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: ¥414.00 ▲(5.61% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

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

Conservative leverage / strong equity base

AXXZIA's very low debt-to-equity (0.10) and high equity ratio (79.22%) provide durable financial flexibility, reducing refinancing risk and enabling funded investment or M&A without stressing liquidity. This conservative capital structure supports resilience across economic cycles.

High gross margins and steady revenue trend

A 73.58% gross margin signals structural cost efficiency and pricing power in the household & personal products segment. Combined with a consistent revenue growth trend, this underpins sustainable operating leverage potential and long-term cash generation capacity.

Strong operating cash generation

Operating cash flow materially exceeds reported net income (OCF/NI = 2.21), indicating reliable cash conversion from operations. That persistent cash generation enhances ability to fund working capital, capex, and shareholder returns without heavy external financing.

Negative Factors

Declining net profitability

A drop in net profit margin to 6.52% from 11.73% signals sustained pressure on bottom-line profitability. Persisting margin erosion limits retained earnings and reinvestment capacity, and may reflect cost inflation, competitive pricing pressure, or rising operating expenses.

Weakened return on equity

ROE at 4.66% indicates lower capital efficiency versus historical performance. When equity is high but returns are low, shareholder value creation is constrained; improving ROE requires either higher margins, faster growth, or more efficient capital deployment over the medium term.

Free cash flow volatility

Reported FCF growth is distorted by a low base and FCF/Net Income of 1.81 suggests variability. Volatile free cash flow complicates multi-period planning for capex, dividends or buybacks, increasing execution risk and sensitivity to working capital or one-off items.

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

AXXZIA, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 392.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4936, the sentiment is Positive. The current price of 392 is above the 20-day moving average (MA) of 381.60, above the 50-day MA of 387.47, and below the 200-day MA of 427.53, indicating a neutral trend. The MACD of -2.84 indicates Negative momentum. The RSI at 54.88 is Neutral, neither overbought nor oversold. The STOCH value of 59.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4936.

AXXZIA, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4918	68 Neutral	¥2.36B	6.81	―	―	12.96%	―
4920	68 Neutral	¥2.49B	10.53	―	1.72%	-6.06%	-97.12%
4925	63 Neutral	¥6.94B	10.29	―	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	¥5.82B	24.38	―	1.68%	8.46%	―
4934	52 Neutral	¥7.12B	15.32	―	―	-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.