Pixela Corporation (6731) AI Stock Analysis

• Market Cap: ¥5.63B
• Dividend Yield: N/A
• Average Volume (3M): 2.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.75
• Revenue Growth: -13.93%
• EPS Growth: N/A
• Country: JP
• Employees: 56
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -1.63
• Shares Outstanding: 102,379,100
• 10 Day Avg. Volume: 1,097,300
• 30 Day Avg. Volume: 2,507,563
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥50.00 ▲(51.52% Upside)

The score is held down primarily by weak financial performance, including persistent losses and significant ongoing cash burn, despite the benefit of having no debt. Technicals are a positive with strong trend and momentum, but the elevated RSI indicates the move may be overextended. Valuation remains constrained by negative earnings and no provided dividend yield.

Positive Factors

Focused product niche

Pixela’s integrated hardware and software focus in video capture and TV-tuner solutions represents a durable niche. Specialized products and embedded software can create stickier customer relationships, recurring support/upgrade revenue, and defensible technical know-how versus generalist hardware makers.

Zero financial leverage

Having no debt materially lowers solvency risk and interest expense pressure, preserving strategic optionality. This balance-sheet strength gives the company time to pursue restructuring or product investment without immediate creditor constraints, supporting longer-term recovery options.

Gross margin improvement

An improved gross margin signals better product mix or cost control, which is a structural lever toward profitability. If sustained, higher gross margins improve the company’s ability to cover fixed costs and fund R&D or marketing, making a durable path to break-even more attainable.

Negative Factors

Multi-year revenue contraction

A shrinking top line over multiple years reduces scale, weakens bargaining power, and raises per-unit fixed costs. Continued revenue decline undermines market position and makes restoring margins and funding product development harder, creating a lasting headwind to recovery.

Persistent negative cash flow

Sustained negative operating and free cash flow depletes reserves and forces reliance on external financing or equity dilution. This constrains investment in products and sales, increases survival risk, and makes long-term strategic initiatives contingent on securing fresh capital.

Deep recurring losses and negative ROE

Large recurring operating and net losses that yield very negative ROE erode shareholder equity and investor confidence. Over time this undermines ability to attract funding, limits reinvestment capacity, and raises the bar for management to execute a credible turnaround.

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 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.04B	1.00B	1.16B	1.45B	2.01B	3.33B
Gross Profit	209.24M	276.92M	230.37M	135.17M	187.89M	449.00M
EBITDA	-1.10B	-825.36M	-1.19B	-1.31B	-1.28B	-747.14M
Net Income	-1.12B	-853.90M	-1.20B	-1.41B	-1.33B	-937.29M
Balance Sheet
Total Assets	1.10B	1.13B	619.16M	980.43M	1.74B	2.39B
Cash, Cash Equivalents and Short-Term Investments	520.65M	575.48M	94.83M	44.07M	367.98M	962.61M
Total Debt	30.00M	0.00	0.00	115.00M	0.00	0.00
Total Liabilities	347.50M	280.55M	418.94M	451.95M	433.87M	500.86M
Stockholders Equity	755.71M	845.87M	200.22M	528.48M	1.31B	1.89B
Cash Flow
Free Cash Flow	0.00	-1.03B	-701.40M	-1.06B	-1.33B	-844.09M
Operating Cash Flow	0.00	-997.73M	-655.23M	-1.02B	-1.24B	-745.99M
Investing Cash Flow	0.00	2.72M	-43.45M	-20.01M	-92.81M	-98.22M
Financing Cash Flow	0.00	1.47B	750.53M	713.94M	736.36M	1.46B

Pixela Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 33 is below the 20-day moving average (MA) of 39.35, below the 50-day MA of 39.96, and below the 200-day MA of 46.33, indicating a bullish trend. The MACD of 3.58 indicates Negative momentum. The RSI at 67.27 is Neutral, neither overbought nor oversold. The STOCH value of 74.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6731.

Pixela Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6734	73 Outperform	¥5.07B	13.90	―	1.89%	33.70%	36.99%
6840	70 Outperform	¥3.99B	11.09	―	―	20.86%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6803	59 Neutral	¥2.79B	12.53	―	1.08%	7.21%	―
6836	55 Neutral	¥4.71B	165.31	―	―	17.29%	―
6731	47 Neutral	¥5.63B	-3.59	―	―	-13.93%	―
7709	46 Neutral	¥2.55B	-8.83	―	―	-23.14%	-829.31%