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OBIC Co (JP:4684)
:4684

OBIC Co (4684) AI Stock Analysis

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JP:4684

OBIC Co

(4684)

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Outperform 77 (OpenAI - 5.2)
Rating:77Outperform
Price Target:
¥5,251.00
▲(39.10% Upside)
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
High Profitability / Margins
Sustained, best-in-class margins indicate strong pricing power and low incremental costs typical of packaged enterprise software. High operating and net margins provide durable cash to fund R&D, customer support, and shareholder returns, insulating profitability across cycles.
Zero Net Debt / Conservative Balance Sheet
A zero-debt balance sheet delivers long-term financial flexibility, lowering default and refinancing risk and enabling opportunistic M&A, hiring, or investment during downturns. This conservatism supports steady operations and strategic optionality over multiple quarters.
Strong Cash Generation
High-quality cash conversion (FCF ≈ net income) underpins sustainable capital allocation for product development, maintenance, and shareholder returns. Reliable operating cash flow strengthens balance-sheet resilience and funds long-term investments without relying on external financing.
Negative Factors
Moderating Revenue Growth
A deceleration in top-line growth versus prior years risks slower expansion of the installed base and limits operating leverage. If sustained, it could force trade-offs between pricing, investment intensity, and margin maintenance, challenging long-term EPS and market-share momentum.
Uneven Free Cash Flow Growth
Volatility in FCF growth complicates multi-year planning for capex, M&A, and dividends. Irregular cash conversion may reflect timing of implementations or client payment patterns, reducing predictability of shareholder returns and making funding of strategic initiatives less reliable.
Forgone Leverage Could Limit Returns
While zero debt reduces financial risk, it also constrains capital-structure optimization. Prudent leverage could amplify ROE and fund faster growth or M&A at low cost; foregoing that option may limit long-term return enhancement relative to leveraged peers in the software sector.

OBIC Co (4684) vs. iShares MSCI Japan ETF (EWJ)

OBIC Co Business Overview & Revenue Model

Company DescriptionOBIC 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 MoneyOBIC 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
94
Very Positive
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
96
Very Positive
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
92
Very Positive
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.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue121.24B111.59B100.17B89.48B83.86B
Gross Profit94.39B88.10B77.22B67.96B60.84B
EBITDA92.77B73.44B65.00B56.56B50.32B
Net Income64.62B58.01B50.12B43.50B38.00B
Balance Sheet
Total Assets500.38B462.17B366.71B323.93B298.26B
Cash, Cash Equivalents and Short-Term Investments200.06B170.24B156.32B122.70B150.75B
Total Debt0.000.000.000.000.00
Total Liabilities66.52B63.48B38.84B30.36B32.23B
Stockholders Equity433.85B398.69B327.86B293.57B266.02B
Cash Flow
Free Cash Flow60.73B52.07B51.80B37.06B40.56B
Operating Cash Flow62.79B55.83B52.96B38.97B41.68B
Investing Cash Flow-3.93B-2.21B1.28B-44.05B-5.42B
Financing Cash Flow-29.04B-39.70B-20.62B-22.96B-15.12B

OBIC Co Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3775.00
Price Trends
50DMA
4822.66
Negative
100DMA
4938.16
Negative
200DMA
5108.40
Negative
Market Momentum
MACD
-208.11
Positive
RSI
8.38
Positive
STOCH
1.89
Positive
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 3775 is below the 20-day moving average (MA) of 4609.80, below the 50-day MA of 4822.66, and below the 200-day MA of 5108.40, indicating a bearish trend. The MACD of -208.11 indicates Positive momentum. The RSI at 8.38 is Positive, neither overbought nor oversold. The STOCH value of 1.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4684.

OBIC Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥1.84T25.5315.18%1.51%10.76%13.65%
77
Outperform
¥78.46B20.3531.13%1.68%16.12%46.57%
71
Outperform
¥1.23T21.7241.04%1.37%8.11%5.23%
68
Neutral
¥36.83B25.694.58%4.58%-15.00%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
58
Neutral
¥185.73B116.28-19.16%19.57%-16.67%
55
Neutral
¥135.74B99.0631.57%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4684
OBIC Co
3,775.00
-769.65
-16.94%
JP:4716
Oracle Japan
9,631.00
-4,410.04
-31.41%
JP:4828
Business Engineering Corporation
1,308.00
608.39
86.96%
JP:3994
Money Forward
3,347.00
-1,167.00
-25.85%
JP:4478
freee K.K.
2,275.00
-1,060.00
-31.78%
JP:9629
PCA Corporation
1,949.00
80.28
4.30%

OBIC Co Corporate Events

OBIC Raises FY2026 Year-End Dividend Forecast on Strong Performance
Jan 26, 2026

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
Jan 26, 2026

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
Jan 4, 2026

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
Dec 10, 2025

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
Nov 30, 2025

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.

OBIC Co., Ltd. Completes Treasury Share Repurchase
Nov 7, 2025

OBIC Co., Ltd. has announced the completion of a treasury share repurchase, acquiring 583,500 common shares at a cost of 2,798,466,000 yen through the Tokyo Stock Exchange’s Off-Auction Own Share Repurchase Trading System. This move aims to enhance shareholder value by improving capital efficiency and allowing for flexible capital management in response to market changes.

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. Announces Strategic Share Repurchase Plan
Nov 6, 2025

OBIC Co., Ltd. has announced a strategic move to repurchase up to 600,000 of its common shares, representing 0.14% of its outstanding shares, with a maximum total value of 2,877,600,000 yen. This decision, approved by the Board of Directors, aims to enhance shareholder value by improving capital efficiency and allowing for more flexible capital management in response to evolving market conditions.

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. Announces Treasury Share Repurchase Plan
Nov 6, 2025

OBIC Co., Ltd. has announced a decision by its Board of Directors to repurchase up to 6,000,000 of its common shares, which represents 1.36% of the total shares outstanding, excluding treasury shares. This move is aimed at returning profits to shareholders and enhancing capital efficiency, allowing the company to adapt to changes in the business environment.

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 Strong Financial Growth for First Half of 2025
Oct 28, 2025

OBIC Co., Ltd. reported a strong financial performance for the six months ended September 30, 2025, with significant increases in net sales, operating profit, and profit attributable to owners of the parent compared to the previous year. The company’s comprehensive income saw a remarkable rise, indicating robust growth and positive market positioning. The company also conducted a 5-for-1 share split, impacting earnings per share calculations. The forecast for the fiscal year ending March 31, 2026, remains optimistic with expected growth in net sales and profits, reflecting OBIC’s strategic positioning and operational efficiency.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 28, 2026