PRONEXUS Incorporated (7893) AI Stock Analysis

• Market Cap: ¥27.96B
• Dividend Yield: 3.07%
• Average Volume (3M): 22.50K
• Price to Earnings (P/E): 62.0
• Beta (1Y): 0.65
• Revenue Growth: 2.92%
• EPS Growth: -74.66%
• Country: JP
• Employees: 1,660
• Sector: Industrials
• Sector Strength: 94
• Industry: Specialty Business Services
• EPS (TTM): -107.99
• Shares Outstanding: 27,716,688
• 10 Day Avg. Volume: 14,500
• 30 Day Avg. Volume: 22,503
• PEG Ratio: -0.73
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 91.61
• 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: ¥1,156.00
• Price Target Upside: 5.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• 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 Business Overview & Revenue Model

Company Description

PRONEXUS 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 Money

PRONEXUS 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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	31.00B	30.12B	26.80B	26.14B	25.00B
Gross Profit	11.18B	11.04B	9.69B	10.09B	9.58B
EBITDA	2.93B	5.11B	4.38B	4.57B	4.39B
Net Income	450.96M	1.78B	1.62B	1.76B	1.69B
Balance Sheet
Total Assets	38.66B	38.58B	36.92B	35.56B	36.34B
Cash, Cash Equivalents and Short-Term Investments	12.31B	9.45B	9.46B	13.95B	14.58B
Total Debt	2.71B	3.08B	3.34B	3.47B	4.29B
Total Liabilities	13.64B	13.00B	12.48B	12.11B	12.88B
Stockholders Equity	24.97B	25.54B	24.40B	23.42B	23.42B
Cash Flow
Free Cash Flow	3.98B	3.56B	2.19B	2.46B	2.26B
Operating Cash Flow	4.29B	5.33B	3.60B	3.84B	3.92B
Investing Cash Flow	597.43M	-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 Price: 1096.00
• 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: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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7914	79 Outperform	¥43.32B	11.51		5.67%	3.08%	131.08%
7805	74 Outperform	¥3.65B	9.30		1.77%	-5.37%	48.09%
7919	71 Outperform	¥3.18B	5.88		5.41%	2.92%	-6.49%
7893	71 Outperform	¥27.96B	62.00		3.07%	2.92%	-74.66%
3948	66 Neutral	¥6.83B	64.85		4.88%	-15.74%	-80.43%
Sector *	65 Neutral	$11.08B	15.70	5.19%	2.15%	3.13%	-24.94%
7916	60 Neutral	¥4.27B	60.55		3.58%	0.38%	24.47%

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.