Jedat Inc. (3841) AI Stock Analysis

• Market Cap: ¥4.58B
• Dividend Yield: 3.14%
• Average Volume (3M): 2.54K
• Price to Earnings (P/E): 23.9
• 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 reduces financial risk and gives management durable flexibility to fund R&D, M&A or weather downturns without refinancing stress. A growing equity base supports balance-sheet resilience, lowering insolvency risk over the next 2–6 months.

High Gross & EBITDA Margins

Sustained high gross margins and solid operating margins imply pricing power and efficient cost structure typical of durable application software franchises. These margins provide cushion against revenue variability and fund reinvestment, supporting margin sustainability over time.

Positive Free Cash Flow Trend

Rebounding and generally positive free cash flow demonstrates the company's ability to convert earnings into spendable cash, enabling durable funding for capex, dividends or buybacks. This cash generation mitigates financing risk despite some volatility.

Negative Factors

Revenue Growth Weakness

A near-flat top line reduces operating leverage and limits the company's ability to expand profits organically. If growth remains stagnant, sustaining margins and justifying reinvestment becomes harder, increasing strategic pressure on product, sales or pricing initiatives.

Earnings Volatility & Margin Decline

A sharp decline in net margin signals inconsistent cost control or one-off impacts and raises uncertainty over sustainable profitability. Persistent margin swings hinder forecasting, reduce return on equity and complicate capital allocation decisions over the medium term.

Inconsistent Operating Cash Conversion

Weak and volatile operating cash conversion exposes the company to working-capital and liquidity risk despite positive accounting profits. Low cash coverage limits internal funding flexibility for growth or dividends and increases reliance on the balance sheet to smooth cash needs.

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: Negative
• 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 Negative. The current price of 1306 is above the 20-day moving average (MA) of 1175.70, above the 50-day MA of 1245.00, and below the 200-day MA of 1317.16, indicating a neutral trend. The MACD of -20.36 indicates Negative momentum. The RSI at 46.50 is Neutral, neither overbought nor oversold. The STOCH value of 79.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥4.35B	13.30	―	―	―	―
3816	71 Outperform	¥4.52B	12.43	7.21%	1.70%	-0.23%	23.25%
4075	67 Neutral	¥4.69B	27.71	―	―	28.63%	551.37%
5033	66 Neutral	¥4.83B	13.11	―	―	7.60%	19.13%
3841	63 Neutral	¥4.58B	23.94	―	3.14%	-1.09%	-14.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4448	58 Neutral	¥11.75B	54.18	―	―	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.