SecondXight Analytica,Inc. (5028) AI Stock Analysis

• Market Cap: ¥2.76B
• Dividend Yield: N/A
• Average Volume (3M): 80.69K
• Price to Earnings (P/E): 29.6
• Beta (1Y): 0.86
• 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: 9.00
• 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: 57 Neutral
• Price Target: ¥341.00 ▼(-10.50% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is primarily supported by financial stability from a very low-leverage balance sheet and steady revenue growth, but is held back by meaningful margin compression and sharply weaker 2025 cash generation. Technicals further weigh on the score due to a clear downtrend and weak momentum, while valuation is only moderate given a ~29.6 P/E with no dividend yield data.

Positive Factors

Low leverage / strong balance sheet

A very low debt-to-equity ratio and rising equity give SecondXight durable financial flexibility. Low leverage reduces refinancing and interest-rate risk, supports capital allocation for R&D or M&A, and cushions the business through cyclical cash-flow dips over the next several quarters.

Consistent revenue growth

Sustained top-line growth indicates durable product-market fit and expanding customer adoption in its application software market. Continued revenue expansion provides a structural base to recover margins through scale or pricing, and supports reinvestment in product and sales capabilities.

Positive free cash flow despite decline

Although FCF dropped sharply, remaining positive FCF means the company still generates internal funding for operations and selective investments. Positive FCF limits immediate external financing needs and preserves strategic optionality while management addresses underlying cash conversion issues.

Negative Factors

Material margin compression

Sizable, persistent margin deterioration signals erosion of pricing power or rising structural costs. Lower gross and net margins reduce operating leverage and ROIC, limiting the company's ability to fund growth organically and magnifying sensitivity to revenue volatility until cost structure or pricing is restored.

Sharp weakening in operating cash flow

A pronounced decline in operating cash flow and cash conversion ratio suggests structural working-capital strain or timing effects that may persist. Reduced cash generation undermines liquidity, increases reliance on reserves or financing, and constrains the company's capacity to invest or absorb shocks over the medium term.

Moderating returns and EPS decline

Declining EPS and moderated ROE point to reduced profitability per share and less efficient use of equity capital. This structural weakening can limit retained-earnings buildup, slow balance-sheet strengthening, and require operational or strategic fixes to restore long-term shareholder returns.

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

Revenue has grown steadily, and the balance sheet is conservatively financed with very low leverage (debt stable while equity rose). However, profitability has compressed materially (gross and net margins down versus prior years) and 2025 cash generation weakened sharply (operating cash flow and free cash flow down significantly), pressuring overall fundamentals despite continued profitability.

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	907.78M	905.95M	738.06M
Gross Profit	607.35M	578.45M	534.21M	440.45M	572.02M	464.31M
EBITDA	275.42M	209.43M	207.18M	102.75M	271.86M	194.19M
Net Income	171.67M	121.75M	116.77M	32.90M	155.94M	104.18M
Balance Sheet
Total Assets	1.09B	1.27B	1.07B	793.44M	1.04B	653.31M
Cash, Cash Equivalents and Short-Term Investments	673.51M	369.53M	514.86M	361.24M	461.90M	180.29M
Total Debt	30.00M	30.00M	30.00M	30.00M	30.00M	30.00M
Total Liabilities	220.07M	300.63M	253.36M	150.56M	176.44M	179.21M
Stockholders Equity	872.71M	965.45M	813.43M	642.88M	867.68M	474.10M
Cash Flow
Free Cash Flow	0.00	38.98M	150.00M	252.00M	80.03M	49.04M
Operating Cash Flow	0.00	50.64M	155.00M	190.82M	159.63M	53.23M
Investing Cash Flow	0.00	-76.97M	-25.38M	-10.42M	-107.08M	-84.15M
Financing Cash Flow	0.00	-119.00M	23.54M	-281.05M	229.04M	8.73M

SecondXight Analytica,Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 381.00
• 50DMA: Negative
• 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:5028, the sentiment is Negative. The current price of 381 is above the 20-day moving average (MA) of 362.80, below the 50-day MA of 392.56, and below the 200-day MA of 433.96, indicating a bearish trend. The MACD of -11.91 indicates Negative momentum. The RSI at 43.12 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥2.76B	27.18	―	―	13.48%	61.77%
5586	65 Neutral	¥12.69B	37.90	―	―	25.41%	9.69%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5572	59 Neutral	¥8.90B	33.78	―	―	60.41%	-27.67%
5028	57 Neutral	¥2.76B	29.65	―	―	33.55%	293.32%
4476	56 Neutral	¥3.89B	35.15	―	―	10.43%	-65.78%
5027	49 Neutral	¥26.49B	39.28	―	―	20.84%	10.41%