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

• Market Cap: ¥8.64B
• Dividend Yield: 2.77%
• Average Volume (3M): 3.68K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.42
• 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: ¥1,739.00 ▲(23.07% 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 68.47% equity ratio and debt-to-equity of 0.11 indicate durable financial resilience. Low leverage preserves capacity to fund R&D, absorb cyclical downturns in gaming, and pursue strategic investments or M&A without heavy refinancing, supporting long-term stability.

Strong cash generation

Material FCF growth and an OCF-to-net-income ratio of 1.35 show the business reliably converts profits into cash. This strengthens the company's ability to reinvest in development, fund live-ops, sustain dividends or buybacks, and weather project timing variability over multiple quarters.

Sustainable revenue and margins

Double-digit revenue growth paired with gross margins above 30% and near-10% net margin reflect durable operational efficiency. A service model spanning development and live-ops creates recurring revenue streams and margin stability versus one-off product sales, supporting medium-term profitability.

Negative Factors

EPS decline

Negative EPS growth suggests earnings volatility despite strong cash flow and revenue. Persistent EPS declines can limit retained earnings and investor confidence, constrain compensation or incentive alignment, and signal margin or tax/one-off pressures that may recur across reporting periods.

Industry concentration risk

Revenue is concentrated in gaming and entertainment support services, exposing the company to cyclicality and hit-driven demand. Industry downturns, shifts in platform economics, or weaker game launches can materially reduce contract volumes and prolong revenue weakness over many quarters.

Project-based revenue variability

A business model reliant on contract and project work creates lumpy revenue and renewal risk. Timing of wins and client concentration can produce quarter-to-quarter swings, pressure margins during competitive bids, and reduce long-term revenue visibility without stronger recurring contract backlogs.

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 primarily by providing contract-based services to companies in the game and digital entertainment industry. Key revenue streams include (1) game development support and co-development work (e.g., planning, design, programming, graphics, and other production functions delivered on a fee-for-service basis), and (2) game operation/live-service support (e.g., content updates, event operations, maintenance, customer support, and other ongoing operational functions typically billed via recurring service fees or project-based contracts). The company may also earn revenue from other digital/IT support services connected to its development capabilities (such as staffing/outsourcing-style support or related technical services), depending on contract scope. Specific breakdowns by segment, major customers, and the existence/terms of any significant partnerships are null.

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 1478.15, below the 50-day MA of 1429.12, and above the 200-day MA of 1340.95, indicating a bullish trend. The MACD of 34.99 indicates Negative momentum. The RSI at 68.30 is Neutral, neither overbought nor oversold. The STOCH value of 88.42 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	¥10.33B	16.35	15.74%	5.18%	5.17%	1662.63%
6033	73 Outperform	¥8.64B	5.47	―	2.77%	3.71%	8.45%
3904	66 Neutral	¥7.06B	11.77	―	0.75%	12.70%	2207.66%
3911	62 Neutral	¥9.99B	9.63	―	―	11.15%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4175	44 Neutral	¥10.50B	-17.86	―	―	16.70%	87.76%
3793	42 Neutral	¥11.88B	4.66	―	―	93.85%	-216.24%