Canox Corp. (8076) AI Stock Analysis

• Market Cap: ¥19.78B
• Dividend Yield: 5.36%
• Average Volume (3M): 7.45K
• Price to Earnings (P/E): 8.5
• 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 Margins

Improved gross and stable net margins point to better cost control and pricing power, which supports durable profitability. Sustained margin expansion increases cash available for reinvestment, buffers cyclical steel demand swings, and strengthens long-term operating resilience.

Free Cash Flow Growth

Demonstrated positive free cash flow growth shows the business can convert earnings into cash. Reliable FCF supports capex, maintenance of long-term contracts, and debt servicing, reducing reliance on external funding and enabling strategic investments or shareholder returns.

Diversified Revenue & Partnerships

Multiple revenue streams—product sales, consultancy/installation, maintenance, and monitoring—plus strategic energy partnerships diversify income and deepen customer relationships. This lowers concentration risk, smooths cash flows across cycles, and provides durable cross-selling and market-access channels.

Negative Factors

High Leverage

A relatively high debt-to-equity ratio raises financial risk during downturns and constrains flexibility to fund capex or pursue growth. Elevated leverage increases interest burdens and refinancing sensitivity, making sustained cash generation essential to preserve solvency over the medium term.

Historic Cash Flow Volatility

Although recent FCF has improved, prior years of negative free cash flow reflect working capital or capex timing volatility. Such swings can pressure liquidity, force short-term financing, and limit the company's ability to consistently invest or deleverage in adverse conditions.

Eroding Operational Efficiency

A slight decline in EBIT margin signals potential operational inefficiencies or rising input costs. If persistent, it could erode operating leverage and net profitability, requiring structural cost controls or pricing adjustments to maintain long-term earnings quality.

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	8.15B	7.68B	7.38B	7.16B	5.25B
EBITDA	2.78B	2.82B	2.85B	2.69B	2.79B	1.09B
Net Income	1.97B	1.99B	1.95B	1.78B	1.89B	627.07M
Balance Sheet
Total Assets	84.28B	87.86B	91.53B	88.54B	75.10B	59.28B
Cash, Cash Equivalents and Short-Term Investments	4.82B	5.29B	3.08B	2.95B	2.89B	6.94B
Total Debt	31.00B	31.74B	34.07B	35.67B	28.11B	19.89B
Total Liabilities	52.65B	56.16B	61.96B	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	-6.56B	-11.58B	3.68B
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: Neutral
• Last Price: 1922.00
• 50DMA: Negative
• 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 Neutral. The current price of 1922 is below the 20-day moving average (MA) of 2153.15, below the 50-day MA of 2134.22, and below the 200-day MA of 1927.47, indicating a neutral trend. The MACD of -13.29 indicates Positive momentum. The RSI at 47.06 is Neutral, neither overbought nor oversold. The STOCH value of 21.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥19.78B	8.47	―	5.36%	-3.55%	5.47%
5445	72 Outperform	¥57.76B	7.14	―	6.31%	-8.44%	9.50%
5480	71 Outperform	¥75.14B	8.43	―	5.15%	-9.28%	-7.18%
5632	66 Neutral	¥28.62B	21.77	―	4.13%	-2.96%	―
5408	64 Neutral	¥34.00B	-185.54	―	5.02%	-13.64%	-45.74%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5410	61 Neutral	¥55.44B	7.67	―	6.27%	-7.45%	-9.12%