Jedat Inc. (3841) AI Stock Analysis

• Market Cap: ¥4.65B
• Dividend Yield: 3.14%
• Average Volume (3M): 2.54K
• Price to Earnings (P/E): 24.3
• Beta (1Y): -0.20
• Revenue Growth: -1.09%
• EPS Growth: -14.08%
• Country: JP
• Employees: 106
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 11.70
• Shares Outstanding: 3,909,800
• 10 Day Avg. Volume: 1,280
• 30 Day Avg. Volume: 2,540
• PEG Ratio: -0.70
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 2.52
• P/FCF Ratio: 42.68
• 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: 63 Neutral
• Price Target: ¥1,182.00 ▼(-9.49% Downside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is primarily supported by solid financial stability (strong margins and a debt-free balance sheet), but is held back by weak technical conditions (trading below all major moving averages with negative MACD) and concerns around recent profitability and cash-flow consistency. The dividend yield helps, though the P/E remains moderately elevated.

Positive Factors

Debt-free balance sheet

Zero reported debt materially lowers financial risk and gives management durable flexibility to fund R&D, M&A or dividends without refinancing pressure. A strong equity base that has trended up supports resilience through cycles and cushions earnings volatility over the next several quarters.

High gross and EBIT margins

Sustained high gross margins reflect software pricing power and low variable costs, enabling steady operating margins and funding for product development. Healthy EBIT/EBITDA margins support cash generation potential and imply a defensible business model versus lower‑margin competitors over the medium term.

Dividend support and FCF rebound

A meaningful dividend combined with a 2025 free cash flow rebound shows the business can return capital when cash conversion recovers. This supports shareholder returns and signals underlying earnings can convert to distributable cash, improving long‑term investor confidence if consistency improves.

Negative Factors

Net margin deterioration

A sharp drop in net margin reduces retained earnings and free cash available for reinvestment or dividends. If margin compression persists, it will weaken returns on equity and limit capital allocation choices, making long‑term growth and shareholder paybacks harder to sustain without structural cost or pricing fixes.

Revenue growth has stalled

Near‑flat top‑line growth reduces operating leverage and the ability to scale fixed costs, pressuring future margin expansion. Persistent slowdown would force reliance on cost cuts or new product/market entry to restore growth, making revenue trajectory a key structural risk over the coming 2–6 months.

Cash flow volatility & weak conversion

Large swings between reported profits and operating cash indicate weak working capital control and unpredictable cash conversion. Low coverage of net income by operating cash reduces financial flexibility to self‑fund growth or dividends and raises the risk of needing balance‑sheet measures in downturns.

Jedat Inc. Business Overview & Revenue Model

Company Description

Jedat Inc. develops, distributes, and sells electronic design automation (EDA) software for circuit and layout design worldwide. The company provides LSI design, flat panel display design, fine pattern design, and PCB and package design services; and SX-Meister, an EDA system, as well as EDA tools for SoC design. It also offers analog and display solutions. The company was founded in 1980 and is headquartered in Chuo, Japan.

How the Company Makes Money

Jedat Inc. makes money by selling its electronic design automation (EDA) software tools to semiconductor manufacturers, design houses, and other companies involved in the electronics and semiconductor industries. The company's revenue model primarily involves the sale of software licenses, which can be on a perpetual or subscription basis, providing a steady stream of income. Additionally, Jedat Inc. may generate revenue through maintenance and support services associated with their software products, offering updates and technical assistance. The company may also engage in strategic partnerships or collaborations that enhance its market reach and product offerings, contributing to its revenue growth.

Jedat Inc. Financial Statement Overview

Summary

Strong, low-risk financial profile supported by consistently high gross margins and a debt-free balance sheet. Offsetting this are a sharp decline in net margin in 2025, a recent slowdown in revenue growth, and uneven cash conversion with volatile operating cash flow.

Income Statement

Revenue has grown over the long term (2020–2025) but has recently flattened (2025 annual revenue growth ~0.1% vs ~2% in 2023–2024). Profitability remains solid for a software business with consistently strong gross margins (~57%–65%) and healthy EBIT/EBITDA margins (~11%–17%). The main weakness is earnings volatility: net profit margin fell to ~10.3% in 2025 from ~15.9% in 2024, indicating weaker conversion of revenue into bottom-line profit in the latest year.

Balance Sheet

The balance sheet is very conservative with zero total debt across all reported years, which materially reduces financial risk. Equity is sizable and has generally trended up over time, supporting balance-sheet resilience. The trade-off is moderate returns for shareholders: return on equity has been positive but not high, easing from ~9.3% (2024) to ~5.9% (2025), which suggests profitability is not fully leveraging the capital base.

Cash Flow

Cash generation is mixed. Free cash flow rebounded strongly in 2025 (positive with high growth off a negative 2024), and free cash flow has generally tracked net income reasonably well in most years. However, cash flow volatility is a key risk: operating cash flow was negative in 2024 despite strong net income, and 2025 operating cash flow was relatively low versus profits (operating cash flow coverage of net income is ~0.20), pointing to working-capital swings and less consistent cash conversion.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.06B	2.06B	2.02B	1.97B	1.82B
Gross Profit	1.31B	1.29B	1.31B	1.26B	1.14B
EBITDA	321.86M	333.10M	347.11M	238.93M	173.55M
Net Income	213.43M	328.69M	266.38M	169.27M	101.46M
Balance Sheet
Total Assets	4.27B	4.52B	4.49B	4.33B	3.35B
Cash, Cash Equivalents and Short-Term Investments	2.55B	3.49B	3.64B	3.46B	2.71B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	679.11M	981.36M	1.19B	1.22B	424.63M
Stockholders Equity	3.59B	3.53B	3.30B	3.11B	2.93B
Cash Flow
Free Cash Flow	121.94M	-68.12M	281.57M	785.74M	37.14M
Operating Cash Flow	137.87M	-65.18M	311.15M	795.93M	62.73M
Investing Cash Flow	13.99M	-3.36M	-52.08M	-19.74M	-33.66M
Financing Cash Flow	-153.97M	-96.23M	-74.92M	-37.53M	-36.77M

Jedat Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1306.00
• 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:3841, the sentiment is Neutral. The current price of 1306 is above the 20-day moving average (MA) of 1170.00, above the 50-day MA of 1248.94, and below the 200-day MA of 1318.58, indicating a neutral trend. The MACD of -24.63 indicates Negative momentum. The RSI at 49.74 is Neutral, neither overbought nor oversold. The STOCH value of 62.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3841.

Jedat Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4429	73 Outperform	¥4.32B	13.21	―	―	―	―
3816	71 Outperform	¥4.61B	12.67	7.21%	1.70%	-0.23%	23.25%
4075	67 Neutral	¥4.93B	29.16	―	―	28.63%	551.37%
5033	66 Neutral	¥4.93B	13.38	―	―	7.60%	19.13%
3841	63 Neutral	¥4.65B	24.31	―	3.14%	-1.09%	-14.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4448	58 Neutral	¥13.02B	60.03	―	―	14.63%	-760.87%

Jedat Inc. Corporate Events

Jedat Posts Lower Q3 Earnings but Maintains Strong Balance Sheet and Dividend Plan

Jedat Inc. reported net sales of ¥1,502 million for the third quarter ended December 2025, a slight 1.2% decline year on year, with operating profit down 4.8% to ¥156 million and ordinary profit falling 17.8% to ¥164 million, leading to a 16.4% drop in quarterly profit to ¥120 million and lower basic earnings per share of ¥31.30. Despite the weaker earnings, the company’s financial position remains solid, with total assets of ¥4,356 million, a high capital adequacy ratio of 81.7%, and net assets of ¥3,560 million, and it continues to plan a full-year dividend of ¥40 per share, signaling an intention to maintain shareholder returns even amid short-term profit pressure.

The most recent analyst rating on (JP:3841) stock is a Hold with a Yen1412.00 price target. To see the full list of analyst forecasts on Jedat Inc. stock, see the JP:3841 Stock Forecast page.