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

• Market Cap: ¥8.43B
• Dividend Yield: 2.77%
• Average Volume (3M): 3.68K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.40
• 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: ¥1,707.00 ▲(20.81% 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 resilience and low refinancing risk. Combined with a 19.24% ROE, the company can fund operations and strategic investments internally, withstand downturns, and maintain financial flexibility over months.

Cash Flow Generation

Huge FCF growth and operating cash generation exceeding net income indicate strong cash conversion. Persistent cash generation supports reinvestment in services, funds shareholder returns, and reduces dependence on external financing, strengthening long-term operational independence.

Revenue Growth & Margins

Double-digit revenue growth with healthy gross and near-double-digit net margins demonstrates scalable service economics and pricing power. Sustained margin levels reflect durable operational efficiency in development and live-ops services, supporting steady profitability over time.

Negative Factors

EPS Decline

Negative EPS growth despite revenue gains signals per-share earnings pressure that could stem from costs, one-offs, or capital allocation choices. If EPS contraction persists it undermines shareholder returns and raises concerns about sustained earnings quality.

Industry Concentration (Gaming)

A core focus on gaming and entertainment ties revenue to title cycles, publisher budgets and platform shifts. That structural concentration increases exposure to industry cyclicality and hit-driven demand, limiting resilience versus broader-market service providers.

Revenue Mix & Contract Volatility

A mix of recurring and project-based contracts implies only partial revenue predictability. Heavy reliance on project fees creates lumpiness, makes resource planning harder, and increases sensitivity to client wins/losses, constraining steady top-line visibility over months.

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	8.64B	8.54B	7.13B	5.03B	4.76B
Cash, Cash Equivalents and Short-Term Investments	4.75B	4.87B	4.15B	3.21B	1.72B	1.80B
Total Debt	657.46M	664.60M	903.16M	741.72M	195.28M	343.84M
Total Liabilities	2.30B	2.43B	2.72B	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: Neutral

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 1520.25, below the 50-day MA of 1446.70, and above the 200-day MA of 1351.29, indicating a bullish trend. The MACD of 36.40 indicates Negative momentum. The RSI at 55.47 is Neutral, neither overbought nor oversold. The STOCH value of 64.61 is Neutral, 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	15.74%	5.18%	5.17%	1662.63%
6033	73 Outperform	¥8.43B	5.47	―	2.77%	3.71%	8.45%
3904	66 Neutral	¥6.86B	11.77	―	0.75%	12.70%	2207.66%
3911	62 Neutral	¥9.57B	9.63	―	―	11.15%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
4175	48 Neutral	¥10.91B	137.85	―	―	16.70%	87.76%
3793	42 Neutral	¥11.62B	4.66	―	―	93.85%	-216.24%