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PRONEXUS Incorporated (JP:7893)
:7893
Japanese Market
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PRONEXUS Incorporated (7893) AI Stock Analysis

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JP:7893

PRONEXUS Incorporated

(7893)

Rating:71Outperform
Price Target:
¥1,224.00
▲(11.68%Upside)
PRONEXUS's strong financial performance and robust cash flow management are primary strengths, supporting its overall health. However, the high P/E ratio suggests overvaluation, balanced slightly by a decent dividend yield. Technical analysis indicates a neutral market position.

PRONEXUS Incorporated (7893) vs. iShares MSCI Japan ETF (EWJ)

PRONEXUS Incorporated Business Overview & Revenue Model

Company DescriptionPRONEXUS Incorporated (7893) is a Japan-based company primarily engaged in the provision of disclosure and investor relations services. The company offers a range of solutions, including the creation and distribution of disclosure documents, such as annual securities reports and financial statements, as well as investor relations tools and consulting services. PRONEXUS serves a diverse clientele, including publicly traded companies, financial institutions, and other organizations that require effective communication with investors and stakeholders.
How the Company Makes MoneyPRONEXUS Incorporated generates revenue through a variety of channels related to its core services. The primary revenue stream comes from fees charged for preparing and distributing disclosure documents necessary for corporate compliance and communication with investors. Additionally, the company earns income from its consulting services, which help clients enhance their investor relations strategies and effectively communicate financial performance and other key information. PRONEXUS also benefits from partnerships with financial institutions and other service providers, which can lead to additional consulting opportunities and expanded service offerings. The company's strong market presence and reputation for quality in the disclosure and investor relations sector contribute to its stable revenue base.

PRONEXUS Incorporated Financial Statement Overview

Summary
PRONEXUS Incorporated demonstrates strong financial performance with consistent revenue growth and solid profit margins. The balance sheet is robust with low leverage, providing stability and flexibility. Cash flow management is excellent, with strong cash conversion and growth supporting operations and reinvestment.
Income Statement
82
Very Positive
PRONEXUS has demonstrated healthy and consistent growth in revenue with a solid gross profit margin of 36.1% and a net profit margin of 1.5% for the most recent year. The revenue growth rate from the previous year stands at 2.9%, indicating steady expansion. EBIT and EBITDA margins are at 8.5% and 9.5%, respectively, showcasing operational efficiency. While the net profit margin is lower, the consistent revenue and profit growth highlight robust performance.
Balance Sheet
78
Positive
The balance sheet reflects a stable financial structure with a debt-to-equity ratio of 0.11, indicating low leverage. The return on equity (ROE) is modest at 1.8%, which suggests room for improvement in generating shareholder returns. The equity ratio is strong at 64.6%, emphasizing a solid capital base. Overall, the company maintains a healthy balance sheet with a conservative approach to debt.
Cash Flow
80
Positive
PRONEXUS exhibits strong cash flow management with a free cash flow growth rate of 11.9% year-over-year. The operating cash flow to net income ratio is 9.5, indicating effective conversion of earnings to cash. The free cash flow to net income ratio is 8.8, reflecting a strong cash generation capability that supports business operations and potential reinvestment.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue31.00B30.12B26.80B26.14B25.00B
Gross Profit11.18B11.04B9.69B10.09B9.58B
EBITDA2.93B5.11B4.38B4.57B4.39B
Net Income450.96M1.78B1.62B1.76B1.69B
Balance Sheet
Total Assets38.66B38.58B36.92B35.56B36.34B
Cash, Cash Equivalents and Short-Term Investments12.31B9.45B9.46B13.95B14.58B
Total Debt2.71B3.08B3.34B3.47B4.29B
Total Liabilities13.64B13.00B12.48B12.11B12.88B
Stockholders Equity24.97B25.54B24.40B23.42B23.42B
Cash Flow
Free Cash Flow3.98B3.56B2.19B2.46B2.26B
Operating Cash Flow4.29B5.33B3.60B3.84B3.92B
Investing Cash Flow597.43M-1.71B-6.48B-1.61B-1.34B
Financing Cash Flow-2.01B-1.75B-1.76B-2.89B-1.66B

PRONEXUS Incorporated Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1096.00
Price Trends
50DMA
1099.92
Negative
100DMA
1168.61
Negative
200DMA
1215.95
Negative
Market Momentum
MACD
-0.35
Negative
RSI
46.91
Neutral
STOCH
39.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7893, the sentiment is Negative. The current price of 1096 is below the 20-day moving average (MA) of 1100.20, below the 50-day MA of 1099.92, and below the 200-day MA of 1215.95, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 46.91 is Neutral, neither overbought nor oversold. The STOCH value of 39.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7893.

PRONEXUS Incorporated Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥43.32B11.51
5.67%3.08%131.08%
74
Outperform
¥3.65B9.30
1.77%-5.37%48.09%
71
Outperform
¥3.18B5.88
5.41%2.92%-6.49%
71
Outperform
¥27.96B62.00
3.07%2.92%-74.66%
66
Neutral
¥6.83B64.85
4.88%-15.74%-80.43%
65
Neutral
$11.08B15.705.19%2.15%3.13%-24.94%
60
Neutral
¥4.27B60.55
3.58%0.38%24.47%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7893
PRONEXUS Incorporated
1,109.00
-109.11
-8.96%
JP:3948
Hikari Business Form Co., Ltd.
1,188.00
375.27
46.17%
JP:7805
PRINTNET INC.
742.00
77.98
11.74%
JP:7914
Kyodo Printing Co., Ltd.
1,323.00
406.24
44.31%
JP:7916
Mitsumura Printing Co., Ltd.
1,419.00
-123.98
-8.04%
JP:7919
Nozaki Insatsu Shigyo Co., Ltd.
186.00
22.72
13.91%

PRONEXUS Incorporated Corporate Events

PRONEXUS INC. Reports Fiscal Year 2025 Financial Results with Increased Revenue but Declining Profits
May 23, 2025

PRONEXUS INC. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a slight increase in revenue by 2.9% to 30,996 million yen. However, the company experienced significant declines in operating profit, profit before tax, and profit attributable to owners, with decreases of 91.4%, 33.5%, and 74.7% respectively. Despite these challenges, PRONEXUS increased its annual dividend payout to 52.00 yen per share, reflecting a commitment to shareholder returns. The financial results indicate a challenging year for PRONEXUS, with implications for its market positioning and stakeholder confidence.

PRONEXUS INC. Announces Dividend of Surplus for Fiscal Year 2025
May 16, 2025

PRONEXUS INC. announced a resolution to pay dividends of surplus, with a record date of March 31, 2025, amounting to ¥26 per share, which includes an ordinary dividend of ¥18 and a special dividend of ¥8. This decision aligns with the company’s policy of returning profits to shareholders and maintaining a dividend payout ratio of 50% or more, reflecting its commitment to shareholder value.

PRONEXUS Announces 95th Anniversary Commemorative Dividend
May 9, 2025

PRONEXUS INC. announced a commemorative dividend to celebrate the 95th anniversary of its predecessor, Asia Shokai. The company will issue a 2 yen per share dividend at the end of the second quarter of the fiscal year ending March 31, 2026, as a gesture of gratitude to its stakeholders. This decision reflects PRONEXUS’s commitment to rewarding its shareholders and marks a significant milestone in its corporate history.

PRONEXUS INC. Unveils Ambitious Medium-Term Management Plan
May 9, 2025

PRONEXUS INC. has announced its ‘New Medium-Term Management Plan 2027’, aiming to transition from a ‘Disclosure and IR Support’ company to a ‘Corporate Communication Support’ company. The plan, which runs from April 2025 to March 2028, focuses on expanding non-printing services and scaling new business areas through mergers and acquisitions. The company targets a consolidated revenue of 40 billion yen by 2030, leveraging its expertise to enhance stakeholder dialogue and meet the growing demand for non-financial information disclosure.

PRONEXUS Reports Fiscal Year 2025 Financial Results with Increased Dividends
May 9, 2025

PRONEXUS Incorporated reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a slight increase in revenue by 2.9% to 30,996 million yen. However, the company experienced significant declines in operating profit, profit before tax, and profit attributable to owners of the parent, with decreases of 91.4%, 33.5%, and 74.7% respectively. Despite these challenges, the company announced an increase in annual dividends per share from 36.00 yen to 52.00 yen, reflecting a payout ratio of 294.1%. This decision indicates a commitment to returning value to shareholders amidst fluctuating financial performance.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025