ExaWizards Inc. (4259) AI Stock Analysis

• Market Cap: ¥62.15B
• Dividend Yield: N/A
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• Revenue Growth: 8.98%
• EPS Growth: -581.59%
• Country: JP
• Employees: 548
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 3.79
• Shares Outstanding: 86,806,000
• 10 Day Avg. Volume: 1,998,980
• 30 Day Avg. Volume: 1,537,346
• PEG Ratio: -0.03
• Price to Book (P/B): 10.12
• Price to Sales (P/S): 2.54
• P/FCF Ratio: 49.30
• 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: 64 Neutral
• Price Target: ¥750.00 ▲(17.74% Upside)

The score is driven primarily by solid financial momentum (revenue growth and improving free cash flow) and supportive technical strength (price above major moving averages with positive MACD). These are tempered by valuation concerns tied to continued losses (negative P/E) and profitability challenges despite healthy gross margins.

Positive Factors

Diversified Revenue Model

Multiple recurring subscription and licensing streams plus consulting create diversified, sticky revenue. Long-term contracts with healthcare and finance clients reduce revenue volatility, support predictable cash flows and enable sustained investment in core AI products.

Revenue Growth

Consistent double-digit top-line growth indicates market traction for AI solutions across healthcare, finance and logistics. Sustained revenue expansion supports scale economics, funds R&D, and strengthens the commercial pipeline, improving structural competitiveness over months.

Improving Cash Generation

Free cash flow turning positive and favorable operating cash conversion enhance internal funding capacity. Persistent cash generation reduces dependence on external financing, improves runway for product development, and increases flexibility to execute strategic initiatives.

Negative Factors

Profitability Weakness

Despite revenue gains, negative EBITDA and net margins show core operations are not yet self-sustaining. Continued unprofitability can limit reinvestment, raise financing needs, and pressure margins in cyclical downturns unless unit economics or cost structure improve materially.

Deteriorating Equity Base

A shrinking equity base and falling total assets weaken the balance sheet buffer and reduce covenant headroom. Over time this limits borrowing flexibility, raises financing costs, and increases solvency risk if operating performance doesn't strengthen sustainably.

Earnings Volatility

An extreme EPS contraction signals pronounced earnings volatility, likely from margin pressure or one‑off charges. Such swings undermine forecasting reliability, deter long‑term investors, and suggest the company must address structural profitability drivers to stabilize results.

ExaWizards Inc. Business Overview & Revenue Model

Company Description

ExaWizards Inc. develops AI-enabled services for industrial innovation and social problems solutions in Japan. It operates through AI Platform and AI Products segments. The company provides AI platform services; and services for AI understanding, planning, design, development, operation, and usage. It also develops and offers AI products to solve generic industrial and social issues. The company was incorporated in 2016 and is headquartered in Tokyo, Japan.

How the Company Makes Money

ExaWizards Inc. generates revenue through multiple streams, primarily by offering subscription-based software services and licensing their proprietary AI technologies to businesses across various industries. The company also engages in consulting services, helping organizations implement AI solutions tailored to their specific needs. Significant partnerships with healthcare providers and financial institutions further bolster their revenue, as these collaborations often lead to customized projects and long-term contracts. Additionally, ExaWizards may earn income through performance-based fees tied to the success of their AI implementations, contributing to a diversified and resilient revenue model.

ExaWizards Inc. Financial Statement Overview

Summary

Strong top-line momentum (+17% revenue from 2024 to 2025) and improving cash generation (free cash flow turning positive in 2025) are positives, but profitability remains a key weakness with negative net and EBIT margins and negative EBITDA. Balance sheet leverage is moderate (debt-to-equity ~1.04), though declining equity and assets add risk.

Income Statement

ExaWizards Inc. has shown significant revenue growth with a 17% increase from 2024 to 2025. However, the company is struggling with profitability as indicated by negative net profit margins and EBIT margins. Gross profit margin remains healthy at approximately 57.8%, but negative EBITDA indicates operational challenges.

Balance Sheet

The balance sheet reflects moderate financial stability with a debt-to-equity ratio of 1.04 in 2025, which suggests balanced leverage. However, the declining stockholders' equity and reduction in total assets over the years pose potential risks. The equity ratio of around 35% in 2025 indicates a moderate reliance on equity financing.

Cash Flow

Cash flow analysis shows a positive trend with free cash flow turning positive in 2025, indicating improved cash management. The operating cash flow to net income ratio is favorable, demonstrating effective conversion of income to cash. However, historical volatility in cash flows suggests potential risks in sustaining this trend.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.15B	9.81B	8.38B	5.59B	4.81B	2.61B
Gross Profit	6.25B	5.67B	4.69B	3.14B	3.05B	1.66B
EBITDA	-1.42B	-1.75B	67.00M	359.00M	90.00M	-441.13M
Net Income	-2.21B	-2.58B	-610.00M	-141.00M	-137.00M	-592.69M
Balance Sheet
Total Assets	7.46B	7.02B	9.93B	7.94B	7.87B	3.69B
Cash, Cash Equivalents and Short-Term Investments	3.85B	3.01B	3.49B	5.23B	5.54B	2.34B
Total Debt	2.48B	2.55B	2.85B	310.00M	345.00M	815.00M
Total Liabilities	4.35B	4.48B	4.95B	1.32B	1.23B	1.30B
Stockholders Equity	3.02B	2.46B	4.93B	6.54B	6.59B	2.38B
Cash Flow
Free Cash Flow	0.00	505.00M	-1.12B	-843.00M	-445.00M	-1.09B
Operating Cash Flow	0.00	621.00M	-197.00M	71.00M	24.00M	-528.13M
Investing Cash Flow	0.00	-880.00M	-2.95B	-483.00M	-701.00M	-572.57M
Financing Cash Flow	0.00	-221.00M	1.41B	105.00M	3.88B	1.80B

ExaWizards Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 637.00
• 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:4259, the sentiment is Positive. The current price of 637 is below the 20-day moving average (MA) of 647.05, below the 50-day MA of 649.56, and above the 200-day MA of 525.39, indicating a bullish trend. The MACD of 18.02 indicates Negative momentum. The RSI at 69.27 is Neutral, neither overbought nor oversold. The STOCH value of 79.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4259.

ExaWizards Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3763	82 Outperform	¥46.00B	15.98	―	1.92%	20.81%	68.06%
3835	75 Outperform	¥20.08B	17.06	―	3.14%	0.50%	-2.92%
5038	73 Outperform	¥38.14B	35.66	―	0.47%	31.05%	46.12%
4058	72 Outperform	¥26.45B	23.66	―	0.52%	50.92%	46.61%
4259	64 Neutral	¥62.15B	-34.28	―	―	8.98%	-581.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5254	58 Neutral	¥25.07B	45.89	―	―	40.99%	-36.76%

ExaWizards Inc. Corporate Events

ExaWizards Inc. Revises Earnings Forecast Upward Amid Strong AI Business Growth

ExaWizards Inc. has announced an upward revision of its full-year consolidated earnings forecast for the fiscal year ending March 2026, driven by significant growth in its AI Products Business and successful structural reforms in its AI Solution Services Business. Despite plans for increased investments in personnel and next-generation product development, the company expects operating profit to exceed initial forecasts due to strong first-half performance, and it has recorded deferred income tax benefits due to an increase in deferred tax assets.

The most recent analyst rating on (JP:4259) stock is a Hold with a Yen714.00 price target. To see the full list of analyst forecasts on ExaWizards Inc. stock, see the JP:4259 Stock Forecast page.

ExaWizards Inc. Reports Strong Financial Turnaround in H1 2025

ExaWizards Inc. reported a significant improvement in its financial performance for the six months ending September 30, 2025, with net sales increasing by 14% year-on-year to 5,238 million yen. The company achieved an operating profit of 546 million yen, a notable turnaround from the previous year’s loss, indicating a positive impact on its market positioning and potential benefits for stakeholders.

The most recent analyst rating on (JP:4259) stock is a Hold with a Yen714.00 price target. To see the full list of analyst forecasts on ExaWizards Inc. stock, see the JP:4259 Stock Forecast page.