SUNNEXTA GROUP, Inc. (8945) AI Stock Analysis

• Market Cap: ¥11.32B
• Dividend Yield: 3.69%
• Average Volume (3M): 6.57K
• Price to Earnings (P/E): 31.7
• Beta (1Y): >-0.01
• Revenue Growth: 1.88%
• EPS Growth: -82.78%
• Country: JP
• Employees: 643
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): N/A
• Shares Outstanding: 10,853,000
• 10 Day Avg. Volume: 6,160
• 30 Day Avg. Volume: 6,566
• PEG Ratio: -0.47
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 1.07
• P/FCF Ratio: -75.73
• 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: 66 Neutral
• Price Target: ¥1,255.00 ▲(16.10% Upside)
• Action: Reiterated Date: 10/18/25
• Date: Action: Reiterated 10/18/25

SUNNEXTA GROUP, Inc. shows a strong financial foundation with solid revenue growth and low leverage, but faces challenges with cash flow management. The technical indicators suggest a positive trend, while the high P/E ratio indicates potential overvaluation. The dividend yield offers some compensation for investors. Overall, the stock presents a moderate investment opportunity with room for improvement in cash flow management.

Positive Factors

Low leverage / strong balance sheet

A very low debt-to-equity ratio provides durable financial flexibility for a capital-intensive renewables business. It limits refinancing risk, enables opportunistic project financing or M&A, and gives the company capacity to invest in long-cycle projects without threatening solvency over the next 2–6 months.

Contracted revenue via PPAs and diversified streams

Long-term PPAs and a mix of installation, storage and consultancy revenue create predictable, contract-backed cash flows. This structural revenue diversification reduces exposure to single-market cycles and supports stable project pipelines and forecastability across the medium term.

Consistent revenue growth and strong gross margins

Sustained top-line growth combined with healthy gross margins indicates efficient project execution and pricing power on core products and installations. That margin strength supports profitability at scale and provides a durable cushion against cost variability in project delivery.

Negative Factors

Negative operating and free cash flow

Negative operating and free cash flows are a structural concern for a capital-intensive renewables firm: they constrain the ability to fund working capital, capex and new projects internally. Over several months this raises reliance on external financing, increasing execution and financing risk.

Declining net profit margin and lower ROE

A meaningful decline in net margins and ROE suggests rising costs, pricing pressure, or non-operating headwinds that erode shareholder returns. Persisting margin compression reduces retained earnings available for reinvestment and weakens long-term capital efficiency.

Sharp EPS contraction

An ~81% EPS decline signals significant earnings volatility or one-off losses that materially reduce distributable profits. This weakens internal funding capacity and may force dilution or higher-cost financing, adversely affecting strategic project execution and investor confidence over the medium term.

SUNNEXTA GROUP, Inc. Business Overview & Revenue Model

Company Description

SUNNEXTA GROUP Inc. provides housing system management outsourcing business in Japan. It also engages in house rental management and sales brokerage business. The company is involved in provision of consultation and support for various facilities. In addition, the company engages in provision of outsourcing services in personnel and general affairs; and rental apartments, condominium, offices, cloth, floors, carpenters, cleaning, store restoration works, etc. Further, it provides monitoring security, insurance procedure BPO, and contact center services. SUNNEXTA GROUP Inc. was founded in 1998 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SUNNEXTA GROUP, Inc. generates revenue through several key streams. Primarily, the company profits from the sale and installation of renewable energy systems, including solar panels and energy storage solutions. Additionally, it earns income through long-term power purchase agreements (PPAs) with commercial and governmental entities, ensuring a steady cash flow. The company also offers energy efficiency consultancy services, which help clients optimize their energy use, further contributing to its revenue. Strategic partnerships with technology providers and utilities enhance its offerings, allowing SUNNEXTA to expand its market reach and improve its competitive positioning in the renewable energy sector.

SUNNEXTA GROUP, Inc. Financial Statement Overview

Summary

SUNNEXTA GROUP, Inc. demonstrates solid revenue growth and operational efficiency, but faces challenges with declining net profit margins and negative cash flows. The balance sheet remains strong with low leverage, providing a buffer against financial volatility. The company should focus on improving cash flow management to enhance financial stability.

Income Statement

SUNNEXTA GROUP, Inc. has shown consistent revenue growth with a 2.03% increase in the latest year. The gross profit margin is strong, indicating efficient cost management. However, the net profit margin has decreased significantly from the previous year, suggesting increased expenses or other financial pressures. EBIT and EBITDA margins remain healthy, reflecting robust operational performance.

Balance Sheet

The company maintains a very low debt-to-equity ratio, highlighting a conservative leverage strategy. Return on equity has decreased, indicating reduced profitability relative to shareholder equity. The equity ratio is strong, suggesting a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

The cash flow statement reveals challenges with negative operating and free cash flows in the latest year, indicating potential liquidity issues. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting income into cash.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	8.70B	8.37B	8.35B	8.70B	8.52B
Gross Profit	2.05B	1.99B	2.09B	2.23B	2.14B
EBITDA	820.29M	731.95M	915.49M	959.00M	947.02M
Net Income	229.46M	1.78B	486.08M	1.98B	535.35M
Balance Sheet
Total Assets	10.46B	10.89B	10.07B	10.63B	12.98B
Cash, Cash Equivalents and Short-Term Investments	6.97B	7.34B	4.76B	5.63B	4.09B
Total Debt	365.75M	2.48M	2.17M	4.75M	7.31M
Total Liabilities	2.73B	2.99B	2.64B	3.14B	4.07B
Stockholders Equity	7.73B	7.91B	7.44B	7.48B	8.91B
Cash Flow
Free Cash Flow	-122.87M	556.71M	-506.76M	423.82M	642.63M
Operating Cash Flow	-68.55M	957.13M	-336.88M	739.74M	701.48M
Investing Cash Flow	-2.26B	1.97B	-214.30M	2.22B	-98.25M
Financing Cash Flow	-45.74M	-348.59M	-320.26M	-1.42B	-215.75M

SUNNEXTA GROUP, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1081.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8945, the sentiment is Positive. The current price of 1081 is below the 20-day moving average (MA) of 1138.35, below the 50-day MA of 1112.93, and above the 200-day MA of 1040.43, indicating a bullish trend. The MACD of 14.29 indicates Negative momentum. The RSI at 62.84 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8945.

SUNNEXTA GROUP, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2993	74 Outperform	¥11.11B	5.32	―	4.08%	7.75%	56.88%
3277	72 Outperform	¥11.86B	8.93	―	3.18%	-4.65%	77.74%
3294	72 Outperform	¥14.14B	8.26	―	4.56%	25.09%	30.66%
3467	71 Outperform	¥16.42B	9.20	―	3.86%	2.78%	22.28%
8945	66 Neutral	¥11.32B	31.72	―	3.69%	1.88%	-82.78%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
5532	61 Neutral	¥17.79B	18.22	―	―	23.19%	44.46%

SUNNEXTA GROUP, Inc. Corporate Events

SUNNEXTA Boosts Profit and Dividends Despite Slight Sales Dip

SUNNEXTA GROUP Inc. reported consolidated net sales of ¥4.12 billion for the six months ended Dec. 31, 2025, a slight 1.8% decline year on year, but operating profit surged 48.1% to ¥405 million and profit attributable to owners of parent jumped 59.0% to ¥290 million, lifting basic earnings per share to ¥31.66. The company’s equity ratio improved to 74.9% as net assets rose to ¥7.94 billion, and it maintained a shareholder-friendly stance with a higher interim dividend of ¥21 per share and a full-year dividend forecast of ¥42, even as it projects modest full-year sales growth to ¥8.9 billion and a slight decline in operating profit, alongside a near doubling of full-year profit attributable to owners of parent.

Management left the scope of consolidation and accounting policies unchanged, suggesting earnings momentum is being driven by underlying operations rather than structural or methodological shifts. The modest increase in issued shares and reduction in treasury stock indicate limited equity dilution, while the forecasted earnings per share of ¥50.07 for the full year underscores an improving profitability trend that could support SUNNEXTA’s market valuation despite only incremental top-line growth.

The most recent analyst rating on (JP:8945) stock is a Hold with a Yen1205.00 price target. To see the full list of analyst forecasts on SUNNEXTA GROUP, Inc. stock, see the JP:8945 Stock Forecast page.