Nextware Ltd. (4814) AI Stock Analysis

• Market Cap: ¥3.09B
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -0.80%
• EPS Growth: 23.92%
• Country: JP
• Employees: 209
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -7.40
• Shares Outstanding: 13,015,222
• 10 Day Avg. Volume: 2,853,100
• 30 Day Avg. Volume: 1,043,296
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥199.00
• Price Target Upside: -18.11% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: ¥199.00 ▼(-18.11% Downside)

The overall stock score for Nextware Ltd. is primarily influenced by its strong technical momentum, despite financial challenges and unattractive valuation metrics. The stock's price is above key moving averages, indicating positive market sentiment, but the high RSI suggests caution due to potential overbought conditions. Financial performance is weighed down by profitability and cash flow issues, which need addressing for long-term growth.

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. 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 challenges with profitability and cash flow generation, impacting its overall financial health. While the balance sheet shows a strong equity position and low leverage, the income statement reflects ongoing operational difficulties. Improvement in cash flow management and profitability is crucial for future growth.

Income Statement

Nextware Ltd. has experienced fluctuating revenue with a decline from 2021 to 2025. The gross profit margin has been relatively stable, but the company has struggled with negative EBIT and net income in recent years, indicating operational challenges. The net profit margin is negative, reflecting ongoing profitability issues.

Balance Sheet

The company maintains a strong equity position with a high equity ratio, suggesting financial stability. The debt-to-equity ratio is low, indicating conservative leverage. However, the declining stockholders' equity over the years is a concern. Return on equity is negative due to net losses, which impacts overall financial health.

Cash Flow

Operating cash flow has been inconsistent, with a significant drop in recent years. Free cash flow has also been negative, indicating challenges in generating cash from operations. The company has managed capital expenditures prudently, but the overall cash flow position needs improvement to support growth and stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.01B	3.01B	2.82B	2.89B	2.92B	3.16B
Gross Profit	781.84M	782.20M	722.22M	774.27M	837.37M	875.33M
EBITDA	-42.10M	-42.10M	-95.16M	77.87M	971.79M	144.26M
Net Income	-105.78M	-105.95M	-161.75M	11.66M	686.67M	24.38M
Balance Sheet
Total Assets	1.55B	1.55B	1.69B	1.84B	2.10B	1.54B
Cash, Cash Equivalents and Short-Term Investments	453.30M	453.30M	595.54M	639.62M	1.09B	314.66M
Total Debt	1.95M	1.95M	8.55M	44.40M	74.61M	259.10M
Total Liabilities	323.56M	323.56M	359.26M	322.15M	555.45M	684.97M
Stockholders Equity	1.22B	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: 243.00
• 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 243 is above the 20-day moving average (MA) of 174.90, above the 50-day MA of 169.66, and above the 200-day MA of 155.69, indicating a bullish trend. The MACD of 11.58 indicates Negative momentum. The RSI at 65.98 is Neutral, neither overbought nor oversold. The STOCH value of 51.65 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	¥3.02B	17.27	5.15%	1.93%	-2.87%	4.31%
4444	70 Outperform	¥2.16B	82.73	8.47%	―	11.07%	-73.08%
9240	69 Neutral	¥2.36B	66.91	―	―	1.33%	-77.99%
3670	67 Neutral	¥2.53B	10.99	8.11%	2.60%	-17.18%	-11.43%
5247	59 Neutral	¥2.44B	-112.20	9.47%	―	18.22%	-119.04%
4814	56 Neutral	¥3.09B	―	―	―	-0.80%	23.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%