Billing System Corporation (3623) AI Stock Analysis

• Market Cap: ¥7.20B
• Dividend Yield: 1.18%
• Average Volume (3M): 25.05K
• Price to Earnings (P/E): 17.8
• Beta (1Y): -0.26
• Revenue Growth: 6.95%
• EPS Growth: -9.62%
• Country: JP
• Employees: 102
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 21.51
• Shares Outstanding: 6,564,400
• 10 Day Avg. Volume: 28,840
• 30 Day Avg. Volume: 25,050
• PEG Ratio: 58.14
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 1.37
• P/FCF Ratio: 1.48
• 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: 79 Outperform
• Price Target: ¥1,290.00 ▲(29.52% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by strong financial quality (steady growth, improving operating profitability, and a zero-debt balance sheet). Technicals are supportive due to the uptrend, but overbought indicators temper the outlook. Valuation appears reasonable with a modest dividend yield.

Positive Factors

Zero-debt balance sheet

Zero reported debt materially reduces refinancing and interest-rate risk, giving management durable financial flexibility. That conservatism supports consistent capital allocation (R&D, dividends, buybacks) and resilience through cycles, improving long-term solvency and optionality.

Steady revenue growth & margin expansion

Sustained top-line growth with multi-year operating margin expansion indicates scalable product-market fit and operating leverage. Improving EBIT margins reflect better cost absorption and pricing power, supporting lasting profit generation as revenues scale.

Strong 2025 cash generation

Robust free cash flow that roughly equals net income demonstrates high cash conversion in the latest year, enabling self-funded investment and shareholder returns. Durable cash generation in 2025 strengthens liquidity and supports strategic initiatives without new debt.

Negative Factors

Volatile cash flows

Intermittent negative or declining cash flow years reduce confidence in consistency of cash generation. Variability complicates budgeting for capex, R&D, and dividends; if volatility recurs it could force conservative capital choices despite a strong latest-year result.

Net margin compression

A declining net margin despite revenue gains signals rising non-operating costs, taxes or lower efficiency at the bottom line. Persistent margin compression would limit retained earnings and reinvestment capacity, weakening long-term profitability sustainability.

Rapid asset growth & efficiency risk

Big asset expansion relative to earnings can indicate rising working-capital needs or capital intensity that depresses returns. If assets grow faster than productive revenue, ROA and capital efficiency could deteriorate, pressuring long-term cash returns and operational agility.

Billing System Corporation Business Overview & Revenue Model

Company Description

Billing System Corporation provides settlement services in Japan. It offers settlement agency services, including account transfer, credit card payment, web direct debit contract acceptance, daily quotes/immediate quotes, payment slip settlement, convenience store settlement, billing agency, and SMS link payment services; real-time deposit confirmation services; e-JIBAI payment and branch sales concentration services; smartphone multi-payment services; multi-money payment reader for vending machines; money transfer services; and payment and finance agency services. The company was incorporated in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Billing System Corporation generates revenue primarily through the sale and licensing of its software products, which are tailored to meet the specific needs of different industries. The company offers subscription-based pricing models, where clients pay recurring fees for access to its software solutions, as well as one-time licensing fees for perpetual software licenses. Additionally, the company provides value-added services such as customization, integration, and ongoing technical support, which contribute to its service revenue. Strategic partnerships with technology providers and resellers also play a crucial role in expanding the company's market reach and driving sales growth.

Billing System Corporation Financial Statement Overview

Summary

Strong overall fundamentals: steady revenue growth with improved operating profitability and a conservative, zero-debt balance sheet. Offsets include cash-flow volatility (including a negative year) and a modest net margin dip in 2025.

Income Statement

Revenue has grown steadily across the period, with 2025 revenue up to 4.55B and growth re-accelerating (vs. a near-flat 2024). Profitability is healthy and consistent for a software business: gross margin stayed in the mid-30% range, while operating profitability improved versus earlier years (EBIT margin ~14% in 2025 vs. ~6% in 2020). The main weakness is that net margin dipped from 2024 to 2025 (about 9.6% to 9.0%), suggesting some cost or tax pressure despite higher sales.

Balance Sheet

The balance sheet is conservatively positioned with zero debt reported across all periods and a debt-to-equity ratio of 0.0, which materially reduces financial risk and refinancing sensitivity. Equity has also grown over time (to ~3.13B in 2025), supporting balance sheet resilience. A key watch item is that total assets expanded significantly (to ~30.15B in 2025), and without more detail on asset mix or liabilities, the pace of asset growth versus earnings warrants monitoring for efficiency and working-capital intensity.

Cash Flow

Cash generation is generally strong in the more recent years, with 2025 operating cash flow (~4.20B) and free cash flow (~4.20B) both robust and free cash flow closely tracking net income (near 1x). However, cash flow is volatile: 2022 posted negative operating and free cash flow, and free cash flow declined in 2024 (negative growth) before recovering in 2025. This variability reduces confidence in consistency, even though the latest year looks solid.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.35B	4.55B	4.22B	3.78B	3.43B	3.14B
Gross Profit	1.53B	1.62B	1.53B	1.37B	1.21B	1.03B
EBITDA	650.45M	690.46M	676.45M	518.36M	535.97M	401.53M
Net Income	383.00M	408.02M	406.90M	300.06M	323.04M	224.02M
Balance Sheet
Total Assets	34.41B	30.15B	25.95B	21.29B	15.16B	16.02B
Cash, Cash Equivalents and Short-Term Investments	32.31B	27.82B	23.80B	19.58B	13.58B	14.88B
Total Debt	840.00M	0.00	0.00	0.00	0.00	0.00
Total Liabilities	31.34B	26.87B	23.00B	18.68B	12.80B	13.93B
Stockholders Equity	2.94B	3.13B	2.83B	2.50B	2.26B	2.00B
Cash Flow
Free Cash Flow	0.00	4.20B	4.31B	6.00B	-1.14B	6.26B
Operating Cash Flow	0.00	4.20B	4.36B	6.13B	-1.12B	6.33B
Investing Cash Flow	0.00	-37.85M	-48.31M	-66.15M	-112.51M	-86.03M
Financing Cash Flow	0.00	-147.85M	-80.69M	-66.76M	-66.83M	-155.66M

Billing System Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 996.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3623, the sentiment is Positive. The current price of 996 is below the 20-day moving average (MA) of 1058.40, below the 50-day MA of 1018.01, and below the 200-day MA of 1045.69, indicating a bullish trend. The MACD of 39.52 indicates Negative momentum. The RSI at 78.98 is Negative, neither overbought nor oversold. The STOCH value of 83.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3623.

Billing System Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3623	79 Outperform	¥7.20B	17.79	―	1.18%	6.95%	-9.62%
4431	75 Outperform	¥47.93B	28.22	―	0.52%	26.98%	19.69%
4374	72 Outperform	¥8.73B	16.26	―	0.47%	19.35%	71.74%
3633	65 Neutral	¥10.66B	12.15	―	2.16%	2.75%	25.24%
3769	64 Neutral	¥591.50B	27.38	19.76%	1.47%	11.81%	16.69%
4419	62 Neutral	¥43.13B	41.54	―	―	29.31%	62.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%