Canox Corp. (8076) AI Stock Analysis

• Market Cap: ¥20.70B
• Dividend Yield: 5.36%
• Average Volume (3M): 7.45K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.56
• Revenue Growth: -3.55%
• EPS Growth: 5.47%
• Country: JP
• Employees: 296
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 59.54
• 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: ¥2,533.00 ▲(31.79% Upside)
• Action: Reiterated Date: 10/25/25
• Date: Action: Reiterated 10/25/25

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

Improving gross margins and stable net profitability

Improved gross margins and a stable net profit margin point to durable cost control and pricing power in Canox's industrial product lines. Over months this supports sustained earnings, funds reinvestment in R&D and maintenance contracts, and cushions profitability through industry cycles.

Strong return on equity / efficient equity use

A strong ROE signals efficient capital allocation and the firm's ability to generate attractive returns from shareholders' equity. This durability enables organic growth financing, supports dividend capacity, and indicates management competence in deploying capital across automation and energy-efficiency projects.

Positive free cash flow growth and healthy operating cash conversion

Sustained free cash flow growth and favorable operating cash to net income conversion enhance long-term financial flexibility. Reliable cash generation supports capex for product development, funds maintenance contracts and environmental services, and helps service debt or underwrite strategic partnerships.

Negative Factors

Relatively high leverage

High leverage raises structural financial risk: interest obligations reduce free cash available for investment, and elevated debt amplifies earnings volatility in a cyclical steel-related market. Over months, this constrains strategic flexibility and increases refinancing sensitivity if conditions tighten.

History of negative free cash flow years

Intermittent negative free cash flow in prior years shows cash-generation variability tied to working capital or capex timing. This structural variability can force reliance on external funding during troughs, elevating financing costs and limiting consistent reinvestment or payout policies over the medium term.

Recent revenue and EPS contraction

Negative recent revenue and EPS growth indicate demand or margin pressures that could persist in a cyclical industry. Over several months, continued top-line contraction reduces operating leverage benefits, constrains margin expansion, and weakens the company's ability to self-fund growth or deleverage its balance sheet.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• RSI: Neutral
• 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 2181.80, below the 50-day MA of 2107.18, and above the 200-day MA of 1900.95, indicating a bullish trend. The MACD of 30.93 indicates Positive momentum. The RSI at 63.80 is Neutral, neither overbought nor oversold. The STOCH value of 70.83 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	¥20.70B	10.45	―	5.36%	-3.55%	5.47%
8046	78 Outperform	¥18.83B	9.30	―	2.73%	8.19%	22.55%
5660	74 Outperform	¥8.92B	9.35	―	3.97%	0.34%	-1.55%
7305	69 Neutral	¥22.75B	14.48	―	6.00%	-5.76%	56.13%
5484	68 Neutral	¥17.24B	14.59	―	1.71%	-4.31%	8.40%
5632	66 Neutral	¥31.30B	13.64	―	4.13%	-2.96%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%