Canox Corp. (8076) AI Stock Analysis

• Market Cap: ¥19.33B
• Dividend Yield: 5.36%
• Average Volume (3M): 7.45K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.51
• Revenue Growth: -3.55%
• EPS Growth: 5.47%
• Country: JP
• Employees: 296
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 55.62
• Shares Outstanding: 11,103,500
• 10 Day Avg. Volume: 7,700
• 30 Day Avg. Volume: 7,453
• PEG Ratio: 1.07
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 3.49
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥2,068.00 ▲(7.60% Upside)

Canox Corp. demonstrates strong financial performance with robust revenue growth and profitability, although high leverage and cash flow challenges are concerns. The technical indicators show a strong upward trend, and the valuation metrics suggest the stock is undervalued with an attractive dividend yield. These factors collectively contribute to a favorable stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Canox Corp.'s products, suggesting a solid market position and potential for future expansion.

Profitability

Improved gross profit margin reflects effective cost management, enhancing profitability and providing a cushion against market fluctuations.

Cash Flow Generation

Positive free cash flow growth indicates strong cash generation ability, supporting reinvestment in the business and debt reduction.

Negative Factors

High Leverage

High leverage can increase financial risk, especially in volatile markets, potentially impacting the company's ability to invest in growth.

Cash Management Challenges

Historical cash flow challenges suggest potential issues in cash management, which could affect liquidity and operational flexibility.

Operational Efficiency

A decrease in EBIT margin may indicate operational inefficiencies, which could hinder profitability and competitiveness if not addressed.

Canox Corp. Business Overview & Revenue Model

Company Description

Canox Corp. (8076) is a technology-driven company specializing in the development and manufacturing of innovative solutions for the industrial and environmental sectors. The company focuses on providing advanced automation systems, energy-efficient products, and environmental monitoring services. Canox Corp. serves a diverse range of industries, including manufacturing, energy, and waste management, aiming to enhance operational efficiency and sustainability through its cutting-edge technologies.

How the Company Makes Money

Canox Corp. generates revenue through multiple streams, primarily by selling its proprietary automation and energy-efficient products to industrial clients. The company also offers consultancy and installation services, providing tailored solutions that cater to specific client needs. Additionally, Canox Corp. has established strategic partnerships with key players in the energy sector, enabling it to access new markets and enhance its product offerings. Revenue is further supplemented by ongoing maintenance contracts and environmental monitoring services, which provide a consistent income stream as clients seek to maintain compliance with regulations and improve operational efficiency.

Canox Corp. Financial Statement Overview

Summary

Canox Corp. exhibits strong revenue growth and profitability, with effective equity utilization. However, high leverage and past cash flow challenges present potential risks. The company is well-positioned in the steel industry but should focus on improving operational efficiency and managing debt levels.

Income Statement

Canox Corp. has shown consistent revenue growth, with a notable increase from 2023 to 2025. The gross profit margin has improved, indicating better cost management. The net profit margin is stable, reflecting solid profitability. However, the EBIT margin has slightly decreased, suggesting potential efficiency issues in operations.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating significant leverage, which could pose risks in volatile markets. However, the return on equity is strong, showcasing effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced approach to financing.

Cash Flow

Canox Corp. has demonstrated positive free cash flow growth, which is a positive indicator of financial health. The operating cash flow to net income ratio is favorable, showing good cash generation relative to earnings. However, past negative free cash flow years highlight potential cash management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	170.27B	173.01B	172.49B	151.67B	116.52B	105.72B
Gross Profit	8.35B	8.28B	7.83B	7.53B	7.29B	5.36B
EBITDA	3.57B	3.36B	3.27B	2.98B	3.10B	1.31B
Net Income	1.97B	1.99B	1.95B	1.78B	1.89B	627.07M
Balance Sheet
Total Assets	84.28B	87.73B	91.41B	88.54B	75.10B	59.28B
Cash, Cash Equivalents and Short-Term Investments	4.82B	5.23B	3.08B	2.95B	2.89B	6.94B
Total Debt	31.00B	31.67B	33.98B	35.56B	27.99B	19.80B
Total Liabilities	52.65B	56.03B	61.84B	62.04B	49.33B	35.20B
Stockholders Equity	31.63B	31.70B	29.57B	26.50B	25.77B	24.08B
Cash Flow
Free Cash Flow	0.00	4.62B	4.88B	-6.57B	-11.59B	3.67B
Operating Cash Flow	0.00	4.67B	4.96B	-6.48B	-11.38B	4.21B
Investing Cash Flow	0.00	-35.02M	-96.52M	-92.13M	-169.65M	-555.79M
Financing Cash Flow	0.00	-2.42B	-4.74B	6.64B	7.49B	-3.18B

Canox Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1922.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8076, the sentiment is Positive. The current price of 1922 is below the 20-day moving average (MA) of 1992.90, below the 50-day MA of 1951.92, and above the 200-day MA of 1812.74, indicating a bullish trend. The MACD of 30.51 indicates Negative momentum. The RSI at 90.75 is Negative, neither overbought nor oversold. The STOCH value of 77.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8076.

Canox Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8076	79 Outperform	¥19.33B	9.56	―	5.36%	-3.55%	5.47%
8046	78 Outperform	¥15.32B	8.89	―	2.73%	8.19%	22.55%
5660	74 Outperform	¥8.33B	8.77	―	3.97%	0.34%	-1.55%
7305	69 Neutral	¥24.98B	13.36	―	6.00%	-5.76%	56.13%
5484	68 Neutral	¥17.02B	17.19	―	1.71%	-4.31%	8.40%
5632	66 Neutral	¥29.17B	9.71	―	4.13%	-2.96%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%