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

• Market Cap: ¥6.11B
• Dividend Yield: 1.87%
• Average Volume (3M): 10.16K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.50
• Revenue Growth: 6.18%
• EPS Growth: 29.79%
• Country: JP
• Employees: 694
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 61.99
• 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: ¥3,442.00 ▲(27.25% Upside)
• Action: Reiterated Date: 01/10/26
• Date: Action: Reiterated 01/10/26

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

A zero-debt balance sheet materially reduces financial risk and preserves strategic optionality over the medium term. With equity rising (¥1.97B in 2020 to ¥3.58B in 2025), the company can fund investment, weather downturns, or pursue M&A without leverage constraints, supporting durable resilience.

Strong cash generation

FCF closely tracking net income and rising over time indicates high earnings quality and sustainable internal funding. Reliable cash conversion supports reinvestment in products, modest dividends or share activity, and keeps strategic flexibility intact across a 2–6 month horizon and beyond.

Stable revenue & improving gross margin

Consistent top-line expansion combined with rising gross margins shows the business can scale while improving unit economics. This structural improvement supports sustainable operating profitability and provides room to invest in product or sales capacity without eroding core margins over the medium term.

Negative Factors

OCF below EBIT

Persistent OCF shortfall versus EBIT signals working-capital drag or timing differences that can constrain cash availability despite accounting profits. Over months, this pattern can limit funding for growth, increase reliance on equity or reserves, and amplify cash volatility when growth initiatives or seasonality occur.

Moderating revenue growth

Slowing top-line momentum reduces operating leverage potential and the ability to expand margins through scale. If mid-single-digit growth persists, management will face tougher trade-offs between investing for acceleration or protecting margins, limiting multi-quarter improvement in returns and free-cash-flow expansion.

Modest net margins

Mid-single-digit net margins leave limited buffer against cost inflation or pricing pressure, making profitability more sensitive to adverse swings. Over months, modest net margins constrain retained earnings growth and reduce flexibility to fund aggressive R&D or sales campaigns without compressing returns.

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

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	5.22B	4.84B	4.35B	4.02B	3.76B
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	1.64B	1.64B	1.50B	1.44B	1.42B
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: Positive
• Last Price: 2705.00
• 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:4491, the sentiment is Positive. The current price of 2705 is below the 20-day moving average (MA) of 2973.45, below the 50-day MA of 3005.98, and below the 200-day MA of 2791.41, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 52.61 is Neutral, neither overbought nor oversold. The STOCH value of 70.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥6.11B	10.91	―	1.87%	6.18%	29.79%
3835	75 Outperform	¥18.61B	30.80	―	3.14%	0.50%	-2.92%
3712	74 Outperform	¥19.03B	12.52	―	1.81%	6.39%	6.38%
4826	70 Outperform	¥31.90B	14.70	―	2.83%	4.51%	75.35%
3826	64 Neutral	¥4.98B	9.17	―	2.28%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
7527	47 Neutral	¥4.58B	-18.61	―	―	-40.57%	83.14%