BeeX Inc. (4270) AI Stock Analysis

• Market Cap: ¥4.69B
• Dividend Yield: N/A
• Average Volume (3M): 7.12K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.79
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 166
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 33.64
• Shares Outstanding: 2,246,200
• 10 Day Avg. Volume: 8,310
• 30 Day Avg. Volume: 7,116
• PEG Ratio: 0.92
• Price to Book (P/B): 2.37
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 11.84
• 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: 77 Outperform
• Price Target: ¥2,508.00 ▼(-0.08% Downside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

The score is driven primarily by strong financial performance—especially the de-risked balance sheet and solid multi-year growth—offset by only modest margin improvement and some cash-flow variability. Technicals add support with an upward trend and positive momentum, while valuation appears reasonable given the ~12x P/E.

Positive Factors

Multi-year revenue growth

Sustained top-line expansion over multiple years indicates a durable product-market fit and expanding customer adoption. Even with slower recent growth, the multi-year compounding provides a larger base for reinvestment, supports scale economics, and underpins long-term revenue durability and market presence.

Conservative, improving balance sheet

Very low and declining leverage materially reduces financial risk and increases strategic optionality. A stronger capital base supports investment, M&A or shock absorption without dilutive financing, and the healthy equity level plus 19% ROE speaks to efficient capital use and resilience across cycles.

Positive free cash flow and strong cash conversion

Consistently positive free cash flow close to reported earnings signals high earnings quality and genuine cash generation capacity. This strengthens the company's ability to self-fund capex, product development, or shareholder returns and reduces reliance on external financing over the medium term.

Negative Factors

Limited margin expansion

Stagnant or slightly declining margins imply limited operating leverage as revenue scales, suggesting cost structure or pricing pressures. Without structural margin improvement, revenue growth will have constrained impact on profitability and return metrics, limiting long-term margin-driven cash flow improvement.

Operating cash-flow volatility

Material swings in operating cash flow driven by working-capital or timing issues reduce predictability of cash available for reinvestment or distributions. Persistent volatility raises the risk that near-term funding for growth or payouts may be disrupted despite positive reported net income.

Negative EPS growth

A decline in EPS despite revenue gains signals margin pressure, cost increases or one-off impacts that erode per-share earnings. If EPS contraction persists it can limit retained earnings accumulation, reduce shareholder returns capacity, and signal weakening profit conversion trends.

BeeX Inc. Business Overview & Revenue Model

Company Description

BeeX Inc. develops, maintains, and operates cloud applications in Japan. The company offers SAP system-related services, which include SAP system cloud migration/environment construction, SAP S/4HANA conversion, SAP basis operation and maintenance, analytics solution, SAP solution manager cloud, and AWS environment construction. It provides cloud construction services, such as migration/environment construction and consulting services for multi-cloud, windows server, and AWS cloud; Pitatto consulting; digital transformation ready services, such as system of engagement (SoE), a system that serves as a point of contact for Web services and mobile customers; system of record (SoR), a system for recording purposes, such as an accounting system or a personnel system; and system of insight for analyzing businesses and customers based on the data existing in SoE and SoR. In addition, the company offers managed services, such as multi-cloud operation and maintenance; security services; and SAP basis operation and maintenance services. Further, it provides BeeX service console products; AWS operation and maintenance services; and BeeXPlus, a cloud service that could centrally manage various external collaborations, including invoicing operation support and security, as well as resale, account management, and technical support for AWS, Azure, and Google cloud platform. BeeX Inc. was incorporated in 2016 and is based in Tokyo, Japan. The company is a subsidiary of TerraSky Co.,Ltd.

How the Company Makes Money

BeeX Inc. Financial Statement Overview

Summary

Strong multi-year revenue growth and consistently positive profitability. Balance sheet is a key strength with very low and improving leverage and solid equity growth. Main constraints are limited margin expansion and some operating cash-flow volatility despite positive free cash flow.

Income Statement

Revenue has compounded strongly from 2020 to 2025 (¥2.84B to ¥9.26B), with 2025 still showing positive growth (+4.2%) after a very modest 2024 growth year. Profitability is consistently positive, with 2025 net margin at ~5.4% and EBIT margin at ~7.3%, broadly steady versus recent years. The main weakness is that margins are not structurally expanding (gross margin and EBITDA margin have drifted slightly lower versus some prior periods), suggesting scaling benefits are limited or cost pressure exists.

Balance Sheet

Leverage is conservative and improving: total debt is low (¥200M in 2025) and the debt-to-equity ratio has fallen meaningfully over time (~0.62 in 2020 to ~0.08 in 2025). Equity has grown substantially alongside the business (to ~¥2.59B in 2025), supporting a stronger capital base. Returns on equity remain healthy (~19% in 2025), though down from a peak level earlier in the period, indicating profitability is solid but not accelerating.

Cash Flow

Free cash flow is firmly positive in recent years (¥517M in 2025; ¥707M in 2024), and cash conversion is strong with free cash flow running close to net income in 2025 (~0.97x). However, operating cash flow has been volatile (notably lower in 2023 and 2025 versus 2024), and 2025 operating cash flow is below net income, pointing to working-capital or timing swings that can pressure near-term cash generation despite solid reported earnings.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	9.54B	9.26B	7.70B	5.76B	4.35B	4.06B
Gross Profit	1.70B	1.70B	1.52B	1.05B	821.90M	832.55M
EBITDA	675.31M	733.26M	650.56M	455.58M	296.23M	355.67M
Net Income	461.96M	499.37M	440.77M	299.53M	190.89M	246.41M
Balance Sheet
Total Assets	5.21B	5.19B	4.28B	3.33B	2.59B	1.94B
Cash, Cash Equivalents and Short-Term Investments	1.94B	2.34B	1.87B	1.16B	1.02B	502.55M
Total Debt	200.00M	200.00M	200.00M	200.00M	400.00M	400.00M
Total Liabilities	2.47B	2.60B	2.19B	1.68B	1.32B	1.21B
Stockholders Equity	2.70B	2.59B	2.09B	1.65B	1.27B	729.05M
Cash Flow
Free Cash Flow	0.00	517.31M	706.89M	279.04M	169.24M	-37.21M
Operating Cash Flow	0.00	532.05M	785.40M	335.77M	237.98M	58.46M
Investing Cash Flow	0.00	-64.75M	-78.51M	-56.72M	-68.74M	-107.30M
Financing Cash Flow	0.00	0.00	0.00	-136.60M	348.91M	100.00M

BeeX Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4270	77 Outperform	¥4.69B	10.70	―	―	―	―
3927	71 Outperform	¥4.47B	10.66	―	―	48.76%	978.31%
3858	70 Outperform	¥3.68B	-31.05	―	―	4.78%	-234.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4488	58 Neutral	¥8.86B	-22.78	―	―	7.00%	-244.58%
4288	49 Neutral	¥2.34B	-28.90	―	―	20.46%	37.56%
3680	44 Neutral	¥3.36B	-1.87	―	1.17%	-21.76%	-5832.28%