-S shape, Y-type split flow T-S shape, U-type header, header and U-type fitting for hydraulic pressure test, and auxiliary parts under the MAXIN JOINT name. In addition, the company offers magazine racks, SMT-related products, PCB cleaners, magazine washers, and traceability solutions for SMT lines; and JIGs, as well as ARINIX, an insect repellent for ants, spiders, and cockroaches. Further, it develops and sells labels, label printers, software, and labeling devices. The company was formerly known as Nikko Kogyo Corporation and changed its name to Nix, Inc. in 2001. Nix, Inc. was incorporated in 1949 and is headquartered in Yokohama, Japan.

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	6.12B	6.05B	5.94B	6.05B	5.83B
Cash, Cash Equivalents and Short-Term Investments	2.11B	2.05B	1.82B	1.84B	1.86B
Total Debt	201.58M	253.94M	226.52M	468.24M	457.06M
Total Liabilities	1.65B	1.77B	1.78B	2.04B	2.13B
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: Negative
• Last Price: 785.00
• 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 Negative. The current price of 785 is below the 20-day moving average (MA) of 895.05, below the 50-day MA of 874.92, and below the 200-day MA of 803.10, indicating a neutral trend. The MACD of -5.36 indicates Positive momentum. The RSI at 44.29 is Neutral, neither overbought nor oversold. The STOCH value of 40.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥6.59B	7.93	―	3.50%	-8.27%	-3.23%
4629	70 Outperform	¥7.76B	8.04	―	2.51%	2.26%	51.04%
4243	69 Neutral	¥2.00B	5.46	―	2.53%	0.37%	6.53%
4624	66 Neutral	¥5.75B	6.39	―	1.39%	2.67%	37.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4616	51 Neutral	¥1.87B	29.11	―	2.34%	-2.27%	-12.76%
4615	44 Neutral	¥4.25B	-15.17	―	―	8.66%	-239.07%