NCXX Group, Inc. (6634) AI Stock Analysis

• Market Cap: ¥5.70B
• Dividend Yield: N/A
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: 229.77%
• EPS Growth: 0.22%
• Country: JP
• Employees: 34
• Sector: Technology
• Sector Strength: 85
• Industry: Communication Equipment
• EPS (TTM): -31.88
• Shares Outstanding: 38,114,227
• 10 Day Avg. Volume: 370,810
• 30 Day Avg. Volume: 1,772,993
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥155.00
• Price Target Upside: 3.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: ¥155.00 ▲(3.33% Upside)

The overall stock score is primarily impacted by financial performance challenges, including consistent net losses and declining revenues. Technical analysis provides some positive momentum, but poor valuation due to a negative P/E ratio and lack of dividend yield further dampens the score.

Positive Factors

Strong Equity Position

A strong equity position provides financial stability and a buffer against potential losses, supporting long-term sustainability and investment capacity.

Reduced Debt Levels

Reducing debt levels enhances financial flexibility, lowers interest expenses, and reduces risk, contributing positively to long-term operational health.

Market Demand for IoT Solutions

Growing demand for IoT solutions positions NCXX Group to capitalize on industry trends, driving potential revenue growth and market expansion.

Negative Factors

Consistent Net Losses

Persistent net losses undermine profitability and can strain resources, potentially limiting investment in growth opportunities and innovation.

Negative Cash Flow

Negative cash flow impacts the company's ability to fund operations and investments independently, increasing reliance on external financing.

Declining Revenue

Declining revenue signals potential market challenges and competitive pressures, which can affect long-term growth prospects and market positioning.

NCXX Group, Inc. Business Overview & Revenue Model

Company Description

NCXX Group, Inc. (6634) is a Japanese company engaged in the technology sector, focusing primarily on the development and distribution of communication equipment and devices. The company operates through several key segments, including the manufacture and sale of mobile data communication devices, IoT (Internet of Things) solutions, and other related technological services. NCXX Group is committed to advancing connectivity and digital solutions, catering to both consumer and industrial markets.

How the Company Makes Money

NCXX Group, Inc. generates revenue through the sale of its communication devices and IoT solutions. The company capitalizes on the growing demand for mobile connectivity by providing advanced communication devices that support various network standards. Additionally, NCXX Group offers IoT solutions that enable businesses to enhance their operational efficiencies and data management capabilities. Revenue is driven by both product sales and service contracts, including maintenance and support services. Strategic partnerships and collaborations with other technology firms also play a crucial role in expanding its market reach and enhancing its product offerings.

NCXX Group, Inc. Financial Statement Overview

Summary

NCXX Group, Inc. faces significant financial challenges, particularly in revenue and profitability. The company has struggled with consistent net losses and declining revenues. While the balance sheet shows a strong equity position and reduced debt levels, cash flow challenges persist. The overall financial health is weakened by operational difficulties and cash flow constraints.

Income Statement

The income statement shows a significant decline in revenue and profitability over the years. Revenue growth has been negative, with the company experiencing a decrease from 2019 to 2024. The gross profit margin has also declined, and the company has been operating at a net loss consistently. The EBIT and EBITDA margins are negative, indicating operational challenges. These factors contribute to the low score.

Balance Sheet

The balance sheet shows a relatively strong equity position with the stockholders' equity covering a substantial portion of total assets, resulting in a high equity ratio. However, there is a noticeable fluctuation in total debt over the years, with recent improvements in reducing debt. The debt-to-equity ratio is relatively low, indicating manageable leverage, but consistent losses impact ROE negatively, limiting the score improvement.

Cash Flow

The cash flow statement indicates challenges with negative operating cash flow and free cash flow over the years. There is a lack of free cash flow growth, and the free cash flow to net income ratio is unfavorable due to consistent net losses. Despite some capital management efforts, cash flow issues remain a concern, resulting in a moderate score.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.52B	2.13B	802.07M	2.76B	4.85B	6.56B
Gross Profit	558.56M	599.71M	371.21M	1.70B	2.70B	3.07B
EBITDA	-3.09M	-79.01M	-514.84M	913.26M	416.90M	-1.19B
Net Income	-252.61M	-289.69M	-657.69M	806.69M	303.94M	-1.36B
Balance Sheet
Total Assets	6.40B	5.94B	3.08B	3.53B	4.54B	4.78B
Cash, Cash Equivalents and Short-Term Investments	1.23B	1.15B	587.17M	508.96M	740.36M	1.02B
Total Debt	365.44M	326.88M	11.00M	78.12M	1.48B	1.62B
Total Liabilities	1.98B	1.61B	118.65M	227.33M	3.59B	3.96B
Stockholders Equity	4.42B	4.33B	2.96B	3.31B	844.98M	117.74M
Cash Flow
Free Cash Flow	0.00	-364.20M	-196.56M	-308.67M	-225.72M	-311.94M
Operating Cash Flow	0.00	-352.81M	-148.87M	-292.60M	-176.24M	-285.45M
Investing Cash Flow	0.00	-296.93M	188.93M	-354.59M	637.79M	680.28M
Financing Cash Flow	0.00	28.21M	-66.77M	308.36M	-735.57M	-297.32M

NCXX Group, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 150.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 150 is below the 20-day moving average (MA) of 155.90, above the 50-day MA of 145.88, and above the 200-day MA of 139.55, indicating a neutral trend. The MACD of 2.15 indicates Positive momentum. The RSI at 48.62 is Neutral, neither overbought nor oversold. The STOCH value of 20.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6634.

NCXX Group, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6822	82 Outperform	¥5.36B	4.02		―	1.33%	13.09%
1724	68 Neutral	¥3.05B	6.33		4.26%	11.82%	7.52%
Sector *	61 Neutral	$36.69B	12.42	-10.20%	1.85%	8.50%	-7.32%
6778	55 Neutral	¥6.25B	45.44		3.15%	-4.92%	―
6634	51 Neutral	¥5.70B	―		―	229.77%	0.22%
6696	51 Neutral	¥1.98B	104.64		―	41.44%	―
6771	49 Neutral	¥3.76B	29.68		2.04%	0.35%	―