NCXX Group, Inc. (6634) AI Stock Analysis

• Market Cap: ¥3.95B
• Dividend Yield: N/A
• Average Volume (3M): 170.80K
• Price to Earnings (P/E): 3.3
• Beta (1Y): 0.97
• Revenue Growth: 165.52%
• EPS Growth: 17.61%
• Country: JP
• Employees: 34
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 8.60
• Shares Outstanding: 38,114,227
• 10 Day Avg. Volume: 94,070
• 30 Day Avg. Volume: 170,796
• PEG Ratio: -0.05
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 1.20
• P/FCF Ratio: -0.12
• 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: 43 Neutral
• Price Target: ¥97.00 ▼(-26.52% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is weighed down primarily by weak financial performance—persistent losses, compressed margins, rising leverage, and heavy negative operating/free cash flow. Technicals add pressure due to a strong downtrend, partially offset by oversold momentum signals. Valuation is constrained by negative earnings and no stated dividend support.

Positive Factors

Strong revenue growth

Sustained, high single- to triple-digit top-line growth across recent years indicates real market demand and product traction. Durable revenue momentum supports scale benefits, gives management runway to optimize unit economics, and underpins potential margin recovery if cost structure is addressed.

Prior high gross margins

The company has demonstrated the ability to achieve very high gross margins historically, implying its product set or pricing once carried strong economics. That prior margin level suggests structural potential to restore profitability if mix, pricing, or cost inputs are managed, providing a roadmap for durable margin improvement.

Positive equity buffer

Despite recent leverage, the company still reports positive equity and has a history of lower leverage. This equity cushion and prior capital discipline provide a structural buffer against shocks, improving creditor confidence and offering some flexibility to restructure or raise incremental capital if execution requires it.

Negative Factors

Multi-year losses

Persistent net losses and a large negative margin reflect a business that is not currently profitable at scale. Continued losses erode retained capital, reduce reinvestment ability, and increase reliance on external funding. Structurally, this undermines long-term viability unless operations or strategy change materially.

Consistent negative cash flow

Chronic negative operating and free cash flow indicates the company cannot self-fund growth and is burning cash at a high rate. Over a multi-month horizon this raises liquidity and financing risk, constrains investment in product and sales, and forces dilution or costly borrowing to sustain operations.

Rising leverage

A marked increase in leverage reduces financial flexibility and raises interest and refinancing risk. Combined with ongoing losses and negative cash flow, higher debt amplifies the chance of covenant pressure or liquidity stress, constraining strategic options and increasing downside in adverse conditions.

NCXX Group, Inc. Business Overview & Revenue Model

Company Description

NCXX Group Inc. operates metaverse digital content, IoT solutions, and crypto asset and blockchain business in Japan. It also engages in the planning, development, and sale of nursing care and rehabilitation robots; and agricultural ICT business. The company primarily focus on metaverse and digital content, such as VR contract development, services, and develop and sell digital content including games and e-books. It also provide services through cryptocurrency using blockchain technology. In addition, the company engages in M2M solution business, which develop, sell, and provide maintenance services for communication equipment on mobile internet device and M2M modules. Further, it offers travel quotation services, manufacture and sale of ethic clothing and miscellaneous products, financial services, system development business, and sale of software. The company was incorporated in 1984 and is headquartered in Hanamaki, Japan.

How the Company Makes Money

NCXX Group, Inc. generates revenue through multiple streams including subscription fees for its cloud services, licensing agreements for its software products, and consulting services for businesses looking to implement technology solutions. The company also earns income from long-term contracts with enterprise clients for ongoing support and maintenance of its software. Key partnerships with technology firms and strategic collaborations in research and development further bolster its revenue by expanding its market reach and enhancing product offerings.

NCXX Group, Inc. Financial Statement Overview

Summary

Despite very strong recent revenue growth, profitability has deteriorated into multi-year losses with significant gross margin compression. Balance sheet risk increased with a sharp rise in leverage in 2025, and cash flow is consistently negative with exceptionally large cash burn in the latest year—making liquidity and funding execution key risks.

Income Statement

Revenue has grown rapidly in the last two years (2025: +212% vs. 2024: +146%), indicating strong top-line momentum. However, profitability has deteriorated materially: the company swung from solid profits in 2022 (about 29% net margin) to sizable losses in 2023–2025, with 2025 net margin around -20% and negative operating profitability as well. Gross margin has also compressed versus earlier years (from ~62% in 2022 to ~35% in 2025), suggesting weaker product mix, pricing pressure, or higher costs. Overall, growth is strong, but the earnings profile is currently poor and volatile.

Balance Sheet

Leverage and balance sheet stability have become a key concern. Debt-to-equity moved from very low levels in 2022–2024 to meaningfully higher in 2025 (~1.44x), and return on equity is negative in the most recent periods due to losses. Equity remains positive, but the sharp rise in debt alongside ongoing net losses increases financial risk and reduces flexibility. The balance sheet improved from the extremely stressed leverage seen in 2020, but the 2025 step-up in debt is a notable setback.

Cash Flow

Cash generation is weak and deteriorating. Operating cash flow is negative in every year shown, and 2025 is exceptionally large and negative relative to revenue, implying heavy cash burn and/or working-capital pressure. Free cash flow is also consistently negative, meaning the business is not self-funding and likely requires external financing to sustain operations. While free cash flow tracks net income directionally (both negative recently), the scale of cash outflow in 2025 is the primary red flag.

Breakdown	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	3.56B	2.13B	866.69M	2.76B	4.85B
Gross Profit	1.24B	599.71M	371.21M	1.70B	2.70B
EBITDA	-663.19M	-79.01M	-514.84M	913.26M	416.90M
Net Income	-728.23M	-289.69M	-657.69M	806.69M	303.94M
Balance Sheet
Total Assets	134.71B	5.94B	3.08B	3.53B	4.54B
Cash, Cash Equivalents and Short-Term Investments	121.45B	1.15B	587.17M	508.96M	740.36M
Total Debt	4.20B	326.88M	11.00M	78.12M	1.48B
Total Liabilities	131.68B	1.61B	118.65M	227.33M	3.59B
Stockholders Equity	2.92B	4.33B	2.96B	3.31B	844.98M
Cash Flow
Free Cash Flow	-35.28B	-364.20M	-196.56M	-308.67M	-225.72M
Operating Cash Flow	-35.23B	-352.81M	-98.55M	-292.60M	-176.24M
Investing Cash Flow	391.56M	-296.93M	188.93M	-354.59M	637.79M
Financing Cash Flow	-91.80M	28.21M	-66.77M	308.36M	-735.57M

NCXX Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 132.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6634, the sentiment is Negative. The current price of 132 is above the 20-day moving average (MA) of 112.70, above the 50-day MA of 118.72, and below the 200-day MA of 132.28, indicating a bearish trend. The MACD of -4.46 indicates Positive momentum. The RSI at 35.71 is Neutral, neither overbought nor oversold. The STOCH value of 32.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6634.

NCXX Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6675	79 Outperform	¥43.16B	310.64	―	2.26%	20.13%	33.43%
6820	70 Outperform	¥43.49B	14.45	―	2.93%	-0.90%	-13.24%
6703	70 Outperform	¥239.71B	6.34	12.24%	2.31%	-2.36%	-61.50%
6835	68 Neutral	¥28.98B	9.33	14.95%	0.77%	6.43%	368.06%
6778	63 Neutral	¥5.74B	5.26	―	3.54%	19.28%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6634	43 Neutral	¥3.95B	3.35	―	―	165.52%	17.61%