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

• Market Cap: ¥13.51B
• Dividend Yield: 1.16%
• Average Volume (3M): 15.35K
• Price to Earnings (P/E): 20.5
• Beta (1Y): 0.76
• Revenue Growth: 23.67%
• EPS Growth: 24.95%
• Country: JP
• Employees: 157
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 43.69
• Shares Outstanding: 5,309,450
• 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: ¥3,167.00 ▲(8.09% Upside)

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

Revenue Growth

Strong revenue growth indicates robust market demand and effective business strategies, supporting long-term expansion and competitiveness.

Profitability

High profitability margins reflect operational efficiency and pricing power, which can sustain competitive advantages and shareholder returns.

Balance Sheet Health

A debt-free balance sheet reduces financial risk and enhances flexibility for strategic investments and weathering economic downturns.

Negative Factors

Margin Compression

Margin compression suggests cost pressures or unfavorable mix changes, which could impact profitability if not addressed.

Cash Flow Volatility

Volatile cash flow can hinder financial planning and investment capability, affecting long-term growth and stability.

Return on Equity Moderation

Moderating returns on equity may indicate diminishing efficiency in capital deployment, potentially impacting investor returns.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.75B	3.75B	2.95B	2.67B	2.45B	2.03B
Gross Profit	2.70B	2.70B	2.19B	2.05B	2.08B	1.58B
EBITDA	1.28B	1.28B	1.01B	796.40M	892.00M	705.33M
Net Income	558.00M	558.63M	463.46M	440.10M	539.53M	420.21M
Balance Sheet
Total Assets	4.44B	4.44B	3.61B	3.40B	3.20B	2.83B
Cash, Cash Equivalents and Short-Term Investments	2.44B	2.44B	2.08B	2.30B	2.49B	2.31B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.58B	1.58B	1.03B	825.91M	978.83M	1.15B
Stockholders Equity	2.57B	2.57B	2.58B	2.57B	2.22B	1.68B
Cash Flow
Free Cash Flow	0.00	958.33M	528.62M	-52.56M	72.63M	884.48M
Operating Cash Flow	0.00	965.82M	823.34M	301.12M	275.50M	944.51M
Investing Cash Flow	0.00	-36.30M	-616.44M	-484.47M	-208.18M	-61.59M
Financing Cash Flow	0.00	-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: Positive
• 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 2726.75, above the 50-day MA of 2737.37, and above the 200-day MA of 2205.51, indicating a neutral trend. The MACD of -42.39 indicates Positive momentum. The RSI at 37.56 is Neutral, neither overbought nor oversold. The STOCH value of 22.49 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
4389	80 Outperform	¥10.82B	17.73	―	1.48%	17.83%	34.25%
4284	79 Outperform	¥12.86B	15.06	―	2.45%	9.77%	93.99%
4495	78 Outperform	¥13.51B	20.49	―	1.16%	23.67%	24.95%
9553	69 Neutral	¥21.71B	107.28	―	―	14.28%	-30.60%
153A	66 Neutral	¥7.37B	22.38	―	―	14.92%	2.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3777	54 Neutral	¥17.66B	-81.01	―	―	-62.84%	-27.61%

i Cubed Systems.Inc. Corporate Events

i Cubed Systems Reports Strong Q3 Financial Results

i Cubed Systems, Inc. has reported its consolidated financial results for the three months ended September 30, 2025, showing a significant increase in net sales and profits compared to the previous year. The company achieved a 16.9% rise in net sales and a substantial increase in operating and ordinary profits by 61.7% and 62.5%, respectively. This financial performance reflects the company’s strong market positioning and operational efficiency, which are likely to positively impact its stakeholders.