eXmotion Co., Ltd. (4394) AI Stock Analysis

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eXmotion Co., Ltd.

(TSE/TYO:4394)

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Rating:78Outperform

Price Target:JPY 731.00▼(-2.14% Downside)

Action:reiterated

Date:10/06/26

The score is driven primarily by strong financial performance—steady growth, solid margins, and an exceptionally low-risk, debt-free balance sheet—supported by a clear positive technical trend. Valuation is the main restraint due to a relatively high P/E, partially offset by a modest dividend yield.

Positive Factors

Revenue and Margin GrowthConsistent revenue growth alongside healthy operating and net margins indicates sustained demand and profitable execution. If maintained, this combination can support reinvestment, strengthen the company’s competitive position, and provide a durable base for earnings growth over the next several quarters.

Negative Factors

Bottom-Line VolatilityThe sharp variation in net margin shows that operating performance does not always translate into stable shareholder earnings. Such volatility makes longer-term profit planning less predictable and means future results may remain more sensitive to below-the-line pressures than the operating margin alone suggests.

eXmotion Co., Ltd. (4394) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.47B
Dividend Yield: 2.01%
Average Volume (3M): 57.06K
Price to Earnings (P/E): 31.0
Beta (1Y): 0.22
Revenue Growth: 2.58%
EPS Growth: 6.19%
Country: Japan
Employees: 88
Sector: General
Sector Strength: 55
Industry: Information Technology Services

eXmotion Co., Ltd. Business Overview & Revenue Model

Company Description

eXmotion Co., Ltd. delivers expert technical consulting and educational services focusing on systems and software. Their offerings include comprehensive project diagnostics and direct on-site support, in addition to practical training programs design...

eXmotion Co., Ltd. Financial Statement Overview

Summary

Strong fundamentals supported by consistent revenue growth (+9.1% in FY2025), healthy profitability (FY2025 operating margin ~14.0%, net margin ~9.2%), and a very conservative balance sheet with zero debt. The score is tempered by bottom-line volatility (FY2023 net margin ~0.6%) and uneven operating cash flow conversion in prior years (e.g., FY2024 OCF ~0.51x net income).

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Nov 2025	Nov 2024	Nov 2023	Nov 2022	Nov 2021
Income Statement
Total Revenue	1.42B	1.39B	1.28B	1.11B	1.05B	957.92M
Gross Profit	622.03M	577.98M	519.75M	477.27M	465.78M	385.08M
EBITDA	259.29M	233.00M	201.26M	163.89M	204.53M	161.78M
Net Income	143.92M	127.47M	99.22M	6.66M	134.52M	100.21M
Balance Sheet
Total Assets	1.88B	1.86B	1.77B	1.70B	1.71B	1.61B
Cash, Cash Equivalents and Short-Term Investments	1.49B	1.44B	1.29B	1.28B	1.46B	1.37B
Total Debt	0	0	0	0	0	0
Total Liabilities	181.15M	187.93M	167.69M	148.50M	122.61M	109.39M
Stockholders Equity	1.70B	1.67B	1.60B	1.55B	1.59B	1.50B
Cash Flow
Free Cash Flow	245.12M	245.12M	65.33M	16.94M	127.93M	89.65M
Operating Cash Flow	252.32M	252.32M	86.36M	24.65M	143.04M	93.77M
Investing Cash Flow	-45.07M	-45.07M	-21.01M	-163.39M	-15.10M	-2.81M
Financing Cash Flow	-55.79M	-55.79M	-54.25M	-42.58M	-41.68M	-37.67M

eXmotion Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price747.00

Price Trends

50DMA687.14Positive

100DMA598.60Positive

200DMA500.85Positive

Market Momentum

MACD7.12Negative

RSI62.21Neutral

STOCH92.36Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4394, the sentiment is Positive. The current price of 747.00 is above the 20-day moving average (MA) of 681.70, above the 50-day MA of 687.14, and above the 200-day MA of 500.85, indicating a bullish trend. The MACD of 7.12 indicates Negative momentum. The RSI at 62.21 is Neutral, neither overbought nor oversold. The STOCH value of 92.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4394.

eXmotion Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:4394 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4396	81Outperform	JPY 30.88B	14.27	―	2.45%	11.87%	21.49%
JP:4394	78Outperform	JPY 4.45B	30.98	―	2.01%	2.58%	6.19%
JP:3984	76Outperform	JPY 21.71B	12.88	―	1.78%	15.59%	6.88%
JP:4053	74Outperform	JPY 22.98B	23.48	―	―	18.07%	-0.13%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:5255	40Underperform	JPY 4.01B	-29.54	―	―	-1.67%	98.41%
JP:4813	37Underperform	JPY 12.40B	-9.31	―	―	24.78%	83.28%

* General Sector Average

Performance Comparison

JP:4394 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4394	eXmotion Co., Ltd.	747.00	361.85	93.95%
JP:3984	User Local, Inc.	1348.00	-611.23	-31.20%
JP:4053	Sun Asterisk, Inc.	564.00	119.00	26.74%
JP:4396	System Support, Inc.	1305.00	-95.11	-6.79%
JP:4813	Access Co., Ltd.	318.00	-260.00	-44.98%
JP:5255	Monstarlab Holdings Inc.	62.00	-110.00	-63.95%

eXmotion Co., Ltd. Corporate Events

eXmotion Delivers Strong Profit Growth on Solid Capital Base in Q3 FY2026

Oct 2, 2026

eXmotion Co., Ltd. reported steady growth for the third quarter of its fiscal year ending November 30, 2026, with net sales rising 3.4% year on year to ¥1,062 million. The company remains financially robust, posting total assets of ¥1,878 million and...

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: Oct 06, 2026

eXmotion Co., Ltd. AI Stock Analysis