SAXA Holdings, Inc. (6675) AI Stock Analysis

• Market Cap: ¥38.78B
• Dividend Yield: 2.26%
• Average Volume (3M): 9.46K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.62
• Revenue Growth: 20.13%
• EPS Growth: 33.43%
• Country: JP
• Employees: 1,078
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 46.92
• Shares Outstanding: 6,244,962
• 10 Day Avg. Volume: 13,850
• 30 Day Avg. Volume: 9,463
• PEG Ratio: 0.20
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 6.66
• 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: 79 Outperform
• Price Target: ¥7,420.00 ▲(23.87% Upside)

The score is driven primarily by strong financial performance (healthy growth, improved profitability, strong cash generation, and low leverage). Technicals are supportive due to a strong uptrend, but overbought momentum indicators temper the rating. Valuation also contributes positively with a reasonable P/E and moderate dividend yield.

Positive Factors

Revenue & Profitability Growth

SAXA shows multi-year revenue acceleration and an improving net margin, indicating portfolio companies are scaling and improving profitability. This trend supports durable internal capital generation, reinvestment capacity, and the ability to fund strategic acquisitions over the medium term.

Strong Cash Generation

High operating cash conversion and substantial free cash flow versus earnings reflect quality earnings and disciplined capital spending. Robust cash generation gives SAXA durable flexibility to fund growth, pay dividends, and pursue opportunistic investments without relying on external financing.

Conservative Capital Structure

A very high equity ratio and minimal leverage provide long-term financial resilience, lower default risk, and capacity to support subsidiaries through cycles. This conservative structure preserves strategic optionality for acquisitions and cushions returns during market stress.

Negative Factors

Gross Margin Slight Decline

A modest decline in gross margin suggests cost pressure or mix shifts within the portfolio companies. If persistent, downward margin drift can erode operating leverage and constrain the company’s ability to sustainably boost net margins and fund growth without improving underlying unit economics.

Moderate Return on Equity

An ROE around 11% is positive but middling for an investment holding firm, implying returns on deployed capital may be moderate versus peers. Over the medium term this could indicate limited alpha from capital allocation and constrain cumulative value creation for shareholders.

Revenue Reliant on Investment Portfolio

SAXA’s business model depends on portfolio performance and capital markets outcomes. This structural reliance increases earnings cyclicality and makes cash flows and growth contingent on asset-level exits, dividends, and market valuations rather than predictable operating revenues.

SAXA Holdings, Inc. Business Overview & Revenue Model

Company Description

SAXA Holdings, Inc., through its subsidiaries, engages in the development, manufacture, and sale of equipment and components for information and communication systems in Japan. The company was incorporated in 2004 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SAXA Holdings generates revenue primarily through its investment portfolio, which includes equity stakes in publicly traded and private companies across its core sectors. The company earns money through capital appreciation of its investments, as well as from dividends and interest income from its holdings. Additionally, SAXA Holdings may engage in strategic partnerships and joint ventures, allowing it to share resources and expertise, ultimately leading to increased profitability. The company's revenue model is further bolstered by its ability to identify and capitalize on emerging trends within its sectors, enhancing its overall earnings potential.

SAXA Holdings, Inc. Financial Statement Overview

Summary

SAXA Holdings, Inc. demonstrates strong overall financial health with impressive revenue and profit growth, solid margins, and effective cash flow management. The company’s low leverage and high equity ratio contribute to financial stability, while the strong cash generation supports ongoing operations and potential investments.

Income Statement

SAXA Holdings, Inc. exhibits strong revenue growth with a Revenue Growth Rate of 7.39% from 2024 to 2025 and 9.72% from 2023 to 2024. Gross Profit Margin remains healthy at 30.52% in 2025, though slightly lower than previous years. Net Profit Margin improved significantly to 7.97% in 2025, indicating enhanced profitability. EBIT and EBITDA margins are stable, suggesting operational efficiency.

Balance Sheet

The company maintains a solid financial position with an Equity Ratio of 68.06% in 2025, showcasing financial stability. The Debt-to-Equity Ratio is low at 0.09, indicating conservative leverage. Return on Equity stands at 11.39% in 2025, reflecting improved profitability and efficient use of equity.

Cash Flow

Operating Cash Flow to Net Income Ratio is robust at 0.93 in 2025, indicating strong cash generation relative to earnings. Free Cash Flow to Net Income Ratio is healthy at 0.77, suggesting substantial free cash flow after capital expenditures. The Free Cash Flow Growth Rate is positive, indicating improved cash flow generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.75B	43.97B	40.95B	37.32B	30.79B	36.56B
Gross Profit	13.97B	13.42B	13.59B	12.19B	9.20B	11.76B
EBITDA	4.92B	4.61B	4.47B	1.66B	2.01B	1.54B
Net Income	3.79B	3.50B	2.80B	601.00M	1.14B	-217.00M
Balance Sheet
Total Assets	43.16B	45.20B	41.47B	41.78B	36.92B	36.48B
Cash, Cash Equivalents and Short-Term Investments	8.35B	10.29B	9.37B	8.13B	6.99B	7.81B
Total Debt	2.49B	2.74B	1.40B	3.11B	2.86B	2.31B
Total Liabilities	12.85B	14.44B	13.11B	16.88B	13.35B	13.45B
Stockholders Equity	30.32B	30.76B	28.37B	24.89B	23.57B	22.83B
Cash Flow
Free Cash Flow	0.00	2.68B	2.61B	1.12B	-1.57B	722.00M
Operating Cash Flow	0.00	3.27B	3.74B	1.73B	-1.07B	1.90B
Investing Cash Flow	0.00	-2.81B	-569.00M	-666.00M	214.00M	-1.09B
Financing Cash Flow	0.00	477.00M	-1.97B	74.00M	42.00M	-679.00M

SAXA Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5990.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6675, the sentiment is Positive. The current price of 5990 is below the 20-day moving average (MA) of 6078.50, above the 50-day MA of 5559.60, and above the 200-day MA of 4558.61, indicating a bullish trend. The MACD of 306.38 indicates Negative momentum. The RSI at 83.20 is Negative, neither overbought nor oversold. The STOCH value of 96.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6675.

SAXA Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6675	79 Outperform	¥38.78B	12.03	―	2.26%	20.13%	33.43%
2763	77 Outperform	¥37.54B	7.18	―	4.36%	-8.78%	-17.28%
6820	70 Outperform	¥44.35B	19.01	―	2.93%	-0.90%	-13.24%
6822	64 Neutral	¥5.11B	3.92	―	0.53%	4.93%	23.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6771	53 Neutral	¥4.23B	10.41	―	2.01%	13.56%	―