Cube System Inc. (2335) AI Stock Analysis

• Market Cap: ¥15.90B
• Dividend Yield: 3.51%
• Average Volume (3M): 32.69K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.58
• Revenue Growth: 2.46%
• EPS Growth: -5.85%
• Country: JP
• Employees: 886
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 23.48
• Shares Outstanding: 15,750,000
• 10 Day Avg. Volume: 49,640
• 30 Day Avg. Volume: 32,690
• PEG Ratio: 0.63
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 69.53
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥1,246.00 ▲(9.59% Upside)

Cube System Inc. scores well in financial performance, showcasing strong revenue growth and a solid balance sheet. However, technical analysis indicates bearish trends, which weigh down the overall score. The valuation is reasonable, with a good dividend yield, but the lack of earnings call data and corporate events limits further insights.

Cube System Inc. Business Overview & Revenue Model

Company Description

Cube System Inc. (2335) is a technology company specializing in innovative solutions for the digital infrastructure sector. The company operates primarily in the fields of cloud computing, data storage, and IT services, focusing on developing software and hardware products that enhance data management and operational efficiency for businesses. With a commitment to leveraging cutting-edge technology, Cube System Inc. provides a range of services including system integration, consulting, and customized software development, catering to a diverse clientele across various industries.

How the Company Makes Money

Cube System Inc. generates revenue through several key streams. The primary source of income comes from the sale of its software and hardware products, which are designed to optimize data storage and processing. Additionally, the company earns revenue from consulting services, where it helps organizations implement tailored IT solutions and strategies. System integration services also contribute significantly to its earnings, as Cube System Inc. assists clients in integrating new technologies into existing systems. Furthermore, strategic partnerships with other tech firms enhance its offerings and market reach, allowing for collaborative projects that can lead to additional revenue. Recurring revenue from long-term service agreements and maintenance contracts also supports the company's financial stability.

Cube System Inc. Financial Statement Overview

Summary

Cube System Inc. demonstrates strong financial performance with robust revenue and profit growth, efficient operations, and a solid balance sheet. The company shows good cash generation, although there is a recent decline in free cash flow, which needs attention.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.49B	18.35B	18.02B	16.33B	16.10B	14.79B
Gross Profit	4.18B	3.95B	3.92B	3.57B	3.45B	2.84B
EBITDA	2.03B	1.83B	1.63B	1.53B	1.49B	1.34B
Net Income	1.30B	1.26B	1.07B	989.67M	944.70M	844.00M
Balance Sheet
Total Assets	14.37B	14.37B	13.49B	12.55B	10.06B	9.44B
Cash, Cash Equivalents and Short-Term Investments	6.30B	6.23B	6.84B	6.85B	5.06B	4.47B
Total Debt	230.00M	230.00M	230.00M	240.00M	240.00M	280.00M
Total Liabilities	3.52B	3.49B	3.35B	2.93B	2.85B	2.93B
Stockholders Equity	10.85B	10.87B	10.13B	9.62B	7.17B	6.48B
Cash Flow
Free Cash Flow	0.00	216.00M	974.95M	879.39M	971.81M	1.00B
Operating Cash Flow	0.00	255.00M	1.04B	891.96M	1.02B	1.04B
Investing Cash Flow	0.00	-68.00M	-259.85M	-304.71M	-134.34M	58.50M
Financing Cash Flow	0.00	-780.00M	-672.01M	1.10B	-324.11M	-215.21M

Cube System Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1137.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2335, the sentiment is Negative. The current price of 1137 is above the 20-day moving average (MA) of 1115.50, below the 50-day MA of 1142.68, and above the 200-day MA of 1069.82, indicating a neutral trend. The MACD of -18.87 indicates Positive momentum. The RSI at 40.15 is Neutral, neither overbought nor oversold. The STOCH value of 20.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2335.

Cube System Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9799	77 Outperform	¥17.43B	13.40	―	3.17%	5.57%	12.08%
2335	71 Outperform	¥15.90B	14.08	―	3.51%	2.46%	-5.85%
2185	70 Outperform	¥21.28B	9.92	―	3.15%	-6.49%	4.66%
3968	68 Neutral	¥20.31B	41.76	―	1.82%	20.91%	-26.43%
4761	67 Neutral	¥13.86B	13.80	―	2.85%	5.14%	16.05%
3837	67 Neutral	¥26.13B	19.18	―	2.12%	9.56%	30.03%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Cube System Inc. Corporate Events

Cube System Inc. Revises Financial Supplementary Materials for Q1 FY2026

Cube System Inc. has revised its supplementary materials for the first quarter financial results for the fiscal year ending March 31, 2026, due to tabulation errors. Despite these corrections, the overall financial results remain unchanged, with significant growth in operating profit attributed to resolving unprofitable projects, improving existing project profitability, and reducing personnel expenses. The company has also revised its earnings forecast for the first half of the fiscal year.

Cube System Inc. Reports Strong Q1 2025 Financial Results

Cube System Inc. reported a significant increase in its financial performance for the three months ending June 30, 2025, with net sales rising by 3.1% and operating profit surging by 82.6% compared to the previous year. This improvement reflects the company’s strong operational capabilities and strategic market positioning, which could enhance stakeholder confidence and influence its competitive standing in the industry.