PBsystems, Inc. (4447) AI Stock Analysis

• Market Cap: ¥3.19B
• Dividend Yield: 4.17%
• Average Volume (3M): 5.12K
• Price to Earnings (P/E): 35.3
• Beta (1Y): 0.35
• Revenue Growth: -15.23%
• EPS Growth: -65.39%
• Country: JP
• Employees: 65
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 14.33
• Shares Outstanding: 6,583,500
• 10 Day Avg. Volume: 9,540
• 30 Day Avg. Volume: 5,120
• PEG Ratio: -0.61
• Price to Book (P/B): 2.95
• Price to Sales (P/S): 1.29
• P/FCF Ratio: 18.85
• 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: 61 Neutral
• Price Target: ¥518.00 ▲(5.50% Upside)

The score is primarily supported by strong financial flexibility (near-zero debt) and improved 2025 free cash flow, but is held back by the latest year’s sharp revenue drop and margin compression. Technical signals remain mixed with a negative MACD and price below longer-term averages, and valuation looks demanding on P/E despite the supportive dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand for PBsystems' products and services, enhancing its competitive position and long-term sustainability.

Financial Stability

A strong balance sheet with low leverage provides PBsystems with financial flexibility to invest in growth opportunities and weather economic downturns.

Profitability

Improved profitability through efficient cost management strengthens PBsystems' ability to reinvest in its business and reward shareholders.

Negative Factors

Earnings Decline

A decline in earnings per share growth suggests potential challenges in maintaining profitability, which could impact future financial performance.

Cash Flow Management

Suboptimal cash retention could limit PBsystems' ability to fund new projects or return capital to shareholders, affecting long-term growth prospects.

Employee Base

A relatively small employee base might constrain PBsystems' ability to scale operations and meet growing demand, potentially impacting service delivery and innovation.

PBsystems, Inc. Business Overview & Revenue Model

Company Description

PBsystems,Inc. engages in the construction of secure cloud system in Japan. It offers form printing support tool for the Citrix environment and Microsoft's remote desktop; file transfer tool that expands the range of Citrix integration; and production management packages, such as amount input type, and forecast and actual cost comparison type. The company also manufactures and sells emotional sharing VR theaters, MetaWalkers. In addition, it offers system cloud migration for companies and local governments to DX promotion and metaverse. PBsystems,Inc. was incorporated in 1997 and is based in Fukuoka, Japan.

How the Company Makes Money

PBsystems generates revenue primarily through the sale of software licenses and subscriptions for its applications. The company also earns income from consulting services, where it helps clients customize and integrate their software solutions into existing systems. Key revenue streams include recurring subscription fees from clients who opt for cloud-based services, as well as one-time fees for software purchases. Additionally, PBsystems has established partnerships with major technology firms, which help in expanding its customer base and enhancing its service offerings, further contributing to its overall earnings.

PBsystems, Inc. Financial Statement Overview

Summary

Balance sheet strength (effectively zero debt and sizable equity) and a 2025 free cash flow rebound support the score, but the latest year showed a sharp revenue decline (-21.2% YoY) and meaningful margin compression, reducing earnings durability.

Income Statement

Profitability remains positive but has weakened materially in the latest annual period (2025-09-30). Revenue fell sharply (-21.2% YoY) and margins compressed meaningfully versus 2024 (net margin down to ~3.2% from ~8.2%; EBITDA margin down to ~5.2% from ~12.1%). The prior years (2022–2024) showed solid scale and healthy margins, but the most recent year’s step-down raises questions on near-term demand and earnings durability.

Balance Sheet

The balance sheet is a clear strength: debt is effectively zero in the latest year, and leverage has steadily improved from earlier periods (debt-to-equity declining from ~0.39 in 2020 to ~0.00 in 2025). Equity remains sizable (~¥1.15B), providing financial flexibility. The main weakness is lower recent profitability, reflected in a reduced return on equity (~7.4% in 2025 versus ~17.8% in 2024), which suggests capital is currently being used less efficiently.

Cash Flow

Cash generation is mixed but improving in the latest year. Free cash flow in 2025 was strong (~¥180M) and broadly aligned with earnings (free cash flow about ~94% of net income), indicating decent cash conversion recently. However, cash flow has been volatile across years (negative operating and free cash flow in 2022, very weak free cash flow in 2024), which lowers confidence in consistency despite the 2025 rebound.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.35B	2.63B	3.11B	2.90B	2.50B	2.17B
Gross Profit	837.66M	697.46M	890.97M	737.34M	669.22M	628.25M
EBITDA	288.50M	136.72M	376.17M	304.38M	269.14M	229.96M
Net Income	193.23M	85.59M	255.82M	205.50M	183.72M	164.81M
Balance Sheet
Total Assets	1.85B	1.82B	2.87B	1.98B	1.91B	1.57B
Cash, Cash Equivalents and Short-Term Investments	954.00M	775.37M	847.53M	1.05B	653.63M	786.82M
Total Debt	0.00	0.00	24.28M	66.09M	117.91M	173.94M
Total Liabilities	691.00M	666.72M	1.44B	718.83M	1.02B	835.78M
Stockholders Equity	1.16B	1.15B	1.44B	1.26B	891.27M	731.90M
Cash Flow
Free Cash Flow	0.00	180.35M	21.81M	363.53M	-77.75M	217.52M
Operating Cash Flow	0.00	190.94M	58.42M	385.32M	-73.11M	232.45M
Investing Cash Flow	0.00	-326.71M	-48.03M	-24.80M	-4.64M	-14.92M
Financing Cash Flow	0.00	-393.12M	-122.68M	97.30M	-56.09M	-80.93M

PBsystems, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 491.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4447, the sentiment is Negative. The current price of 491 is below the 20-day moving average (MA) of 500.80, above the 50-day MA of 486.64, and below the 200-day MA of 524.58, indicating a neutral trend. The MACD of 3.36 indicates Positive momentum. The RSI at 53.03 is Neutral, neither overbought nor oversold. The STOCH value of 21.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4447.

PBsystems, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4447	61 Neutral	¥3.19B	35.33	―	4.17%	-15.23%	-65.39%
4484	55 Neutral	¥4.71B	27.31	―	―	4.36%	-0.02%
3909	51 Neutral	¥2.99B	3.38	―	―	-32.56%	―
4014	50 Neutral	¥3.02B	-419.50	―	―	-51.54%	-111.68%
4387	50 Neutral	¥3.20B	459.54	―	―	-4.30%	―