SOLIZE Corporation (5871) AI Stock Analysis

• Market Cap: ¥7.33B
• Dividend Yield: 3.12%
• Average Volume (3M): 4.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: 13.88%
• EPS Growth: -155.89%
• Country: JP
• Employees: 2,167
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 60.22
• Shares Outstanding: 6,000,000
• 10 Day Avg. Volume: 5,150
• 30 Day Avg. Volume: 4,266
• PEG Ratio: 1.87
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.30
• P/FCF Ratio: -15.61
• 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): 106.5
• Revenue Forecast (FY): ¥30.24B

• Rating: 58 Neutral
• Price Target: ¥1,576.00 ▲(10.99% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by the sharp drop in profitability and the shift to negative operating and free cash flow in 2025, despite strong revenue growth and a very low-debt balance sheet. Technicals are moderately supportive with positive momentum, while valuation is mixed due to a negative P/E offset by a solid dividend yield.

Positive Factors

Financial Stability

A high equity ratio and zero debt demonstrate SOLIZE's strong financial foundation, reducing leverage risk and enhancing resilience against economic fluctuations.

Revenue Growth

Consistent revenue growth reflects successful market expansion and product adoption, supporting long-term business sustainability and competitive positioning.

Cash Generation

Efficient cash generation ensures liquidity and the ability to invest in growth opportunities, enhancing SOLIZE's operational flexibility and strategic initiatives.

Negative Factors

Declining Profit Margins

Shrinking profit margins could signal cost management issues or pricing pressures, potentially impacting profitability and long-term financial health.

Fluctuating Cash Flows

Volatile cash flows may affect liquidity, limiting the company's ability to fund operations and invest in growth, posing a risk to financial stability.

Decreased EBIT Margin

A declining EBIT margin suggests increased operating expenses or inefficiencies, which could hinder profitability and operational effectiveness over time.

SOLIZE Corporation Business Overview & Revenue Model

Company Description

SOLIZE Corporation provides 3D CAD, CAE, MBD, 3D printing, and innovation engineering services in Japan, North America, China, India, and Europe. It serves automobiles and automobile parts, appliances and electronic devices, medical equipment, energy and infrastructure, heavy industry, construction civil engineering, process industry, aerospace, software, finance and insurance, and BPO sectors. The company was founded in 1990 and is based in Chiyoda, Japan.

How the Company Makes Money

SOLIZE Corporation generates revenue through multiple streams, primarily by offering engineering consulting services, IT solutions, and software tools tailored to the needs of the manufacturing and automotive industries. Key revenue sources include project-based contracts where clients pay for specific engineering services, licensing fees for proprietary software, and long-term maintenance agreements. The company also benefits from strategic partnerships with technology firms and industry leaders, which enhance its service offerings and expand its market reach, contributing significantly to its overall earnings.

SOLIZE Corporation Financial Statement Overview

Summary

Revenue has grown steadily (about ¥15.9B in 2021 to ¥25.8B in 2025) and the balance sheet is very conservative with near-zero debt, but profitability deteriorated sharply (EBIT margin ~4% in 2022–2023 to ~0.3% in 2025) with net income turning slightly negative in 2025. Cash generation also weakened, with operating cash flow turning negative and free cash flow materially negative in 2025.

Income Statement

Revenue has grown steadily from 2021 to 2025 (about ¥15.9B to ¥25.8B), but profitability has weakened materially. Gross margin has been fairly stable (~25%–28%), yet operating profitability fell sharply: EBIT margin declined from ~4.0% in 2022–2023 to ~0.3% in 2025, and net income turned slightly negative in 2025 after healthy profits in 2022–2024. Overall, growth is a positive, but the recent margin compression and earnings reversal are key concerns.

Balance Sheet

The balance sheet is very conservatively positioned with minimal to zero debt (debt-to-equity near 0% across the period, and zero debt in 2025). Equity remains sizable and relatively stable versus assets, indicating strong financial flexibility and low solvency risk. The main weakness is returns to shareholders weakening alongside earnings (return on equity moved from ~5%–6% in 2022–2023 to slightly negative in 2025), suggesting the issue is profitability rather than leverage.

Cash Flow

Cash generation has become inconsistent and deteriorated recently. Operating cash flow was positive in 2022–2024 but turned negative in 2025, and free cash flow was negative in both 2021 and 2025, with 2025 showing a meaningful cash burn (about -¥0.5B). While free cash flow exceeded net income in 2025 (helped by the small net loss), the more important signal is the swing to negative operating cash flow, which raises questions about working-capital or operating efficiency in the latest year.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	24.19B	25.78B	22.71B	20.08B	17.83B	15.85B
Gross Profit	6.73B	7.27B	6.45B	5.51B	4.81B	4.01B
EBITDA	86.50M	449.00M	685.00M	1.02B	912.00M	515.00M
Net Income	-16.00M	-36.00M	254.00M	580.00M	566.00M	292.00M
Balance Sheet
Total Assets	15.09B	15.70B	15.45B	13.04B	13.67B	12.52B
Cash, Cash Equivalents and Short-Term Investments	4.89B	4.69B	7.24B	6.21B	7.29B	6.90B
Total Debt	0.00	0.00	54.00M	101.00M	118.00M	128.00M
Total Liabilities	4.12B	4.37B	3.97B	3.38B	3.35B	2.85B
Stockholders Equity	10.96B	11.33B	11.48B	9.67B	10.32B	9.67B
Cash Flow
Free Cash Flow	0.00	-489.00M	7.00M	350.00M	656.00M	-271.00M
Operating Cash Flow	0.00	-208.00M	297.00M	488.00M	867.00M	270.00M
Investing Cash Flow	0.00	-2.21B	-718.00M	-275.00M	-408.00M	-528.00M
Financing Cash Flow	0.00	-181.00M	1.38B	-1.34B	-129.00M	-34.00M

SOLIZE Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1420.00
• 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:5871, the sentiment is Negative. The current price of 1420 is below the 20-day moving average (MA) of 1442.70, below the 50-day MA of 1434.44, and below the 200-day MA of 1606.11, indicating a bearish trend. The MACD of -2.22 indicates Positive momentum. The RSI at 39.93 is Neutral, neither overbought nor oversold. The STOCH value of 11.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5871.

SOLIZE Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5885	78 Outperform	¥16.19B	25.08	―	0.86%	27.84%	15.69%
6862	71 Outperform	¥20.69B	12.76	―	1.03%	17.06%	30.17%
6597	67 Neutral	¥8.77B	16.09	―	1.65%	3.70%	107.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5871	58 Neutral	¥7.33B	-216.71	―	3.12%	13.88%	-155.89%
6918	56 Neutral	¥17.84B	29.28	―	2.91%	-17.73%	-83.81%
6836	55 Neutral	¥4.30B	128.02	―	―	17.29%	―