Fixstars (3687) AI Stock Analysis

4 Followers

Fixstars

(TSE/TYO:3687)

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Rating:71.75Outperform

Price Target:JPY 1,939.00▲(16.88% Upside)

Action:reiterated

Date:09/23/26

The company's outstanding financial strength, marked by a debt-free balance sheet and powerful cash flows, is the primary driver of the score. This is partially offset by a stretched valuation (P/E of 44.4) given slowing revenue growth, which introduces downside risk. Technical trends are supportive but lack strong momentum.

Positive Factors

Healthy Balance SheetLow leverage and substantial debt reduction strengthen Fixstars’ financial resilience and reduce pressure from financing obligations. This supports continued investment in its high-performance computing and optimization business while preserving flexibility to respond to changing customer demand.

Negative Factors

Slowing Revenue GrowthAlthough revenue continues to grow, the latest 4% increase is slower than in prior periods. If this deceleration persists, it could reduce operating leverage, limit the pace of expansion, and make sustained earnings growth more dependent on maintaining already strong margins.

Fixstars (3687) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 455.48M
Dividend Yield: 1.15%
Average Volume (3M): 539.59K
Price to Earnings (P/E): 30.3
Beta (1Y): 1.36
Revenue Growth: 13.12%
EPS Growth: -22.73%
Country: Japan
Employees: 334
Sector: Technology
Sector Strength: 61
Industry: Software - Application

Fixstars Business Overview & Revenue Model

Company Description

Fixstars Corporation is a global software enterprise conducting business both within Japan and across international markets. Its comprehensive service offerings encompass M3 technical assistance, processor evaluation, bespoke software development and...

Fixstars Financial Statement Overview

Summary

Exceptional financial health with a fortress balance sheet (near-zero debt, 83.4% equity ratio), robust cash flow generation (138% FCF growth), and strong profitability (20.2% net margin). Revenue growth slowed to 4%, but high margins and liquidity provide significant resilience.

Income Statement

85Very Positive

Balance Sheet

95Very Positive

Cash Flow

90Very Positive

Financial statement breakdown
Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	10.46B	9.62B	8.00B	7.04B	6.31B	5.50B
Gross Profit	5.55B	5.01B	4.18B	3.57B	3.03B	2.28B
EBITDA	2.88B	2.74B	2.45B	2.22B	1.77B	1.06B
Net Income	1.63B	1.95B	1.49B	1.45B	1.08B	543.17M
Balance Sheet
Total Assets	10.88B	9.89B	8.75B	8.21B	8.16B	7.40B
Cash, Cash Equivalents and Short-Term Investments	6.56B	5.23B	5.14B	4.63B	5.06B	4.68B
Total Debt	30.07M	47.18M	547.15M	1.30B	2.10B	2.94B
Total Liabilities	1.55B	1.37B	1.80B	2.38B	3.58B	3.75B
Stockholders Equity	9.10B	8.25B	6.73B	5.64B	4.41B	3.53B
Cash Flow
Free Cash Flow	1.08B	1.87B	1.77B	681.90M	1.45B	431.04M
Operating Cash Flow	1.13B	1.98B	1.94B	719.45M	1.49B	864.57M
Investing Cash Flow	-485.47M	-541.47M	-167.22M	-17.99M	43.80M	-487.55M
Financing Cash Flow	-84.94M	-1.13B	-1.24B	-1.13B	-1.29B	-1.31B

Fixstars Technical Analysis

Technical Analysis SentimentNegative

Last Price1659.00

Price Trends

50DMA2095.53Negative

100DMA2185.09Negative

200DMA1872.70Negative

Market Momentum

MACD-119.99Positive

RSI25.40Positive

STOCH11.92Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3687, the sentiment is Negative. The current price of 1659.00 is below the 20-day moving average (MA) of 1948.30, below the 50-day MA of 2095.53, and below the 200-day MA of 1872.70, indicating a bearish trend. The MACD of -119.99 indicates Positive momentum. The RSI at 25.40 is Positive, neither overbought nor oversold. The STOCH value of 11.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3687.

Fixstars Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3687 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:5572	81Outperform	JPY 13.58B	31.00	―	―	15.44%	163.64%
JP:4259	73Outperform	JPY 68.70B	34.72	―	―	28.10%	―
JP:3687	72Outperform	JPY 55.05B	30.30	19.09%	1.15%	13.12%	-22.73%
JP:5586	67Neutral	JPY 12.50B	44.48	―	―	34.57%	80.99%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:3905	60Neutral	JPY 62.09B	6.19	―	―	1178.31%	―
JP:4425	32Underperform	JPY 12.94B	-395.02	―	―	75.12%	97.01%

* Technology Sector Average

Performance Comparison

JP:3687 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3687	Fixstars Corp	1659.00	-227.64	-12.07%
JP:3905	Datasection, Inc.	1482.00	-811.00	-35.37%
JP:4259	ExaWizards Inc.	694.00	56.00	8.78%
JP:4425	Kudan, Inc.	1101.00	53.00	5.06%
JP:5572	Ridge-i Inc.	3155.00	687.00	27.84%
JP:5586	Laboro.AI, Inc.	768.00	-141.00	-15.51%

Fixstars Corporate Events

Fixstars Posts Higher Sales but Lower Nine-Month Profit, Keeps Strong Outlook and Raises Dividend Forecast

Aug 7, 2026

Fixstars reported consolidated net sales of ¥7,917 million for the nine months ended June 30, 2026, up 11.9% year on year, with operating profit rising 6.5% to ¥2,222 million, while profit attributable to owners of parent declined 19.2% to...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 23, 2026

Fixstars AI Stock Analysis