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

• Market Cap: ¥8.23B
• Dividend Yield: 2.77%
• Average Volume (3M): 3.68K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.46
• 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

Balance Sheet Strength

A very high equity ratio and minimal leverage provide durable financial flexibility. Low debt-to-equity limits refinancing risk and interest burden, while a 19.24% ROE indicates the company effectively deploys capital to generate returns, supporting long-term stability and investment capacity.

Cash Generation

Substantial free cash flow growth and OCF exceeding net income show resilient cash conversion. Strong recurring cash generation funds capex, R&D, dividends, and M&A without relying on external financing, reinforcing sustainable operations and strategic optionality over multiple quarters.

Revenue and Margin Momentum

Consistent top-line growth with healthy gross margins above 30% and improving net margins demonstrates profitable scaling. The mix of hardware, software and subscription revenue supports margin sustainability, indicating competitive product positioning and ability to convert sales into durable profits.

Negative Factors

EPS Decline

Negative EPS growth despite revenue gains suggests pressure on per-share earnings from costs, one-offs, or share count changes. If persistent, declining EPS can undermine earnings power, constrain dividend capacity and investor confidence, and indicate structural profitability headwinds.

Lack of Forward Guidance

Absence of published guidance or detailed earnings highlights reduces forward visibility for investors and stakeholders. Over the medium term this can make it harder to assess management's outlook, plan capital allocation, and gauge the sustainability of growth and margins.

Low Trading Liquidity

Relatively low average trading volume can limit institutional participation and increase bid-ask spreads, making large trades disruptive. Over time this may constrain access to liquidity for capital raising and reduce the shareholder base willing to support strategic initiatives.

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 1426.90, below the 50-day MA of 1416.92, and above the 200-day MA of 1330.55, indicating a bullish trend. The MACD of 26.65 indicates Negative momentum. The RSI at 62.52 is Neutral, neither overbought nor oversold. The STOCH value of 90.59 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	¥10.23B	17.91	25.60%	5.18%	5.17%	1662.63%
6033	73 Outperform	¥8.23B	7.48	―	2.77%	3.71%	8.45%
3904	66 Neutral	¥7.31B	11.02	―	0.75%	12.70%	2207.66%
3911	62 Neutral	¥9.90B	9.11	―	―	11.15%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4175	44 Neutral	¥10.25B	-150.24	―	―	16.70%	87.76%
3793	42 Neutral	¥11.64B	-5.89	―	―	93.85%	-216.24%