NCXX Group, Inc. (6634) AI Stock Analysis

• Market Cap: ¥4.52B
• Dividend Yield: N/A
• Average Volume (3M): 170.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• 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: 47 Neutral
• Price Target: ¥115.00 ▼(-12.88% Downside)

The score is held down primarily by weak financial quality—multi-year losses, sharply higher leverage in 2025, and persistent negative operating/free cash flow with heavy latest-year cash burn. Technicals are supportive of a strong uptrend but are overbought, adding near-term pullback risk, while valuation is constrained by negative earnings and no dividend yield data.

Positive Factors

Top-line Momentum

Very strong multi-year revenue growth demonstrates expanding product adoption or market share, creating a durable growth runway. If the company sustains customer traction, scale advantages and higher absolute revenue provide the basis to recover profitability and invest in strategic initiatives over the next 2–6 months and beyond.

Historical Profitability

Prior high profitability shows the business model can generate strong margins under favorable mix or cost structure. This historical profitability is a structural positive: management has demonstrated the capability to reach attractive margins, implying that margin recovery is feasible if revenue mix, pricing, or cost controls improve.

Equity Buffer

A positive equity base provides a structural capital cushion versus insolvency risk and preserves access to financing options. While leverage rose, existing equity supports operations and strategic initiatives in the medium term, making the balance sheet less fragile than a negative-equity scenario would be.

Negative Factors

Rising Leverage

The sharp increase in leverage materially raises financial risk and reduces strategic flexibility. Higher debt amplifies interest and refinancing exposure, limits the ability to invest without external funding, and increases vulnerability to revenue shocks—constraints that are durable over the next several quarters absent deleveraging.

Persistent Cash Burn

Consistent negative operating and free cash flow indicates the business cannot self-fund growth and requires ongoing external financing. Heavy cash burn elevates dilution and liquidity risk, constrains investment in product or sales capacity, and creates sustained pressure on balance sheet health until cash flow turns positive.

Margin Deterioration

Substantial gross and net margin erosion suggests structural pressure on pricing, mix, or cost base. Even with revenue growth, persistent margin compression weakens long-term profitability and return metrics, making it harder to achieve sustainable operating leverage without structural changes to pricing, costs, or product mix.

NCXX Group, Inc. Business Overview & Revenue Model

Company Description

NCXX Group, Inc. (6634) is a diversified technology company that operates primarily in the information technology and software development sectors. The company focuses on providing innovative solutions that enhance business efficiency and productivity, offering a range of core products and services including cloud computing solutions, data analytics tools, and customized software applications tailored to meet the specific needs of various industries.

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

Revenue growth is very strong, but profitability has deteriorated into multi-year losses with significant gross/operating margin compression. Balance sheet risk rose in 2025 with a sharp increase in leverage (~1.44x debt-to-equity), and cash flow is persistently negative with exceptionally large cash burn in 2025, increasing financing and liquidity risk.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.49B	3.56B	2.13B	866.69M	2.76B	4.85B
Gross Profit	1.17B	1.24B	599.71M	371.21M	1.70B	2.70B
EBITDA	-987.07M	-663.19M	-79.01M	-514.84M	913.26M	416.90M
Net Income	-1.07B	-728.23M	-289.69M	-657.69M	806.69M	303.94M
Balance Sheet
Total Assets	115.88B	134.71B	5.94B	3.08B	3.53B	4.54B
Cash, Cash Equivalents and Short-Term Investments	2.03B	121.45B	1.15B	587.17M	508.96M	740.36M
Total Debt	4.67B	4.20B	326.88M	11.00M	78.12M	1.48B
Total Liabilities	112.76B	131.68B	1.61B	118.65M	227.33M	3.59B
Stockholders Equity	3.12B	2.92B	4.33B	2.96B	3.31B	844.98M
Cash Flow
Free Cash Flow	0.00	-35.28B	-364.20M	-196.56M	-308.67M	-225.72M
Operating Cash Flow	0.00	-35.23B	-352.81M	-98.55M	-292.60M	-176.24M
Investing Cash Flow	0.00	391.56M	-296.93M	188.93M	-354.59M	637.79M
Financing Cash Flow	0.00	-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: Positive

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 125.10, above the 50-day MA of 119.16, and below the 200-day MA of 135.88, indicating a bearish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 45.39 is Neutral, neither overbought nor oversold. The STOCH value of 7.92 is Positive, 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
1724	77 Outperform	¥3.31B	5.80	―	3.94%	-2.32%	54.00%
6822	64 Neutral	¥5.21B	3.98	―	0.53%	4.93%	23.92%
6696	63 Neutral	¥1.62B	-40.17	―	―	10.83%	-1827.49%
6778	63 Neutral	¥5.64B	29.81	―	3.54%	19.28%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6771	53 Neutral	¥4.29B	10.34	―	2.01%	13.56%	―
6634	47 Neutral	¥4.52B	-6.38	―	―	165.52%	17.61%