Billing System Corporation (3623) AI Stock Analysis

• Market Cap: ¥6.44B
• Dividend Yield: 1.2%
• Average Volume (3M): 25.05K
• Price to Earnings (P/E): 16.2
• Beta (1Y): -0.33
• Revenue Growth: 6.95%
• EPS Growth: -9.62%
• Country: JP
• Employees: 102
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 15.43
• Shares Outstanding: 6,564,400
• 10 Day Avg. Volume: 28,840
• 30 Day Avg. Volume: 25,050
• PEG Ratio: 0.60
• Price to Book (P/B): 3.06
• Price to Sales (P/S): 2.06
• P/FCF Ratio: 2.01
• 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: 78 Outperform
• Price Target: ―

Billing System Corporation shows strong financial performance with impressive income and balance sheet strength. While technical indicators suggest positive momentum, the stock's current price trend indicates some recent weakness. The valuation appears reasonable with a fair P/E ratio and modest dividend yield. These factors collectively position the stock at a solid score, highlighting financial stability yet suggesting caution due to recent price trends.

Positive Factors

Strong Balance Sheet

A debt-free balance sheet reduces financial risk and enhances financial stability, allowing the company to invest in growth opportunities without the burden of interest obligations.

Revenue Growth

Steady revenue growth indicates strong market demand for the company's products and services, supporting long-term expansion and competitive positioning in the industry.

Cash Flow Management

Effective cash flow management ensures the company can meet its operational needs and invest in growth initiatives, enhancing financial flexibility and resilience.

Negative Factors

Earnings Growth Decline

A decline in earnings growth can signal challenges in maintaining profitability, potentially impacting investor confidence and the company's ability to reinvest in its business.

Cash Flow Fluctuations

Variability in cash flow growth can indicate potential instability in cash generation, which may affect the company's ability to fund operations and strategic initiatives consistently.

Earnings Call Sentiment

A negative change in sentiment since the earnings filing could reflect market concerns about future performance, potentially affecting investor perception and stock performance.

Billing System Corporation Business Overview & Revenue Model

Company Description

Billing System Corporation (3623) is a leading provider of comprehensive billing and invoicing solutions designed to streamline financial operations for businesses across various sectors. The company specializes in delivering cutting-edge software that automates billing processes, enhances payment collection, and improves overall financial management, catering primarily to enterprises in the telecommunications, utilities, and healthcare industries.

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

Billing System Corporation is in a strong financial position with steady revenue and profit growth, solid profitability margins, and a debt-free balance sheet. While cash flows are generally strong, minor fluctuations suggest room for vigilance in cash management. Overall, the company demonstrates stability and effective financial performance in the software infrastructure industry.

Income Statement

Billing System Corporation has demonstrated a strong performance in its income statement with consistently increasing total revenue and net income over the years. The gross profit margin and net profit margin have remained robust, and EBIT and EBITDA margins are healthy. The revenue growth rate has been impressive, indicating a positive trajectory in sales.

Balance Sheet

The company showcases a strong balance sheet with zero total debt, which implies low financial risk. The equity ratio is solid, reflecting a healthy proportion of equity financing. Return on Equity (ROE) is also robust, indicating effective use of shareholder funds to generate profit. The company is in a very stable financial position.

Cash Flow

The cash flow statements reveal a robust operating cash flow, which exceeds net income, indicating good cash conversion. Free cash flow has been positive and growing, suggesting effective capital expenditure management. The free cash flow to net income ratio is strong, reflecting efficient cash management. However, some fluctuations in free cash flow growth rate indicate potential variabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.35B	4.22B	3.78B	3.43B	3.14B	2.89B
Gross Profit	1.53B	1.53B	1.37B	1.21B	1.03B	861.73M
EBITDA	650.45M	676.45M	518.36M	535.97M	401.53M	213.60M
Net Income	383.00M	406.90M	300.06M	323.04M	224.02M	142.13M
Balance Sheet
Total Assets	34.41B	25.95B	21.29B	15.16B	16.02B	10.00B
Cash, Cash Equivalents and Short-Term Investments	32.31B	23.80B	19.58B	13.58B	14.88B	8.79B
Total Debt	840.00M	0.00	0.00	0.00	0.00	0.00
Total Liabilities	31.34B	23.00B	18.68B	12.80B	13.93B	7.98B
Stockholders Equity	2.94B	2.83B	2.50B	2.26B	2.00B	1.94B
Cash Flow
Free Cash Flow	0.00	4.31B	6.00B	-1.14B	6.26B	1.87B
Operating Cash Flow	0.00	4.36B	6.13B	-1.12B	6.33B	1.90B
Investing Cash Flow	0.00	-48.31M	-66.15M	-112.51M	-86.03M	-25.09M
Financing Cash Flow	0.00	-80.69M	-66.76M	-66.83M	-155.66M	-81.25M

Billing System Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1030.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3623, the sentiment is Negative. The current price of 1030 is below the 20-day moving average (MA) of 1039.80, below the 50-day MA of 1094.48, and below the 200-day MA of 1118.53, indicating a bearish trend. The MACD of -25.32 indicates Negative momentum. The RSI at 43.82 is Neutral, neither overbought nor oversold. The STOCH value of 30.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	78 Outperform	¥6.44B	16.25	―	1.20%	6.95%	-9.62%
4374	76 Outperform	¥10.70B	24.36	―	0.46%	19.35%	71.74%
3633	76 Outperform	¥12.20B	15.02	―	2.40%	2.75%	25.24%
4391	71 Outperform	¥3.51B	14.19	―	1.64%	8.31%	-2.44%
2428	69 Neutral	¥12.27B	11.74	―	4.31%	0.54%	9.99%
4494	67 Neutral	¥3.70B	9.88	―	―	1.62%	9.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%