PRONEXUS Incorporated (7893) AI Stock Analysis

• Market Cap: ¥29.57B
• Dividend Yield: 3.97%
• Average Volume (3M): 27.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 4.10%
• EPS Growth: -121.49%
• Country: JP
• Employees: 1,660
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -4.18
• Shares Outstanding: 27,716,688
• 10 Day Avg. Volume: 22,170
• 30 Day Avg. Volume: 27,166
• PEG Ratio: -0.95
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 8.01
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ¥1,186.00 ▲(2.33% Upside)

PRONEXUS's strong financial performance and positive technical indicators are offset by valuation concerns due to a negative P/E ratio. The attractive dividend yield provides some support, but the overbought RSI suggests caution. Overall, the stock is positioned moderately well within its industry.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Cash Flow Management

Strong cash flow management ensures liquidity and financial flexibility, enabling reinvestment in growth initiatives and debt management.

Balance Sheet Health

A low debt-to-equity ratio reflects prudent financial management, reducing risk and enhancing the company's ability to weather economic fluctuations.

Negative Factors

Low Net Profit Margin

A low net profit margin can limit profitability and shareholder returns, potentially affecting long-term financial performance and investment attractiveness.

Modest Return on Equity

A modest ROE suggests limited efficiency in generating returns on shareholder investments, which may impact investor confidence and future capital raising.

Negative EPS Growth

Negative EPS growth indicates declining profitability, which could undermine investor confidence and hinder the company's ability to fund future growth.

PRONEXUS Incorporated Business Overview & Revenue Model

Company Description

PRONEXUS Inc. provides corporate disclosure and investor relation services in Japan. The company provides client working level support services, including consulting, system, web, and printing services relating to the creation of digital contents, disclosure and investor relations documents, and sales promotion tools in the areas of IPOs, financial statements, general shareholders' meetings, investor relations for listed companies, investment trusts, and J-REITs. It also offers corporate financial information databases and support services for Japanese companies. The company was formerly known as Asia Securities Printing Co., Ltd. and changed its name to PRONEXUS Inc. in October 2006. PRONEXUS Inc. was founded in 1930 and is headquartered in Tokyo, Japan.

How the Company Makes Money

PRONEXUS Incorporated generates revenue through multiple streams, including the sale of proprietary software licenses, subscription services, and consulting fees for its expert advisory services. The company also earns money from hardware sales related to its IT solutions, along with maintenance and support contracts that provide ongoing service to clients. Strategic partnerships with major technology firms enhance its offerings and expand market reach, while also contributing to revenue through joint ventures and collaborative projects. The company’s focus on recurring revenue models, particularly through subscriptions and long-term service agreements, establishes a stable income base that supports its growth and innovation efforts.

PRONEXUS Incorporated Financial Statement Overview

Summary

PRONEXUS Incorporated shows strong financial performance with consistent revenue and profit growth. The balance sheet is robust with low leverage, and cash flow management is effective, supporting operations and growth initiatives.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.14B	31.00B	30.12B	26.80B	26.14B	25.00B
Gross Profit	5.07B	11.18B	11.04B	9.69B	10.09B	9.58B
EBITDA	2.92B	2.93B	5.23B	4.38B	4.54B	4.43B
Net Income	-562.65M	450.96M	1.78B	1.62B	1.76B	1.69B
Balance Sheet
Total Assets	41.64B	38.66B	38.58B	36.92B	35.56B	36.34B
Cash, Cash Equivalents and Short-Term Investments	11.27B	12.31B	9.45B	7.57B	12.21B	14.58B
Total Debt	2.34B	2.71B	3.08B	3.34B	3.47B	4.29B
Total Liabilities	15.10B	13.64B	13.00B	12.48B	12.11B	12.88B
Stockholders Equity	26.48B	24.97B	25.54B	24.40B	23.42B	23.42B
Cash Flow
Free Cash Flow	0.00	3.98B	3.56B	2.19B	2.46B	2.26B
Operating Cash Flow	0.00	4.29B	5.33B	3.60B	3.84B	3.92B
Investing Cash Flow	0.00	597.43M	-1.71B	-6.48B	-1.61B	-1.34B
Financing Cash Flow	0.00	-2.01B	-1.75B	-1.76B	-2.89B	-1.66B

PRONEXUS Incorporated Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1159.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 1159 is above the 20-day moving average (MA) of 1157.65, above the 50-day MA of 1139.92, and above the 200-day MA of 1132.93, indicating a bullish trend. The MACD of 0.50 indicates Positive momentum. The RSI at 52.81 is Neutral, neither overbought nor oversold. The STOCH value of 80.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7893.

PRONEXUS Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7805	77 Outperform	¥3.36B	7.56	―	1.93%	-1.00%	105.56%
7914	70 Outperform	¥40.21B	11.75	―	3.71%	-0.04%	93.95%
7919	68 Neutral	¥3.49B	7.56	―	3.69%	0.62%	-24.08%
7893	65 Neutral	¥29.57B	-47.66	―	3.97%	4.10%	-121.49%
3948	65 Neutral	¥7.83B	38.68	―	2.94%	-2.81%	57.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	61 Neutral	¥5.63B	10.36	―	2.72%	-1.30%	―

PRONEXUS Incorporated Corporate Events

PRONEXUS INC. Acquires Treasury Stock to Enhance Shareholder Value

PRONEXUS INC. has announced the acquisition of 180,400 shares of its own common stock, amounting to a total cost of 213,543,395 yen, through market purchases on the Tokyo Stock Exchange. This move is part of a broader plan approved by the Board of Directors to acquire up to 1 million shares with a ceiling cost of 1 billion yen, aimed at enhancing shareholder value and optimizing capital structure.

PRONEXUS INC. Reports Mixed Financial Results for First Half of Fiscal Year 2026

PRONEXUS INC. reported its consolidated financial results for the first six months of the fiscal year ending March 31, 2026, showing a slight increase in revenue by 3% compared to the previous year. However, the company experienced a significant decline in operating profit and profit before tax, with decreases of 4.6% and 33.3% respectively, indicating challenges in maintaining profitability despite revenue growth.

PRONEXUS INC. Announces Treasury Stock Acquisition Plan

PRONEXUS INC. has announced its decision to acquire treasury stock, aiming to enhance shareholder returns and improve capital efficiency. The acquisition, approved by the Board of Directors, allows for the purchase of up to 1 million shares, representing 3.92% of the company’s total shares, with a budget of 1 billion yen, to be executed between November 11, 2025, and June 23, 2026.

PRONEXUS Reports Revenue Growth Amid Profit Decline

PRONEXUS Incorporated reported a modest increase in revenue for the six months ending September 30, 2025, despite a decline in operating profit and profit before tax compared to the previous year. The company also announced a reduction in dividends for the fiscal year ending March 31, 2026, with a special dividend included to commemorate its 95th anniversary, reflecting strategic financial adjustments amid changing market conditions.