Cube System Inc. (2335) AI Stock Analysis

• Market Cap: ¥16.95B
• Dividend Yield: 3.48%
• Average Volume (3M): 13.11K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.59
• Revenue Growth: 1.83%
• EPS Growth: 19.05%
• Country: JP
• Employees: 886
• Sector: Technology
• Sector Strength: 92
• Industry: Information Technology Services
• EPS (TTM): 23.68
• Shares Outstanding: 15,750,000
• 10 Day Avg. Volume: 14,420
• 30 Day Avg. Volume: 13,113
• PEG Ratio: 3.18
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,212.00
• Price Target Upside: 5.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• 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. Business Overview & Revenue Model

Company Description

Cube 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 Money

Cube 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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	18.35B	18.02B	16.33B	16.10B	14.79B
Gross Profit	3.95B	3.92B	3.57B	3.45B	2.84B
EBITDA	1.83B	1.58B	1.53B	1.49B	1.34B
Net Income	1.26B	1.07B	989.67M	944.70M	844.00M
Balance Sheet
Total Assets	14.37B	13.49B	12.55B	10.06B	9.44B
Cash, Cash Equivalents and Short-Term Investments	6.23B	6.84B	6.85B	5.06B	4.47B
Total Debt	230.00M	230.00M	240.00M	240.00M	280.00M
Total Liabilities	3.49B	3.35B	2.93B	2.85B	2.93B
Stockholders Equity	10.87B	10.13B	9.62B	7.17B	6.48B
Cash Flow
Free Cash Flow	216.00M	974.95M	879.39M	971.81M	1.00B
Operating Cash Flow	255.00M	1.04B	891.96M	1.02B	1.04B
Investing Cash Flow	-68.00M	-259.85M	-304.71M	-134.34M	58.50M
Financing Cash Flow	-780.00M	-672.01M	1.10B	-324.11M	-215.21M

Cube System Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1149.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2185	82 Outperform	¥20.06B	9.49		1.59%	4.16%	36.43%
2335	81 Outperform	¥16.95B	13.71		3.48%	1.83%	19.05%
4761	77 Outperform	¥16.74B	14.62		2.14%	-1.02%	27.93%
9799	70 Outperform	¥17.16B	13.99		2.62%	6.99%	11.02%
3837	67 Neutral	¥23.32B	19.92		1.62%	11.03%	14.63%
3968	63 Neutral	¥16.09B	145.37		2.42%	4.02%	-87.61%
Sector *	63 Neutral	£505.30M	23.90	-8.45%	170.40%	4.53%	-18.72%

Cube System Inc. Corporate Events

Cube System Inc. Highlights Key Relationship with Nomura Research Institute

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

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.