Computer Management Co., Ltd. (4491) AI Stock Analysis

• Market Cap: ¥6.04B
• Dividend Yield: 1.87%
• Average Volume (3M): 10.16K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.53
• Revenue Growth: 6.18%
• EPS Growth: 29.79%
• Country: JP
• Employees: 694
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 46.12
• Shares Outstanding: 2,038,000
• 10 Day Avg. Volume: 5,720
• 30 Day Avg. Volume: 10,156
• PEG Ratio: 0.42
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 7.49
• 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: 82 Outperform
• Price Target: ¥3,441.00 ▲(27.21% Upside)

The score is driven primarily by strong financial resilience (notably a debt-free balance sheet and solid returns) and bullish technical strength (price above key moving averages with positive MACD). Valuation is acceptable with a moderate P/E and modest dividend yield, while operating cash flow relative to EBIT remains the main financial quality item to monitor.

Positive Factors

Debt-free balance sheet and rising equity

A zero-debt profile and steadily increasing equity materially reduce financial risk and preserve strategic optionality. This durable strength supports capital allocation for R&D, hiring, dividends or M&A without refinancing pressure, improving resilience through economic cycles.

Strong free cash flow conversion

High free cash flow relative to net income and multi-year FCF growth indicate reliable cash generation from operations. Sustained FCF supports reinvestment and shareholder returns and underpins financial flexibility even if revenue growth moderates.

Steady revenue growth and improving gross margin

Consistent top-line expansion alongside rising gross margins signals operational improvement and product leverage. For a software-applications firm, expanding gross margin enhances long-term operating leverage potential, supporting sustainable profitability as scale increases.

Negative Factors

Operating cash flow lags EBIT (working-capital drag)

Persistent OCF shortfall vs EBIT suggests working-capital inefficiencies or timing gaps that reduce true cash availability. Over months this can constrain discretionary spending, slow down investment or force slower growth, making cash timing a recurring operational risk.

Top-line growth slowing

A decelerating revenue growth rate narrows runway for margin expansion and scale benefits. If underlying product adoption or market share gains stall, management will face tradeoffs between margin maintenance and investments to reignite growth, affecting medium-term returns.

Modest and fluctuating profitability

Mid-single-digit net margins and variable operating profits limit the firm's ability to absorb shocks and fund growth internally. Without clearer margin expansion, the company may struggle to build durable excess returns or to finance strategic initiatives without relying on structural improvements.

Computer Management Co., Ltd. Business Overview & Revenue Model

Company Description

Computer Management Co., Ltd. provides system support solutions. The company offers services on system development, financial/medical system development, and helpdesk business process outsourcing services; and system infrastructure solutions, including consulting, design, implementation, operation, and maintenance solutions. It also provides ERP solutions on SAP S4 HANA for large enterprises; SAP Business ByDesign for medium-size enterprises; and SAP Business One for small and medium-sized enterprises. The company was founded in 1981 and is headquartered in Osaka, Japan.

How the Company Makes Money

Computer Management Co., Ltd. generates revenue primarily through its service offerings in the IT sector. The company's key revenue streams include fees from software development projects, where they design and implement custom software solutions for clients. Additionally, they earn income from systems integration services, helping businesses streamline and optimize their technology infrastructure. IT consulting services also contribute significantly to their earnings, as they provide strategic guidance and solutions to businesses undergoing digital transformation. Partnerships with technology vendors and service providers further augment their revenue by enabling them to offer a diverse range of solutions to their clients.

Computer Management Co., Ltd. Financial Statement Overview

Summary

Strong overall financial quality led by a debt-free balance sheet and steadily rising equity, with solid ROE (~11% in 2025). Revenue growth is positive but moderating (~2.6% latest year), and profitability is stable (net margin ~5%). Cash generation is generally good versus net income, but operating cash flow has been persistently modest relative to EBIT, making working-capital/OCF conversion a key watch item.

Income Statement

Revenue has grown steadily from 2020 to 2025 (from ~¥6.15B to ~¥7.90B), with the latest annual growth at ~2.6%—positive but moderating versus earlier years. Profitability is solid for a software business: gross margin improved over time (about 21.8% in 2020 to ~25.5% in 2025), while operating profitability remains healthy (~6–8% range). Net margin is stable around mid-single digits (~5.0% in 2025), though it has fluctuated year to year and is not consistently expanding.

Balance Sheet

The balance sheet is a clear strength: total debt is reported as zero in recent years (debt-to-equity at 0.0), indicating very low financial risk and strong flexibility. Equity has steadily increased (from ~¥1.97B in 2020 to ~¥3.58B in 2025), supporting growth and resilience. Returns on equity are consistently attractive (~10–14%), though the latest level (~11.1% in 2025) is below the 2022 peak, suggesting profitability is good but not accelerating.

Cash Flow

Cash generation is generally strong and closely tracks earnings: free cash flow is near net income in recent years (about 0.99x in 2025 and ~0.94x in 2024), pointing to good earnings quality. Free cash flow has grown overall (from ~¥271M in 2020 to ~¥476M in 2025), though growth has been uneven (notably a decline in 2023). A key watch item is that operating cash flow is consistently below EBIT (coverage around ~0.48x in 2022–2025), which may reflect working-capital drag despite healthy profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.91B	7.90B	7.19B	6.93B	6.49B	6.23B
Gross Profit	2.01B	2.01B	1.76B	1.67B	1.51B	1.39B
EBITDA	544.52M	555.30M	452.00M	494.28M	507.62M	409.37M
Net Income	401.52M	397.89M	327.41M	337.66M	353.22M	285.49M
Balance Sheet
Total Assets	5.31B	5.14B	4.75B	4.30B	3.97B	3.68B
Cash, Cash Equivalents and Short-Term Investments	3.43B	3.30B	2.91B	2.58B	2.32B	2.05B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.70B	1.56B	1.55B	1.45B	1.38B	1.34B
Stockholders Equity	3.61B	3.58B	3.20B	2.85B	2.59B	2.34B
Cash Flow
Free Cash Flow	0.00	475.97M	405.34M	333.33M	370.05M	143.56M
Operating Cash Flow	0.00	482.56M	429.19M	404.04M	393.88M	157.96M
Investing Cash Flow	0.00	-10.64M	-27.03M	-81.19M	-73.72M	-63.24M
Financing Cash Flow	0.00	-81.56M	-68.32M	-59.90M	-49.56M	-139.17M

Computer Management Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2705.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4491, the sentiment is Neutral. The current price of 2705 is below the 20-day moving average (MA) of 3075.45, below the 50-day MA of 2837.06, and above the 200-day MA of 2657.86, indicating a neutral trend. The MACD of 34.44 indicates Positive momentum. The RSI at 51.36 is Neutral, neither overbought nor oversold. The STOCH value of 22.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4491.

Computer Management Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4491	82 Outperform	¥6.04B	14.52	―	1.87%	6.18%	29.79%
4492	72 Outperform	¥5.50B	17.00	―	4.06%	15.79%	-33.67%
4446	69 Neutral	¥16.53B	181.59	―	―	14.10%	-53.62%
4060	64 Neutral	¥6.24B	22.07	―	0.57%	21.03%	32.29%
3841	62 Neutral	¥4.99B	26.07	―	3.14%	-1.09%	-14.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2321	56 Neutral	¥10.34B	-83.64	―	―	-6.35%	71.66%