eXmotion Co., Ltd. (4394) AI Stock Analysis

• Market Cap: ¥2.36B
• Dividend Yield: 2.59%
• Average Volume (3M): 3.13K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.28
• Revenue Growth: 14.23%
• EPS Growth: 1440.00%
• Country: JP
• Employees: 85
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 13.48
• Shares Outstanding: 3,025,500
• 10 Day Avg. Volume: 5,090
• 30 Day Avg. Volume: 3,133
• PEG Ratio: 0.65
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 1.68
• P/FCF Ratio: 9.53
• 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: 75 Outperform
• Price Target: ¥910.00 ▲(18.64% Upside)

The score is driven primarily by strong financial quality—steady growth, solid operating margins, and a zero-debt balance sheet—partly offset by volatility in net income and cash flow conversion. Technicals are positive but overbought signals (RSI/Stoch elevated) reduce the near-term setup, while valuation looks fair with a moderate dividend yield.

Positive Factors

Zero Debt Balance Sheet

A zero-debt capital structure materially reduces financial risk and interest-rate sensitivity, giving management durable flexibility to fund growth, invest in R&D, or return capital without refinancing pressure. This strengthens resilience through economic cycles and supports long-term strategic optionality.

Consistent Revenue Growth & Healthy Margins

Sustained top-line expansion coupled with robust gross and operating margins indicates stable customer demand and scalable service economics. Over months this supports predictable operating profitability, reinvestment capacity, and the ability to maintain competitive pricing or fund product development without eroding margins.

Strong FY2025 Cash Conversion

High cash conversion in the most recent year signals good earnings quality and internal funding capacity, enabling sustainable capex, dividends, or strategic M&A. Durable cash generation reduces reliance on external financing and supports steady capital allocation over the coming quarters.

Negative Factors

Earnings and Cash Flow Volatility

Historical swings in net income and operating cash flow reveal below-the-line items or timing effects that undermine predictability. Persistent volatility complicates budgeting, weakens free-cash-flow guidance reliability, and can raise funding or dividend sustainability concerns over the medium term.

Modest and Inconsistent ROE

Mid-single-digit ROE limits long-term shareholder wealth creation compared with higher-return peers. The large swing to near-zero ROE in FY2023 shows inconsistency in converting equity into profits, suggesting periods of capital inefficiency that could constrain sustained shareholder return over time.

Small Scale and Low Liquidity

A small employee base and limited trading liquidity imply constrained operational scale and potential customer concentration risk. Over months this can restrict ability to take large contracts, scale quickly, or access deep capital markets, increasing vulnerability to client losses or slower growth execution.

eXmotion Co., Ltd. Business Overview & Revenue Model

Company Description

eXmotion Co., Ltd. provides technical consulting and education services for systems and software. It offers project diagnosis and site support services; and practical courses to acquire skilled skills that can be used on site. In addition, the company provides eXquto, a diagnostic tool for C language that diagnoses software design and implementation quality; MODEL EVALUATOR, a tool to diagnose the quality of MATLAB/Simulink model; and Mtrip, a tool for mutually converting an architectural design model described in a general-purpose modeling language. eXmotion Co., Ltd. was founded in 2008 and is headquartered in Tokyo, Japan.

How the Company Makes Money

eXmotion Co., Ltd. generates revenue through a combination of consulting services, training programs, and software licenses. The company provides expert advice and support for model-based development projects, helping clients to implement and optimize MBD methodologies. Training programs offered by eXmotion are designed to educate clients on best practices and tools used in embedded software development, which are often sold as packaged courses. Additionally, eXmotion may license proprietary software tools that assist in the MBD process, providing an additional revenue stream. Key partnerships with industry leaders in the automotive and aerospace sectors also contribute to the company's revenue by expanding its client base and enhancing its service offerings.

eXmotion Co., Ltd. Financial Statement Overview

Summary

Strong fundamentals supported by consistent revenue growth (FY2025 +9.1%), healthy profitability (FY2025 gross margin ~41.7%, operating margin ~14.0%), and an exceptionally conservative balance sheet with zero debt. Score is tempered by bottom-line volatility (notably FY2023 net margin ~0.6%) and uneven operating cash flow coverage in FY2023–FY2024.

Income Statement

Revenue has grown consistently since 2020, including +9.1% in FY2025 (annual), showing steady demand. Profitability is solid with FY2025 gross margin ~41.7% and operating margin ~14.0%, and net margin improved to ~9.2% vs. ~7.7% in FY2024. A key weakness is earnings volatility—FY2023 net margin fell to ~0.6% despite healthy operating margin, indicating below-the-line pressure and less stable bottom-line performance.

Balance Sheet

The balance sheet is very conservative with zero debt across all reported years, which materially reduces financial risk and interest-rate sensitivity. Equity and assets have gradually expanded over time, supporting stability. Returns on equity are generally mid-single digits to high-single digits (FY2025 ~7.6%), but the weak FY2023 return (~0.4%) highlights that shareholder returns can be inconsistent even with a strong capital structure.

Cash Flow

Cash conversion is strong overall: FY2025 operating cash flow exceeded net income (about 1.34x), and free cash flow was close to net income (~0.97x), indicating good earnings quality. However, cash flow has been more volatile than profits—FY2024 operating cash flow covered only ~0.51x of net income and FY2023 was even weaker (~0.17x), suggesting periodic working-capital swings or timing effects that can pressure near-term cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.39B	1.39B	1.28B	1.11B	1.05B	957.92M
Gross Profit	585.75M	577.98M	519.75M	477.27M	465.78M	385.08M
EBITDA	251.20M	237.24M	201.26M	163.89M	204.53M	161.78M
Net Income	135.34M	127.47M	99.22M	6.66M	134.52M	100.21M
Balance Sheet
Total Assets	1.82B	1.86B	1.77B	1.70B	1.71B	1.61B
Cash, Cash Equivalents and Short-Term Investments	1.39B	1.44B	1.29B	1.28B	1.46B	1.37B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	197.00M	187.93M	167.69M	148.50M	122.61M	109.39M
Stockholders Equity	1.63B	1.67B	1.60B	1.55B	1.59B	1.50B
Cash Flow
Free Cash Flow	0.00	245.12M	65.33M	16.61M	127.93M	89.58M
Operating Cash Flow	0.00	252.32M	86.36M	24.65M	143.04M	93.77M
Investing Cash Flow	0.00	-45.07M	-21.01M	-163.39M	-15.10M	-2.81M
Financing Cash Flow	0.00	-55.79M	-54.25M	-42.58M	-41.68M	-37.67M

eXmotion Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 767.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4394, the sentiment is Neutral. The current price of 767 is below the 20-day moving average (MA) of 785.35, below the 50-day MA of 770.32, and below the 200-day MA of 802.98, indicating a neutral trend. The MACD of 1.30 indicates Positive momentum. The RSI at 51.16 is Neutral, neither overbought nor oversold. The STOCH value of 26.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4394.

eXmotion Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4421	79 Outperform	¥2.94B	10.89	―	2.86%	5.74%	5.97%
4394	75 Outperform	¥2.36B	18.49	―	2.59%	14.23%	1440.00%
6193	70 Outperform	¥2.99B	13.50	―	1.52%	4.73%	135.75%
7046	66 Neutral	¥3.09B	22.06	―	0.69%	12.15%	-33.34%
3970	66 Neutral	¥2.56B	-11.15	―	4.29%	15.64%	-268.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3753	42 Neutral	¥2.25B	-5.98	―	―	-2.29%	31.48%

eXmotion Co., Ltd. Corporate Events

eXmotion Posts Double-Digit Profit Growth and Strengthens Balance Sheet in FY2025

For the fiscal year ended November 2025, eXmotion Co., Ltd. reported steady top-line and strong profit growth, with net sales rising 7.9% year on year to ¥1,386 million and operating profit climbing 22.1% to ¥189 million, while ordinary profit increased 23.0% to ¥194 million and profit attributable to owners of parent advanced 28.5% to ¥127 million, reflecting improving profitability and cost efficiency. The company maintained a solid financial position, with total assets of ¥1,857 million, a high capital adequacy ratio of 89.9%, improved cash flows from operating activities of ¥252 million, and higher cash and equivalents at period-end, underscoring a robust balance sheet and enhanced capacity to fund future operations and shareholder returns.

The most recent analyst rating on (JP:4394) stock is a Buy with a Yen844.00 price target. To see the full list of analyst forecasts on eXmotion Co., Ltd. stock, see the JP:4394 Stock Forecast page.