PRONEXUS Incorporated (7893) AI Stock Analysis

• Market Cap: ¥27.73B
• Dividend Yield: 4.78%
• Average Volume (3M): 31.57K
• Price to Earnings (P/E): 61.5
• Beta (1Y): 0.61
• Revenue Growth: 2.92%
• EPS Growth: -74.66%
• Country: JP
• Employees: 1,660
• Sector: Industrials
• Sector Strength: 93
• Industry: Specialty Business Services
• EPS (TTM): -107.99
• Shares Outstanding: 27,716,688
• 10 Day Avg. Volume: 33,740
• 30 Day Avg. Volume: 31,566
• PEG Ratio: -5.35
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 99.91
• 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 ▲(7.04%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 demonstrates strong financial health with impressive revenue and profit growth, effective cost management, and a stable financial position. The balance sheet shows low leverage with a strong equity position and high ROE. Despite a decline in free cash flow growth, the overall cash flow management remains strong, indicating a solid financial trajectory.

Income Statement

PRONEXUS Incorporated shows strong revenue growth with a healthy TTM revenue growth rate of 12.54%. The gross profit margin stands at 16.36% for TTM, indicating effective cost management. The net profit margin of 10.63% reflects solid profitability, complemented by an EBIT margin of 9.97% and an EBITDA margin of 15.92%. These metrics suggest robust operational efficiency and profitability.

Balance Sheet

The company's balance sheet is characterized by a strong equity position, with a debt-to-equity ratio of 0.10, indicating low leverage and financial stability. The return on equity (ROE) is notably high at 11.72% for TTM, demonstrating effective use of equity capital to generate profits. The equity ratio of 68.27% highlights a solid equity base relative to total assets, underscoring financial stability.

Cash Flow

PRONEXUS Incorporated exhibits strong cash flow management with a TTM operating cash flow to net income ratio of 0.22, and a free cash flow to net income ratio of 0.10. The free cash flow growth rate is negative at -13.67% compared to the previous year, suggesting a need for improvement in cash generation from operations and investment activities.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
30.16B	30.12B	26.80B	26.14B	25.00B	24.45B
	Gross Profit
4.94B	11.04B	9.69B	10.09B	9.58B	9.60B
	EBIT
3.01B	2.44B	2.21B	2.48B	2.13B	2.60B
	EBITDA
4.80B	5.11B	4.38B	4.57B	4.39B	4.57B
	Net Income Common Stockholders
3.21B	1.78B	1.62B	1.76B	1.69B	1.85B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.04B	9.45B	9.46B	13.95B	14.58B	14.22B
	Total Assets
40.06B	38.58B	36.92B	35.56B	36.34B	33.05B
	Total Debt
2.73B	3.08B	3.34B	3.47B	4.29B	2.08B
	Net Debt
-10.31B	-6.38B	-4.24B	-8.74B	-8.56B	-9.83B
	Total Liabilities
12.66B	13.00B	12.48B	12.11B	12.88B	10.54B
	Stockholders Equity
27.35B	25.54B	24.40B	23.42B	23.42B	22.45B
Cash Flow		Free Cash Flow
307.14M	3.56B	2.19B	2.46B	2.26B	2.77B
	Operating Cash Flow
716.71M	5.33B	3.60B	3.84B	3.92B	4.17B
	Investing Cash Flow
-395.69M	-1.71B	-6.48B	-1.61B	-1.34B	-1.72B
	Financing Cash Flow
-298.68M	-1.75B	-1.76B	-2.89B	-1.66B	-2.44B

PRONEXUS Incorporated Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1080.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1080 is below the 20-day moving average (MA) of 1115.75, below the 50-day MA of 1175.57, and below the 200-day MA of 1230.64, indicating a bearish trend. The MACD of -28.04 indicates Positive momentum. The RSI at 32.24 is Neutral, neither overbought nor oversold. The STOCH value of 27.81 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	¥43.41B	11.39		2.64%	3.08%	130.74%
7919	74 Outperform	¥3.28B	5.98		3.99%	2.92%	-6.42%
7805	68 Neutral	¥3.31B	8.37		1.95%	-7.15%	39.05%
Sector *	66 Neutral	$4.48B	12.26	5.32%	248.53%	4.10%	-12.36%
3948	64 Neutral	¥5.66B	53.77		3.86%	-15.74%	-80.43%
7916	60 Neutral	¥3.99B	56.48		3.84%	0.38%	24.47%
7893	58 Neutral	¥27.73B	61.49		4.78%	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.