AXXZIA, Inc. (4936) AI Stock Analysis

• Market Cap: ¥7.98B
• Dividend Yield: 2.65%
• Average Volume (3M): 33.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: 11.87%
• EPS Growth: -31.02%
• Country: JP
• Employees: 258
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): -1.95
• 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): 1.38
• 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): 15.7
• Revenue Forecast (FY): ¥14.00B

• Rating: 63 Neutral
• Price Target: ¥352.00 ▼(-10.20% Downside)
• 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

Consistent revenue growth

AXXZIA's steady top-line growth (3.31% in the latest year) indicates enduring demand and market penetration in household and personal products. Persistent revenue expansion supports scale economics, continued product investment and resilience over the next several quarters even if margins fluctuate.

Strong balance sheet and low leverage

A conservative debt-to-equity ratio (~0.10) and ~79% equity ratio provide durable financial flexibility. This capitalization reduces refinancing risk, supports investment or M&A optionality, and helps the company absorb shocks without compromising operations or strategic spending over the medium term.

High gross profit margin

A gross margin of ~73.6% demonstrates strong product-level economics and manufacturing or formulation efficiency. High gross profitability gives the company pricing power and a buffer to absorb SG&A or input-cost increases, supporting sustained margin potential if cost discipline continues.

Negative Factors

Declining net and operating margins

A drop in net margin from 11.73% to 6.52%, alongside falling EBIT/EBITDA margins, signals rising operating costs or pricing pressure. If structural, this weakens earnings quality and reduces retained cash for reinvestment, limiting long-term profitability and shareholder returns absent corrective action.

Volatile free cash flow metrics

Operating cash flow is positive, but FCF shows volatility—growth distorted by a low base and an FCF/net income ratio of 1.81. Unpredictable free cash flow undermines the company's ability to consistently fund capex, dividends or strategic investments over multiple quarters.

Weakened return on equity

ROE falling to ~4.66% indicates less efficient use of shareholder capital, likely tied to margin compression. Persistently low ROE diminishes long-term compounding of equity value and constrains the company's ability to grow organically using internal capital.

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.

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	9.62B	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	860.67M	975.56M	632.25M	654.12M	213.64M
Total Liabilities	2.04B	2.01B	1.80B	1.66B	1.07B
Stockholders Equity	7.57B	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: 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 above the 20-day moving average (MA) of 362.65, above the 50-day MA of 379.08, and below the 200-day MA of 423.28, indicating a bearish trend. The MACD of -11.37 indicates Positive momentum. The RSI at 31.78 is Neutral, neither overbought nor oversold. The STOCH value of 3.03 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
4918	68 Neutral	¥2.19B	-3.04	―	―	12.96%	―
4920	68 Neutral	¥2.20B	3.43	―	1.72%	-6.06%	-97.12%
4925	63 Neutral	¥6.81B	12.52	―	2.38%	-0.79%	―
4936	63 Neutral	¥7.98B	-49.92	―	2.65%	11.87%	-31.02%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
4926	58 Neutral	¥5.67B	-33.12	―	1.68%	8.46%	―
4934	52 Neutral	¥5.41B	42.42	―	―	-19.42%	―

AXXZIA, Inc. Corporate Events

AXXZIA Posts Higher Sales but First-Half Profit Slumps, Keeps Full-Year Outlook Intact

AXXZIA Inc. reported first-half fiscal 2026 consolidated net sales of ¥6.77 billion, up 7.8% year on year, but slipped to a slight operating loss as ordinary income and profit attributable to owners of parent fell sharply amid rising costs. Despite the profit squeeze, total assets and equity remained broadly stable with an equity ratio near 79%, the interim dividend was maintained at ¥5 per share with a full-year payout of ¥10 forecast, and management kept its full-year outlook for higher sales and double-digit profit growth unchanged, signaling confidence in a profit recovery in the second half.

For the full fiscal year ending July 2026, the company continues to project net sales of ¥14.44 billion and profit attributable to owners of parent of ¥370 million, implying a significant earnings rebound after the weak first half. This stance, alongside steady balance sheet metrics and an unchanged dividend plan, suggests the company aims to reassure investors about medium-term growth prospects and capital discipline, even as near-term profitability remains under pressure.

The most recent analyst rating on (JP:4936) stock is a Hold with a Yen377.00 price target. To see the full list of analyst forecasts on AXXZIA, Inc. stock, see the JP:4936 Stock Forecast page.