extreme Co., Ltd. (6033) AI Stock Analysis

• Market Cap: ¥8.21B
• Dividend Yield: 2.77%
• Average Volume (3M): 3.68K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.45
• Revenue Growth: 3.71%
• EPS Growth: 8.45%
• Country: JP
• Employees: 727
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 64.58
• Shares Outstanding: 5,507,676
• 10 Day Avg. Volume: 3,650
• 30 Day Avg. Volume: 3,683
• PEG Ratio: 0.54
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 4.67
• 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: 73 Outperform
• Price Target: ¥1,661.00 ▲(17.55% Upside)
• Action: Reiterated Date: 10/24/25
• Date: Action: Reiterated 10/24/25

The stock's strong financial performance and attractive valuation are the primary strengths, suggesting a solid investment potential. However, bearish technical indicators indicate caution in the short term.

Positive Factors

Diversified revenue streams

Multiple revenue streams—networking hardware, software, and subscription cloud services—support durable revenue mix. Recurring subscription income increases predictability and customer stickiness, while hardware and partner channels enable cross-selling and steady new-business inflows over months to years.

Strong balance sheet and low leverage

A high equity ratio and very low debt-to-equity provide financial flexibility for R&D, capex and opportunistic M&A without stressing cash flow. Strong ROE indicates efficient use of capital, reducing insolvency risk and supporting long-term investment in competitive product development.

Exceptional cash generation

Large FCF growth and OCF exceeding net income demonstrate high-quality, convertable earnings. Strong cash generation sustains reinvestment, supports recurring-product development and dividend/capital return strategies, and buffers the business through cyclical IT spending changes.

Negative Factors

Negative EPS growth

A negative EPS growth metric signals recent downward pressure on per-share profitability. If persistent, lower EPS constrains reinvestment capacity and may reflect margin erosion or rising operating costs, reducing long-term earnings power unless reversed by structural improvements.

Limited organizational scale

A workforce of ~727 suggests a smaller scale compared with major global networking incumbents. That may limit R&D breadth, global sales coverage and channel scale advantages, potentially slowing product development and market penetration relative to larger competitors over the medium term.

Lack of management guidance

Absence of published guidance reduces forward visibility for revenues and margins, making medium-term planning and investor forecasting harder. For a technology firm, this can mask emerging operating trends and complicate assessment of execution against strategic investments over the next several quarters.

extreme Co., Ltd. Business Overview & Revenue Model

Company Description

Extreme Co.,Ltd. engages in the digital human resource, contract development, and content property businesses in Japan. The company offers customer-resident smartphone application, IT, and WEB software development services; and smartphone apps, cloud platform contract development services. It also provides various games and license services. Extreme Co.,Ltd. was incorporated in 2005 and is based in Tokyo, Japan.

How the Company Makes Money

Extreme Co., Ltd. generates revenue through multiple streams, primarily by selling networking hardware, such as switches, routers, and wireless access points. The company also offers software solutions, including network management systems and security applications, which are essential for businesses to manage and secure their networks effectively. Additionally, Extreme Co. has a subscription-based model for its cloud services, providing ongoing revenue from customers seeking scalable and flexible networking solutions. Significant partnerships with other technology firms and service providers enhance its market reach and contribute to its earnings, as they can bundle services and create integrated solutions that meet customer demands.

extreme Co., Ltd. Financial Statement Overview

Summary

The company exhibits strong financial performance with robust revenue growth, improved profit margins, and excellent cash flow generation. The balance sheet is solid with low leverage, indicating financial stability.

Income Statement

The company has demonstrated strong revenue growth with a consistent upward trajectory over the years, highlighted by a revenue growth rate of 10.95% from 2024 to 2025. Gross profit margins are robust, maintaining a healthy level above 30%. Net profit margins have improved, reaching 9.97% in 2025, indicating effective cost management and operational efficiency. EBIT and EBITDA margins are also strong, suggesting solid profitability.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 68.47% in 2025, indicating financial stability. The debt-to-equity ratio is low at 0.11, showcasing prudent leverage management. Return on equity is commendable at 19.24%, reflecting effective use of shareholder funds. The overall financial health is solid, with a strong asset base and low leverage risk.

Cash Flow

Cash flow performance is excellent, with significant growth in free cash flow, which increased by 115.04% from 2024 to 2025. The operating cash flow to net income ratio is strong at 1.35, indicating efficient cash generation from operations. Free cash flow to net income ratio is also high, reflecting a robust ability to generate cash relative to net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.77B	11.34B	10.22B	8.82B	7.23B	6.23B
Gross Profit	3.73B	3.54B	2.90B	2.50B	1.88B	1.86B
EBITDA	1.62B	1.72B	1.55B	1.26B	720.13M	869.29M
Net Income	1.08B	1.13B	1.03B	814.46M	452.64M	491.71M
Balance Sheet
Total Assets	8.44B	8.58B	8.49B	7.13B	5.03B	4.76B
Cash, Cash Equivalents and Short-Term Investments	4.75B	4.87B	4.14B	3.21B	1.72B	1.80B
Total Debt	657.46M	664.60M	903.16M	741.72M	195.28M	343.84M
Total Liabilities	2.30B	2.37B	2.67B	2.31B	1.21B	1.34B
Stockholders Equity	5.80B	5.87B	5.24B	4.24B	3.54B	3.15B
Cash Flow
Free Cash Flow	0.00	1.44B	670.83M	984.65M	400.05M	816.50M
Operating Cash Flow	0.00	1.53B	761.55M	1.01B	449.69M	846.03M
Investing Cash Flow	0.00	-364.74M	407.99M	-855.02M	-316.79M	-358.09M
Financing Cash Flow	0.00	-641.05M	-42.78M	414.93M	-243.57M	-313.31M

extreme Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1413.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6033, the sentiment is Positive. The current price of 1413 is below the 20-day moving average (MA) of 1433.60, below the 50-day MA of 1418.12, and above the 200-day MA of 1331.97, indicating a bullish trend. The MACD of 26.86 indicates Negative momentum. The RSI at 61.48 is Neutral, neither overbought nor oversold. The STOCH value of 87.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6033.

extreme Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3912	76 Outperform	¥10.11B	16.35	25.60%	5.18%	5.17%	1662.63%
6033	73 Outperform	¥8.21B	5.47	―	2.77%	3.71%	8.45%
3904	66 Neutral	¥7.06B	11.77	―	0.75%	12.70%	2207.66%
3911	62 Neutral	¥9.53B	9.63	―	―	11.15%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4175	44 Neutral	¥10.17B	-17.86	―	―	16.70%	87.76%
3793	42 Neutral	¥11.32B	4.66	―	―	93.85%	-216.24%