Cube System Inc. (2335) AI Stock Analysis

• Market Cap: ¥16.62B
• Dividend Yield: 3.55%
• Average Volume (3M): 13.89K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.60
• Revenue Growth: 1.83%
• EPS Growth: 19.05%
• Country: JP
• Employees: 886
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): 23.68
• Shares Outstanding: 15,750,000
• 10 Day Avg. Volume: 15,040
• 30 Day Avg. Volume: 13,886
• PEG Ratio: 21.80
• Price to Book (P/B): 1.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.27
• 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

• Rating: 81 Outperform
• Price Target: ¥1,212.00 ▲(7.45%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. Business Overview & Revenue Model

Company Description

Cube System Inc. is a Japanese company operating primarily in the information technology sector. The company specializes in providing IT solutions and services, including system integration, software development, and IT infrastructure management. It serves a diverse range of industries, helping businesses to enhance their operational efficiency through innovative technological solutions.

How the Company Makes Money

Cube System Inc. generates revenue through a variety of IT-related services. Its primary revenue streams include system integration, where the company designs and implements comprehensive IT systems tailored to client needs. Additionally, it earns income from software development, delivering customized software solutions that address specific business challenges. The company also provides IT infrastructure management services, ensuring efficient and secure IT operations for its clients. Partnerships with technology vendors and sustained client relationships contribute significantly to its earnings, as they enable Cube System Inc. to offer a wide range of cutting-edge solutions to a broad customer base.

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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	18.11B	18.35B	18.02B	16.33B	16.10B	14.79B
Gross Profit	3.87B	3.95B	3.92B	3.57B	3.45B	2.84B
EBITDA	1.69B	1.83B	1.58B	1.53B	1.49B	1.34B
Net Income	1.21B	1.26B	1.07B	989.67M	944.70M	844.00M
Balance Sheet
Total Assets	13.38B	14.37B	13.49B	12.55B	10.06B	9.44B
Cash, Cash Equivalents and Short-Term Investments	5.83B	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	3.13B	3.49B	3.35B	2.93B	2.85B	2.93B
Stockholders Equity	10.26B	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: Positive
• Last Price: 1128.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 1128 is above the 20-day moving average (MA) of 1107.50, above the 50-day MA of 1066.44, and above the 200-day MA of 1018.87, indicating a bullish trend. The MACD of 17.92 indicates Positive momentum. The RSI at 61.43 is Neutral, neither overbought nor oversold. The STOCH value of 37.02 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2335	81 Outperform	¥16.62B	13.45		3.55%	1.83%	19.05%
9799	79 Outperform	¥16.87B	13.75		2.66%	6.99%	11.02%
2185	73 Outperform	¥19.51B	9.23		3.27%	4.16%	36.43%
4761	70 Outperform	¥15.54B	13.58		2.88%	-1.02%	27.93%
3837	67 Neutral	¥20.58B	17.58		1.51%	11.03%	14.63%
Sector *	63 Neutral	$33.61B	6.06	-11.53%	1.82%	5.53%	-18.79%
3968	63 Neutral	¥16.25B	146.83		2.40%	4.02%	-87.61%

Cube System Inc. Corporate Events

Cube System Inc. Reports Financial Results and Forecasts Growth

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.

Cube System Inc. Announces Executive Appointments for 2025

Cube System Inc. announced key executive appointments effective in mid-2025, with Katsuya Mori being appointed as Seniority Executive Officer and Kyoji Minemura as Office Manager of the Internal Audit Office. These changes are expected to strengthen the company’s leadership and enhance its operational efficiency, potentially impacting its market positioning positively.