XNET Corporation (4762) AI Stock Analysis

3 Followers

XNET Corporation

(TSE/TYO:4762)

Select Model

Rating:68Neutral

Price Target:JPY 1,038.00▲(9.03% Upside)

Action:reiterated

Date:09/30/26

The overall score of 68 reflects a company with solid fundamentals and an attractive valuation, tempered by some financial uncertainties. The most significant positive factors are the exceptionally high dividend yield of 5.83% and robust free cash flow generation, which supports the payout and provides financial flexibility. The technical trend is also supportive, with the stock in a clear uptrend. The primary risk is the declining net profit margin and the significant, unexplained reduction in equity on the balance sheet, which warrants caution. The reasonable P/E ratio further supports the positive view, making the stock appear fairly valued with a strong income component.

Positive Factors

Revenue and operating profitabilityRecent revenue growth and improving gross margin indicate that the operating model remains productive rather than dependent on falling costs alone. Holding operating margin in the high-teens provides a durable base for reinvestment and supports earnings resilience over the next several quarters.

Negative Factors

Declining net marginThe multi-year decline in net margin shows that stronger gross margin and steady operating profitability are not fully reaching the bottom line. If this pressure persists, earnings growth may lag revenue growth and reduce the cash available for reinvestment, debt reduction, or distributions.

XNET Corporation (4762) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 7.96B
Dividend Yield: 4.73%
Average Volume (3M): 5,488
Price to Earnings (P/E): 14.8
Beta (1Y): 0.16
Revenue Growth: 8.15%
EPS Growth: 33.12%
Country: Japan
Employees: 208
Sector: Technology
Sector Strength: 61
Industry: Information Technology Services

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 portfolio...

XNET Corporation Financial Statement Overview

Summary

Financial performance is mixed but leans positive. Strong cash flow generation (Score 75) is a major highlight, with free cash flow covering 97% of net income. However, the income statement (Score 62) shows modest revenue growth and declining net margins, while the balance sheet (Score 58) reflects a significant equity reduction that introduces uncertainty. The overall financial health is stable, supported by robust cash conversion and reduced debt.

Income Statement

62Positive

Balance Sheet

58Neutral

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	5.87B	5.66B	5.30B	5.55B	5.36B	5.42B
Gross Profit	1.81B	1.76B	1.50B	1.70B	1.51B	1.52B
EBITDA	1.76B	1.05B	890.85M	1.54B	1.47B	1.58B
Net Income	673.08M	542.91M	581.34M	741.35M	694.01M	718.33M
Balance Sheet
Total Assets	6.30B	6.12B	6.68B	9.91B	9.29B	8.96B
Cash, Cash Equivalents and Short-Term Investments	1.55B	1.19B	1.76B	4.62B	3.72B	3.51B
Total Debt	1.20B	1.20B	2.50B	0	0	0
Total Liabilities	2.82B	2.86B	3.76B	1.40B	1.26B	1.39B
Stockholders Equity	3.48B	3.26B	2.92B	8.52B	8.02B	7.57B
Cash Flow
Free Cash Flow	0	1.22B	826.04M	1.05B	847.29M	990.93M
Operating Cash Flow	0	1.25B	837.03M	1.44B	1.16B	1.39B
Investing Cash Flow	0	-8.79M	1.26B	-416.19M	-523.34M	-685.53M
Financing Cash Flow	0	-1.51B	-3.68B	-247.95M	-239.25M	-230.93M

XNET Corporation Technical Analysis

Technical Analysis SentimentNegative

Last Price952.00

Price Trends

50DMA1021.74Negative

100DMA970.09Negative

200DMA858.11Positive

Market Momentum

MACD-19.56Negative

RSI40.09Neutral

STOCH40.69Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4762, the sentiment is Negative. The current price of 952.00 is below the 20-day moving average (MA) of 965.90, below the 50-day MA of 1021.74, and above the 200-day MA of 858.11, indicating a neutral trend. The MACD of -19.56 indicates Negative momentum. The RSI at 40.09 is Neutral, neither overbought nor oversold. The STOCH value of 40.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4762.

XNET Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:4762 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3826	79Outperform	JPY 5.29B	11.63	―	2.71%	13.99%	-36.97%
JP:3853	74Outperform	JPY 14.55B	6.36	―	1.04%	9.82%	64.85%
JP:4762	68Neutral	JPY 15.73B	14.83	―	4.73%	8.15%	33.12%
JP:4448	63Neutral	JPY 13.69B	18.75	―	―	14.06%	―
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:4397	60Neutral	JPY 5.75B	15.40	―	―	23.50%	2.72%
JP:5033	59Neutral	JPY 7.75B	46.70	―	―	7.04%	-67.36%

* Technology Sector Average

Performance Comparison

JP:4762 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4762	XNET Corporation	952.00	273.07	40.22%
JP:3826	System Integrator Corp.	480.00	36.66	8.27%
JP:3853	Asteria Corporation	867.00	-312.21	-26.48%
JP:4397	TeamSpirit, Inc.	348.00	-162.00	-31.76%
JP:4448	Chatwork Co.Ltd.	321.00	-33.00	-9.32%
JP:5033	Nulab Inc.	1195.00	430.00	56.21%

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 growth. Tota...

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 30, 2026

XNET Corporation AI Stock Analysis