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

• Market Cap: ¥11.68B
• Dividend Yield: 1.16%
• Average Volume (3M): 15.35K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.65
• 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: ¥2,508.00 ▼(-14.40% 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 balance sheet materially lowers financial risk and preserves strategic optionality. With no leverage, the company can fund R&D, M&A, or shareholder returns from internal resources without refinancing risk, supporting durable capital-allocation flexibility over 2–6 months and beyond.

High structural profitability

Very high gross margins and sustained ~23% EBIT margins indicate strong pricing power and cost structure typical of scalable application software. These margins underpin durable cash generation capacity and reinvestment potential, supporting long-term competitive advantage and resilience to cyclical demand shifts.

Multi-year revenue compounding

Consistent multi-year revenue growth signals successful product-market fit and expanding market penetration. Durable top-line expansion provides a base for margin leverage and scale economies, improving prospects for sustainable profit growth and reinvestment over the medium term.

Negative Factors

Cash-flow volatility

Historic swings in free cash flow, including a negative FCF year, show uneven cash conversion and working-capital sensitivity. That variability constrains reliable internal funding for growth or distributions and increases execution risk for multi-quarter investment plans or acquisitions.

Margin compression vs peak

Documented margin erosion from 2022 highs suggests cost pressures or adverse mix shifts. Sustained margin compression would reduce operating cash flow and return on capital, limiting the company’s ability to sustain prior reinvestment rates and long-term profitability targets.

Moderating returns on equity

While ROE remains healthy, moderation from prior peaks indicates diminishing incremental returns as the business scales. If reinvestment yields continue to decline, growth may deliver lower profitability on new capital, pressuring long-term shareholder returns absent productivity 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.

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	1.31B	1.01B	796.40M	892.47M	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	825.90M	978.83M	1.15B
Stockholders Equity	2.57B	2.58B	2.57B	2.22B	1.68B
Cash Flow
Free Cash Flow	958.33M	829.30M	384.23M	425.12M	884.48M
Operating Cash Flow	965.82M	848.15M	391.71M	425.50M	944.51M
Investing Cash Flow	-36.30M	-616.44M	-482.47M	-208.18M	-61.59M
Financing Cash Flow	-564.76M	-452.25M	-100.08M	-36.40M	492.93M

i Cubed Systems.Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2930.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 2267.40, above the 50-day MA of 2456.30, and above the 200-day MA of 2316.58, indicating a bearish trend. The MACD of -51.96 indicates Negative momentum. The RSI at 39.15 is Neutral, neither overbought nor oversold. The STOCH value of 35.02 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	¥11.68B	15.39	―	1.16%	23.67%	24.95%
2307	70 Outperform	¥14.93B	9.32	―	3.14%	3.58%	0.23%
5033	66 Neutral	¥4.86B	21.99	―	―	7.60%	19.13%
3826	64 Neutral	¥4.98B	9.17	―	2.28%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4448	58 Neutral	¥11.75B	74.58	―	―	14.63%	-760.87%
7527	47 Neutral	¥4.58B	-18.61	―	―	-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.