SecondXight Analytica,Inc. (5028) AI Stock Analysis

• Market Cap: ¥3.08B
• Dividend Yield: N/A
• Average Volume (3M): 80.69K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.71
• Revenue Growth: 33.55%
• EPS Growth: 293.32%
• Country: JP
• Employees: 60
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.72
• Shares Outstanding: 8,476,071
• 10 Day Avg. Volume: 48,800
• 30 Day Avg. Volume: 80,686
• PEG Ratio: -0.66
• Price to Book (P/B): 3.92
• Price to Sales (P/S): 2.79
• P/FCF Ratio: 21.22
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥447.00 ▲(11.47% Upside)

SecondXight Analytica, Inc. demonstrates strong financial performance with robust revenue growth and a solid balance sheet, which are the most significant factors driving the score. However, technical indicators suggest bearish momentum, which slightly offsets the positive financial outlook. The valuation is reasonable, supporting the overall positive assessment.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong market demand and successful product adoption, supporting long-term business expansion.

Balance Sheet Health

A robust balance sheet with low leverage enhances financial stability and provides flexibility for strategic investments.

Cash Flow Generation

Sustained positive cash flow allows for reinvestment in growth opportunities and strengthens the company's financial resilience.

Negative Factors

Declining Margins

A decline in profit margins may indicate rising costs or pricing pressure, which could impact future profitability if not addressed.

Cash Flow Growth Challenges

Reduced cash flow growth may limit the company's ability to fund new projects and manage financial obligations effectively.

Decreased Return on Equity

A declining ROE suggests challenges in maintaining profitability, which could affect investor confidence and capital efficiency.

SecondXight Analytica,Inc. Business Overview & Revenue Model

Company Description

SecondXight Analytica, Inc. provides analytics consulting services and AI products based on machine learning and deep learning in Japan. The company provides analytics-based consulting services that allow clients to build data analysis and machine learning models to solve specific business challenges. It also offers R2Engine, a practical AI execution platform that supports large amounts of data processing; Analytics platform that realizes centralized data management and analysis infrastructure; SX score that utilizes external statistical information to the actual data of data providers; SkyFox, a model building automation service; and SkyFoxHR, an entry sheet AI analysis service. SecondXight Analytica, Inc. was incorporated in 2016 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SecondXight Analytica generates revenue through multiple streams, primarily from subscription-based software services, consultancy fees, and custom analytics solutions tailored to specific client needs. The company offers tiered subscription plans for its analytics platforms, which provide clients with various levels of access to tools and features based on their requirements. Additionally, consultancy services involve collaboration with clients to implement data strategies, which contribute significantly to the revenue. Partnerships with key technology providers also enhance SecondXight's offerings and can lead to joint ventures or co-branded products, further boosting earnings. The growing demand for data-driven insights across industries serves as a critical factor in the company’s financial growth.

SecondXight Analytica,Inc. Financial Statement Overview

Summary

SecondXight Analytica, Inc. exhibits strong financial health with substantial revenue growth and a robust balance sheet. While there are some minor concerns regarding declining margins and cash flow growth, the company maintains low leverage and strong capitalization. The overall financial position is solid, driven by efficient operations and financial management, positioning the company well within the software application industry.

Income Statement

SecondXight Analytica, Inc. has demonstrated strong revenue growth over the years, with a notable increase from $272 million in 2020 to $1.141 billion in 2024. The gross profit margin remains healthy, above 40%, indicating efficient cost management. However, there was a decline in gross profit margin from 57.6% in 2023 to 47.1% in 2024, which could be a point of concern. The EBIT and EBITDA margins are strong, though both have slightly decreased over the last year, indicating some pressure on operating efficiency.

Balance Sheet

The company maintains a robust balance sheet with a high equity ratio, standing at 76.5% in 2024, showcasing strong capitalization. The debt-to-equity ratio is low, at 0.037, indicating low financial leverage and risk. The return on equity (ROE) has slightly decreased from 26.5% in 2023 to 14.3% in 2024, suggesting potential challenges in maintaining high profitability. Overall, the balance sheet reflects a favorable financial position with low leverage.

Cash Flow

The free cash flow has slightly decreased from $252 million in 2023 to $150 million in 2024, but remains positive, indicating the company's ability to generate cash after capital expenditures. The operating cash flow to net income ratio is robust, showing efficient cash conversion from earnings. The decline in free cash flow growth rate suggests potential challenges in cash generation, but the overall cash flow remains healthy.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.32B	1.14B	1.06B	905.95M	738.06M	495.13M
Gross Profit	606.00M	537.00M	613.00M	572.02M	465.71M	332.27M
EBITDA	279.80M	207.00M	285.33M	271.86M	191.29M	80.89M
Net Income	171.16M	116.00M	170.00M	155.94M	104.18M	31.00M
Balance Sheet
Total Assets	1.09B	1.06B	789.00M	1.04B	651.79M	497.13M
Cash, Cash Equivalents and Short-Term Investments	673.51M	514.00M	361.00M	461.90M	180.29M	202.48M
Total Debt	30.00M	30.00M	30.00M	30.00M	30.00M	30.00M
Total Liabilities	220.07M	250.00M	147.00M	176.44M	177.69M	145.52M
Stockholders Equity	872.71M	813.00M	642.00M	867.68M	474.10M	351.60M
Cash Flow
Free Cash Flow	0.00	150.00M	252.00M	80.03M	38.12M	61.47M
Operating Cash Flow	0.00	155.00M	254.67M	159.63M	53.57M	89.69M
Investing Cash Flow	0.00	-25.00M	-13.33M	-107.08M	-84.15M	-30.72M
Financing Cash Flow	0.00	23.00M	-374.67M	229.04M	8.39M	22.09M

SecondXight Analytica,Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 401.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5028, the sentiment is Neutral. The current price of 401 is above the 20-day moving average (MA) of 386.95, below the 50-day MA of 417.54, and below the 200-day MA of 417.40, indicating a neutral trend. The MACD of -10.29 indicates Negative momentum. The RSI at 52.46 is Neutral, neither overbought nor oversold. The STOCH value of 83.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5028.

SecondXight Analytica,Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5256	75 Outperform	¥2.87B	14.24	―	―	13.48%	61.77%
5028	70 Outperform	¥3.08B	19.40	―	―	33.55%	293.32%
4447	62 Neutral	¥3.07B	34.05	―	4.17%	-15.23%	-65.39%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2334	60 Neutral	¥14.84B	87.74	―	―	56.35%	―
4166	53 Neutral	¥2.23B	-16.46	―	―	12.27%	73.45%
4199	45 Neutral	¥2.34B	-20.66	―	―	-5.44%	-242.43%