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

• Market Cap: ¥52.85B
• Dividend Yield: 1.66%
• 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: 73 Outperform
• Price Target: ¥2,559.00 ▲(11.50% Upside)

Japan System Techniques Co., Ltd. demonstrates strong financial health with consistent growth and minimal leverage, which are significant strengths. The technical indicators suggest a generally positive trend, although the valuation is only moderately attractive. The absence of earnings call and corporate events data does not impact the overall score significantly.

Positive Factors

Revenue Growth

Consistent revenue growth indicates effective market strategies and product demand, supporting long-term business expansion.

Cash Generation

Strong cash generation enhances financial flexibility, enabling reinvestment in growth opportunities and shareholder returns.

Balance Sheet Health

Minimal leverage reduces financial risk and interest obligations, ensuring stability and resilience against economic fluctuations.

Negative Factors

Earnings Call Data Absence

Lack of earnings call data limits transparency and investor insights into management's strategic direction and business outlook.

Corporate Events Data Absence

Absence of corporate events information may indicate a lack of strategic initiatives or partnerships, potentially impacting growth.

Moderate Valuation

Moderate valuation suggests limited upside potential, which could affect investor interest and stock performance in the medium term.

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

Company Description

Japan System Techniques Co., Ltd. (4323) is a Japanese company specializing in the development and provision of IT solutions and services. The company operates primarily in the information technology sector, offering a range of products and services including system integration, software development, and IT consulting. Japan System Techniques focuses on creating innovative solutions for various industries, enhancing operational efficiency and productivity for its clients.

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.

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	30.99B	29.32B	26.18B	23.52B	21.40B	18.79B
Gross Profit	9.12B	8.27B	7.27B	6.38B	5.69B	4.62B
EBITDA	4.17B	3.56B	3.08B	2.64B	2.16B	1.20B
Net Income	2.88B	2.44B	2.09B	1.77B	1.33B	578.88M
Balance Sheet
Total Assets	22.78B	22.91B	20.02B	17.41B	15.54B	12.86B
Cash, Cash Equivalents and Short-Term Investments	9.19B	7.21B	7.97B	7.21B	6.46B	4.85B
Total Debt	60.41M	68.13M	78.44M	40.36M	8.52M	410.60M
Total Liabilities	7.62B	8.08B	7.31B	6.60B	6.35B	6.01B
Stockholders Equity	15.09B	14.76B	12.66B	10.77B	9.16B	6.82B
Cash Flow
Free Cash Flow	3.94B	1.64B	1.39B	976.24M	1.08B	2.03B
Operating Cash Flow	3.98B	1.76B	1.89B	1.07B	1.16B	2.13B
Investing Cash Flow	-1.59B	-1.98B	-761.48M	-541.66M	-80.91M	87.03M
Financing Cash Flow	-765.03M	-599.35M	-424.08M	-280.82M	486.86M	-1.25B

Japan System Techniques Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2295.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2295 is below the 20-day moving average (MA) of 2308.80, below the 50-day MA of 2297.56, and above the 200-day MA of 2012.78, indicating a neutral trend. The MACD of 13.36 indicates Negative momentum. The RSI at 50.40 is Neutral, neither overbought nor oversold. The STOCH value of 48.64 is Neutral, 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	―	3.06%	11.53%	23.23%
4719	76 Outperform	€57.84B	16.90	7.99%	2.76%	8.26%	9.09%
3648	76 Outperform	¥22.95B	11.34	―	2.37%	21.57%	129.44%
3835	74 Outperform	¥19.99B	16.95	―	3.22%	0.50%	-2.92%
4323	73 Outperform	¥52.85B	20.35	―	1.66%	13.48%	35.63%
3800	68 Neutral	¥13.88B	18.79	―	3.67%	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 Results

Japan System Techniques Co., Ltd. reported a significant increase in its consolidated financial results for the second quarter ending September 30, 2025, with net sales rising by 12.6% and operating profit surging by 61.9% compared to the previous year. This strong performance reflects the company’s robust market position and effective operational strategies, indicating positive implications for stakeholders and a promising outlook for the fiscal year ending March 31, 2026.

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.

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.