Axell Corporation (6730) AI Stock Analysis

• Market Cap: ¥15.24B
• Dividend Yield: 3.2%
• Average Volume (3M): 48.87K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.97
• Revenue Growth: -10.61%
• EPS Growth: -18.70%
• Country: JP
• Employees: 128
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 25.59
• Shares Outstanding: 11,211,989
• 10 Day Avg. Volume: 28,000
• 30 Day Avg. Volume: 48,870
• PEG Ratio: -0.27
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -7.39
• 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: 73 Outperform
• Price Target: ―

Axell Corporation demonstrates strong financial performance with a solid balance sheet and reasonable valuation. The absence of debt is a key strength, yet recent cash flow issues require attention. Technical analysis points to a neutral to bearish trend, indicating possible short-term volatility. Despite these challenges, the company's attractive valuation and dividend yield make it an appealing choice for investors seeking stability and income.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet provides Axell Corporation with significant financial flexibility and reduces risk, allowing for strategic investments and resilience in downturns.

Strong Equity Position

A high equity ratio signifies robust financial health, enabling the company to leverage its capital structure effectively for long-term growth opportunities.

Healthy Profit Margins

Sustained healthy profit margins reflect efficient cost management and pricing power, supporting profitability and competitive positioning in the semiconductor industry.

Negative Factors

Revenue Decline

A decline in revenue growth can indicate market challenges or competitive pressures, potentially impacting the company's ability to maintain its market position and financial performance.

Cash Flow Issues

Inability to generate positive cash flow can limit operational flexibility and investment capacity, posing risks to sustaining growth and meeting financial obligations.

Declining EPS Growth

A decline in EPS growth suggests challenges in profitability and efficiency, which could affect investor confidence and the company's ability to reinvest in growth initiatives.

Axell Corporation Business Overview & Revenue Model

Company Description

Axell Corporation (6730) is a Japanese company that primarily operates in the semiconductor industry. It is engaged in the design, development, and sale of semiconductor products and solutions. The company's product lineup includes a variety of semiconductors used in electronic devices, such as microcontrollers, system-on-chips (SoCs), and other integrated circuits that are essential components in consumer electronics, automotive systems, industrial equipment, and communication devices.

How the Company Makes Money

Axell Corporation generates revenue through the sale of its semiconductor products to various industries. Its primary revenue streams come from its wide range of semiconductors, including microcontrollers and SoCs, which are sold to manufacturers of consumer electronics, automotive systems, and industrial equipment. The company likely engages in partnerships with electronic device manufacturers and may also offer custom semiconductor solutions to meet specific client needs, further augmenting its revenue. By leveraging its expertise in semiconductor design and innovation, Axell Corporation maintains a competitive edge in the market, contributing to its financial performance.

Axell Corporation Financial Statement Overview

Summary

Axell Corporation shows a robust financial position with strong income growth and a very healthy balance sheet. The absence of debt and high equity ratios are notable strengths. However, recent cash flow issues, particularly the lack of positive free cash flow in the TTM, present a concern that needs addressing to sustain its growth momentum.

Income Statement

Axell Corporation has demonstrated strong revenue growth with a 47.9% increase from 2021 to 2022, followed by steady growth in subsequent years. The gross profit margin is healthy, averaging around 30% over the years. The net profit margin has been strong, particularly in TTM where it stands at approximately 6.93%. The company has maintained solid EBIT and EBITDA margins, indicating robust operating performance. However, there is a slight decline in revenue and profit margins in the TTM data compared to the previous year.

Balance Sheet

The balance sheet is notably strong with zero debt, resulting in a debt-to-equity ratio of 0. The equity ratio is consistently high, indicating a strong equity position. The return on equity is commendable, especially in 2024 with a TTM ROE of approximately 8.39%. Axell Corporation's financial position is stable, with substantial cash reserves enhancing its liquidity and financial flexibility.

Cash Flow

The cash flow performance is mixed. While past free cash flow has been positive, the TTM data shows zero operating and free cash flow, suggesting potential issues in cash generation. The operating cash flow to net income ratio has fluctuated, indicating instability in converting profits into cash. The lack of positive free cash flow in the recent period is a concern, though historical performance shows capability in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.21B	15.24B	17.57B	14.47B	10.67B	9.00B
Gross Profit	4.63B	4.39B	5.60B	4.55B	3.52B	3.09B
EBITDA	1.97B	1.50B	2.51B	1.67B	883.00M	595.00M
Net Income	1.20B	979.00M	1.77B	1.35B	865.00M	670.00M
Balance Sheet
Total Assets	15.10B	15.04B	15.57B	13.88B	12.27B	11.13B
Cash, Cash Equivalents and Short-Term Investments	5.66B	6.60B	9.82B	10.71B	9.10B	7.91B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.79B	2.03B	2.69B	2.19B	1.65B	1.06B
Stockholders Equity	13.20B	12.91B	12.79B	11.62B	10.58B	10.05B
Cash Flow
Free Cash Flow	0.00	-1.61B	545.00M	1.80B	1.59B	368.00M
Operating Cash Flow	0.00	-1.51B	653.00M	1.89B	1.62B	379.00M
Investing Cash Flow	0.00	-827.00M	-811.00M	135.00M	-157.00M	22.00M
Financing Cash Flow	0.00	-873.00M	-755.00M	-408.00M	-308.00M	-560.00M

Axell Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1293.00
• 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:6730, the sentiment is Positive. The current price of 1293 is below the 20-day moving average (MA) of 1302.80, above the 50-day MA of 1275.26, and above the 200-day MA of 1110.20, indicating a neutral trend. The MACD of -3.97 indicates Positive momentum. The RSI at 51.85 is Neutral, neither overbought nor oversold. The STOCH value of 58.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6730.

Axell Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6730	73 Outperform	¥15.24B	12.90	―	3.20%	-10.61%	-18.70%
6337	72 Outperform	¥10.87B	21.23	―	3.58%	-14.79%	-41.15%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6769	61 Neutral	¥8.98B	-32.17	―	1.81%	-7.54%	―
6228	49 Neutral	¥11.64B	-4.69	―	2.46%	-25.28%	-434.79%
6613	46 Neutral	¥15.33B	―	―	―	18.18%	56.08%
6616	45 Neutral	¥17.86B	-7.46	―	3.65%	-6.84%	50.71%