SAXA Holdings, Inc. (6675) AI Stock Analysis

• Market Cap: ¥47.95B
• Dividend Yield: 2.26%
• Average Volume (3M): 9.46K
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.66
• Revenue Growth: 20.13%
• EPS Growth: 33.43%
• Country: JP
• Employees: 1,078
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 4.65
• 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): 292.7
• Revenue Forecast (FY): ¥44.00B

• Rating: 79 Outperform
• Price Target: ¥9,400.00 ▲(56.93% Upside)
• Action: Upgraded Date: 01/10/26
• Date: Action: Upgraded 01/10/26

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 growth trend

Multi-year accelerating top-line growth shows durable demand for SAXA's security and communications solutions, indicating expanding market penetration and sustained product/service adoption. That trajectory supports predictable revenue scale and long-term reinvestment capacity.

Strong cash generation

High cash conversion and healthy free cash flow relative to net income provide durable internal funding for capex, working capital, dividends or buybacks. This reduces dependence on external financing and increases resilience across business cycles.

Conservative balance sheet

Very low leverage and a high equity ratio give financial flexibility to invest, withstand downturns, or pursue M&A without stressing cash flow. Combined with mid-teens ROE, this supports sustainable capital allocation and lower financial risk profile.

Negative Factors

Negative EPS growth

A large decline in EPS over the latest period signals volatility in per-share profitability which can reflect one-offs, tax or capital structure shifts. Persistent EPS volatility undermines earnings predictability and complicates long-term payout and planning decisions.

Moderate margins; slight gross margin decline

While margins are positive, a modest decline in gross margin and a mid-single-digit net margin indicate limited structural margin expansion. In a competitive communications equipment market, this constrains long-term operating leverage and free cash flow upside.

Limited scale (workforce size)

A relatively small employee base may constrain rapid geographic expansion, R&D scale and large institutional sales capacity versus bigger competitors. Limited scale can slow market share gains and increase vulnerability to bidding pressure over the medium term.

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

Strong income statement and cash flow quality support a high score: revenue growth accelerated (7.39% in 2024–2025; 9.72% in 2023–2024), profitability improved (net margin 7.97%), and cash conversion is solid (operating cash flow to net income 0.93; free cash flow to net income 0.77). Balance sheet remains conservative with high equity ratio (68.06%) and low leverage (debt-to-equity 0.09), supporting financial stability.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Neutral

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 7346.50, below the 50-day MA of 6709.40, and above the 200-day MA of 5206.72, indicating a bullish trend. The MACD of 369.11 indicates Negative momentum. The RSI at 79.93 is Negative, neither overbought nor oversold. The STOCH value of 78.70 is Neutral, 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
2763	82 Outperform	¥37.84B	7.08	―	4.36%	-8.78%	-17.28%
6675	79 Outperform	¥47.95B	27.24	―	2.26%	20.13%	33.43%
6822	77 Outperform	¥6.40B	5.07	―	0.53%	4.93%	23.92%
6820	70 Outperform	¥45.79B	22.04	―	2.93%	-0.90%	-13.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6771	60 Neutral	¥5.06B	7.48	―	2.01%	13.56%	―