SOLXYZ Co., Ltd. (4284) AI Stock Analysis

• Market Cap: ¥11.14B
• Dividend Yield: 2.62%
• Average Volume (3M): 151.61K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.33
• Revenue Growth: 5.50%
• EPS Growth: 57.30%
• Country: JP
• Employees: 852
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 6.88
• Shares Outstanding: 26,820,595
• 10 Day Avg. Volume: 61,540
• 30 Day Avg. Volume: 151,613
• 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: ¥581.00
• Price Target Upside: 26.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥581.00 ▲(26.86% Upside)

SOLXYZ Co., Ltd. demonstrates strong technical momentum and a solid financial foundation, though there are concerns about expense control and cash flow management. The valuation is fair, with a reasonable P/E ratio and a modest dividend yield. The overbought technical indicators suggest caution in the short term.

SOLXYZ Co., Ltd. Business Overview & Revenue Model

Company Description

SOLXYZ Co., Ltd. develops software solutions in Japan. It engages in the development, design, manufacture, sale, leasing, and import/export of computers, peripheral devices, telecommunications equipment, and related software; collection, processing, and sale of information through telecommunications systems; and provision of servicing and consulting services related to the use of computers, and peripheral devices and software. The company is also involved in the operation, maintenance, and monitoring of computer systems; internet access service business and information provision service business; training of information processing engineers and dispatch of information processing engineers; and other businesses. The company was incorporated in 1981 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SOLXYZ Co., Ltd. generates revenue primarily through its IT services and solutions. The company's key revenue streams include software development contracts, system integration projects, and IT consulting services. By delivering customized software solutions and integrating complex IT systems for its clients, SOLXYZ earns income from project-based contracts. Additionally, the company provides ongoing IT support and maintenance services, which contribute to its recurring revenue. Partnerships with technology providers and collaborations with industry-specific clients also play a significant role in enhancing the company's earnings. SOLXYZ's ability to deliver tailored IT solutions and maintain strong client relationships is crucial to its financial performance.

SOLXYZ Co., Ltd. Financial Statement Overview

Summary

SOLXYZ Co., Ltd. exhibits strong revenue growth and effective cost management, but there are areas for improvement in expense control and operational efficiency. The balance sheet remains robust with a favorable equity position, though there is a slight concern regarding increasing debt levels. Cash flow management shows potential risks that need addressing to ensure sustainable financial health.

Income Statement

SOLXYZ Co., Ltd. has shown a consistent increase in total revenue over the years, indicating positive revenue growth. The Gross Profit Margin is healthy, indicating effective cost management. However, the Net Profit Margin has been decreasing, reflecting a need to control other expenses. EBIT and EBITDA margins are also strong, but the decline in EBIT margin from the previous year suggests potential challenges in operational efficiency.

Balance Sheet

The company maintains a solid Debt-to-Equity ratio, demonstrating prudent leverage management. Return on Equity (ROE) is stable, implying efficient utilization of shareholder equity. The Equity Ratio indicates a strong financial position with a high proportion of assets financed by equity. However, a slight increase in total debt warrants attention.

Cash Flow

SOLXYZ Co., Ltd. has experienced fluctuations in Free Cash Flow, with recent declines indicating potential cash management issues. The Operating Cash Flow to Net Income ratio is positive, suggesting good cash generation from operations. However, the Free Cash Flow to Net Income ratio has decreased, highlighting a need for better capital expenditure control.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.41B	16.04B	15.88B	13.99B	13.92B	13.19B
Gross Profit	3.85B	3.71B	3.76B	3.34B	3.39B	3.06B
EBITDA	1.55B	1.42B	1.62B	1.39B	1.54B	1.33B
Net Income	718.29M	562.54M	753.00M	564.47M	1.06B	593.27M
Balance Sheet
Total Assets	12.51B	12.27B	11.93B	11.46B	11.27B	11.40B
Cash, Cash Equivalents and Short-Term Investments	4.75B	4.73B	4.87B	4.73B	4.85B	4.70B
Total Debt	1.29B	1.00B	812.00M	1.17B	1.69B	1.98B
Total Liabilities	4.08B	3.76B	3.69B	3.64B	3.75B	4.59B
Stockholders Equity	7.59B	7.65B	7.43B	7.01B	6.78B	6.11B
Cash Flow
Free Cash Flow	0.00	76.19M	1.35B	760.26M	224.09M	-509.99M
Operating Cash Flow	0.00	500.09M	1.39B	1.18B	631.05M	-37.10M
Investing Cash Flow	0.00	-493.97M	-534.53M	-465.91M	-202.38M	-165.54M
Financing Cash Flow	0.00	-149.22M	-675.00M	-809.04M	-337.36M	-101.81M

SOLXYZ Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 458.00
• 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:4284, the sentiment is Neutral. The current price of 458 is below the 20-day moving average (MA) of 469.95, above the 50-day MA of 432.64, and above the 200-day MA of 371.25, indicating a neutral trend. The MACD of 6.21 indicates Positive momentum. The RSI at 53.48 is Neutral, neither overbought nor oversold. The STOCH value of 38.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4284.

SOLXYZ Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4495	78 Outperform	12.82B	21.74	0.00%	1.41%	27.15%	24.58%
4284	76 Outperform	¥11.14B	14.77		2.62%	5.50%	57.30%
153A	76 Outperform	16.66B	51.85	21.00%	―	0.00%	0.00%
4168	75 Outperform	13.72B	18.37	34.20%	0.57%	12.09%	141.99%
4389	69 Neutral	10.79B	17.91	16.48%	1.30%	23.58%	47.60%
9553	65 Neutral	15.40B	174.52	8.62%	―	14.85%	-70.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%