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XNET Corporation
(4762)
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Rating:71Outperform
Price Target:
¥2,344.00
▲(56.48% Upside)
Action:Reiterated
Date:07/22/26
The score is driven primarily by solid financial performance (healthy operating margins and strong free cash flow conversion) tempered by net margin pressure and some balance-sheet/cash-flow-to-debt constraints. Technicals add support due to a strong price trend above key moving averages, while valuation further lifts the score with a moderate P/E and a ~2.4% dividend yield.
Positive Factors
Revenue and Operating Margins
Returning to revenue growth alongside higher gross margins and resilient operating profitability supports the company’s underlying business model. This combination suggests improved operating execution and provides a durable base for earnings generation over the coming quarters.
Negative Factors
Persistent Net Margin Compression
Declining net margins despite healthy gross and operating margins indicate growing below-the-line, tax, or other cost pressures. If sustained, this could limit earnings growth, reduce internal funding capacity, and weaken the benefit of stable operating performance.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Operating Margins
Returning to revenue growth alongside higher gross margins and resilient operating profitability supports the company’s underlying business model. This combination suggests improved operating execution and provides a durable base for earnings generation over the coming quarters.
Read all positive factors
XNET Corporation (4762) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥17.52B
Dividend Yield2.23%
Average Volume (3M)2.32K
Price to Earnings (P/E)17.0
Beta (1Y)0.19
Revenue Growth8.43%
EPS Growth-15.47%
CountryJP
Employees208
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)124.98
Shares Outstanding8,261,600
10 Day Avg. Volume1,810
30 Day Avg. Volume2,320
Financial Highlights & Ratios
PEG Ratio12.85
Price to Book (P/B)1.91
Price to Sales (P/S)1.10
P/FCF Ratio5.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
XNET Corporation Business Overview & Revenue Model
Company Description
XNET Corporation, a subsidiary of NTT Data Corporation, delivers specialized outsourced software application services throughout Japan. The company provides a comprehensive suite of solutions tailored for the insurance sector, encompassing portfol...
XNET Corporation Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.77B | 5.66B | 5.30B | 5.55B | 5.36B | 5.42B |
| Gross Profit | 1.78B | 1.76B | 1.50B | 1.70B | 1.51B | 1.52B |
| EBITDA | 1.03B | 1.05B | 890.85M | 1.09B | 963.38M | 1.58B |
| Net Income | 522.47M | 542.91M | 581.34M | 741.35M | 694.01M | 718.33M |
Balance Sheet | ||||||
| Total Assets | 5.90B | 6.12B | 6.68B | 9.91B | 9.29B | 8.96B |
| Cash, Cash Equivalents and Short-Term Investments | 1.11B | 1.19B | 1.76B | 4.62B | 3.72B | 3.51B |
| Total Debt | 1.20B | 1.20B | 2.50B | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 2.63B | 2.86B | 3.76B | 1.40B | 1.26B | 1.39B |
| Stockholders Equity | 3.27B | 3.26B | 2.92B | 8.52B | 8.02B | 7.57B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.22B | 826.04M | 1.05B | 847.29M | 990.93M |
| Operating Cash Flow | 0.00 | 1.25B | 837.03M | 1.44B | 1.16B | 1.39B |
| Investing Cash Flow | 0.00 | -8.79M | 1.26B | -416.19M | -523.34M | -685.53M |
| Financing Cash Flow | 0.00 | -1.51B | -3.68B | -247.95M | -239.25M | -230.93M |
XNET Corporation Technical Analysis
Positive
1498.00
Price Trends
1859.60
Positive
1697.60
Positive
1575.80
Positive
Market Momentum
69.02
Negative
61.91
Neutral
89.95
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4762, the sentiment is Positive. The current price of 1498 is below the 20-day moving average (MA) of 2040.05, below the 50-day MA of 1859.60, and below the 200-day MA of 1575.80, indicating a bullish trend. The MACD of 69.02 indicates Negative momentum. The RSI at 61.91 is Neutral, neither overbought nor oversold. The STOCH value of 89.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4762.
XNET Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥5.93B | 37.24 | ― | ― | 7.04% | -67.36% | |
74 Outperform | ¥5.46B | 10.29 | ― | 2.28% | 16.86% | -14.98% | |
71 Outperform | ¥17.52B | 17.04 | ― | 3.16% | 8.43% | -15.47% | |
68 Neutral | ¥7.04B | 15.68 | ― | ― | 23.42% | 457.78% | |
63 Neutral | ¥14.97B | 20.79 | ― | ― | 14.06% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | ¥20.53B | 8.76 | ― | 0.82% | 7.11% | 146.94% |
* Technology Sector Average
JP:4762
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XNET Corporation Corporate Events
XNET Balances Higher Dividends with Profit Decline in Q1 FY2026
Aug 19, 2026
XNET Corporation reported non-consolidated net sales of ¥1,461 million for the three months ended June 30, 2026, up 8.1% year on year, while operating profit fell 8.1% and profit declined 13.1%, reflecting margin pressure despite revenue grow...
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.