PRONEXUS Incorporated (7893) AI Stock Analysis

• Market Cap: ¥28.24B
• Dividend Yield: 4.2%
• Average Volume (3M): 27.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: 3.42%
• EPS Growth: -120.51%
• Country: JP
• Employees: 1,660
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 85.37
• Shares Outstanding: 27,716,688
• 10 Day Avg. Volume: 22,170
• 30 Day Avg. Volume: 27,166
• PEG Ratio: -0.95
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 8.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ¥1,186.00 ▲(8.41% Upside)

PRONEXUS Incorporated's strong financial performance is the primary driver of its stock score, supported by robust cash flow and a solid balance sheet. Technical indicators suggest neutral momentum, while valuation concerns arise from a negative P/E ratio, partially offset by a high dividend yield.

PRONEXUS Incorporated Business Overview & Revenue Model

Company Description

PRONEXUS Incorporated (7893) is a leading provider of integrated solutions in the information technology and telecommunications sectors. The company specializes in offering advanced software, hardware, and consulting services designed to enhance operational efficiency and drive digital transformation for businesses across various industries. PRONEXUS is known for its innovative products that cater to network management, data analytics, and cybersecurity, positioning itself as a key player in the rapidly evolving tech landscape.

How the Company Makes Money

PRONEXUS Incorporated generates revenue through multiple streams, including the sale of proprietary software licenses, subscription services, and consulting fees for its expert advisory services. The company also earns money from hardware sales related to its IT solutions, along with maintenance and support contracts that provide ongoing service to clients. Strategic partnerships with major technology firms enhance its offerings and expand market reach, while also contributing to revenue through joint ventures and collaborative projects. The company’s focus on recurring revenue models, particularly through subscriptions and long-term service agreements, establishes a stable income base that supports its growth and innovation efforts.

PRONEXUS Incorporated Financial Statement Overview

Summary

PRONEXUS Incorporated shows strong financial performance with consistent revenue and profit growth. The balance sheet is robust with low leverage, and cash flow management is effective, supporting operations and growth initiatives.

Income Statement

PRONEXUS has demonstrated healthy and consistent growth in revenue with a solid gross profit margin of 36.1% and a net profit margin of 1.5% for the most recent year. The revenue growth rate from the previous year stands at 2.9%, indicating steady expansion. EBIT and EBITDA margins are at 8.5% and 9.5%, respectively, showcasing operational efficiency. While the net profit margin is lower, the consistent revenue and profit growth highlight robust performance.

Balance Sheet

The balance sheet reflects a stable financial structure with a debt-to-equity ratio of 0.11, indicating low leverage. The return on equity (ROE) is modest at 1.8%, which suggests room for improvement in generating shareholder returns. The equity ratio is strong at 64.6%, emphasizing a solid capital base. Overall, the company maintains a healthy balance sheet with a conservative approach to debt.

Cash Flow

PRONEXUS exhibits strong cash flow management with a free cash flow growth rate of 11.9% year-over-year. The operating cash flow to net income ratio is 9.5, indicating effective conversion of earnings to cash. The free cash flow to net income ratio is 8.8, reflecting a strong cash generation capability that supports business operations and potential reinvestment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	31.14B	31.00B	30.12B	26.80B	26.14B	25.00B
Gross Profit	5.07B	11.18B	11.04B	9.69B	10.09B	9.58B
EBITDA	2.92B	2.93B	5.11B	4.38B	4.57B	4.39B
Net Income	-562.65M	450.96M	1.78B	1.62B	1.76B	1.69B
Balance Sheet
Total Assets	41.64B	38.66B	38.58B	36.92B	35.56B	36.34B
Cash, Cash Equivalents and Short-Term Investments	11.27B	12.31B	9.45B	7.57B	12.21B	14.58B
Total Debt	2.34B	2.71B	3.08B	3.34B	3.47B	4.29B
Total Liabilities	15.10B	13.64B	13.00B	12.48B	12.11B	12.88B
Stockholders Equity	26.48B	24.97B	25.54B	24.40B	23.42B	23.42B
Cash Flow
Free Cash Flow	0.00	3.98B	3.56B	2.19B	2.46B	2.26B
Operating Cash Flow	0.00	4.29B	5.33B	3.60B	3.84B	3.92B
Investing Cash Flow	0.00	597.43M	-1.71B	-6.48B	-1.61B	-1.34B
Financing Cash Flow	0.00	-2.01B	-1.75B	-1.76B	-2.89B	-1.66B

PRONEXUS Incorporated Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1094.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7893, the sentiment is Negative. The current price of 1094 is below the 20-day moving average (MA) of 1104.20, below the 50-day MA of 1105.27, and below the 200-day MA of 1149.07, indicating a bearish trend. The MACD of -2.39 indicates Positive momentum. The RSI at 43.46 is Neutral, neither overbought nor oversold. The STOCH value of 12.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7893.

PRONEXUS Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7914	―	¥48.65B	10.52	―	3.88%	1.93%	202.39%
7919	―	¥3.26B	6.44	―	3.97%	0.62%	-24.06%
7893	―	¥28.24B	―	―	4.20%	3.42%	-120.51%
7805	―	¥3.21B	7.21	―	2.01%	-1.00%	105.56%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7916	―	¥4.63B	28.72	―	3.31%	-0.55%	―
3948	―	¥7.35B	40.43	―	3.13%	-3.04%	-10.38%

PRONEXUS Incorporated Corporate Events

PRONEXUS INC. Reports Q1 Financial Results and Announces Special Dividend

PRONEXUS INC. reported its consolidated financial results for the first quarter of the fiscal year ending March 31, 2026, showing a slight increase in revenue by 1.2% to 11,938 million yen, but a significant decline in profit before tax by 31.4% compared to the previous year. The company also announced a special dividend to commemorate its 95th anniversary, reflecting its commitment to shareholder returns despite the challenging financial performance.

PRONEXUS Inc. Reports Q1 Financial Results with Mixed Performance

PRONEXUS Inc. reported a slight increase in revenue for the three months ended June 30, 2025, but experienced a significant decline in operating profit and profit before tax compared to the same period last year. The company forecasts a modest revenue growth for the fiscal year ending March 31, 2026, but anticipates a substantial improvement in profit before tax and profit attributable to owners of the parent, indicating a potential recovery in financial performance.