XNET Corporation (4762) AI Stock Analysis

• Market Cap: ¥11.19B
• Dividend Yield: 3.32%
• Average Volume (3M): 5.13K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.22
• Revenue Growth: -4.45%
• EPS Growth: 46.54%
• Country: JP
• Employees: 188
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Application
• EPS (TTM): 37.57
• Shares Outstanding: 8,261,600
• 10 Day Avg. Volume: 3,420
• 30 Day Avg. Volume: 5,133
• PEG Ratio: -3.54
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.84
• 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

• Rating: 76 Outperform
• Price Target: ―

XNET Corporation holds a solid overall stock score due to strong financial performance and an appealing valuation. The strong balance sheet and profitability are key strengths, though the lack of current cash flow data and stagnant revenue growth are areas to watch. Technical indicators suggest mixed momentum, but the low P/E ratio and good dividend yield add to the stock's attractiveness.

XNET Corporation Business Overview & Revenue Model

Company Description

XNET Corporation provides software applications outsourcing services in Japan. It offers insurance solutions, such as portfolio management, corporate finance management, and NAV calculation for variable insurance; banking and asset management solutions, including customized loan management, trust for individuals, interbank deposit management, and bond account management for OTC sale; and solutions for other business companies. The company also offers solutions for proxy/engagement management, market information services, reports management, IFRS data management, and STP solutions with brokers and custodians, as well as business process outsourcing services. The company was founded in 1991 and is based in Tokyo, Japan. XNET Corporation is a subsidiary of NTT Data Corporation.

How the Company Makes Money

XNET Corporation generates revenue primarily through its cloud computing and data center services. By offering subscription-based cloud services, the company provides scalable and flexible solutions to businesses, charging fees based on the usage and resources consumed. Its data center services involve hosting and managing server resources for clients, which also follows a subscription and usage-based pricing model. Additionally, XNET Corporation may engage in strategic partnerships with technology providers and enterprises to enhance its service offerings and expand its market reach, contributing to its revenue streams.

XNET Corporation Financial Statement Overview

Summary

XNET Corporation shows strong financial performance with a robust income statement and balance sheet. The income statement reflects efficient operations and healthy profitability, though revenue growth needs monitoring. The balance sheet is strong, with no debt and a high equity ratio. However, the cash flow statement lacks current data, posing a risk in assessing liquidity.

Income Statement

XNET Corporation has shown robust performance in its income statement. The gross profit margin for the TTM is approximately 28.8%, indicating strong cost management. The net profit margin is 11.1%, reflecting healthy profitability. Although total revenue decreased slightly from the previous year, the company maintains a strong EBIT margin of 16.8% and an EBITDA margin of 19.3%. The decline in revenue growth requires attention, but overall, the margins suggest efficient operations.

Balance Sheet

The balance sheet of XNET Corporation is strong, evidenced by a high equity ratio of 43.6% and no recorded debt in recent annual reports, which implies substantial financial stability and low leverage risk. Return on equity is solid at around 21.5% for the TTM, indicating effective use of equity to generate profits. The balance sheet reflects a well-capitalized company with a prudent financial structure.

Cash Flow

XNET Corporation's cash flow statement displays some areas for improvement. The absence of reported operating cash flow and free cash flow in the TTM data limits the ability to assess recent cash generation. Historically, the operating cash flow to net income ratio and free cash flow to net income ratio have been strong, showing efficient cash conversion. However, the lack of current cash flow data poses a risk to evaluating ongoing liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.35B	5.30B	5.55B	5.36B	5.42B	5.04B
Gross Profit	1.54B	1.48B	1.70B	1.51B	1.52B	1.21B
EBITDA	1.03B	890.85M	1.08B	963.38M	1.58B	1.31B
Net Income	595.29M	581.34M	741.35M	694.01M	718.33M	576.74M
Balance Sheet
Total Assets	6.34B	6.68B	9.91B	9.28B	8.95B	8.24B
Cash, Cash Equivalents and Short-Term Investments	1.54B	1.76B	4.62B	2.26B	2.07B	1.49B
Total Debt	2.50B	2.50B	0.00	0.00	0.00	0.00
Total Liabilities	3.58B	3.76B	1.39B	1.26B	1.38B	1.16B
Stockholders Equity	2.76B	2.92B	8.52B	8.02B	7.57B	7.08B
Cash Flow
Free Cash Flow	0.00	826.04M	1.05B	847.29M	990.93M	709.56M
Operating Cash Flow	0.00	837.03M	1.44B	1.16B	1.39B	1.08B
Investing Cash Flow	0.00	1.26B	-416.19M	-523.34M	-685.53M	-752.42M
Financing Cash Flow	0.00	-3.68B	-247.95M	-239.25M	-230.93M	-231.17M

XNET Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1354.00
• 50DMA: Positive
• 100DMA: Positive
• 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:4762, the sentiment is Neutral. The current price of 1354 is below the 20-day moving average (MA) of 1370.55, above the 50-day MA of 1337.52, and below the 200-day MA of 1377.10, indicating a neutral trend. The MACD of 7.61 indicates Positive momentum. The RSI at 47.44 is Neutral, neither overbought nor oversold. The STOCH value of 7.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4762.

XNET Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9343	78 Outperform	¥12.13B	14.00		1.21%	4.02%	118.72%
4762	76 Outperform	¥11.19B	10.52		3.32%	-4.45%	46.54%
3969	75 Outperform	¥10.53B	14.45		2.27%	10.60%	2.04%
4193	72 Outperform	¥10.79B	31.91		1.88%	12.79%	-50.86%
5591	69 Neutral	¥9.32B	59.54		―	―	―
5572	68 Neutral	¥9.64B	59.39		―	135.19%	850.62%
Sector *	63 Neutral	$33.87B	5.80	-11.87%	1.82%	5.31%	-18.50%