SecondXight Analytica,Inc. (5028) AI Stock Analysis

• Market Cap: ¥3.13B
• Dividend Yield: N/A
• Average Volume (3M): 80.69K
• Price to Earnings (P/E): 30.9
• Beta (1Y): 0.87
• Revenue Growth: 33.55%
• EPS Growth: 293.32%
• Country: JP
• Employees: 60
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 3.37
• Shares Outstanding: 8,476,071
• 10 Day Avg. Volume: 48,800
• 30 Day Avg. Volume: 80,686
• PEG Ratio: 4.13
• Price to Book (P/B): 3.74
• Price to Sales (P/S): 2.51
• P/FCF Ratio: 92.60
• 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: 65 Neutral
• Price Target: ¥482.00 ▲(26.51% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 02/18/26

The score is held back mainly by weakening cash generation and margin compression despite steady revenue growth, while a strong low-debt balance sheet provides stability. Technicals are supportive with a clear uptrend, but valuation looks relatively rich at a 34.83 P/E.

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

Strong balance sheet with very low leverage (Balance Sheet Score 88), but fundamentals are pressured by meaningful margin compression (Income Statement Score 72) and a sharp deterioration in operating and free cash flow in 2025 (Cash Flow Score 46), weakening earnings-to-cash conversion.

Income Statement

Revenue has grown steadily over the period (2023–2025), with 2025 revenue up versus 2024. However, profitability has compressed meaningfully: gross margin fell from ~57.6% (2023) to ~40.3% (2025), and net margin declined from ~16.0% (2023) to ~8.5% (2025). EBIT and EBITDA margins show the same downtrend, indicating the company is still profitable but operating with less efficiency and/or higher costs as it scales.

Balance Sheet

The balance sheet looks conservatively financed with very low leverage: total debt is stable at 30,000,000 while equity increased materially (2023–2025), driving a low debt-to-equity ratio (~0.03 in 2025). Asset growth is also strong over time. The main watch-out is that returns on equity have moderated from the high levels seen in earlier periods (e.g., 2023 and 2024), consistent with the recent margin compression.

Cash Flow

Cash generation weakened sharply in 2025: operating cash flow dropped to 50,638,000 from 155,000,000 in 2024, and free cash flow fell to 38,984,000 from 150,000,000. Cash conversion also deteriorated—operating cash flow covers only ~18% of net income in 2025 versus ~65% in 2024—suggesting heavier working-capital needs and/or timing effects. A positive offset is that free cash flow remains positive and is still a meaningful share of net income (~77%) in 2025.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.32B	1.44B	1.14B	1.06B	905.95M	738.06M
Gross Profit	606.00M	578.45M	537.00M	613.00M	572.02M	465.71M
EBITDA	279.80M	209.43M	207.00M	285.33M	271.86M	191.29M
Net Income	171.16M	121.75M	116.00M	170.00M	155.94M	104.18M
Balance Sheet
Total Assets	1.09B	1.27B	1.06B	789.00M	1.04B	651.79M
Cash, Cash Equivalents and Short-Term Investments	673.51M	369.53M	514.00M	361.00M	461.90M	180.29M
Total Debt	30.00M	30.00M	30.00M	30.00M	30.00M	30.00M
Total Liabilities	220.07M	300.63M	250.00M	147.00M	176.44M	177.69M
Stockholders Equity	872.71M	965.45M	813.00M	642.00M	867.68M	474.10M
Cash Flow
Free Cash Flow	0.00	38.98M	150.00M	252.00M	80.03M	38.12M
Operating Cash Flow	0.00	50.64M	155.00M	254.67M	159.63M	53.57M
Investing Cash Flow	0.00	-76.97M	-25.00M	-13.33M	-107.08M	-84.15M
Financing Cash Flow	0.00	-119.00M	23.00M	-374.67M	229.04M	8.39M

SecondXight Analytica,Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 381.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 381 is below the 20-day moving average (MA) of 400.35, below the 50-day MA of 402.50, and below the 200-day MA of 433.66, indicating a bearish trend. The MACD of -6.55 indicates Positive momentum. The RSI at 49.16 is Neutral, neither overbought nor oversold. The STOCH value of 23.38 is Neutral, 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	69 Neutral	¥2.92B	16.36	―	―	13.48%	61.77%
5028	65 Neutral	¥3.13B	30.86	―	―	33.55%	293.32%
5586	65 Neutral	¥13.33B	87.84	―	―	25.41%	9.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4476	56 Neutral	¥4.24B	23.89	―	―	10.43%	-65.78%
5572	56 Neutral	¥10.23B	73.76	―	―	60.41%	-27.67%
5027	49 Neutral	¥31.62B	33.52	―	―	20.84%	10.41%