Pixela (TSE:6731) Is Carrying A Fair Bit Of Debt

Pixela Corporation (TSE:6731) has increased its debt from JP¥200.0m to JP¥550.0m over the past year, with net debt standing at JP¥33.0m after accounting for JP¥517.0m in cash. Despite its total liabilities of JP¥920.0m, the company's market value is JP¥1.70b, suggesting manageable risk. However, Pixela reported a significant EBIT loss of JP¥812m and a 14% revenue decline to JP¥1.1b, raising concerns about its ability to service debt. Analysts view the stock as risky, highlighting the need for caution regarding its financial health.