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Cube System Inc. (JP:2335)
:2335
Japanese Market
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Cube System Inc. (2335) AI Stock Analysis

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JP:2335

Cube System Inc.

(2335)

Rating:81Outperform
Price Target:
¥1,212.00
▲(5.48%Upside)
Cube System Inc. earns a strong overall score driven by robust financial performance and attractive valuation. Technical analysis supports a positive outlook, although the decline in free cash flow warrants monitoring. The absence of recent earnings call data and corporate events limits the analysis to key financial and market indicators.

Cube System Inc. (2335) vs. iShares MSCI Japan ETF (EWJ)

Cube System Inc. Business Overview & Revenue Model

Company DescriptionCube System Inc. (2335) is a Japanese information technology company that specializes in providing comprehensive IT services, including system integration, software development, and IT consulting. The company serves a diverse clientele, offering solutions that cater to various industries such as finance, manufacturing, and distribution. Cube System Inc. is committed to delivering innovative and efficient technological solutions that enhance business operations and drive digital transformation for its clients.
How the Company Makes MoneyCube System Inc. makes money primarily through its IT services, which include system integration, custom software development, and IT consulting. The company generates revenue by entering into contracts with businesses across different sectors, providing tailored technology solutions that align with their operational needs. Key revenue streams include fees from project-based system integration services, ongoing support and maintenance contracts, and consulting services aimed at optimizing clients' IT infrastructure. The company's revenue model is bolstered by long-term relationships with clients and strategic partnerships with other technology firms, which enhance its service offerings and market reach.

Cube System Inc. Financial Statement Overview

Summary
Cube System Inc. demonstrates robust financial performance with strong revenue and profit growth, efficient operations, and a solid balance sheet. However, the decline in free cash flow needs attention.
Income Statement
85
Very Positive
Cube System Inc. exhibits strong revenue growth, with total revenue increasing from ¥16,325 million in 2023 to ¥18,351 million in 2025, indicating a positive growth trajectory. The gross profit margin remains robust at around 21%, and the net profit margin has improved significantly from 5.9% in 2021 to 6.9% in 2025, showcasing strong profitability. The EBIT and EBITDA margins are also healthy, reflecting efficient operations. Overall, the income statement indicates solid performance and growth potential.
Balance Sheet
88
Very Positive
The company maintains a strong balance sheet with a low debt-to-equity ratio, reflecting prudent financial management. Stockholders' equity has increased consistently, and the equity ratio stands at approximately 75.7% in 2025, indicating financial stability. The high cash reserves and low total debt levels further enhance the company's financial position, minimizing financial risk and providing a buffer for future investments or downturns.
Cash Flow
78
Positive
Cube System's cash flow metrics show a mixed performance. The operating cash flow to net income ratio is positive, suggesting good cash generation relative to net income, although it has declined from previous years. The free cash flow has decreased from ¥974 million in 2024 to ¥216 million in 2025, impacting the free cash flow to net income ratio. While operational cash flows remain strong, the decline in free cash flow growth rate could indicate potential challenges in cash management or capital expenditures.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue18.35B18.02B16.33B16.10B14.79B
Gross Profit3.95B3.92B3.57B3.45B2.84B
EBITDA1.83B1.58B1.53B1.49B1.34B
Net Income1.26B1.07B989.67M944.70M844.00M
Balance Sheet
Total Assets14.37B13.49B12.55B10.06B9.44B
Cash, Cash Equivalents and Short-Term Investments6.23B6.84B6.85B5.06B4.47B
Total Debt230.00M230.00M240.00M240.00M280.00M
Total Liabilities3.49B3.35B2.93B2.85B2.93B
Stockholders Equity10.87B10.13B9.62B7.17B6.48B
Cash Flow
Free Cash Flow216.00M974.95M879.39M971.81M1.00B
Operating Cash Flow255.00M1.04B891.96M1.02B1.04B
Investing Cash Flow-68.00M-259.85M-304.71M-134.34M58.50M
Financing Cash Flow-780.00M-672.01M1.10B-324.11M-215.21M

Cube System Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1149.00
Price Trends
50DMA
1095.70
Positive
100DMA
1048.50
Positive
200DMA
1028.33
Positive
Market Momentum
MACD
11.05
Negative
RSI
63.26
Neutral
STOCH
75.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2335, the sentiment is Positive. The current price of 1149 is above the 20-day moving average (MA) of 1122.50, above the 50-day MA of 1095.70, and above the 200-day MA of 1028.33, indicating a bullish trend. The MACD of 11.05 indicates Negative momentum. The RSI at 63.26 is Neutral, neither overbought nor oversold. The STOCH value of 75.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2335.

Cube System Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥20.06B9.49
1.59%4.16%36.43%
81
Outperform
¥16.95B13.71
3.48%1.83%19.05%
77
Outperform
¥16.74B14.62
2.14%-1.02%27.93%
70
Outperform
¥17.16B13.99
2.62%6.99%11.02%
67
Neutral
¥23.32B19.92
1.62%11.03%14.63%
63
Neutral
¥16.09B145.37
2.42%4.02%-87.61%
63
Neutral
£505.30M23.90-8.45%170.40%4.53%-18.72%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2335
Cube System Inc.
1,149.00
27.12
2.42%
JP:2185
CMC Corporation
1,516.00
293.96
24.05%
JP:3837
Ad-Sol Nissin Corp.
1,302.00
367.62
39.34%
JP:3968
Segue Group Co., Ltd.
496.00
-116.67
-19.04%
JP:4761
SAKURA KCS Corporation
1,522.00
164.11
12.09%
JP:9799
Asahi Intelligence Service Co., Ltd.
1,070.00
292.63
37.64%

Cube System Inc. Corporate Events

Cube System Inc. Highlights Key Relationship with Nomura Research Institute
Jul 14, 2025

Cube System Inc. announced that Nomura Research Institute, Inc. (NRI) holds a 20.2% voting interest in the company, highlighting the significant role NRI plays as a customer, contributing to 49% of Cube System’s net sales. Despite this strong relationship, Cube System maintains its independence in business operations and decision-making, ensuring transaction terms with NRI are negotiated similarly to other clients.

Cube System Inc. Reports Financial Results and Forecasts Growth
May 28, 2025

Cube System Inc. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a modest increase in net sales by 1.8% to ¥18,351 million. However, the company experienced a decline in operating and ordinary profits by 10.1% and 12.4%, respectively. Despite these challenges, the profit attributable to owners of the parent increased by 18.2% to ¥1,261 million. The company plans to increase its annual dividend per share to ¥40.00, reflecting a commitment to returning value to shareholders. Looking ahead, Cube System forecasts a 6.3% increase in net sales for the fiscal year ending March 31, 2026, with significant growth in operating and ordinary profits expected.

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: May 27, 2025