OBIC Co (4684) AI Stock Analysis

• Market Cap: ¥2.05T
• Dividend Yield: 1.51%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 25.6
• Beta (1Y): 0.22
• Revenue Growth: 10.76%
• EPS Growth: 13.65%
• Country: JP
• Employees: 2,107
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 498,000,000
• 10 Day Avg. Volume: 1,129,010
• 30 Day Avg. Volume: 1,068,423
• PEG Ratio: 2.40
• Price to Book (P/B): 4.37
• Price to Sales (P/S): 15.63
• P/FCF Ratio: 31.21
• 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: ¥4,600.00
• Price Target Upside: 21.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥4,277.00 ▲(12.52% Upside)
• Action: Upgraded Date: 01/28/26
• Date: Action: Upgraded 01/28/26

The score is driven primarily by outstanding financial quality (best-in-class margins, zero debt, strong cash generation). This is tempered by weak technical momentum (below key moving averages with negative MACD) and a premium valuation (P/E ~28) with only a modest dividend yield.

Positive Factors

Exceptional profitability

Sustained ultra-high margins indicate durable pricing power and a capital-light, high-ROI business model. Such margin profiles support reinvestment in product development, fund operating leverage as sales scale, and provide a durable earnings cushion versus typical software peers.

Zero-debt balance sheet

A no-debt balance sheet delivers long-term financial flexibility and low solvency risk, allowing the company to fund M&A, product investment, or shareholder returns from internal sources and navigate downturns without refinancing stress.

Strong cash generation

High cash conversion close to net income supports durable self-funding of growth, steady maintenance and R&D spending, and shareholder returns. Reliable cash flow underpins long-term strategic optionality and reduces reliance on external capital.

Negative Factors

Revenue growth deceleration

A slowing revenue growth trend reduces the long-term earnings runway for a high-margin software firm. If deceleration persists, it may constrain future operating leverage and limit the pace at which cash generation and returns can expand over multiple quarters.

Free cash flow variability

Intermittent FCF variability complicates capital allocation and forecasting for investments or distributions. Periodic declines suggest timing or conversion risks that could affect the consistency of funding for strategic initiatives or steady shareholder returns.

Foregone leverage opportunity

While conservative, zero leverage can limit capital efficiency: prudent use of debt could accelerate growth, fund M&A or boost ROE. Reliance solely on internal funds may slow scaling or leave potential return-enhancing strategies unexploited over time.

OBIC Co Business Overview & Revenue Model

Company Description

OBIC Co.,Ltd., together with its subsidiaries, provides system integration, system support, office automation, and package software services. It offers system integration services, including developing ERP software products to provide integrated administrative systems comprising personnel, payroll, working condition management, marketing, and production systems, as well as related training courses. The company also provides system support services, including system operation support and maintenance, and hardware maintenance. In addition, it offers office automation services, such as sale of package software, and peripheral equipment and supplies, as well as processing of printed materials. The company was incorporated in 1968 and is headquartered in Tokyo, Japan.

How the Company Makes Money

OBIC Co., Ltd. generates revenue through its diversified IT services and solutions portfolio. The company's primary revenue streams include the sale and implementation of ERP and other business management software, as well as ongoing maintenance and support services. Additionally, OBIC earns income from cloud service offerings, which provide scalable and flexible IT solutions to clients. The company also engages in system integration projects, where it designs and implements tailored IT systems for businesses. Significant partnerships with technology providers and a strong customer base in different sectors contribute to OBIC's steady earnings and growth in the competitive IT services market.

OBIC Co Financial Statement Overview

Summary

Exceptional profitability (TTM gross margin ~78%, operating margin ~68%, net margin ~55%), zero-debt balance sheet, and strong cash conversion (TTM FCF ~0.98x net income). Main offsets are moderating revenue growth versus prior years and some variability in free cash flow growth.

Income Statement

OBIC shows exceptional profitability for an application software company, with TTM (Trailing-Twelve-Months) gross margin ~78%, operating margin ~68%, and net margin ~55%. Revenue has grown steadily over the multi-year period, and TTM revenue growth remains positive. The main weakness is that the latest growth rate is lower than the stronger annual growth rates seen in prior years, indicating some deceleration.

Balance Sheet

The balance sheet is very conservative: total debt is zero across periods, resulting in no leverage pressure and strong financial flexibility. Equity has compounded meaningfully over time, and returns on equity remain solid in the mid-teens (TTM ~15.6%). A potential drawback is that with no debt, the company forgoes the option to enhance returns via prudent leverage, but overall balance-sheet risk is minimal.

Cash Flow

Cash generation is strong and high-quality: TTM (Trailing-Twelve-Months) free cash flow is close to net income (~0.98x), supporting earnings durability. Free cash flow and operating cash flow are both robust and have grown year over year in the latest period (TTM free cash flow growth ~4.3%). The key weakness is that free cash flow growth has been uneven across years (including a decline in one year), suggesting periodic variability in cash conversion and/or investment timing.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	131.63B	121.24B	111.59B	100.17B	89.48B	83.86B
Gross Profit	102.76B	94.39B	88.10B	77.22B	67.96B	60.84B
EBITDA	97.38B	92.77B	73.44B	65.00B	56.56B	50.32B
Net Income	72.22B	64.62B	58.01B	50.12B	43.50B	38.00B
Balance Sheet
Total Assets	564.75B	500.38B	462.17B	366.71B	323.93B	298.26B
Cash, Cash Equivalents and Short-Term Investments	197.91B	200.06B	170.24B	156.32B	122.70B	150.75B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	81.50B	66.52B	63.48B	38.84B	30.36B	32.23B
Stockholders Equity	483.25B	433.85B	398.69B	327.86B	293.57B	266.02B
Cash Flow
Free Cash Flow	68.93B	60.73B	52.07B	51.80B	37.06B	40.56B
Operating Cash Flow	70.61B	62.79B	55.83B	52.96B	38.97B	41.68B
Investing Cash Flow	-1.15B	-3.93B	-2.21B	1.28B	-44.05B	-5.42B
Financing Cash Flow	-50.41B	-29.04B	-39.70B	-20.62B	-22.96B	-15.12B

OBIC Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3801.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4684, the sentiment is Negative. The current price of 3801 is below the 20-day moving average (MA) of 3933.90, below the 50-day MA of 4454.48, and below the 200-day MA of 5018.12, indicating a neutral trend. The MACD of -126.91 indicates Negative momentum. The RSI at 53.56 is Neutral, neither overbought nor oversold. The STOCH value of 85.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4684.

OBIC Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4684	77 Outperform	¥2.05T	25.56	15.18%	1.51%	10.76%	13.65%
4828	77 Outperform	¥84.58B	18.62	31.13%	1.68%	16.12%	46.57%
4716	74 Outperform	¥1.21T	19.71	41.04%	1.37%	8.11%	5.23%
9629	68 Neutral	¥37.21B	25.92	―	4.58%	4.58%	-15.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4478	55 Neutral	¥128.29B	144.60	―	―	31.57%	―
3994	49 Neutral	¥177.02B	112.18	-19.16%	―	19.57%	-16.67%

OBIC Co Corporate Events

OBIC Completes ¥28.6 Billion Share Buyback Program

OBIC Co., Ltd. has completed a share repurchase program authorized by its board in November 2025, acquiring a total of 6 million common shares for approximately 28.6 billion yen. The latest tranche, executed between February 1 and February 13, 2026, involved buying 798,000 shares on the Tokyo Stock Exchange for about 3.16 billion yen.

The repurchase corresponds to up to 1.36% of outstanding shares, signaling a continued focus on shareholder returns and capital efficiency within the company’s financial strategy. Completion of the buyback may support earnings per share and share price stability, reinforcing OBIC’s market positioning and potentially enhancing value for existing shareholders.

The most recent analyst rating on (JP:4684) stock is a Buy with a Yen4364.00 price target. To see the full list of analyst forecasts on OBIC Co stock, see the JP:4684 Stock Forecast page.

OBIC Nears Completion of ¥30 Billion Share Buyback Program

OBIC Co., Ltd. has reported progress on its ongoing share repurchase program authorized by its board in November 2025, under which it may buy back up to 6 million shares or ¥30 billion of its common stock through March 31, 2026. During the most recent reporting period from January 1 to January 31, 2026, the company repurchased 2,270,000 shares for approximately ¥10.83 billion via market purchases on the Tokyo Stock Exchange, bringing total buybacks under the program as of January 31 to 5,202,000 shares worth about ¥25.45 billion and leaving limited remaining capacity, a move that is likely aimed at enhancing shareholder returns and optimizing capital structure.

The most recent analyst rating on (JP:4684) stock is a Buy with a Yen5251.00 price target. To see the full list of analyst forecasts on OBIC Co stock, see the JP:4684 Stock Forecast page.

OBIC Completes Treasury Share Disposal for Executive Restricted Stock Compensation

OBIC Co., Ltd. has completed the payment procedures for the disposal of a portion of its treasury shares as restricted share-based remuneration, following a resolution by its Board of Directors on December 10, 2025. The company disposed of 1,300 common shares at a price of ¥4,963 per share, for a total of approximately ¥6.45 million, to be allocated to 13 executive officers as part of its long-term incentive structure, underscoring an ongoing commitment to align management compensation with shareholder interests.

The most recent analyst rating on (JP:4684) stock is a Hold with a Yen4950.00 price target. To see the full list of analyst forecasts on OBIC Co stock, see the JP:4684 Stock Forecast page.

OBIC Raises FY2026 Year-End Dividend Forecast on Strong Performance

OBIC Co., Ltd. has revised its year-end dividend forecast for the fiscal year ending March 31, 2026, raising the planned payout from ¥37 to ¥47 per share in light of favorable business performance and as a gesture of appreciation to shareholders. As a result, the forecast for total annual dividends will increase from ¥74 to ¥84 per share, underscoring the company’s commitment to stable and improving shareholder returns; the higher year-end dividend remains subject to approval at the 59th Annual General Meeting of Shareholders scheduled for late June 2026.

The most recent analyst rating on (JP:4684) stock is a Buy with a Yen5389.00 price target. To see the full list of analyst forecasts on OBIC Co stock, see the JP:4684 Stock Forecast page.

OBIC Posts Double-Digit Profit Growth and Lifts Dividend Forecast for FY2025

OBIC Co. reported strong results for the nine months ended December 31, 2025, with net sales rising 11.6% year-on-year to ¥100.1 billion and profit attributable to owners of parent climbing 15.5% to ¥56.6 billion, reflecting robust profitability and higher earnings per share after its October 2024 share split. The company maintained its full-year earnings forecast for the fiscal year ending March 31, 2026, projecting 10.0% growth in net sales and an 8.3% rise in profit attributable to owners of parent, and announced a higher year-end dividend forecast, underscoring confidence in continued earnings strength and delivering increased returns to shareholders despite a slight decline in its equity-to-asset ratio.

The most recent analyst rating on (JP:4684) stock is a Buy with a Yen5389.00 price target. To see the full list of analyst forecasts on OBIC Co stock, see the JP:4684 Stock Forecast page.

OBIC Reports Progress on ¥30 Billion Share Repurchase Program

OBIC Co., Ltd. has reported the progress of its share repurchase program authorized by its board on November 6, 2025, buying back 1,843,000 common shares for a total of ¥9.15 billion via market purchases on the Tokyo Stock Exchange between December 1 and December 31, 2025. As of December 31, 2025, cumulative repurchases under this authorization reached 2,932,000 shares for approximately ¥14.62 billion, representing a substantial execution against the allowed ceiling of up to 6 million shares or ¥30 billion by March 31, 2026, signaling continued capital return to shareholders and potentially supporting share value and capital efficiency.

The most recent analyst rating on (JP:4684) stock is a Buy with a Yen5575.00 price target. To see the full list of analyst forecasts on OBIC Co stock, see the JP:4684 Stock Forecast page.

OBIC Co. Announces Treasury Share Disposal for Executive Remuneration

OBIC Co., Ltd. announced its decision to dispose of 1,300 treasury shares as part of a restricted share-based remuneration plan for its executive officers. This initiative is aimed at aligning the interests of the executives with those of the shareholders and enhancing the company’s corporate value sustainably. The shares will be allocated to 13 executive officers, with the total disposal price amounting to ¥6,451,900. The plan includes restrictions on the transfer of shares during a specified period to ensure long-term commitment from the executives.

The most recent analyst rating on (JP:4684) stock is a Hold with a Yen5500.00 price target. To see the full list of analyst forecasts on OBIC Co stock, see the JP:4684 Stock Forecast page.

OBIC Co., Ltd. Reports Progress on Share Repurchase Program

OBIC Co., Ltd. has announced the progress of its share repurchase program, which was initiated following a resolution by its Board of Directors. The company has acquired 1,089,000 of its common shares for a total value of 5,469,546,700 yen through market purchases on the Tokyo Stock Exchange. This move is part of a larger plan to repurchase up to 6,000,000 shares by March 31, 2026, with a maximum total value of 30,000,000,000 yen.

The most recent analyst rating on (JP:4684) stock is a Hold with a Yen5500.00 price target. To see the full list of analyst forecasts on OBIC Co stock, see the JP:4684 Stock Forecast page.