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

• Market Cap: ¥19.89B
• Dividend Yield: 0.9%
• Average Volume (3M): 71.61K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.83
• 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: 16,600,400
• 10 Day Avg. Volume: 103,250
• 30 Day Avg. Volume: 71,613
• PEG Ratio: 0.23
• Price to Book (P/B): 2.85
• 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: ¥1,440.00 ▲(6.12% 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

Revenue Growth

A 15.1% top-line increase year-over-year shows durable demand for trust and security services and indicates expanding customer adoption. Sustained revenue growth supports reinvestment in product development and sales capacity, helping the company scale recurring contract revenues over the medium term.

Improving Profitability

Material margin improvement implies stronger pricing power and operational efficiency in core PKI and managed-security offerings. Higher gross and net margins create durable earnings capacity, increasing the firm's ability to fund R&D, absorb competitive pressures, and sustain profitability over the next several quarters.

Strong Cash & Low Leverage

A large jump in free cash flow alongside minimal leverage provides lasting financial flexibility. Robust cash conversion means the company can internally fund capex, platform upgrades, or targeted M&A while maintaining a conservative balance sheet that reduces solvency risk during industry or economic cycles.

Negative Factors

Concentrated Service Mix

Business concentration in PKI and certificate services creates structural exposure to technological substitution, commoditization, or large vendor competition. If authentication standards or customer preferences shift, revenue could be pressured without successful product diversification or accelerated innovation efforts.

Geographic Concentration

Operating primarily in Japan limits total addressable market diversification and leaves performance sensitive to domestic regulatory or economic changes. Geographic concentration can slow international growth opportunities and make revenue/costs more correlated with local market cycles over the medium term.

Reliance on Renewals

Recurring revenue depends on high renewal and retention rates; persistent churn or pricing pressure from competitors would directly reduce recurring cash flows. Maintaining contract renewal economics requires ongoing investment in service quality and customer success to avoid durable revenue erosion.

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 primarily by providing trust and security services to corporate and institutional customers. Key revenue streams include: (1) Fees from issuing, renewing, and managing digital certificates and related PKI services used for authentication, encryption, and establishing trusted identities; (2) Subscription or service fees for managed/security services that support customers’ ongoing security and operational needs (e.g., operation, monitoring, and related support where applicable); and (3) Professional services/implementation and support fees associated with deploying and integrating its trust/security solutions into customer systems and workflows. The company’s earnings are typically supported by recurring revenue characteristics (e.g., renewals and ongoing service contracts) from certificate lifecycle management and continuing service operations. Significant partnerships or customer concentration details: null.

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	2.21B	2.01B	1.72B	1.63B	1.38B	947.19M
Net Income	990.48M	969.68M	518.82M	725.15M	530.27M	408.88M
Balance Sheet
Total Assets	9.49B	9.58B	8.42B	7.88B	7.24B	5.87B
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	121.56M
Total Liabilities	2.97B	3.00B	2.39B	2.25B	2.36B	2.02B
Stockholders Equity	6.52B	6.58B	6.03B	5.63B	4.87B	3.85B
Cash Flow
Free Cash Flow	0.00	1.73B	1.09B	1.11B	1.51B	952.18M
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: Negative
• 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 Negative. The current price of 1357 is above the 20-day moving average (MA) of 1225.45, above the 50-day MA of 1253.52, and above the 200-day MA of 1318.49, indicating a bearish trend. The MACD of -3.57 indicates Negative momentum. The RSI at 44.54 is Neutral, neither overbought nor oversold. The STOCH value of 47.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥19.89B	17.55	―	0.90%	17.75%	44.95%
6050	69 Neutral	¥19.20B	43.69	―	2.13%	-0.62%	-11.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3788	60 Neutral	¥21.79B	26.90	―	1.50%	7.83%	49.73%
4398	60 Neutral	¥5.74B	14.56	―	1.04%	-3.46%	-59.98%
2158	55 Neutral	¥31.77B	29.01	―	―	-10.49%	―
9250	50 Neutral	¥1.49B	-2.58	―	―	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.