Pixela Corporation (6731) AI Stock Analysis

• Market Cap: ¥4.30B
• Dividend Yield: N/A
• Average Volume (3M): 2.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.80
• Revenue Growth: -11.45%
• EPS Growth: 66.36%
• Country: JP
• Employees: 56
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -1.00
• Shares Outstanding: 102,379,100
• 10 Day Avg. Volume: 1,097,300
• 30 Day Avg. Volume: 2,507,563
• PEG Ratio: 0.01
• Price to Book (P/B): 7.18
• Price to Sales (P/S): 1.24
• P/FCF Ratio: -2.05
• 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

• Rating: 36 Underperform
• Price Target: ―

Pixela Corporation's overall stock score is 36, reflecting severe financial distress and operational inefficiencies. The most significant factor impacting the score is the company's poor financial performance, with declining revenues and negative cash flows. The technical analysis further underscores the bearish sentiment, with the stock trading below key moving averages. Valuation metrics are also unfavorable, with a negative P/E ratio indicating a lack of profitability. Overall, the stock's outlook is concerning, with urgent need for financial and strategic improvements.

Pixela Corporation Business Overview & Revenue Model

Company Description

Pixela Corporation engages in the development and sale of digital equipment and software in Japan. The company offers TV tuner for PC/ smart phone, such as Xit Base, AirBox, Airbox lite, stick, square, brick, and board; PIXELA CLOUD, an online storage for TV tuner; StationTV Link, a DTCP-IP compatible media player app; and StationTV, a TV connection app for mac. It also provides LTE compatible sim free home router and USB dongle; LCD TV/tuner; and smart box. In addition, the company sells hardware and software products for AV home appliances, mobile, and automotive fields; OEM full/one-seg reception application software for Android smartphones; develops mobile full-seg tuners for iOS, android, and windows; and tuner products for in-vehicle use. Further, the company provides digital TV broadcast viewing/recording application middleware for OEM business; digital broadcast viewing and recording software through OEM and retail; and video editing application software comprising ImageMixer, MediaBrowser, and VideoBrowser for PC. Additionally, it develops AV home appliances, such as tuner products for overseas markets; and IoT products for short-range wireless communication system Z-Wave and mobile phone communication standard LTE. Pixela Corporation was founded in 1981 and is headquartered in Osaka, Japan.

How the Company Makes Money

Pixela Corporation generates revenue primarily through the sale of its digital video and broadcasting solutions. This includes hardware products like TV tuners and video encoders, as well as software applications that facilitate digital video processing. The company may also earn income through licensing agreements and partnerships with other technology and broadcasting companies, leveraging its expertise in video technology to provide tailored solutions in various markets.

Pixela Corporation Financial Statement Overview

Summary

Pixela Corporation is facing significant financial challenges, characterized by declining revenues, worsening profitability, and negative cash flows. The company's ability to sustain operations is at risk, with negative returns and shrinking equity. While the low debt level provides some relief, the overall financial health remains precarious, necessitating urgent financial restructuring and strategic realignment.

Income Statement

Pixela Corporation experienced a significant decrease in total revenue from 2021 to 2024, indicating a concerning downward trend. The gross profit margin has been low and volatile, with a sharp decline in profitability. Both EBIT and EBITDA margins are negative and worsening, reflecting serious operational inefficiencies. The net profit margin is deeply negative, highlighting severe financial distress and continuous net losses.

Balance Sheet

The company's debt-to-equity ratio is relatively low due to minimal total debt, which is favorable. However, the return on equity is negative, indicating the company is not generating returns on shareholders' equity. The equity ratio has decreased over the years, showing a decline in the proportion of assets financed by equity, which poses a risk to financial stability.

Cash Flow

Pixela Corporation's cash flow statements reveal negative operating and free cash flows, indicating cash outflows from operations. The operating cash flow to net income ratio is unfavorable, with operating cash flow failing to cover net income losses. The free cash flow is consistently negative, suggesting the company struggles to generate sufficient cash to support its operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.04B	1.16B	1.45B	2.01B	3.33B	3.74B
Gross Profit	209.24M	230.37M	135.17M	187.89M	449.00M	222.05M
EBITDA	-1.10B	-1.19B	-1.31B	-1.28B	-747.14M	-830.14M
Net Income	-1.12B	-1.20B	-1.41B	-1.33B	-937.29M	-1.24B
Balance Sheet
Total Assets	1.10B	619.16M	980.43M	1.74B	2.39B	1.98B
Cash, Cash Equivalents and Short-Term Investments	520.65M	94.83M	44.07M	367.98M	962.61M	344.03M
Total Debt	30.00M	0.00	115.00M	0.00	0.00	0.00
Total Liabilities	347.50M	418.94M	451.95M	433.87M	500.86M	636.74M
Stockholders Equity	755.71M	200.22M	528.48M	1.31B	1.89B	1.34B
Cash Flow
Free Cash Flow	0.00	-701.40M	-1.06B	-1.33B	-844.09M	-717.85M
Operating Cash Flow	0.00	-655.23M	-1.02B	-1.24B	-745.99M	-513.15M
Investing Cash Flow	0.00	-43.45M	-20.01M	-92.81M	-98.22M	-204.83M
Financing Cash Flow	0.00	750.53M	713.94M	736.36M	1.46B	851.59M

Pixela Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6731, the sentiment is Negative. The current price of 44 is below the 20-day moving average (MA) of 44.15, below the 50-day MA of 55.92, and below the 200-day MA of 45.55, indicating a bearish trend. The MACD of -3.90 indicates Negative momentum. The RSI at 43.04 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6731.

Pixela Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6734	80 Outperform	¥3.47B	10.58	―	2.80%	33.70%	36.99%
6803	73 Outperform	¥2.77B	13.17	―	1.03%	2.27%	―
6840	68 Neutral	¥2.98B	19.66	―	―	21.30%	-15.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
7709	45 Neutral	¥2.59B	―	―	―	6.75%	-17.60%
6836	42 Neutral	¥4.98B	838.10	―	―	17.90%	―
6731	36 Underperform	¥4.30B	―	―	―	-11.45%	66.36%