PRONEXUS Incorporated (7893) AI Stock Analysis

• Market Cap: ¥27.96B
• Dividend Yield: 1.44%
• Average Volume (3M): 31.38K
• Price to Earnings (P/E): 62.0
• Beta (1Y): 0.64
• Revenue Growth: 2.92%
• EPS Growth: -74.66%
• Country: JP
• Employees: 1,660
• Sector: Industrials
• Sector Strength: 88
• Industry: Specialty Business Services
• EPS (TTM): -107.99
• Shares Outstanding: 27,716,688
• 10 Day Avg. Volume: 32,950
• 30 Day Avg. Volume: 31,380
• PEG Ratio: 2.44
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.46
• 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: 58 Neutral
• Price Target: ¥1,156.00 ▲(4.14%Upside)

PRONEXUS Incorporated receives a moderate score primarily due to its strong financial performance, which is a positive indicator of its overall health. However, the technical analysis suggests bearish momentum, and the high P/E ratio raises concerns about overvaluation. The attractive dividend yield partially offsets valuation concerns, providing a potential cushion for investors.

PRONEXUS Incorporated Business Overview & Revenue Model

Company Description

PRONEXUS Incorporated (7893) is a Japanese company specializing in providing comprehensive disclosure and investor relations services. The company operates primarily in the financial information service sector, catering to businesses that require expert assistance in regulatory compliance, timely disclosure, and investor communication. Its core products and services include creating financial reports, developing IR websites, and offering solutions that facilitate effective corporate governance and investor engagement.

How the Company Makes Money

PRONEXUS Incorporated generates revenue by offering a suite of services that support companies in their financial disclosure and investor relations activities. Key revenue streams include fees from producing statutory financial documents, such as annual reports and shareholder meeting materials. The company also earns through subscription fees for its digital platforms that host investor relations websites, enabling clients to maintain transparent communication with their stakeholders. Additionally, PRONEXUS collaborates with various financial institutions and corporate clients, which further enhances its service offerings and contributes to its earnings.

PRONEXUS Incorporated Financial Statement Overview

Summary

PRONEXUS Incorporated shows a strong financial performance across key metrics. The income statement highlights consistent revenue and profit growth, although net margins could improve. The balance sheet is robust with low leverage, providing stability and flexibility. The cash flow statement reflects solid cash conversion and growth, enabling the company to fund operations and growth initiatives effectively. Overall, PRONEXUS is positioned favorably in the Specialty Business Services industry with strong financial health and growth prospects.

Income Statement

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

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

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.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	30.72B	31.00B	30.12B	26.80B	26.14B	25.00B
Gross Profit	11.25B	11.18B	11.04B	9.69B	10.09B	9.58B
EBITDA	4.80B	2.93B	5.11B	4.38B	4.57B	4.39B
Net Income	2.78B	450.96M	1.78B	1.62B	1.76B	1.69B
Balance Sheet
Total Assets	40.06B	38.66B	38.58B	36.92B	35.56B	36.34B
Cash, Cash Equivalents and Short-Term Investments	13.04B	12.31B	9.45B	9.46B	13.95B	14.58B
Total Debt	2.73B	2.71B	3.08B	3.34B	3.47B	4.29B
Total Liabilities	12.66B	13.64B	13.00B	12.48B	12.11B	12.88B
Stockholders Equity	27.35B	24.97B	25.54B	24.40B	23.42B	23.42B
Cash Flow
Free Cash Flow	307.14M	3.98B	3.56B	2.19B	2.46B	2.26B
Operating Cash Flow	716.71M	4.29B	5.33B	3.60B	3.84B	3.92B
Investing Cash Flow	-395.69M	597.43M	-1.71B	-6.48B	-1.61B	-1.34B
Financing Cash Flow	-298.68M	-2.01B	-1.75B	-1.76B	-2.89B	-1.66B

PRONEXUS Incorporated Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1110.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7893, the sentiment is Neutral. The current price of 1110 is above the 20-day moving average (MA) of 1088.75, below the 50-day MA of 1132.64, and below the 200-day MA of 1223.00, indicating a neutral trend. The MACD of -7.40 indicates Negative momentum. The RSI at 52.85 is Neutral, neither overbought nor oversold. The STOCH value of 85.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7893.

PRONEXUS Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7914	79 Outperform	¥42.63B	11.32		3.08%	3.08%	131.08%
7919	74 Outperform	¥3.18B	5.88		2.72%	2.92%	-6.49%
3948	71 Outperform	¥7.33B	69.54		3.14%	-15.74%	-80.43%
7805	68 Neutral	¥3.40B	8.60		1.90%	-7.15%	39.05%
Sector *	68 Neutral	£2.94B	10.28	8.40%	3.46%	2.87%	-9.95%
7916	60 Neutral	¥4.14B	58.60		3.69%	0.38%	24.47%
7893	58 Neutral	¥27.96B	62.00		1.44%	2.92%	-74.66%

PRONEXUS Incorporated Corporate Events

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

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

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

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

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

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.

PRONEXUS INC. Revises Earnings Forecast Amid Impairment Losses

PRONEXUS INC. announced a significant downward revision of its full-year consolidated earnings forecast for the fiscal year ended March 31, 2025, due to impairment losses of approximately 2.5 billion yen. This adjustment stems from a cautious review of future business plans, influenced by higher discount rates and a slower-than-expected recovery in event-related businesses post-COVID. Despite these challenges, the company maintains its revenue forecast and dividend plans, while formulating a new medium-term management plan to support sustainable growth.