SOLXYZ Co., Ltd. (4284) AI Stock Analysis

• Market Cap: ¥10.55B
• Dividend Yield: 2.44%
• Average Volume (3M): 45.22K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.39
• Revenue Growth: 9.77%
• EPS Growth: 93.99%
• Country: JP
• Employees: 852
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 9.01
• Shares Outstanding: 26,820,595
• 10 Day Avg. Volume: 34,400
• 30 Day Avg. Volume: 45,223
• PEG Ratio: -0.55
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 103.54
• 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: 79 Outperform
• Price Target: ¥545.00 ▲(14.02% Upside)

SOLXYZ Co., Ltd. has a strong overall stock score driven by robust technical indicators and a favorable valuation. The financial performance is solid, with notable strengths in revenue growth and cost management, though there are concerns about expense control and cash flow management. The absence of earnings call data and corporate events does not impact the score significantly.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, which are crucial for long-term sustainability.

Cost Management

Effective cost management enhances profitability and operational efficiency, supporting sustainable growth and competitive advantage.

Balance Sheet Health

A strong balance sheet with prudent leverage management ensures financial stability and flexibility to invest in growth opportunities.

Negative Factors

Increasing Debt Levels

Rising debt levels can strain financial resources and limit the company's ability to invest in growth, posing a risk to long-term stability.

Cash Flow Management

Fluctuations in Free Cash Flow highlight challenges in managing capital expenditures, which could impact future investment capabilities.

Net Profit Margin Decline

A declining Net Profit Margin suggests rising costs or inefficiencies, which could erode profitability if not addressed.

SOLXYZ Co., Ltd. Business Overview & Revenue Model

Company Description

SOLXYZ Co., Ltd. develops software solutions in Japan. It engages in the development, design, manufacture, sale, leasing, and import/export of computers, peripheral devices, telecommunications equipment, and related software; collection, processing, and sale of information through telecommunications systems; and provision of servicing and consulting services related to the use of computers, and peripheral devices and software. The company is also involved in the operation, maintenance, and monitoring of computer systems; internet access service business and information provision service business; training of information processing engineers and dispatch of information processing engineers; and other businesses. The company was incorporated in 1981 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SOLXYZ generates revenue through multiple streams, primarily by offering consulting services, software licenses, and ongoing support and maintenance contracts. The company charges clients for its expertise in implementing IT solutions and for developing custom software that fits their specific operational requirements. Additionally, SOLXYZ benefits from recurring income through subscription models for its cloud-based services. Partnerships with major technology providers and other enterprises enhance its market reach, enabling the company to leverage collaborative projects and joint ventures, which contribute positively to its bottom line.

SOLXYZ Co., Ltd. Financial Statement Overview

Summary

SOLXYZ Co., Ltd. exhibits strong revenue growth and effective cost management. However, there are areas for improvement in expense control and operational efficiency. The balance sheet remains robust with a favorable equity position, though there is a slight concern regarding increasing debt levels. Cash flow management shows potential risks that need addressing to ensure sustainable financial health.

Income Statement

SOLXYZ Co., Ltd. has shown a consistent increase in total revenue over the years, indicating positive revenue growth. The Gross Profit Margin is healthy, indicating effective cost management. However, the Net Profit Margin has been decreasing, reflecting a need to control other expenses. EBIT and EBITDA margins are also strong, but the decline in EBIT margin from the previous year suggests potential challenges in operational efficiency.

Balance Sheet

The company maintains a solid Debt-to-Equity ratio, demonstrating prudent leverage management. Return on Equity (ROE) is stable, implying efficient utilization of shareholder equity. The Equity Ratio indicates a strong financial position with a high proportion of assets financed by equity. However, a slight increase in total debt warrants attention.

Cash Flow

SOLXYZ Co., Ltd. has experienced fluctuations in Free Cash Flow, with recent declines indicating potential cash management issues. The Operating Cash Flow to Net Income ratio is positive, suggesting good cash generation from operations. However, the Free Cash Flow to Net Income ratio has decreased, highlighting a need for better capital expenditure control.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.85B	16.04B	15.88B	13.99B	13.92B	13.19B
Gross Profit	4.09B	3.71B	3.76B	3.34B	3.39B	3.06B
EBITDA	1.70B	1.42B	1.62B	1.39B	1.54B	1.33B
Net Income	754.90M	562.54M	753.00M	564.47M	1.06B	593.27M
Balance Sheet
Total Assets	11.46B	12.27B	11.93B	11.46B	11.27B	11.40B
Cash, Cash Equivalents and Short-Term Investments	4.28B	4.73B	4.87B	4.73B	4.85B	4.70B
Total Debt	1.59B	1.00B	812.00M	1.17B	1.69B	1.98B
Total Liabilities	4.57B	3.76B	3.69B	3.64B	3.75B	4.59B
Stockholders Equity	6.05B	7.65B	7.43B	7.01B	6.78B	6.11B
Cash Flow
Free Cash Flow	0.00	76.19M	1.35B	760.26M	224.09M	-509.99M
Operating Cash Flow	0.00	500.09M	1.39B	1.18B	631.05M	-37.10M
Investing Cash Flow	0.00	-493.97M	-534.53M	-465.91M	-202.38M	-165.54M
Financing Cash Flow	0.00	-149.22M	-675.00M	-809.04M	-337.36M	-101.81M

SOLXYZ Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 478.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4284, the sentiment is Positive. The current price of 478 is above the 20-day moving average (MA) of 461.10, above the 50-day MA of 447.42, and above the 200-day MA of 401.65, indicating a bullish trend. The MACD of 10.23 indicates Negative momentum. The RSI at 67.24 is Neutral, neither overbought nor oversold. The STOCH value of 83.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4284.

SOLXYZ Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4284	79 Outperform	¥10.55B	13.99	―	2.44%	9.77%	93.99%
4495	78 Outperform	¥14.87B	22.54	―	1.21%	23.67%	24.95%
4389	67 Neutral	¥9.12B	14.94	―	1.48%	17.83%	34.25%
153A	66 Neutral	¥9.37B	28.55	―	―	14.92%	2.55%
4168	64 Neutral	¥12.32B	16.36	―	0.63%	9.78%	-23.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9553	50 Neutral	¥13.78B	69.52	―	―	14.28%	-30.70%