Nyle Inc. (5618) AI Stock Analysis

• Market Cap: ¥2.65B
• Dividend Yield: N/A
• Average Volume (3M): 16.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: 23.63%
• EPS Growth: 64.65%
• Country: JP
• Employees: 262
• Sector: Communication Services
• Sector Strength: 97
• Industry: Information Technology Services
• EPS (TTM): -9.44
• Shares Outstanding: 8,536,800
• 10 Day Avg. Volume: 37,910
• 30 Day Avg. Volume: 16,306
• PEG Ratio: 0.61
• Price to Book (P/B): 3.91
• Price to Sales (P/S): 0.42
• P/FCF Ratio: -2.11
• 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: 46 Neutral
• Price Target: ¥305.00 ▼(-19.74% Downside)

Nyle Inc.'s overall stock score is primarily impacted by its financial challenges, including high debt and negative profitability. The technical analysis suggests potential bearish momentum, while the valuation indicates ongoing financial struggles. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Sustained Revenue Growth

Strong reported revenue growth provides a durable top‑line runway that can support longer‑term investment in products and sales. If sustained, this trend helps absorb fixed costs, aids margin recovery over time, and supports strategic reinvestment without relying solely on external capital.

Favorable Industry Exposure

Operating in Information Technology Services aligns the company with secular demand for outsourcing and digital solutions. This structural industry tailwind can enable multi‑year contract opportunities, recurring revenue potential, and market expansion that bolster resilience beyond short‑term cycles.

Some Equity Cushion

An equity ratio around 20% indicates a measurable equity cushion on the balance sheet. While leverage is high, this level of equity provides some solvency buffer and marginal capacity to absorb losses or support refinancing options without immediate collapse of capital structure.

Negative Factors

High Financial Leverage

A debt‑to‑equity ratio near 3x signals heavy reliance on debt financing, raising interest and refinancing risk. Over a multi‑month horizon this reduces financial flexibility, increases vulnerability to revenue shocks, and can constrain investment or force costly liability management actions.

Weak Cash Flow Generation

Persistently negative free cash flow and poor operating cash conversion undermine the company’s ability to fund operations, capex, and debt service from internal resources. This structural cash shortfall increases reliance on external financing, elevating dilution or solvency risk over the medium term.

Ongoing Profitability Pressure

Negative net and operating margins indicate the business currently fails to convert revenue into sustainable profits. Continued losses reduce retained earnings, limit self‑funding for growth, and make achieving durable margin improvement essential to stabilize the capital structure and long‑term viability.

Nyle Inc. Business Overview & Revenue Model

Company Description

Nyle Inc is a Japan-based company engaged in the horizontal digital transformation (DX) business and automotive industry DX business. The Company operates two segments. The Horizontal DX segment consists of DX & Marketing business and Media & Solutions business. In the DX & Marketing business, the Company supports customer companies' sales and profit growth using the Internet. In the Media & Solutions business, the Company supports customers' business growth by developing and operating multiple media, provides solutions related to digital advertising, as well as operates the application information site Appliv. In the automotive industry DX business, the Company handles new and used cars of all Japanese manufacturer models for individuals, with the business operation of Otokuni My Car Teikaku Carmo-kun, being the mainstay of the business, sells new/used cars of all models from Japanese manufacturers for individuals, with monthly payments in the 10000 yen range with no down payment.

How the Company Makes Money

Nyle Inc. primarily generates revenue through the sale of its energy-efficient HVAC systems and components. The company offers a range of products, including heat pumps, dehumidifiers, and other related technologies, which are marketed to both consumers and businesses. Key revenue streams include direct sales to contractors and distributors, as well as partnerships with home improvement retailers. Additionally, Nyle Inc. benefits from government incentives and rebates associated with renewable energy installations, enhancing its profitability. The company's focus on innovation and sustainability positions it favorably in a growing market, contributing to its earnings.

Nyle Inc. Financial Statement Overview

Summary

Nyle Inc. shows moderate revenue growth but struggles with profitability and cash flow. High debt levels and declining equity raise concerns about financial stability.

Income Statement

Nyle Inc. has shown moderate revenue growth, with a 4.21% increase in 2024. However, the net profit margin remains negative at -12.87%, indicating ongoing losses. The gross profit margin has declined slightly to 39.49%, and EBIT and EBITDA margins are negative, highlighting challenges in managing operational costs effectively.

Balance Sheet

The company's balance sheet shows a debt-to-equity ratio of 2.95, indicating a high reliance on debt financing, which could pose financial risks. Stockholders' equity has decreased significantly, suggesting potential financial instability. However, the equity ratio stands at 20.25%, reflecting a reasonable proportion of equity financing.

Cash Flow

Nyle Inc. faces challenges in cash flow management, with a negative free cash flow growth rate. Operating cash flow to net income ratio is poor due to negative values, and free cash flow remains negative, indicating inefficient cash management and potential liquidity issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.47B	5.24B	4.14B	2.63B
Gross Profit	2.16B	2.33B	1.70B	1.25B
EBITDA	-670.00M	-719.54M	-1.32B	-1.87B
Net Income	-703.27M	-743.21M	-1.36B	-1.90B
Balance Sheet
Total Assets	2.91B	3.16B	2.70B	3.13B
Cash, Cash Equivalents and Short-Term Investments	1.28B	2.14B	1.83B	2.30B
Total Debt	1.74B	1.12B	1.09B	737.16M
Total Liabilities	2.32B	1.87B	1.65B	1.33B
Stockholders Equity	591.02M	1.29B	1.05B	1.80B
Cash Flow
Free Cash Flow	-1.10B	-670.32M	-1.48B	-1.91B
Operating Cash Flow	-1.09B	-668.23M	-1.47B	-1.88B
Investing Cash Flow	40.04M	-841.00K	95.05M	-48.59M
Financing Cash Flow	193.90M	980.36M	946.76M	-785.80M

Nyle Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 380.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5618, the sentiment is Negative. The current price of 380 is above the 20-day moving average (MA) of 315.60, above the 50-day MA of 337.06, and below the 200-day MA of 387.48, indicating a bearish trend. The MACD of -6.62 indicates Negative momentum. The RSI at 38.39 is Neutral, neither overbought nor oversold. The STOCH value of 7.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5618.

Nyle Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4335	81 Outperform	¥2.91B	9.62	―	3.28%	9.68%	25.15%
4421	79 Outperform	¥2.94B	10.89	―	2.86%	5.74%	5.97%
7046	66 Neutral	¥3.09B	22.06	―	0.69%	12.15%	-33.34%
3970	66 Neutral	¥2.56B	-11.15	―	4.29%	15.64%	-268.60%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
5618	46 Neutral	¥2.65B	-9.17	―	―	23.63%	64.65%
4427	39 Underperform	¥2.65B	161.36	―	―	-12.77%	―