NEXYZ.Group Corporation (4346) AI Stock Analysis

• Market Cap: ¥11.37B
• Dividend Yield: 3.54%
• Average Volume (3M): 22.64K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.73
• Revenue Growth: 16.07%
• EPS Growth: 50.91%
• Country: JP
• Employees: 1,005
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 51.52
• Shares Outstanding: 13,471,240
• 10 Day Avg. Volume: 36,270
• 30 Day Avg. Volume: 22,643
• PEG Ratio: -1.00
• Price to Book (P/B): 4.37
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 11.83
• 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: 67 Neutral
• Price Target: ¥1,112.00 ▲(31.29% Upside)

NEXYZ.Group Corporation's overall stock score is primarily driven by its strong financial performance, particularly in revenue growth and profitability improvements. However, the technical analysis indicates bearish trends, and the leveraged balance sheet poses risks. The valuation is favorable, with a reasonable P/E ratio and a solid dividend yield, providing some support to the stock's attractiveness.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a strong market position and successful product adoption, supporting long-term business expansion.

Profitability Improvement

The turnaround from losses to profitability reflects enhanced operational efficiency and effective cost management, strengthening financial health.

Product and Service Diversification

Diversified offerings across digital transformation, cloud computing, and data analytics reduce dependency on a single revenue stream, enhancing resilience.

Negative Factors

Leveraged Balance Sheet

High leverage can limit financial flexibility and increase risk, especially if cash flow generation becomes inconsistent, impacting long-term stability.

Cash Flow Volatility

Volatile cash flow management may hinder the company's ability to invest in growth opportunities and manage debt, affecting future financial performance.

Equity Ratio Concerns

A low equity ratio suggests limited buffer against financial distress, which could challenge the company's ability to sustain operations during downturns.

NEXYZ.Group Corporation Business Overview & Revenue Model

Company Description

NEXYZ.Group Corporation (4346) is a diversified technology company that operates primarily in the fields of digital transformation, cloud computing, and data analytics. The company provides innovative solutions and services designed to enhance business efficiency and drive growth across various industries. With a focus on leveraging advanced technologies, NEXYZ.Group offers a range of products including software applications, data management tools, and consulting services that cater to both small and large enterprises seeking to optimize their operations.

How the Company Makes Money

NEXYZ.Group generates revenue through multiple streams, primarily by offering subscription-based software services and consulting solutions. Its key revenue model includes annual licenses for its software products, which provide ongoing support and updates. Additionally, the company earns income from project-based consulting services that help clients implement technology solutions tailored to their needs. Strategic partnerships with other tech firms and cloud service providers further enhance their offerings and contribute to recurring revenue through joint ventures and collaborative projects. The company's focus on expanding its market presence and investing in R&D also bolsters its earnings potential as it introduces new products and services to meet evolving customer demands.

NEXYZ.Group Corporation Financial Statement Overview

Summary

NEXYZ.Group Corporation has demonstrated strong revenue growth and improved profitability, transitioning from a loss to a profit. However, the leveraged balance sheet and inconsistent cash flow management present potential risks.

Income Statement

NEXYZ.Group Corporation has shown strong revenue growth, increasing from ¥15.7 billion in 2020 to ¥25.5 billion in TTM 2024. The company has successfully turned around its profitability, with net income improving from a loss of ¥2.1 billion in 2020 to a profit of ¥652 million in TTM 2024. Gross profit margin and EBIT margin have also shown improvement, indicating enhanced operational efficiency. However, the company had negative EBIT in 2020, highlighting historical volatility.

Balance Sheet

The balance sheet reflects a modest equity base with a debt-to-equity ratio of 2.17 in TTM 2024, indicating leveraged financial structure. Stockholders' equity has increased over the years, suggesting improvement in financial stability. However, the equity ratio remains low, signaling a potential risk if the company cannot manage its liabilities effectively.

Cash Flow

Cash flow from operations has been volatile with positive free cash flow in recent periods, yet the absence of operating cash flow data in TTM 2024 raises concerns about cash generation sustainability. Historical data shows a mix of positive and negative free cash flow, reflecting fluctuating cash management practices.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.76B	24.50B	21.95B	19.21B	18.76B	15.73B
Gross Profit	13.81B	12.75B	11.51B	8.89B	8.74B	7.58B
EBITDA	2.35B	1.69B	1.34B	625.00M	-217.00M	-1.75B
Net Income	1.05B	611.00M	748.00M	185.00M	-1.15B	-2.13B
Balance Sheet
Total Assets	22.08B	18.34B	15.45B	13.62B	14.61B	16.06B
Cash, Cash Equivalents and Short-Term Investments	8.11B	5.84B	4.98B	2.83B	3.43B	3.84B
Total Debt	7.74B	5.70B	5.41B	6.09B	5.95B	7.14B
Total Liabilities	15.44B	13.13B	11.74B	10.75B	10.63B	10.54B
Stockholders Equity	3.34B	2.55B	1.68B	1.19B	1.81B	3.46B
Cash Flow
Free Cash Flow	0.00	941.00M	2.67B	-433.00M	1.49B	-3.67B
Operating Cash Flow	0.00	1.03B	2.75B	-365.00M	1.56B	-3.49B
Investing Cash Flow	0.00	124.00M	298.00M	-140.00M	-230.00M	-404.00M
Financing Cash Flow	0.00	-285.00M	-896.00M	-92.00M	-1.74B	2.99B

NEXYZ.Group Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 847.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4346, the sentiment is Negative. The current price of 847 is below the 20-day moving average (MA) of 939.15, below the 50-day MA of 1007.04, and below the 200-day MA of 887.95, indicating a bearish trend. The MACD of -50.27 indicates Positive momentum. The RSI at 23.02 is Positive, neither overbought nor oversold. The STOCH value of 7.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4346.

NEXYZ.Group Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9313	77 Outperform	¥6.05B	6.92	―	2.36%	0.08%	105.25%
4346	67 Neutral	¥11.37B	12.33	―	3.54%	16.07%	50.91%
9319	66 Neutral	¥25.04B	14.69	―	2.80%	4.02%	18.12%
9307	65 Neutral	¥14.50B	15.97	―	1.52%	1.23%	0.12%
9325	65 Neutral	¥11.63B	13.76	―	2.20%	18.27%	-4.07%
9322	65 Neutral	¥18.88B	25.61	―	1.32%	3.37%	9.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%