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

• Market Cap: ¥2.35B
• Dividend Yield: 2.42%
• Average Volume (3M): 3.13K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.33
• Revenue Growth: 14.23%
• EPS Growth: 1440.00%
• Country: JP
• Employees: 85
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 12.54
• Shares Outstanding: 3,025,500
• 10 Day Avg. Volume: 5,090
• 30 Day Avg. Volume: 3,133
• PEG Ratio: 0.02
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 1.86
• P/FCF Ratio: 36.65
• 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: 70 Outperform
• Price Target: ―

eXmotion Co., Ltd. presents a strong financial foundation with excellent revenue growth and a robust balance sheet. However, technical indicators suggest caution due to potential downward trends, and valuation metrics indicate fair pricing with a reasonable dividend yield. The absence of recent earnings call data or significant corporate events limits further insights into short-term developments.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and market position.

Balance Sheet Health

A strong balance sheet with zero debt enhances financial stability and flexibility, allowing for strategic investments and resilience in downturns.

Cash Flow Management

Efficient cash flow management ensures the company can fund operations and growth initiatives, supporting sustainable long-term performance.

Negative Factors

Margin Pressures

Declining margins can impact profitability, indicating potential challenges in cost management or competitive pricing pressures that need addressing.

Investment Fluctuations

Volatile investment cash flows may reflect strategic shifts or uncertainties in capital allocation, affecting long-term financial planning and stability.

Operational Cost Challenges

Operational cost challenges can strain resources and affect profitability, necessitating improved cost control measures to maintain financial health.

eXmotion Co., Ltd. Business Overview & Revenue Model

Company Description

eXmotion Co., Ltd. (4394) is a technology company operating within the software development industry. Specializing in model-based development (MBD) and embedded software, eXmotion offers a range of services including consulting, training, and support for complex system development. The company primarily serves the automotive, aerospace, and industrial sectors, providing solutions that enhance the efficiency and reliability of software development processes.

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

eXmotion Co., Ltd. demonstrates strong financial performance with significant revenue growth, a solid balance sheet with zero debt, and efficient cash flow management. However, slight margin pressures and ongoing investment activities require attention.

Income Statement

eXmotion Co., Ltd. has shown a strong revenue growth trajectory with a consistent increase in total revenue from 877.2 million in 2020 to 1.28 billion in 2024. The gross profit margin remains healthy, indicating efficient management of production costs relative to revenues. Net profit margin and EBIT margin are also positive, reflecting effective cost control and strong operational performance. However, the slight decline in EBITDA margin suggests potential rising operational costs or pricing pressures.

Balance Sheet

The balance sheet of eXmotion Co., Ltd. is exceptionally strong, with total debt at zero and substantial cash reserves, indicating high liquidity and financial stability. The equity ratio is robust, showcasing a solid capital structure with minimal liabilities. Return on equity remains positive, reflecting effective use of shareholder funds to generate profits.

Cash Flow

The cash flow statement reveals a positive trajectory in free cash flow growth, emphasizing the company's ability to generate cash after capital expenditures. The operating cash flow to net income ratio is strong, showcasing efficient cash management. However, the fluctuations in investing cash flow could indicate ongoing investments or capital allocation strategies that need monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.37B	1.28B	1.11B	1.05B	957.92M	877.19M
Gross Profit	572.06M	519.75M	477.27M	465.78M	385.08M	350.10M
EBITDA	251.14M	201.26M	163.89M	204.53M	161.78M	107.99M
Net Income	133.75M	99.22M	6.66M	134.52M	100.21M	68.09M
Balance Sheet
Total Assets	1.78B	1.77B	1.70B	1.71B	1.61B	1.51B
Cash, Cash Equivalents and Short-Term Investments	1.37B	1.29B	1.28B	1.46B	1.37B	1.32B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	192.41M	167.69M	148.50M	122.61M	109.39M	77.87M
Stockholders Equity	1.59B	1.60B	1.55B	1.59B	1.50B	1.43B
Cash Flow
Free Cash Flow	0.00	65.33M	16.61M	127.93M	89.58M	72.70M
Operating Cash Flow	0.00	86.36M	24.65M	143.04M	93.77M	85.56M
Investing Cash Flow	0.00	-21.01M	-163.39M	-15.10M	-2.81M	-12.16M
Financing Cash Flow	0.00	-54.25M	-42.58M	-41.68M	-37.67M	-25.43M

eXmotion Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 765.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4394, the sentiment is Negative. The current price of 765 is below the 20-day moving average (MA) of 778.98, below the 50-day MA of 789.23, and below the 200-day MA of 815.34, indicating a bearish trend. The MACD of -7.49 indicates Positive momentum. The RSI at 39.32 is Neutral, neither overbought nor oversold. The STOCH value of -30.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4394.

eXmotion Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7046	74 Outperform	¥3.33B	29.28	―	0.62%	12.15%	-33.34%
4421	72 Outperform	¥2.75B	10.20	―	3.00%	5.74%	5.97%
4394	70 Outperform	¥2.35B	17.32	―	2.42%	14.23%	1440.00%
6193	70 Outperform	¥2.99B	13.51	―	1.47%	4.73%	135.75%
3970	66 Neutral	¥2.61B	―	―	4.13%	15.64%	-268.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3753	42 Neutral	¥2.12B	―	―	―	-2.29%	31.48%