Nextware Ltd. (4814) AI Stock Analysis

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Nextware Ltd.

(4814)

55Neutral

Nextware Ltd.'s stock score reflects significant financial challenges, particularly in profitability and cash flow management, despite a strong balance sheet with low leverage. The technical analysis is more optimistic, showing positive momentum and price trends. However, the negative P/E ratio indicates challenges in valuation. Overall, strategic operational improvements are essential for enhancing investor confidence.

Nextware Ltd. (4814) vs. S&P 500 (SPY)

Market Cap

¥2.20B

Dividend YieldN/A

Average Volume (3M)3.97M

Price to Earnings (P/E)―

Beta (1Y)0.62

Revenue Growth10.21%

EPS Growth-40.38%

CountryJP

Employees209

SectorTechnology

Sector Strength69

IndustryInformation Technology Services

Share Statistics

EPS (TTM)-12.09

Shares Outstanding13,015,222

10 Day Avg. Volume776,210

30 Day Avg. Volume3,965,273

Financial Highlights & Ratios

PEG Ratio-2.99

Price to Book (P/B)1.91

Price to Sales (P/S)0.00

P/FCF Ratio0.00

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

Nextware Ltd. Business Overview & Revenue Model

Company DescriptionNextware Ltd. provides IT solutions in Japan. The company operates through Solutions Business and Entertainment Business segments. It is also involved in the computer system design and software development activities; buying, importing/exporting, selling, and leasing of computers and its peripherals. In addition, the company engages in operational management and support of computer systems; and computer system consulting services. Further, it provides consulting management, events planning and management, and non-life insurance agency businesses. Additionally, the company offers digital content development and distribution services. Nextware Ltd. was incorporated in 1990 and is headquartered in Osaka, Japan.

How the Company Makes Money

Nextware Ltd. Financial Statement Overview

Summary

Nextware Ltd. faces significant challenges with profitability and cash flow, despite a robust balance sheet. The company's minimal debt level is a positive, but consistent losses and lack of cash generation remain critical issues. Strategic improvements in operations and cost management are needed to foster sustainable growth.

Income Statement

Neutral

Nextware Ltd. shows negative growth in key profitability metrics. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 24.97%, with a concerning net profit margin of -5.05%, indicating losses. Revenue has shown minor growth over the previous year, but profitability remains a challenge with negative EBIT and EBITDA margins.

Balance Sheet

Positive

The company maintains a strong equity position with an equity ratio of 81.05% in the TTM period. The debt-to-equity ratio is very low at 0.25%, indicating minimal leverage. However, return on equity is negative due to losses, which remains a concern for investors despite the strong equity base.

Cash Flow

Negative

Cash flow metrics are weak, with zero free cash flow in the TTM period and a significant drop from the previous year. Operating cash flow is also zero, signaling potential liquidity issues. The absence of positive cash flow metrics reflects operational challenges.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
3.04B	2.82B	2.89B	2.92B	3.16B	3.20B
	Gross Profit
757.94M	721.71M	774.27M	837.37M	875.33M	836.00M
	EBIT
-106.71M	-132.62M	-25.54M	52.30M	18.27M	-106.00M
	EBITDA
-90.74M	-95.16M	77.87M	971.79M	144.26M	-59.79M
	Net Income Common Stockholders
-153.44M	-161.75M	11.66M	686.67M	24.38M	-156.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
424.00M	595.54M	639.62M	1.09B	314.66M	300.00M
	Total Assets
1.47B	1.69B	1.84B	2.10B	1.54B	1.41B
	Total Debt
3.00M	8.55M	44.40M	74.61M	259.10M	210.00M
	Net Debt
-421.00M	-586.99M	-595.23M	-911.01M	-55.56M	-90.00M
	Total Liabilities
278.00M	359.26M	322.15M	555.45M	684.97M	5.08M
	Stockholders Equity
1.19B	1.33B	1.52B	1.54B	855.55M	831.00M
Cash Flow		Free Cash Flow
0.00	26.02M	-380.73M	223.78M	-23.90M	-77.00M
	Operating Cash Flow
0.00	105.07M	-346.41M	314.17M	72.37M	-55.00M
	Investing Cash Flow
0.00	-87.89M	-31.25M	741.28M	-106.42M	-104.00M
	Financing Cash Flow
0.00	-61.26M	-68.33M	-184.49M	48.40M	44.00M

Nextware Ltd. Technical Analysis

Technical Analysis Sentiment

Positive

Last Price173.00

Price Trends

50DMA

151.36

Positive

100DMA

144.02

Positive

200DMA

147.38

Positive

Market Momentum

MACD

8.25

Positive

RSI

53.33

Neutral

STOCH

8.91

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4814, the sentiment is Positive. The current price of 173 is above the 20-day moving average (MA) of 170.00, above the 50-day MA of 151.36, and above the 200-day MA of 147.38, indicating a bullish trend. The MACD of 8.25 indicates Positive momentum. The RSI at 53.33 is Neutral, neither overbought nor oversold. The STOCH value of 8.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4814.

Nextware Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4816	67 Neutral	¥668.48B	31.00		0.97%	5.28%	11.13%
Sector *	60 Neutral	$11.39B	10.52	-6.21%	2.95%	7.68%	-11.12%
4819	56 Neutral	¥215.34B	―	-9.01%	1.20%	18.11%	-212.45%
4814	55 Neutral	¥2.20B	―		―	10.21%	-40.38%

* Technology Sector Average

Performance Comparison

JP:4814

Nextware Ltd.

171.00

-8.00

-4.47%

JP:4816

Toei Animation Co., Ltd.

3,210.00

719.29

28.88%

JP:4819

Digital Garage

4,600.00

1,912.30

71.15%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.