Axis Consulting Corporation (9344) AI Stock Analysis

• Market Cap: ¥4.47B
• Dividend Yield: 3.96%
• Average Volume (3M): 5.10K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.71
• Revenue Growth: 12.97%
• EPS Growth: -36.62%
• Country: JP
• Employees: 117
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 14.04
• Shares Outstanding: 5,057,040
• 10 Day Avg. Volume: 6,840
• 30 Day Avg. Volume: 5,100
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥933.00
• Price Target Upside: 5.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥933.00 ▲(5.66% Upside)

Axis Consulting Corporation's stock is supported by strong technical indicators and attractive valuation metrics. However, concerns about declining profitability margins and negative cash flows weigh on the overall score. The stock's positive momentum and reasonable valuation make it appealing, but financial performance issues need to be addressed for long-term sustainability.

Axis Consulting Corporation Business Overview & Revenue Model

Company Description

Axis Consulting Corporation (9344) is a leading provider of strategic consulting services, focusing primarily on sectors such as technology, healthcare, and financial services. The company specializes in delivering tailored solutions that encompass business strategy development, operational efficiency, and digital transformation. With a team of experienced consultants, Axis Consulting helps organizations optimize their performance and navigate complex market challenges through innovative approaches and industry best practices.

How the Company Makes Money

Axis Consulting Corporation generates revenue through a combination of consulting fees, project-based engagements, and long-term retainer agreements with clients. The company charges clients for its consulting services on an hourly basis or through fixed project fees, depending on the nature and scope of the engagement. Key revenue streams include management consulting, IT advisory services, and specialized consulting for specific industries such as healthcare and finance. Additionally, Axis Consulting has established significant partnerships with technology firms and software providers, allowing them to offer integrated solutions that enhance their service offerings and create additional revenue opportunities. These collaborations not only enhance their market presence but also contribute to client retention and growth, further bolstering the company's earnings.

Axis Consulting Corporation Financial Statement Overview

Summary

Axis Consulting Corporation shows strong revenue growth and a stable balance sheet, but declining profitability margins and negative cash flows raise concerns. The company needs to address cash flow management and improve profitability to sustain its growth trajectory.

Income Statement

Axis Consulting Corporation has demonstrated strong revenue growth with a 12.97% increase in the latest year. However, there is a noticeable decline in profitability margins, with the EBIT margin dropping significantly from previous years. The gross profit margin remains robust, indicating effective cost management, but the net profit margin has decreased, suggesting challenges in controlling non-operating expenses or taxes.

Balance Sheet

The company's balance sheet shows a solid equity base with a low debt-to-equity ratio, indicating financial stability. However, the return on equity has decreased, reflecting a potential decline in profitability relative to equity. The equity ratio remains strong, suggesting a healthy capital structure.

Cash Flow

The cash flow statement reveals significant challenges, with negative operating and free cash flows in the most recent year. This indicates potential liquidity issues and a need for improved cash management. Historical data shows positive free cash flow growth in earlier years, but recent trends are concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.67B	5.27B	4.67B	4.34B	3.51B	2.20B
Gross Profit	3.10B	2.86B	3.10B	2.88B	2.24B	1.54B
EBITDA	841.03M	448.00M	850.75M	665.29M	516.33M	330.72M
Net Income	502.67M	321.00M	502.67M	418.80M	324.96M	239.11M
Balance Sheet
Total Assets	4.11B	4.51B	4.11B	3.50B	2.10B	1.49B
Cash, Cash Equivalents and Short-Term Investments	3.02B	3.00B	3.02B	2.90B	1.49B	1.03B
Total Debt	75.41M	366.00M	75.41M	161.18M	329.95M	495.16M
Total Liabilities	944.42M	1.19B	944.42M	843.33M	1.24B	948.47M
Stockholders Equity	3.17B	3.33B	3.17B	2.65B	862.68M	537.71M
Cash Flow
Free Cash Flow	0.00	-296.00M	236.41M	210.69M	624.32M	188.05M
Operating Cash Flow	0.00	-183.00M	446.85M	221.84M	657.38M	214.60M
Investing Cash Flow	0.00	-139.00M	-245.32M	-11.50M	-33.35M	16.25M
Financing Cash Flow	0.00	298.00M	-77.11M	1.20B	-166.18M	-155.50M

Axis Consulting Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 883.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9344, the sentiment is Positive. The current price of 883 is above the 20-day moving average (MA) of 846.50, above the 50-day MA of 810.04, and above the 200-day MA of 805.63, indicating a bullish trend. The MACD of 20.61 indicates Negative momentum. The RSI at 66.53 is Neutral, neither overbought nor oversold. The STOCH value of 85.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9344.

Axis Consulting Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7064	79 Outperform	¥3.34B	14.19	18.49%	―	17.81%	-28.68%
7361	77 Outperform	¥4.00B	10.28	29.87%	2.14%	18.92%	1.22%
9344	75 Outperform	¥4.47B	13.78	―	3.96%	12.97%	-36.62%
6563	67 Neutral	¥3.40B	29.79	―	―	11.07%	53.36%
6538	66 Neutral	¥6.60B	23.10	9.60%	1.58%	12.93%	―
6198	62 Neutral	¥2.51B	138.80	12.46%	2.12%	-7.36%	-93.85%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%