Nextware Ltd. (4814) AI Stock Analysis

• Market Cap: ¥2.16B
• Dividend Yield: N/A
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: 6.72%
• EPS Growth: 34.50%
• Country: JP
• Employees: 209
• Sector: Technology
• Sector Strength: 78
• Industry: Information Technology Services
• EPS (TTM): 2.46
• Shares Outstanding: 13,015,222
• 10 Day Avg. Volume: 1,507,940
• 30 Day Avg. Volume: 1,034,820
• PEG Ratio: -2.42
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.28
• 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: 50 Neutral
• Price Target: ¥165.00 ▼(-2.94%Downside)

Nextware Ltd.'s overall stock score is primarily affected by its weak financial performance and poor valuation metrics. The technical analysis provides some short-term support, but the absence of earnings call insights and corporate events does not offer additional context.

Nextware Ltd. Business Overview & Revenue Model

Company Description

Nextware Ltd. provides IT solutions in Japan. The company operates through Solutions Business and Entertainment Business segments. It is also involved in the computer system design and software development activities; buying, importing/exporting, selling, and leasing of computers and its peripherals. In addition, the company engages in operational management and support of computer systems; and computer system consulting services. Further, it provides consulting management, events planning and management, and non-life insurance agency businesses. Additionally, the company offers digital content development and distribution services. Nextware Ltd. was incorporated in 1990 and is headquartered in Osaka, Japan.

How the Company Makes Money

Nextware Ltd. Financial Statement Overview

Summary

Nextware Ltd. faces significant profitability and cash flow challenges. Despite a stable balance sheet with low leverage, the company struggles with declining revenues and consistent net losses, impacting its financial performance.

Income Statement

Nextware Ltd. has shown inconsistent revenue trends with a decline in recent years. The gross profit margin has decreased, indicating higher costs relative to revenues. Negative EBIT and net profit margins highlight ongoing profitability challenges, with net losses persisting over the past couple of years.

Balance Sheet

The company maintains a strong equity base, as evidenced by a high equity ratio, which indicates financial stability. The debt-to-equity ratio is low, suggesting conservative leverage. However, declining stockholder equity and assets over time are concerning.

Cash Flow

Operating cash flows have been inconsistent, with a significant decrease in recent periods. Free cash flow has seen negative growth, reflecting challenges in generating cash from operations. The free cash flow to net income ratio is poor due to persistent net losses.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
3.04B	3.01B	2.82B	2.89B	2.92B	3.16B
	Gross Profit
758.26M	782.20M	721.71M	774.27M	837.37M	875.33M
	EBIT
-106.44M	-76.85M	-132.62M	-25.54M	52.30M	18.27M
	EBITDA
-90.74M	-42.10M	-95.16M	77.87M	971.79M	144.26M
	Net Income Common Stockholders
-153.44M	-105.95M	-161.75M	11.66M	686.67M	24.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
424.00M	453.30M	595.54M	639.62M	1.09B	314.66M
	Total Assets
1.47B	1.55B	1.69B	1.84B	2.10B	1.54B
	Total Debt
3.00M	1.95M	8.55M	44.40M	74.61M	259.10M
	Net Debt
-421.00M	-451.35M	-586.99M	-595.23M	-911.01M	-55.56M
	Total Liabilities
278.00M	323.56M	359.26M	322.15M	555.45M	684.97M
	Stockholders Equity
1.19B	1.22B	1.33B	1.52B	1.54B	855.55M
Cash Flow		Free Cash Flow
0.00	-59.72M	26.02M	-380.73M	223.78M	-23.90M
	Operating Cash Flow
0.00	2.69M	105.07M	-346.41M	314.17M	72.37M
	Investing Cash Flow
0.00	-138.33M	-87.89M	-31.25M	741.28M	-106.42M
	Financing Cash Flow
0.00	-6.60M	-61.26M	-68.33M	-184.49M	48.40M

Nextware Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 170.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4814, the sentiment is Positive. The current price of 170 is above the 20-day moving average (MA) of 165.25, above the 50-day MA of 163.86, and above the 200-day MA of 148.75, indicating a bullish trend. The MACD of 1.30 indicates Negative momentum. The RSI at 53.37 is Neutral, neither overbought nor oversold. The STOCH value of 66.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4814.

Nextware Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3974	76 Outperform	¥1.84B	15.98		3.36%	-8.67%	-51.24%
4444	75 Outperform	¥2.07B	21.53		―	13.74%	-3.35%
9240	67 Neutral	¥1.74B	97.51		―	-1.14%	-88.16%
3670	67 Neutral	¥1.88B	10.95		3.50%	-18.16%	-33.45%
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%
5247	61 Neutral	¥2.18B	20.95		―	22.75%	-105.42%
4814	50 Neutral	¥2.16B	―		―	6.72%	34.50%