i Cubed Systems.Inc. (4495) AI Stock Analysis

• Market Cap: ¥12.25B
• Dividend Yield: 1.16%
• Average Volume (3M): 15.35K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.68
• Revenue Growth: 23.67%
• EPS Growth: 24.95%
• Country: JP
• Employees: 157
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 5,310,750
• 10 Day Avg. Volume: 19,060
• 30 Day Avg. Volume: 15,350
• PEG Ratio: 0.68
• Price to Book (P/B): 3.66
• Price to Sales (P/S): 2.51
• P/FCF Ratio: 9.81
• 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: 78 Outperform
• Price Target: ¥2,629.00 ▼(-10.27% Downside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by strong financial performance (high margins, solid growth, and a zero-debt balance sheet). Technicals add support via a clear uptrend with moderate momentum, while valuation is the main constraint due to a P/E around 23 despite a modest ~1.8% dividend yield.

Positive Factors

Debt-free balance sheet

A zero-debt, conservative balance sheet materially reduces financial risk and provides durable optionality: it supports funding for R&D, hiring, M&A or shareholder returns without refinancing risk. This structural strength increases resilience through cycles and preserves strategic flexibility.

High sustained profitability

Very high gross margins and persistently strong EBIT margins indicate durable pricing power and efficient scalable software economics. These margins fund reinvestment and create long-term cash flow potential, underpinning competitive advantage and allowing absorption of cost pressure without destroying core profitability.

Multi-year revenue growth and improving cash generation

Consistent multi-year revenue compounding demonstrates product-market fit and scalable demand; the recent convergence of free cash flow with net income shows improving earnings quality. Together these durable trends support reinvestment, margin maintenance and the ability to fund strategic initiatives without external capital.

Negative Factors

Cash-flow volatility and timing risk

Historical swings in operating and free cash flow point to working-capital or timing effects that reduce predictability of internally generated funds. This volatility can constrain steady investment, make capital allocation harder, and increase the chance of temporary reliance on reserves despite strong headline profitability.

Margin compression versus prior peak

Observed decline from 2022 peak margins suggests mounting cost pressures or adverse mix shifts. If structural, this reduces excess cash generation and the cushion that supported aggressive reinvestment or returns, making future profit growth more sensitive to cost control and product mix decisions.

Moderating returns on equity as scale increases

ROE moderation indicates diminishing incremental returns as the business scales, implying new capital is generating lower marginal returns than earlier high-growth periods. Over 2–6 months this trend constrains upside in core profitability unless the company identifies higher-return opportunities or efficiency gains.

i Cubed Systems.Inc. Business Overview & Revenue Model

Company Description

i3 Systems,Inc. provides cloud-based mobile device management services in Japan. Its solutions include CLOMO SecuredBrowser, a browser application that enables secure web browsing on smart devices; CLOMO SecuredMailer, a mailing application that protects companies against the risk of information leakage; CLOMO SecuredCalendar, a group calendar application that allows users to share schedule securely within the company; CLOMO SecuredContacts, a secure shared address book application; and CLOMO SecuredDocs, an application for sharing internal documents. The company also provides support services. It serves companies, educational institutions, medical corporation, etc. i3 Systems,Inc. was incorporated in 2001 and is headquartered in Fukuoka, Japan.

How the Company Makes Money

i Cubed Systems, Inc. generates revenue through the sale of its software solutions and IT services. The company earns money by offering customized software development, IT consulting, and digital transformation services to businesses across various industries. Key revenue streams include licensing fees for its software products, consulting fees for IT services, and long-term contracts for managed IT services. Significant partnerships with technology vendors and enterprise clients contribute to its earnings by expanding its customer base and enhancing its service offerings.

i Cubed Systems.Inc. Financial Statement Overview

Summary

Strong multi-year revenue compounding and consistently high profitability (gross margin low-70%+ and EBIT margin ~23% in 2024–2025) support a high score. The debt-free, conservative balance sheet is a major strength, but margin compression versus the 2022 peak and historical cash-flow volatility (including negative FCF in 2023 and uneven cash conversion) temper the rating.

Income Statement

Revenue has compounded strongly over the past several years (from ~1.64B in 2020 to ~3.75B in 2025), with solid recent growth in 2025 after a slower 2024. Profitability remains a clear strength: gross margins are very high (low-70%+ in 2024–2025) and operating profitability is consistently strong (EBIT margin ~23% in 2024–2025). The main watch-out is margin compression versus the 2022 peak (notably lower gross and net margins in 2024–2025), suggesting cost pressure and/or mix changes despite continued growth.

Balance Sheet

The balance sheet is exceptionally conservative with zero debt reported across all periods, which materially reduces financial risk and provides flexibility. Equity has grown and remains sizable relative to the asset base, and returns on equity are consistently healthy (high-teens to low-20% recently). The primary limitation is that returns have moderated from earlier highs (e.g., 2020–2022), implying incremental capital is earning somewhat lower returns as the company scales.

Cash Flow

Cash generation is positive and improving recently: operating cash flow rose to ~966M in 2025 and free cash flow was strong (~958M), with free cash flow nearly matching net income in 2025—good earnings quality. However, cash flow has been volatile over time (including negative free cash flow in 2023), and operating cash flow has not consistently covered accounting earnings (coverage below 1.0 in recent years, including 2025), indicating working-capital swings and/or timing effects that can create year-to-year variability.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2021
Income Statement
Total Revenue	3.75B	2.95B	2.67B	2.45B	2.03B
Gross Profit	2.70B	2.19B	2.05B	2.08B	1.58B
EBITDA	1.28B	1.01B	796.40M	892.00M	705.33M
Net Income	558.63M	463.46M	440.10M	539.53M	420.21M
Balance Sheet
Total Assets	4.44B	3.61B	3.40B	3.20B	2.83B
Cash, Cash Equivalents and Short-Term Investments	2.44B	2.08B	2.30B	2.49B	2.31B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.58B	1.03B	825.91M	978.83M	1.15B
Stockholders Equity	2.57B	2.58B	2.57B	2.22B	1.68B
Cash Flow
Free Cash Flow	958.33M	528.62M	-52.56M	72.63M	884.48M
Operating Cash Flow	965.82M	823.34M	301.12M	275.50M	944.51M
Investing Cash Flow	-36.30M	-616.44M	-484.47M	-208.18M	-61.59M
Financing Cash Flow	-564.76M	-452.25M	-98.08M	-36.40M	492.93M

i Cubed Systems.Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2930.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4495, the sentiment is Negative. The current price of 2930 is above the 20-day moving average (MA) of 2368.85, above the 50-day MA of 2604.65, and above the 200-day MA of 2280.96, indicating a neutral trend. The MACD of -88.15 indicates Negative momentum. The RSI at 39.97 is Neutral, neither overbought nor oversold. The STOCH value of 37.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4495.

i Cubed Systems.Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4495	78 Outperform	¥12.25B	16.11	―	1.16%	23.67%	24.95%
2307	70 Outperform	¥15.54B	10.03	―	3.14%	3.58%	0.23%
3826	70 Outperform	¥5.64B	7.44	―	2.28%	―	―
5033	66 Neutral	¥4.93B	13.38	―	―	7.60%	19.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4448	58 Neutral	¥13.02B	60.03	―	―	14.63%	-760.87%
7527	47 Neutral	¥5.17B	-12.18	―	―	-40.57%	83.14%

i Cubed Systems.Inc. Corporate Events

i Cubed Systems Delivers Strong First-Half Earnings and Confirms Growth Outlook

i Cubed Systems reported strong consolidated results for the six months ended Dec. 31, 2025, with net sales rising 24% year on year to ¥2.13 billion and operating profit jumping 61.5% to ¥684 million, lifting profit attributable to owners by 54.2% to ¥432 million and boosting basic earnings per share to ¥88.51. The company’s total assets increased to ¥4.65 billion and its equity ratio improved to 60.8%, while it confirmed an interim dividend of ¥18 per share and maintained its full-year forecast calling for 20%-plus growth in sales and profits, signaling continued confidence in its financial trajectory and shareholder return policy.

The most recent analyst rating on (JP:4495) stock is a Buy with a Yen2791.00 price target. To see the full list of analyst forecasts on i Cubed Systems.Inc. stock, see the JP:4495 Stock Forecast page.