Cube System Inc. (2335) AI Stock Analysis

• Market Cap: ¥16.61B
• Dividend Yield: 3.6%
• Average Volume (3M): 29.06K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.59
• 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: 21,320
• 30 Day Avg. Volume: 29,060
• 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 ▲(11.95% 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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Balance Sheet Health

A strong equity ratio and low debt levels provide financial stability, reducing risk and supporting future growth opportunities.

Profitability

Improved profitability reflects efficient operations and cost management, enhancing the company's ability to reinvest in growth.

Negative Factors

Free Cash Flow Decline

Declining free cash flow may limit the company's ability to fund new projects or return capital to shareholders, impacting growth.

Cash Management Challenges

A decline in cash flow ratios suggests potential cash management issues, which could affect liquidity and operational flexibility.

Lack of Earnings Call Data

Absence of earnings call insights limits transparency and investor understanding of management's strategic direction.

Cube System Inc. Business Overview & Revenue Model

Company Description

Cube System Inc. provides various technological services in Japan and internationally. It offers system integration services; system outsourcing services; and professional services, such as system consulting, system replacement migration, business continuity plan compliant, system integration, system virtualization, and performance operation services. The company provides its solutions for finance, distribution, telecommunications, and manufacturing industries. It also offers system infrastructure solutions. The company was formerly known as Customer Engineers Corporation and changed its name to Cube System Inc. in October 1990. Cube System Inc. was incorporated in 1972 and is headquartered in Tokyo, Japan.

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: Positive
• Last Price: 1113.00
• 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 1113 is above the 20-day moving average (MA) of 1112.20, above the 50-day MA of 1094.00, and above the 200-day MA of 1091.48, indicating a bullish trend. The MACD of 8.44 indicates Negative momentum. The RSI at 59.47 is Neutral, neither overbought nor oversold. The STOCH value of 73.12 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
3837	81 Outperform	¥29.72B	21.82	―	2.18%	9.56%	30.03%
2185	79 Outperform	¥23.99B	10.99	―	3.06%	-6.49%	4.98%
3968	78 Outperform	¥19.92B	23.16	―	1.72%	26.24%	29.73%
9799	77 Outperform	¥20.70B	15.92	―	2.43%	5.57%	12.08%
2335	71 Outperform	¥16.61B	14.71	―	3.60%	2.46%	-5.85%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4761	60 Neutral	¥14.98B	14.91	―	2.98%	5.14%	16.05%

Cube System Inc. Corporate Events

Cube System Inc. Announces Interim Dividend to Enhance Shareholder Value

Cube System Inc. announced an interim dividend distribution of 20.00 yen per share, maintaining its commitment to shareholder returns. The decision aligns with the company’s policy of stable dividends and a target payout ratio of 50%, reflecting its focus on sustainable growth and market capitalization enhancement.

The most recent analyst rating on (JP:2335) stock is a Buy with a Yen1246.00 price target. To see the full list of analyst forecasts on Cube System Inc. stock, see the JP:2335 Stock Forecast page.

Cube System Inc. Reports Stable Growth and Increased Operating Profit

Cube System Inc. reported stable growth in its SIer and End-User businesses, with a notable increase in its Service Providing Business. The company’s operating profit saw a significant rise due to improved profit margins and reduced personnel expenses. The demand for system development related to digital transformation and cloud migration remains high, contributing to the company’s steady growth. The earnings forecast remains unchanged from the previous disclosure.

The most recent analyst rating on (JP:2335) stock is a Buy with a Yen1246.00 price target. To see the full list of analyst forecasts on Cube System Inc. stock, see the JP:2335 Stock Forecast page.

Cube System Inc. Reports Mixed Financial Results for First Half of 2025

Cube System Inc. reported its consolidated financial results for the six months ending September 30, 2025, showing a slight increase in net sales by 1.3% compared to the previous year. Despite this, the profit attributable to owners of the parent decreased by 16.2%, reflecting challenges in maintaining profitability. The company forecasts a 6.3% increase in net sales for the full fiscal year ending March 31, 2026, with a slight decline in profit attributable to owners. This indicates a strategic focus on revenue growth while managing profitability challenges.

The most recent analyst rating on (JP:2335) stock is a Buy with a Yen1246.00 price target. To see the full list of analyst forecasts on Cube System Inc. stock, see the JP:2335 Stock Forecast page.