Nextware Ltd. (4814) AI Stock Analysis

• Market Cap: ¥2.11B
• Dividend Yield: N/A
• Average Volume (3M): 135.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: 6.72%
• EPS Growth: 34.50%
• Country: JP
• Employees: 209
• Sector: Technology
• Sector Strength: 96
• Industry: Information Technology Services
• EPS (TTM): 2.46
• Shares Outstanding: 13,015,222
• 10 Day Avg. Volume: 68,810
• 30 Day Avg. Volume: 135,289
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥165.00
• Price Target Upside: -1.20% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: ¥165.00 ▼(-1.20% Downside)

Nextware Ltd. faces significant challenges with profitability and cash flow, which are major concerns for its financial performance. The technical analysis shows a lack of strong momentum, and the valuation is unattractive due to negative earnings and no dividend yield. These factors collectively result in a below-average stock score.

Nextware Ltd. Business Overview & Revenue Model

Company Description

Nextware Ltd. (4814) is a technology-driven company specializing in software solutions and IT services aimed at enhancing operational efficiencies for businesses across various sectors, including finance, healthcare, and logistics. The company offers a range of core products such as cloud-based applications, enterprise resource planning (ERP) systems, and data analytics tools, enabling clients to streamline processes and make data-informed decisions.

How the Company Makes Money

Nextware Ltd. generates revenue primarily through a subscription-based model for its software products, charging clients recurring fees for access to its cloud services and ongoing updates. Additionally, the company earns income from consulting services, where it assists organizations in implementing and optimizing its solutions. Key revenue streams include professional services for system integration and customization, as well as maintenance contracts. Strategic partnerships with major cloud service providers and technology platforms further enhance its offerings and market reach, contributing significantly to its overall earnings.

Nextware Ltd. Financial Statement Overview

Summary

Nextware Ltd. faces profitability and cash flow challenges amidst declining revenues and consistent net losses. Despite having a stable balance sheet with low leverage, the company's financial health is undermined by its inability to convert revenues into profits and cash.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.01B	2.82B	2.89B	2.92B	3.16B
Gross Profit	782.20M	721.71M	774.27M	837.37M	875.33M
EBITDA	-42.10M	-95.16M	77.87M	971.79M	144.26M
Net Income	-105.95M	-161.75M	11.66M	686.67M	24.38M
Balance Sheet
Total Assets	1.55B	1.69B	1.84B	2.10B	1.54B
Cash, Cash Equivalents and Short-Term Investments	453.30M	595.54M	639.62M	1.09B	314.66M
Total Debt	1.95M	8.55M	44.40M	74.61M	259.10M
Total Liabilities	323.56M	359.26M	322.15M	555.45M	684.97M
Stockholders Equity	1.22B	1.33B	1.52B	1.54B	855.55M
Cash Flow
Free Cash Flow	-59.72M	26.02M	-380.73M	223.78M	-23.90M
Operating Cash Flow	2.69M	105.07M	-346.41M	314.17M	72.37M
Investing Cash Flow	-138.33M	-87.89M	-31.25M	741.28M	-106.42M
Financing Cash Flow	-6.60M	-61.26M	-68.33M	-184.49M	48.40M

Nextware Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 167.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 167 is below the 20-day moving average (MA) of 167.15, above the 50-day MA of 166.46, and above the 200-day MA of 151.74, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 49.54 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 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	77 Outperform	¥2.22B	19.32		2.70%	-8.67%	-51.24%
3670	74 Outperform	¥3.65B	15.85		1.80%	-17.18%	-11.43%
4444	72 Outperform	¥2.32B	24.05		―	13.74%	-3.38%
9240	69 Neutral	¥2.54B	142.32		―	-1.14%	-88.16%
Sector *	62 Neutral	£504.16M	27.91	0.75%	2.83%	3.82%	-18.17%
5247	61 Neutral	¥2.93B	20.95		―	22.75%	-105.42%
4814	49 Neutral	¥2.11B	―		―	6.72%	34.50%