Japan System Techniques Co., Ltd. (4323) AI Stock Analysis

• Market Cap: ¥52.85B
• Dividend Yield: 1.64%
• Average Volume (3M): 51.12K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.88
• Revenue Growth: 13.48%
• EPS Growth: 35.63%
• Country: JP
• Employees: 1,847
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 31.75
• Shares Outstanding: 24,836,920
• 10 Day Avg. Volume: 33,110
• 30 Day Avg. Volume: 51,120
• PEG Ratio: 1.09
• Price to Book (P/B): 3.01
• Price to Sales (P/S): 1.52
• P/FCF Ratio: 27.08
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ¥2,584.00 ▲(12.20% Upside)

The overall stock score of 72 reflects strong financial performance, which is the most significant factor, supported by robust revenue growth, solid balance sheet, and strong cash flow generation. Technical analysis indicates a positive short-term trend, although momentum indicators suggest caution. Valuation is fair, with a reasonable P/E ratio and moderate dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a successful business model and expanding market presence, supporting long-term financial stability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Low Leverage

Low leverage reduces financial risk, providing stability and the ability to withstand economic downturns or invest in growth.

Negative Factors

Weak Technical Indicators

Persistent weak technical indicators could reflect underlying challenges in market perception, potentially impacting investor confidence.

Absence of Earnings Call Data

Lack of recent earnings call data limits transparency and investor insight into management's strategic direction and performance outlook.

Lack of Recent Corporate Events

Absence of recent corporate events may indicate a lack of strategic initiatives or partnerships, potentially affecting growth prospects.

Japan System Techniques Co., Ltd. Business Overview & Revenue Model

Company Description

Japan System Techniques Co., Ltd. engages in the software business in Japan. The company offers software development services; provides business and engineering applications; and operates in medical big data business. It also offers system consultation, integration, and management and administration services; sells systems; develops and sells software package products; and provides database services. The company was incorporated in 1973 and is headquartered in Tokyo, Japan.

How the Company Makes Money

The company generates revenue through multiple streams, primarily from its IT service offerings, including custom software development and system integration projects. Japan System Techniques also earns money through recurring revenue models, such as maintenance and support services for the software and systems they implement. Additionally, partnerships with other technology firms and enterprises in need of IT solutions contribute to their revenue. The company may also participate in government contracts and projects, which can provide significant income opportunities. Overall, the combination of project-based work and ongoing service contracts plays a crucial role in the company's financial performance.

Japan System Techniques Co., Ltd. Financial Statement Overview

Summary

Japan System Techniques Co., Ltd. exhibits strong financial health across all verticals. The income statement shows consistent revenue and profit growth, supported by efficient operations. The balance sheet is solid with low leverage and high returns on equity. Cash flow generation is robust, enhancing the company's financial flexibility. Overall, the company is well-positioned for continued growth and stability in the software application industry.

Income Statement

The company demonstrates strong revenue growth with a consistent increase over the years, reaching a TTM revenue growth rate of 2.53%. Gross profit margins have improved slightly, indicating efficient cost management. Net profit margins are stable, reflecting solid profitability. EBIT and EBITDA margins are healthy, supporting operational efficiency.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio, indicating minimal leverage and financial risk. Return on equity is strong at 18.15% TTM, showcasing effective use of equity to generate profits. The equity ratio is stable, reflecting a solid capital structure.

Cash Flow

Cash flow performance is strong with significant free cash flow growth of 71.68% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is stable, suggesting efficient cash conversion. The free cash flow to net income ratio is high, reflecting strong cash profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.07B	29.32B	26.18B	23.52B	21.40B	18.79B
Gross Profit	8.62B	8.27B	7.27B	6.38B	5.69B	4.62B
EBITDA	3.72B	3.56B	3.08B	2.64B	2.16B	1.20B
Net Income	2.58B	2.44B	2.09B	1.77B	1.33B	578.88M
Balance Sheet
Total Assets	23.37B	22.91B	20.02B	17.41B	15.54B	12.86B
Cash, Cash Equivalents and Short-Term Investments	10.44B	7.21B	7.97B	7.21B	6.46B	4.85B
Total Debt	63.19M	68.13M	78.44M	40.36M	8.52M	410.60M
Total Liabilities	9.00B	8.08B	7.31B	6.60B	6.35B	6.01B
Stockholders Equity	14.31B	14.76B	12.66B	10.77B	9.16B	6.82B
Cash Flow
Free Cash Flow	2.82B	1.64B	1.39B	976.24M	1.08B	2.03B
Operating Cash Flow	2.93B	1.76B	1.89B	1.07B	1.16B	2.13B
Investing Cash Flow	-1.75B	-1.98B	-761.48M	-541.66M	-80.91M	87.03M
Financing Cash Flow	-768.36M	-599.35M	-424.08M	-280.82M	486.86M	-1.25B

Japan System Techniques Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2303.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4323, the sentiment is Neutral. The current price of 2303 is above the 20-day moving average (MA) of 2255.25, below the 50-day MA of 2303.30, and above the 200-day MA of 1995.01, indicating a neutral trend. The MACD of 17.13 indicates Negative momentum. The RSI at 47.97 is Neutral, neither overbought nor oversold. The STOCH value of 14.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4323.

Japan System Techniques Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3771	77 Outperform	¥32.72B	13.42	―	2.71%	11.53%	23.23%
4719	76 Outperform	€57.84B	16.90	7.99%	3.03%	8.26%	9.09%
3648	76 Outperform	¥24.25B	11.99	―	2.23%	21.57%	129.44%
3835	74 Outperform	¥20.27B	17.19	―	3.10%	0.50%	-2.92%
4323	72 Outperform	¥52.85B	20.35	―	1.64%	13.48%	35.63%
3800	68 Neutral	¥13.89B	18.76	―	3.65%	0.85%	12.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Japan System Techniques Co., Ltd. Corporate Events

Japan System Techniques Reports Strong Q2 Financial Performance

Japan System Techniques Co., Ltd. reported significant growth in its financial performance for the second quarter of the fiscal year ending March 31, 2026. The company saw a 12.6% increase in net sales and a substantial rise in operating profit by 61.9%, indicating strong operational efficiency and market demand. The company’s equity ratio improved to 66.3%, reflecting a solid financial position. The announcement highlights the company’s robust growth trajectory and its ability to deliver value to shareholders, as evidenced by the increased earnings per share and planned dividend payments.

The most recent analyst rating on (JP:4323) stock is a Hold with a Yen2364.00 price target. To see the full list of analyst forecasts on Japan System Techniques Co., Ltd. stock, see the JP:4323 Stock Forecast page.

Japan System Techniques Co., Ltd. Introduces Interim Dividend to Enhance Shareholder Returns

Japan System Techniques Co., Ltd. has announced the introduction of an interim dividend of 11 yen per share for the fiscal year ending March 31, 2026, as part of its strategy to enhance shareholder returns. This move marks a significant shift from the previous fiscal year, where no interim dividend was paid, and reflects the company’s strong operating results and profit levels, with an expected annual dividend of 35 yen per share.

The most recent analyst rating on (JP:4323) stock is a Buy with a Yen2306.00 price target. To see the full list of analyst forecasts on Japan System Techniques Co., Ltd. stock, see the JP:4323 Stock Forecast page.

Japan System Techniques Reports Strong First Quarter Financial Results

Japan System Techniques Co., Ltd. reported a significant increase in its financial performance for the first quarter ending June 30, 2025, with net sales rising by 11.8% and profit attributable to owners of the parent increasing by 77.8% compared to the previous year. The company forecasts continued growth for the fiscal year ending March 31, 2026, with expected increases in net sales and profits, indicating a strong market position and positive outlook for stakeholders.

The most recent analyst rating on (JP:4323) stock is a Buy with a Yen2405.00 price target. To see the full list of analyst forecasts on Japan System Techniques Co., Ltd. stock, see the JP:4323 Stock Forecast page.

Japan System Techniques Enhances Shareholder Benefit Program

Japan System Techniques Co., Ltd. has announced an upgrade to its Shareholder Benefit Program to express appreciation to shareholders and attract long-term investors. The new program introduces a benefit category for shareholders holding 100 or more shares, offering incentives to encourage continuous investment in the company, which could strengthen shareholder loyalty and potentially enhance the company’s market positioning.

The most recent analyst rating on (JP:4323) stock is a Buy with a Yen2405.00 price target. To see the full list of analyst forecasts on Japan System Techniques Co., Ltd. stock, see the JP:4323 Stock Forecast page.