Cube System Inc. (2335) AI Stock Analysis

• Market Cap: ¥15.74B
• Dividend Yield: 3.75%
• Average Volume (3M): 13.27K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.62
• Revenue Growth: 1.83%
• EPS Growth: 19.05%
• Country: JP
• Employees: 886
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): 23.68
• Shares Outstanding: 15,750,000
• 10 Day Avg. Volume: 11,660
• 30 Day Avg. Volume: 13,266
• PEG Ratio: -12.08
• Price to Book (P/B): 1.56
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: ¥1,212.00 ▲(14.12%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. shows strong financial performance with increasing revenue and profitability. The company maintains a robust balance sheet with minimal leverage and strong equity, but recent cash flow data gaps could imply operational challenges.

Income Statement

Cube System Inc. shows strong financial performance with increasing revenue and profitability. The TTM data indicates a gross profit margin of 21.39% and a net profit margin of 6.69%. Revenue growth from 2023 to 2024 was significant at 10.40%, reflecting positive market demand. EBIT and EBITDA margins are solid at 6.98% and 9.35% respectively, showcasing operational efficiency.

Balance Sheet

The company maintains a robust balance sheet with a low debt-to-equity ratio of 0.02, indicating minimal leverage. Return on equity is healthy at 11.82%, driven by strong net income. The equity ratio of 76.61% highlights a strong equity base, providing stability. However, a slight decline in total assets in the TTM indicates potential operational challenges.

Cash Flow

Cash flow metrics show a mixed picture. While the free cash flow to net income ratio is strong, indicating effective cash conversion, the absence of operating cash flow in the TTM period is concerning. Historical data shows positive cash flows, but the recent lack of data suggests potential cash management issues.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
18.11B	18.02B	16.33B	16.10B	14.79B	14.71B
	Gross Profit
3.87B	3.92B	3.57B	3.45B	2.84B	2.50B
	EBIT
1.26B	1.54B	1.45B	1.42B	1.17B	959.01M
	EBITDA
1.69B	1.64B	1.53B	1.49B	1.34B	951.74M
	Net Income Common Stockholders
1.21B	1.07B	989.67M	944.70M	844.00M	525.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.84B	6.84B	6.85B	5.06B	4.47B	3.68B
	Total Assets
13.49B	13.49B	12.55B	10.06B	9.44B	8.05B
	Total Debt
230.00M	230.00M	240.00M	240.00M	280.00M	240.00M
	Net Debt
-6.61B	-6.61B	-6.51B	-4.82B	-4.19B	-3.34B
	Total Liabilities
3.35B	3.35B	2.93B	2.85B	2.93B	2.41B
	Stockholders Equity
10.13B	10.13B	9.62B	7.17B	6.48B	5.60B
Cash Flow		Free Cash Flow
0.00	974.95M	879.39M	971.81M	1.00B	745.49M
	Operating Cash Flow
0.00	1.04B	891.96M	1.02B	1.04B	747.33M
	Investing Cash Flow
0.00	-259.85M	-304.71M	-134.34M	58.50M	25.96M
	Financing Cash Flow
0.00	-672.01M	1.10B	-324.11M	-215.21M	-339.28M

Cube System Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1062.00
• 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 1062 is above the 20-day moving average (MA) of 1055.05, above the 50-day MA of 1014.84, and above the 200-day MA of 1007.45, indicating a bullish trend. The MACD of 12.75 indicates Positive momentum. The RSI at 58.70 is Neutral, neither overbought nor oversold. The STOCH value of 72.92 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	¥15.74B	12.73		3.75%	1.83%	19.05%
9799	79 Outperform	¥17.43B	14.21		2.94%	6.99%	11.02%
4761	78 Outperform	¥14.45B	12.62		2.48%	-1.02%	27.93%
2185	74 Outperform	¥19.50B	9.22		4.64%	4.16%	36.43%
3968	70 Neutral	¥16.70B	150.93		2.13%	4.02%	-87.61%
3837	67 Neutral	¥18.94B	16.18		2.82%	11.03%	14.63%
Sector *	62 Neutral	$11.72B	10.43	-7.10%	2.91%	7.41%	-7.94%

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.