eXmotion Co Ltd

eXmotion maintains a strong liquidity position with JPY 12.26 billion in cash and equivalents, representing 74.5% of total assets, and a current ratio of 11.05, well above the industry median. The company operates with no long-term debt and a debt-to-equity ratio of 0.0, indicating a conservative capital structure.

Profitability metrics show a return on equity (ROE) of 0.73% and return on assets (ROA) of 0.67%, both below the industry median for IT Services & Consulting. The company's operating margin is 6.43%, and net margin is 3.69%, which are in line with the sector average but suggest limited margin expansion potential.

Geographically, eXmotion's revenue is concentrated in Japan, with no disclosed international segments. The company's business is entirely within the domestic market, which may limit growth opportunities in a mature economy.

Looking ahead, eXmotion's revenue is expected to grow by 113% in the current fiscal year and 10% in the next, based on the most recent actual revenue of JPY 1.39 billion. This growth is driven by increased demand for digital transformation services in the Japanese market.

The company's risk profile is low, with no immediate liquidity or dilution flags detected. The absence of long-term debt and a high cash-to-asset ratio reduce financial risk. However, the high price-to-earnings ratio of 239.24 and price-to-book ratio of 1.74 suggest potential overvaluation relative to earnings and book value.

Recent financial filings and transcripts indicate no material changes in business strategy or operations. The company continues to focus on core IT services and has not disclosed any major new initiatives or acquisitions.

The company maintains a zero long-term debt position, ranking above the 75th percentile for financial stability within its cohort.

Cash conversion ratio of 1.64 is well above the cohort median of 1.0, highlighting robust cash generation capabilities.

Return on equity of 0.73% is drastically below the cohort median of 4.27%, signaling poor capital efficiency.

Revenue CAGR of -1.3% over four years suggests a long-term structural decline despite recent annual growth.

Net margin of 3.7% trails the IT Services cohort median of 3.9%, indicating weaker bottom-line profitability relative to peers.

Return on assets of 0.67% remains extremely low, suggesting the company generates minimal profit from its asset base.

Revenue ¥358.2M, +4,5% YoY; Operating income +54,9% YoY.

• ▍Revenue ¥358.2M, +4,5% YoY
• ▍Operating income +54,9% YoY
• ▍Net income +64,0% YoY
• ▍Net margin 10.6%

Revenue ¥360.0M, +0,1% YoY; Operating income −21,6% YoY.

• ▍Revenue ¥360.0M, +0,1% YoY
• ▍Operating income −21,6% YoY
• ▍Net income −15,8% YoY
• ▍Net margin 11.3%

Revenue ¥350.8M, +3,4% YoY; Operating income +1,3% YoY.

• ▍Revenue ¥350.8M, +3,4% YoY
• ▍Operating income +1,3% YoY
• ▍Net income +3,8% YoY
• ▍Net margin 10.8%

Revenue ¥333.4M, +11,9% YoY; Operating income +99,7% YoY.

• ▍Revenue ¥333.4M, +11,9% YoY
• ▍Operating income +99,7% YoY
• ▍Net income +134,1% YoY
• ▍Net margin 7.7%

Revenue ¥342.7M; Operating income ¥37.0M.

• ▍Revenue ¥342.7M
• ▍Operating income ¥37.0M
• ▍Net margin 6.8%

Revenue ¥359.5M; Operating income ¥73.0M.

• ▍Revenue ¥359.5M
• ▍Operating income ¥73.0M
• ▍Net margin 13.5%

Revenue ¥339.1M; Operating income ¥56.8M.

• ▍Revenue ¥339.1M
• ▍Operating income ¥56.8M
• ▍Net margin 10.7%

Revenue ¥297.8M; Operating income ¥19.1M.

• ▍Revenue ¥297.8M
• ▍Operating income ¥19.1M
• ▍Net margin 3.7%

Revenue ¥1.39B, +7,9% YoY; Operating income +22,1% YoY.

• ▍Revenue ¥1.39B, +7,9% YoY
• ▍Operating income +22,1% YoY
• ▍Net income +28,5% YoY
• ▍Free cash flow −2,2% YoY
• ▍Net margin 9.2%

Revenue ¥1.28B, +16,2% YoY; Operating income +492,0% YoY.

• ▍Revenue ¥1.28B, +16,2% YoY
• ▍Operating income +492,0% YoY
• ▍Net income +1 389,4% YoY
• ▍Free cash flow +456,5% YoY
• ▍Net margin 7.7%

Revenue ¥1.11B, +5,5% YoY; Operating income −85,8% YoY.

• ▍Revenue ¥1.11B, +5,5% YoY
• ▍Operating income −85,8% YoY
• ▍Net income −95,0% YoY
• ▍Free cash flow −120,6% YoY
• ▍Net margin 0.6%