Cybertrust Japan Co.Ltd. (4498) AI Stock Analysis

• Market Cap: ¥20.97B
• Dividend Yield: 0.9%
• Average Volume (3M): 71.61K
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.86
• Revenue Growth: 17.75%
• EPS Growth: 44.95%
• Country: JP
• Employees: 275
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 16,562,800
• 10 Day Avg. Volume: 103,250
• 30 Day Avg. Volume: 71,613
• PEG Ratio: 0.23
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 2.52
• P/FCF Ratio: 10.83
• 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: 75 Outperform
• Price Target: ¥1,424.00 ▲(4.94% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

Strong financial performance (growth, profitability improvement, very low leverage, and sharply higher free cash flow) drives the score. This is tempered by weak technicals (price below key moving averages and negative MACD), while valuation is moderately supportive with a reasonable P/E and modest dividend yield.

Positive Factors

Recurring revenue model

The company's core fees—issuing, renewing and managing digital certificates plus subscription managed security services—create recurring revenue and high customer stickiness. This predictable revenue base supports durable cash flows, retention-led growth, and steadier margins over the medium term.

Sustained revenue growth and margin expansion

Double-digit top-line growth coupled with rising gross and net margins indicates the business is capturing demand while improving operational efficiency. Continued revenue expansion with margin leverage supports sustainable earnings growth and reinvestment capacity over the next several quarters.

Strong cash generation and healthy balance sheet

A large FCF increase and strong cash conversion provide flexibility for R&D, service investments, and shareholder returns. Combined with minimal leverage and a robust equity ratio, the company has durable financial flexibility to fund growth or absorb shocks without stressing capital structure.

Negative Factors

Modest scale

Relatively limited revenue and a compact headcount may constrain the company's ability to compete for large global enterprise contracts, invest aggressively in R&D, or scale platform capabilities. Smaller scale can limit sales reach and product breadth versus larger cybersecurity incumbents over the medium term.

Product concentration in PKI/certificate services

Heavy reliance on PKI and certificate lifecycle services concentrates revenue risk in a specific technology area that can face commoditization or displacement by alternative identity/authentication approaches. Lack of broader product diversification could magnify downside if demand shifts.

Geographic concentration (Japan)

Operations focused primarily on the Japanese market limit geographic diversification. This concentration makes performance more sensitive to domestic IT spending cycles, regulatory shifts, or intensified local competition, reducing resilience and constraining addressable-market expansion internationally.

Cybertrust Japan Co.Ltd. Business Overview & Revenue Model

Company Description

Cybertrust Japan Co., Ltd. engages in the certification authority and security, IoT, and Linux/OSS businesses in Japan. It offers commercial digital authentication services covering SSL/TLS server certificate, client certificate, web security service, and vulnerability testing; secure IoT platform that allow users to manage the security status of IoT devices throughout their lifecycle from the semiconductor design to the disposal process stage; and Linux OS/integrated monitoring tool and backup software services. The company was founded in 2000 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Cybertrust Japan generates revenue through multiple streams, primarily from the sale of cybersecurity products and services such as SSL certificates, digital signatures, and identity verification solutions. The company charges clients for its subscription-based services and consulting engagements, which provide ongoing security assessments and tailored security solutions. Additionally, Cybertrust Japan establishes partnerships with technology providers and telecommunications companies, enhancing its market reach and offering bundled services, which further contribute to its revenue. The firm also benefits from a growing demand for cybersecurity services driven by increasing digital transformation and regulatory compliance requirements across various industries.

Cybertrust Japan Co.Ltd. Financial Statement Overview

Summary

Strong fundamentals: revenue grew 15.09% (2024 to 2025), margins improved (gross margin 48.15%, net margin 12.92%), leverage is minimal (debt-to-equity 0.01), and free cash flow surged 166.43% with strong cash conversion (operating cash flow to net income 2.07).

Income Statement

Cybertrust Japan Co.Ltd. exhibits strong revenue growth, with a notable increase in revenue from 6.47 billion JPY in 2024 to 7.44 billion JPY in 2025, representing a growth rate of 15.09%. The gross profit margin improved to 48.15% in 2025. The net profit margin increased to 12.92%, reflecting enhanced profitability. The EBIT and EBITDA margins also show an upward trend, marking operational efficiency. Overall, the company demonstrates robust financial performance with growing profitability and efficient cost management.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. The return on equity (ROE) is a healthy 14.63%, showcasing effective utilization of shareholders' equity to generate profits. The equity ratio stands at 68.39%, highlighting a stable capital structure with significant equity financing. These metrics suggest financial stability and a low-risk profile with efficient use of equity.

Cash Flow

Cash flow statements reveal a positive trend, with a substantial increase in free cash flow from 650 million JPY in 2024 to 1.73 billion JPY in 2025, indicating a growth rate of 166.43%. The operating cash flow to net income ratio is 2.07, suggesting strong cash generation capability relative to net income. The free cash flow to net income ratio of 1.80 indicates efficient cash flow management, allowing for reinvestment and shareholder returns.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.85B	7.44B	6.47B	6.17B	5.73B	4.90B
Gross Profit	3.81B	3.59B	3.05B	2.89B	2.56B	2.16B
EBITDA	2.10B	2.01B	1.38B	1.64B	1.31B	1.01B
Net Income	982.33M	969.68M	518.82M	725.15M	530.27M	408.88M
Balance Sheet
Total Assets	9.49B	9.61B	8.42B	7.87B	7.22B	5.85B
Cash, Cash Equivalents and Short-Term Investments	5.71B	5.56B	4.89B	4.37B	3.58B	1.96B
Total Debt	0.00	65.16M	73.39M	86.46M	104.19M	138.56M
Total Liabilities	2.97B	3.04B	2.38B	2.24B	2.35B	2.00B
Stockholders Equity	6.52B	6.57B	6.03B	5.63B	4.87B	3.85B
Cash Flow
Free Cash Flow	0.00	1.73B	650.31M	773.45M	1.12B	118.58M
Operating Cash Flow	0.00	1.99B	1.22B	1.21B	1.60B	1.12B
Investing Cash Flow	0.00	-870.84M	-571.46M	-434.42M	-477.89M	-1.07B
Financing Cash Flow	0.00	-429.58M	-126.47M	6.33M	486.31M	-17.49M

Cybertrust Japan Co.Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1357.00
• 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:4498, the sentiment is Positive. The current price of 1357 is above the 20-day moving average (MA) of 1224.20, above the 50-day MA of 1281.30, and above the 200-day MA of 1322.49, indicating a neutral trend. The MACD of -18.15 indicates Negative momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 55.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4498.

Cybertrust Japan Co.Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4498	75 Outperform	¥20.97B	21.48	―	0.90%	17.75%	44.95%
6050	69 Neutral	¥19.28B	23.88	―	2.13%	-0.62%	-11.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3788	60 Neutral	¥24.24B	24.03	―	1.50%	7.83%	49.73%
4398	60 Neutral	¥6.03B	31.61	―	1.04%	-3.46%	-59.98%
2158	55 Neutral	¥37.40B	75.64	―	―	-10.49%	―
9250	50 Neutral	¥1.67B	-2.87	―	―	5.17%	―

Cybertrust Japan Co.Ltd. Corporate Events

Cybertrust Japan Posts Double-Digit Revenue Growth and Affirms FY2025/26 Outlook

Cybertrust Japan reported consolidated revenue of ¥6.08 billion for the nine months ended 31 December 2025, up 14.5% year-on-year, with operating and ordinary profit both rising to ¥1.17 billion, while profit attributable to owners of parent edged down 2.2% to ¥688 million, partly reflecting share-related effects despite solid business momentum. The company’s financial position remained sound, with total assets increasing to ¥10.23 billion and an equity ratio of 69.7%, and it maintained its full-year forecast for FY2025/26, projecting revenue of ¥8.2 billion, operating profit of ¥1.57 billion and flat bottom-line profit of ¥970 million, alongside a lower annual dividend per share following an October 2025 two-for-one stock split, signaling confidence in stable earnings but a measured stance on shareholder returns.

The most recent analyst rating on (JP:4498) stock is a Hold with a Yen1441.00 price target. To see the full list of analyst forecasts on Cybertrust Japan Co.Ltd. stock, see the JP:4498 Stock Forecast page.