OBIC Co (4684) AI Stock Analysis

• Market Cap: ¥2.65T
• Dividend Yield: 0.7%
• Average Volume (3M): 823.46K
• Price to Earnings (P/E): 35.4
• Beta (1Y): 0.29
• Revenue Growth: 10.25%
• EPS Growth: 12.61%
• Country: JP
• Employees: 2,107
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 44.36
• Shares Outstanding: 498,000,000
• 10 Day Avg. Volume: 758,590
• 30 Day Avg. Volume: 823,460
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥5,550.65
• Price Target Upside: 2.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: ―

OBIC Co's strong financial performance is the primary driver of its overall score, reflecting robust revenue growth, profitability, and a solid balance sheet. The technical analysis presents a mixed picture with potential resistance around current levels. The valuation indicates a premium price, highlighting expectations for future growth. Absence of recent earnings call data and corporate events leaves these components unweighted.

OBIC Co Business Overview & Revenue Model

Company Description

OBIC Co., Ltd. is a Japan-based company primarily engaged in providing comprehensive information technology (IT) services. The company operates through various segments, including system integration, software development, and cloud services. OBIC offers a range of products and services such as enterprise resource planning (ERP) systems, accounting software, and business management solutions tailored to meet the needs of its diverse clientele, which includes companies from various industries seeking to enhance their IT infrastructure and operational efficiency.

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

OBIC Co's financial health is exceptionally strong across all verticals. The company displays robust revenue growth and profitability, a debt-free, well-capitalized balance sheet, and efficient cash flow generation. Such financial metrics suggest a stable and prosperous outlook, positioning OBIC Co favorably within the software application industry.

Income Statement

OBIC Co has demonstrated strong revenue growth and stable profitability. The revenue growth rate for the TTM (Trailing-Twelve-Months) is 5.50%, reflecting a consistent upward trajectory. The gross profit margin is an impressive 78.38%, and the net profit margin stands at 53.91%, indicating effective cost management and high profitability. The EBIT margin is 64.24%, and the EBITDA margin is 71.58%, both of which signify robust operational efficiency.

Balance Sheet

The balance sheet of OBIC Co is very strong, with zero debt, leading to an excellent debt-to-equity ratio of 0. The equity ratio is high at 88.06%, reflecting a strong capital structure. Return on equity (ROE) is 15.13%, showcasing effective utilization of equity to generate profits. The company's financial stability is further reinforced by significant cash reserves.

Cash Flow

OBIC Co exhibits solid cash flow management, with a free cash flow growth rate of 10.91% in the TTM. The operating cash flow to net income ratio is 0.95, indicating that a high portion of earnings is converted into cash. The free cash flow to net income ratio is 0.91, reflecting efficient cash generation relative to net income. These metrics underscore the company's capability to sustain operations and pursue growth without needing external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	121.24B	121.24B	111.59B	100.17B	89.48B	83.86B
Gross Profit	94.39B	94.39B	88.10B	77.22B	67.96B	60.84B
EBITDA	88.66B	92.77B	73.44B	65.00B	56.56B	50.32B
Net Income	64.62B	64.62B	58.01B	50.12B	43.50B	38.00B
Balance Sheet
Total Assets	500.38B	500.38B	462.17B	366.71B	323.93B	298.26B
Cash, Cash Equivalents and Short-Term Investments	200.06B	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	66.52B	66.52B	63.48B	38.84B	30.36B	32.23B
Stockholders Equity	433.85B	433.85B	398.69B	327.86B	293.57B	266.02B
Cash Flow
Free Cash Flow	60.73B	60.73B	52.07B	51.80B	37.06B	40.56B
Operating Cash Flow	62.79B	62.79B	55.83B	52.96B	38.97B	41.68B
Investing Cash Flow	-3.93B	-3.93B	-2.21B	1.28B	-44.05B	-5.42B
Financing Cash Flow	-29.04B	-29.04B	-39.70B	-20.62B	-22.96B	-15.12B

OBIC Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5425.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 5425 is above the 20-day moving average (MA) of 5328.30, above the 50-day MA of 5411.12, and above the 200-day MA of 4950.43, indicating a bullish trend. The MACD of -2.15 indicates Negative momentum. The RSI at 58.34 is Neutral, neither overbought nor oversold. The STOCH value of 83.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4684.

OBIC Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4704	75 Outperform	1.10T	35.33	0.00%	2.21%	3.16%	88.15%
4776	72 Outperform	156.22B	30.17	0.00%	0.88%	22.97%	107.52%
9735	72 Outperform	2.51T	21.78	8.51%	1.73%	4.84%	10.24%
4684	69 Neutral	¥2.65T	35.43	16.06%	0.70%	10.25%	12.61%
9613	65 Neutral	5.57T	39.12	7.78%	0.63%	3.73%	11.64%
4751	64 Neutral	911.32B	36.15	10.09%	0.89%	6.80%	58.78%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

OBIC Co Corporate Events

OBIC Co., Ltd. Reports Strong Financial Performance for FY 2025

OBIC Co., Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a notable increase in net sales and profits compared to the previous year. The company achieved an 8.6% rise in net sales to ¥121,240 million and an 11.4% increase in profit attributable to owners of the parent, reaching ¥64,621 million. The financial results reflect OBIC’s strong operational performance and strategic market positioning, with a significant share split conducted in October 2024 to enhance shareholder value.

OBIC Co., Ltd. Announces Organizational and Personnel Changes to Boost Human Capital Development

OBIC Co., Ltd. announced significant organizational and personnel changes, including the establishment of a new Human Capital Development Promotion Office aimed at fostering a diverse and inclusive workplace. These changes are expected to enhance the company’s human capital management and support sustainable employee growth, potentially strengthening OBIC’s market position and operational efficiency.