AXXZIA, Inc. (4936) AI Stock Analysis

• Market Cap: ¥9.38B
• Dividend Yield: 2.65%
• Average Volume (3M): 33.33K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 1.12
• Revenue Growth: 11.87%
• EPS Growth: -31.02%
• Country: JP
• Employees: 258
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 3.05
• Shares Outstanding: 24,107,000
• 10 Day Avg. Volume: 32,930
• 30 Day Avg. Volume: 33,333
• PEG Ratio: -0.56
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 16.30
• 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: 63 Neutral
• Price Target: ¥407.00 ▲(3.83% Upside)

The overall stock score is primarily influenced by solid financial performance, despite challenges in profitability and cash flow stability. Technical analysis indicates a bearish trend, and the valuation suggests the stock may be overvalued. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Balance Sheet

Very low leverage and a high equity ratio provide durable financial flexibility. This reduces refinancing risk and supports funding for R&D, marketing or selective M&A from internal resources, enabling sustained strategic investment through economic cycles.

Consistent Revenue Growth

Sustained top-line expansion demonstrates stable end-market demand and successful distribution or product positioning. Continued revenue growth supports scale economies, recurring cash generation, and the ability to invest in capabilities that reinforce long-term competitive position.

High Gross Margin and Cash Conversion

Very strong gross margins coupled with operating cash flow well above net income indicate solid unit economics and reliable cash conversion. This underpins durable reinvestment capacity and lowers dependence on external financing for capex or strategic initiatives.

Negative Factors

Declining Profitability

A meaningful drop in net margin and falling ROE signal erosion of returns on invested capital. Over time this reduces retained earnings available for growth, pressures investor returns, and indicates persistent cost or pricing issues that could weaken long-term competitiveness.

Volatile Free Cash Flow

Free cash flow driven by a low-base effect and an elevated FCF-to-income ratio implies inconsistency in cash generation. Persistent FCF volatility complicates capital allocation, weakens the predictability of dividends or capex, and increases financial risk in downturns.

Operating Margin Pressure

Compression of EBIT and EBITDA margins points to rising cost pressures or pricing erosion. If sustained, margin decline will reduce operating leverage, constrain ability to fund strategic initiatives, and make the business more vulnerable to economic or competitive shocks.

AXXZIA, Inc. Business Overview & Revenue Model

Company Description

AXXZIA Inc. manufactures and sells cosmetics and supplements in Japan. The company offers eyecare, makeup, skincare, body care, supplements, salon care, and homecare products under the AXXZIA, AGtheory, LisBeau, Venus Recipe, The B, Le Ciel de L'aube, and Aither brand names. It also provides products online. AXXZIA Inc. was incorporated in 2011 and is headquartered in Tokyo, Japan.

How the Company Makes Money

AXXZIA generates revenue primarily through the sale of its software and hardware solutions. The company's revenue model is multifaceted, incorporating direct sales to businesses, subscription-based services for its software products, and maintenance contracts for ongoing support. Key revenue streams include initial product sales, recurring subscription fees from clients utilizing their data management tools, and service agreements that provide continuous software updates and technical support. Additionally, AXXZIA has established strategic partnerships with major telecommunications providers, which not only enhance its market reach but also contribute to joint ventures that drive additional revenue through co-developed solutions and bundled offerings.

AXXZIA, Inc. Financial Statement Overview

Summary

AXXZIA, Inc. demonstrates solid revenue growth and a strong balance sheet with low leverage. However, declining profitability margins and fluctuating cash flow metrics indicate potential challenges in cost management and cash flow stability. The company is well-positioned in terms of equity, but needs to address profitability and cash flow consistency to enhance financial performance.

Income Statement

AXXZIA, Inc. shows a consistent revenue growth trend, with a 3.31% increase in the latest year. However, profitability has declined, as evidenced by a decrease in net profit margin from 11.73% to 6.52%. The gross profit margin remains strong at 73.58%, indicating efficient production processes. The decline in EBIT and EBITDA margins suggests rising operational costs or increased competition.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.10, indicating conservative leverage. Return on equity has decreased to 4.66%, reflecting lower profitability. The equity ratio stands at 79.22%, showcasing a strong equity base relative to assets, which enhances financial stability.

Cash Flow

Operating cash flow remains positive, but the free cash flow growth is exceptionally high due to a low base effect. The operating cash flow to net income ratio is 2.21, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio of 1.81 suggests potential volatility in cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.48B	13.48B	12.19B	11.34B	8.22B	5.79B
Gross Profit	9.92B	9.92B	9.61B	8.94B	6.22B	4.08B
EBITDA	751.74M	746.64M	1.29B	2.06B	1.84B	1.40B
Net Income	354.28M	354.28M	794.35M	1.33B	1.12B	868.64M
Balance Sheet
Total Assets	9.60B	9.60B	10.54B	10.70B	10.05B	8.27B
Cash, Cash Equivalents and Short-Term Investments	3.99B	3.99B	4.93B	5.79B	6.39B	5.94B
Total Debt	751.41M	751.41M	949.01M	570.09M	555.51M	135.68M
Total Liabilities	1.99B	1.99B	2.01B	1.80B	1.66B	1.07B
Stockholders Equity	7.61B	7.61B	8.53B	8.90B	8.40B	7.19B
Cash Flow
Free Cash Flow	0.00	640.22M	410.77M	282.75M	732.86M	984.56M
Operating Cash Flow	0.00	781.65M	800.36M	707.85M	797.69M	1.06B
Investing Cash Flow	0.00	-158.54M	-626.66M	-438.69M	-775.36M	-84.51M
Financing Cash Flow	0.00	-1.48B	-1.55B	-862.75M	386.43M	3.96B

AXXZIA, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 392.00
• 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:4936, the sentiment is Negative. The current price of 392 is below the 20-day moving average (MA) of 395.75, below the 50-day MA of 394.59, and below the 200-day MA of 431.81, indicating a bearish trend. The MACD of -2.15 indicates Positive momentum. The RSI at 38.59 is Neutral, neither overbought nor oversold. The STOCH value of 16.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4936.

AXXZIA, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4932	68 Neutral	¥11.57B	37.29	―	5.92%	22.86%	-32.11%
4925	63 Neutral	¥6.45B	8.26	―	2.38%	-0.79%	―
4936	63 Neutral	¥9.38B	24.70	―	2.65%	11.87%	-31.02%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4926	58 Neutral	¥5.40B	17.27	―	1.68%	8.46%	―
4935	54 Neutral	¥8.53B	-59.99	―	0.48%	10.13%	-14654.18%
4934	52 Neutral	¥6.28B	13.58	―	―	-19.42%	―

AXXZIA, Inc. Corporate Events

AXXZIA Inc. Reports Strong First Quarter Financial Results

AXXZIA Inc. reported its consolidated financial results for the first quarter of the fiscal year ending July 2026, showing significant year-on-year growth. The company achieved a 17.9% increase in net sales and a notable rise in ordinary income by 148.3%, indicating strong operational performance and positive market positioning.

The most recent analyst rating on (JP:4936) stock is a Hold with a Yen479.00 price target. To see the full list of analyst forecasts on AXXZIA, Inc. stock, see the JP:4936 Stock Forecast page.