SOLIZE Corporation (5871) AI Stock Analysis

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SOLIZE Corporation

(TSE/TYO:5871)

Select Model

Rating:48Neutral

Price Target:JPY 1,297.00▼(-0.46% Downside)

Action:reiterated

Date:08/06/26

The overall score of 48 reflects a cautious view. SOLIZE Corporation's strong balance sheet and revenue growth are positive, but deteriorating profitability and cash flow, high valuation multiples, and bearish technical indicators outweigh these strengths. Investors should monitor improvements in cost management and cash generation.

Positive Factors

Conservative balance sheetA near-zero debt profile and sizable equity provide durable financial flexibility. Low leverage reduces solvency risk, supports investment in digital engineering services, and allows the company to withstand downturns or pursue selective M&A without immediate refinancing pressure.

Negative Factors

Sharp margin deteriorationA rapid collapse in operating profitability erodes capacity to fund growth and returns. Persistently compressed EBIT undermines ROE and reinvestment ability, suggesting structural cost or pricing issues that require operational fixes to restore sustainable profitability.

SOLIZE Corporation (5871) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 7.00B
Dividend Yield: 4.22%
Average Volume (3M): 12.63K
Price to Earnings (P/E): 27.9
Beta (1Y): 0.02
Revenue Growth: 15.03%
EPS Growth: ―
Country: Japan
Employees: 2,526
Sector: General
Sector Strength: 55
Industry: Computer Hardware

SOLIZE Corporation Business Overview & Revenue Model

Company Description

SOLIZE Corporation operates globally, offering specialized engineering and design services that include 3D CAD, CAE, MBD, 3D printing, and innovation engineering to clients located in Japan, North America, China, India, and Europe. The company serves...

How the Company Makes Money

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SOLIZE Corporation Financial Statement Overview

Summary

Revenue growth and a debt-free balance sheet are strengths, but declining profitability and negative cash flows in the latest year raise concerns, resulting in a mixed financial performance.

Income Statement

42Neutral

Balance Sheet

85Very Positive

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	27.83B	25.78B	22.71B	20.08B	17.83B	15.85B
Gross Profit	7.88B	7.27B	6.45B	5.51B	4.81B	4.01B
EBITDA	1.07B	408.00M	564.00M	1.02B	911.00M	515.00M
Net Income	246.00M	-36.00M	254.00M	580.00M	566.00M	292.00M
Balance Sheet
Total Assets	15.80B	15.70B	15.47B	13.06B	13.68B	12.54B
Cash, Cash Equivalents and Short-Term Investments	4.10B	4.69B	7.24B	6.21B	7.29B	6.90B
Total Debt	90.00M	0	54.00M	101.00M	118.00M	128.00M
Total Liabilities	4.67B	4.37B	3.99B	3.39B	3.36B	2.87B
Stockholders Equity	11.13B	11.33B	11.48B	9.67B	10.32B	9.67B
Cash Flow
Free Cash Flow	0	-489.00M	7.00M	381.00M	706.00M	-271.00M
Operating Cash Flow	0	-208.00M	297.00M	488.00M	863.00M	270.00M
Investing Cash Flow	0	-2.21B	-718.00M	-275.00M	-408.00M	-528.00M
Financing Cash Flow	0	-181.00M	1.38B	-1.34B	-129.00M	-34.00M

SOLIZE Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:5871 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6737	80Outperform	JPY 119.04B	14.26	―	3.87%	3.16%	170.14%
JP:6727	74Outperform	JPY 109.79B	11.13	26.51%	3.28%	-2.51%	70.38%
JP:6724	60Neutral	JPY 1.03T	42.16	2.90%	2.38%	8.34%	-41.57%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:5871	48Neutral	JPY 6.78B	27.94	―	4.22%	15.03%	―

* General Sector Average

Performance Comparison

JP:5871 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5871	SOLIZE Corporation	1303.00	-213.77	-14.09%
JP:6724	Seiko Epson Corp	3233.00	1336.39	70.46%
JP:6727	Wacom Co	824.00	13.63	1.68%
JP:6737	EIZO Corp.	2909.00	814.22	38.87%

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: Aug 06, 2026

SOLIZE Corporation AI Stock Analysis

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