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

• Market Cap: ¥11.77B
• Dividend Yield: 2.45%
• Average Volume (3M): 45.22K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.50
• Revenue Growth: 9.77%
• EPS Growth: 93.99%
• Country: JP
• Employees: 852
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 12.39
• Shares Outstanding: 26,820,595
• 10 Day Avg. Volume: 34,400
• 30 Day Avg. Volume: 45,223
• PEG Ratio: 0.20
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 5.66
• 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: 66 Neutral
• Price Target: ¥525.00 ▲(10.06% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is primarily driven by solid underlying financial performance (revenue growth and profitability) but tempered by increased 2025 leverage and earnings/cash-flow variability. Valuation is a clear positive with a reasonable P/E and supportive dividend yield, while near-term technical indicators are weak (below key short-term averages with negative MACD), limiting the overall score.

Positive Factors

Revenue Growth

Sustained revenue growth with a pronounced step-up in 2025 indicates durable demand expansion and improving product/market fit. Over a 2–6 month horizon this supports predictable top-line momentum, scale benefits, and the ability to fund reinvestment or strategic initiatives.

Consistent Profitability

Consistent positive EBIT, EBITDA and net income across periods demonstrates an underlying profitable business model. This provides recurring earnings coverage for operations, funds for dividends or buybacks, and resilience during moderate cyclical weakness over the coming months.

Strong Free Cash Flow in Key Years

Episodes of very robust free cash flow show the company can generate significant surplus cash to support capex, dividends, or debt paydown. Even if uneven, these strong FCF years reveal underlying cash-generating capability important for durable financial flexibility.

Negative Factors

Rising Leverage in 2025

A sharp rise in total debt paired with declining equity materially reduces balance-sheet flexibility. Higher leverage increases interest and refinancing risk, limits strategic optionality, and makes the company more sensitive to earnings downturns over the medium term.

Margin and Earnings Volatility

Falling margins from prior peaks and periodic earnings swings undermine long-term earnings visibility and strain reinvestment capacity. Margin erosion reduces the cushion against cyclical shocks and raises the risk that growth won't sustainably convert into durable profits.

Cash Flow Volatility

Material year-to-year swings in operating and free cash flow weaken the predictability of internally generated funding. This volatility complicates budgeting, increases reliance on external financing in weak years, and amplifies the effect of higher leverage noted in 2025.

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

Financials are solid but mixed: steady revenue growth with a strong step-up in 2025 and consistent profitability support the score, while margin/earnings volatility and a notable 2025 leverage increase (with lower equity) reduce balance-sheet flexibility and raise risk.

Income Statement

Revenue has grown steadily over the period, with a strong step-up in 2025 and solid growth in 2023, indicating improving demand and scale. Profitability is positive (EBIT, EBITDA, and net income all consistently positive), but margins have generally trended down from 2021 levels and earnings have shown some volatility (notably weaker net income in 2024 vs 2023 before rebounding in 2025). Overall: healthy, but not best-in-class consistency on margins and bottom-line trajectory.

Balance Sheet

The company maintains a moderate leverage profile with equity representing a meaningful capital base, and historical debt-to-equity ratios (where provided) are relatively conservative. However, total debt increased sharply in 2025 while equity declined versus 2024, which reduces balance-sheet flexibility and raises financial risk if profitability softens. Asset growth is steady, but the recent mix shift (more debt, less equity) is the key watch item.

Cash Flow

Cash generation is generally strong, with positive operating cash flow in most years and very robust free cash flow in 2022–2023 and again in 2025. That said, cash flow is volatile: 2024 free cash flow dropped materially versus 2023, and 2020 showed negative operating cash flow and negative free cash flow. The latest year is a clear improvement, but the year-to-year swings lower the quality score versus more stable cash profiles.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.85B	17.36B	16.04B	15.88B	13.99B	13.92B
Gross Profit	4.09B	4.23B	3.71B	3.76B	3.34B	3.39B
EBITDA	1.70B	1.87B	1.42B	1.62B	1.39B	1.54B
Net Income	754.90M	839.84M	562.54M	753.00M	564.47M	1.06B
Balance Sheet
Total Assets	11.46B	12.45B	12.27B	11.93B	11.46B	11.27B
Cash, Cash Equivalents and Short-Term Investments	4.28B	5.21B	4.73B	4.87B	4.73B	4.85B
Total Debt	1.59B	2.09B	1.00B	812.00M	1.17B	1.69B
Total Liabilities	4.57B	4.98B	3.76B	3.69B	3.64B	3.75B
Stockholders Equity	6.05B	6.58B	7.65B	7.43B	7.01B	6.78B
Cash Flow
Free Cash Flow	0.00	1.87B	76.19M	1.35B	760.26M	224.09M
Operating Cash Flow	0.00	1.91B	500.09M	1.39B	1.18B	631.05M
Investing Cash Flow	0.00	-467.68M	-493.97M	-534.53M	-465.91M	-202.38M
Financing Cash Flow	0.00	-963.23M	-149.22M	-675.00M	-809.04M	-337.36M

SOLXYZ Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 477.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4284, the sentiment is Neutral. The current price of 477 is below the 20-day moving average (MA) of 495.70, below the 50-day MA of 500.12, and above the 200-day MA of 438.00, indicating a neutral trend. The MACD of -10.77 indicates Positive momentum. The RSI at 38.85 is Neutral, neither overbought nor oversold. The STOCH value of 17.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4284.

SOLXYZ Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4477	73 Outperform	¥37.49B	20.04	―	―	27.97%	-5.25%
3853	70 Outperform	¥21.03B	19.00	―	0.82%	―	―
4284	66 Neutral	¥11.77B	12.77	―	2.45%	9.77%	93.99%
5033	66 Neutral	¥4.93B	13.38	―	―	7.60%	19.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4165	60 Neutral	¥23.48B	23.06	―	―	21.87%	240.21%
4448	58 Neutral	¥13.02B	60.03	―	―	14.63%	-760.87%

SOLXYZ Co., Ltd. Corporate Events

SOLXYZ Posts Sharp Profit Rebound on Higher Sales and Improved Margins in FY2025

SOLXYZ Co., Ltd. reported consolidated net sales of ¥17.36 billion for the year ended December 2025, an 8.2% increase from the prior year, with operating profit surging 51.7% to ¥1.40 billion and profit attributable to owners of parent up 49.3% to ¥839 million. Profitability indicators improved markedly, with operating margin rising to 8.0%, return on equity to 11.8%, and stronger operating cash flow supporting higher cash balances despite a decline in capital adequacy ratio due to reduced net assets.

Total assets remained broadly stable at ¥12.45 billion, while net assets fell to ¥7.47 billion and the capital adequacy ratio slipped to 52.8%, indicating some balance-sheet tightening even as earnings and cash generation strengthened. The company plans to hold its general shareholders’ meeting and file its annual securities report in late March 2026, alongside briefing sessions for investors, underscoring its intent to communicate improved performance and financial metrics to stakeholders.

The most recent analyst rating on (JP:4284) stock is a Buy with a Yen579.00 price target. To see the full list of analyst forecasts on SOLXYZ Co., Ltd. stock, see the JP:4284 Stock Forecast page.

SOLXYZ Upgrades FY2025 Earnings Outlook and Raises Dividend Forecast

SOLXYZ has raised its full-year consolidated forecasts for the fiscal year ending December 31, 2025, projecting net sales of ¥17.58 billion, operating profit of ¥1.4 billion, and profit attributable to owners of parent of ¥830 million, all above its previous guidance and the prior year’s results. The upward revision is driven by solid software development demand linked to clients’ digital transformation initiatives, particularly from financial-sector and government projects, alongside robust performance in aerospace and defense solutions and favorable timing of large project inspections and acceptances. Reflecting the improved outlook and its policy of aligning shareholder returns with business performance, the company also increased its forecast year-end dividend by ¥1 to ¥14 per share, signaling confidence in earnings momentum and a continued focus on stable, performance-based shareholder returns.

The most recent analyst rating on (JP:4284) stock is a Buy with a Yen545.00 price target. To see the full list of analyst forecasts on SOLXYZ Co., Ltd. stock, see the JP:4284 Stock Forecast page.