Revenue Growth & Operational EfficiencySustained revenue growth (Fundamentals revenue growth 22.52%) and improving operational efficiency indicate the company can scale services while tightening unit economics. This durable trend supports reinvestment in products, stabilizes margins over time, and strengthens competitive positioning in infrastructure services.

Cloud & Managed Services ExposureCore business centered on cloud platforms, integration, and managed operations aligns with long-term structural demand for cloud migration and outsourcing. Recurring service contracts and integration expertise create stickiness and predictable revenue streams, supporting durable cash generation and market share expansion.

Improved ROE And Manageable LeverageA markedly higher ROE (20.74%) signals efficient capital deployment and effectiveness at converting equity into returns, a structural advantage for shareholder value. Coupled with a manageable D/E (~0.87), the balance sheet currently supports strategic investment while retaining flexibility for measured growth funding.

Bears Say

Low Net Profit MarginA low net margin (3.26%) limits retained earnings and buffers against cost inflation or pricing pressure. Structurally, this constrains the firm's ability to self-fund expansion, absorb shocks, and sustainably increase shareholder returns unless operational leverage or pricing power materially improves over the medium term.

Negative Free Cash Flow DynamicsPersistent negative free cash flow growth and FCF-to-net-income weakness indicate earnings are not reliably converting into cash. Over months, this undermines capacity to fund capex, pay dividends, or reduce leverage without external financing, elevating refinancing and liquidity risk for strategic initiatives.

Rising Debt LevelsAn uptick in leverage increases fixed interest obligations and sensitivity to rate cycles. Given constrained cash conversion and thin net margins, higher debt reduces financial flexibility for acquisitions or downturns and raises the company’s long-term funding cost and risk profile unless cash generation materially strengthens.

Japan Business Systems, Inc. News

Japan Business Systems Reports Robust Financial Growth and Strategic Expansion

Japan Business Systems, Inc. ( ($JP:5036) ) has provided an update. Japan Business Systems, Inc. reported significant financial...

3M ago

5036

5036 FAQ

What was Japan Business Systems, Inc.’s price range in the past 12 months?

Japan Business Systems, Inc. lowest stock price was ¥799.00 and its highest was ¥1896.00 in the past 12 months.

What is Japan Business Systems, Inc.’s market cap?

Japan Business Systems, Inc.’s market cap is ¥68.71B.

When is Japan Business Systems, Inc.’s upcoming earnings report date?

Japan Business Systems, Inc.’s upcoming earnings report date is May 19, 2026 which is in 90 days.

How were Japan Business Systems, Inc.’s earnings last quarter?

Japan Business Systems, Inc. released its earnings results on Feb 12, 2026. The company reported ¥42.71 earnings per share for the quarter, beating the consensus estimate of N/A by ¥42.71.

Is Japan Business Systems, Inc. overvalued?

According to Wall Street analysts Japan Business Systems, Inc.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Japan Business Systems, Inc. pay dividends?

Japan Business Systems, Inc. pays a Semiannually dividend of ¥23 which represents an annual dividend yield of 2.35%. See more information on Japan Business Systems, Inc. dividends here

What is Japan Business Systems, Inc.’s EPS estimate?

Japan Business Systems, Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Japan Business Systems, Inc. have?

Japan Business Systems, Inc. has 48,366,400 shares outstanding.

What happened to Japan Business Systems, Inc.’s price movement after its last earnings report?

Japan Business Systems, Inc. reported an EPS of ¥42.71 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -2.018%.

Which hedge fund is a major shareholder of Japan Business Systems, Inc.?

Currently, no hedge funds are holding shares in JP:5036

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Japan Business Systems, Inc.

Japan Business Systems, Inc. provides cloud integration and related services. The company operates through three segments: Cloud Integration Business, Cloud Service Business, and License & Products Business. It develops, implements, establishes, and monitors cloud migration plans; implements Microsoft Cloud services; and offers maintenance, operation, and support services to enhance cloud utilization, focusing on Microsoft Cloud. The company also engages in cloud solutions, licenses, and the resale of related equipment; and provides equipment for on-premise infrastructure and private cloud services. Japan Business Systems, Inc. was incorporated in 1990 and is headquartered in Tokyo, Japan.