Justsystems Corporation (4686) AI Stock Analysis

• Market Cap: ¥318.23B
• Dividend Yield: 0.4%
• Average Volume (3M): 159.57K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.61
• Revenue Growth: 11.66%
• EPS Growth: 9.96%
• Country: JP
• Employees: 303
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 62.88
• Shares Outstanding: 64,224,800
• 10 Day Avg. Volume: 118,060
• 30 Day Avg. Volume: 159,573
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ―

Justsystems Corporation receives a strong score due to its robust financial performance, characterized by high profitability and financial stability with zero debt. While the technical analysis indicates mixed momentum, the valuation appears reasonable. The absence of recent earnings call data and corporate events does not impact the score.

Positive Factors

Strong Balance Sheet

A zero-debt balance sheet enhances financial stability and flexibility, allowing Justsystems to invest in growth opportunities without financial strain.

High Profitability

High profitability margins indicate efficient operations and strong pricing power, supporting sustainable earnings and potential reinvestment in business expansion.

Revenue Growth

Steady revenue growth reflects the company's ability to expand its market presence and product adoption, contributing to long-term business resilience.

Negative Factors

Absence of Operating Cash Flow Data

Lack of detailed operating cash flow data poses a risk in assessing the company's cash flow health, potentially impacting financial planning and investment decisions.

Modest Revenue Growth

While positive, modest revenue growth may indicate challenges in rapidly scaling operations or penetrating new markets, potentially limiting future expansion.

Low Dividend Yield

A low dividend yield may not attract income-focused investors, potentially limiting the stock's appeal to a broader investor base seeking regular income.

Justsystems Corporation Business Overview & Revenue Model

Company Description

JustSystems Corporation plans, develops, and provides software and related services primarily in Japan. The company offers Advanced Technology of Kana-Kanji transfer, a Japanese language input system for writing text in Japanese; and SMILE ZEMI, an e-learning system for elementary school students for study using a dedicated tablet device. It also provides Actionista!, a business intelligence tool that lets anyone engage in analysis; a suite of office-compatible software, such as JUST Office, JUST Government, and JUST Police to support the input of specific Japanese names and places; and ATOK Medical, a medical dictionary that enables conversion of complex disease and pharmaceutical names. The company serves individuals, private sector companies, government institutions, local municipalities, police forces, schools, and hospitals. JustSystems Corporation was founded in 1979 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Justsystems Corporation generates revenue primarily through the sale of its software products and services. The company's key revenue streams include licensing fees from its flagship software products like Ichitaro and ATOK, subscription services for cloud-based solutions, and enterprise software solutions for data management and educational technology. Furthermore, Justsystems engages in strategic partnerships and collaborations with other technology firms to enhance and distribute its products, thereby expanding its market reach and contributing to its earnings.

Justsystems Corporation Financial Statement Overview

Summary

Justsystems Corporation shows strong financial performance with excellent profitability and a solid balance sheet, featuring zero debt and high equity ratio. The company manages costs efficiently, but the absence of recent operating cash flow data requires careful monitoring.

Income Statement

Justsystems Corporation demonstrates strong profitability with a consistent gross profit margin around 78% and a net profit margin above 27% in TTM. Revenue growth is modest at 5.67% in TTM, with stable EBIT and EBITDA margins. The company shows efficient cost management, contributing to its robust financial performance.

Balance Sheet

The company maintains a healthy balance sheet with zero debt, resulting in a debt-to-equity ratio of 0. The equity ratio is strong at 87.36% in TTM, indicating financial stability and low leverage. ROE is impressive at 11.78%, reflecting effective utilization of shareholder equity to generate profits.

Cash Flow

Cash flow generation appears solid, but recent financials lack detailed metrics. Historically, the free cash flow to net income ratio is favorable, indicating good cash conversion. However, the absence of operating cash flow data in TTM poses a risk in fully assessing cash flow health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.55B	44.55B	40.98B	41.95B	41.68B	41.17B
Gross Profit	34.77B	34.77B	32.43B	33.17B	31.88B	29.91B
EBITDA	20.33B	20.62B	19.27B	21.09B	19.04B	16.87B
Net Income	12.33B	12.33B	11.64B	13.40B	12.16B	10.96B
Balance Sheet
Total Assets	121.04B	121.04B	109.10B	99.46B	86.22B	75.40B
Cash, Cash Equivalents and Short-Term Investments	100.57B	100.57B	89.85B	80.14B	67.15B	56.01B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	16.01B	16.01B	15.10B	15.78B	14.92B	14.33B
Stockholders Equity	105.03B	105.03B	94.00B	83.68B	71.30B	61.07B
Cash Flow
Free Cash Flow	0.00	14.98B	10.53B	14.31B	12.12B	11.16B
Operating Cash Flow	0.00	15.02B	13.05B	16.80B	14.08B	12.99B
Investing Cash Flow	0.00	-27.13B	-8.56B	-3.85B	-2.02B	-3.82B
Financing Cash Flow	0.00	-1.28B	-1.28B	-1.03B	-1.03B	-641.00M

Justsystems Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5120.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4686, the sentiment is Positive. The current price of 5120 is above the 20-day moving average (MA) of 4741.50, above the 50-day MA of 4217.80, and above the 200-day MA of 3648.84, indicating a bullish trend. The MACD of 205.65 indicates Negative momentum. The RSI at 77.96 is Negative, neither overbought nor oversold. The STOCH value of 93.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4686.

Justsystems Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5036	75 Outperform	¥70.62B	14.17		1.94%	22.09%	143.20%
4686	73 Outperform	¥318.23B	24.38		0.40%	11.66%	9.96%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
762	―	€694.81M	35.63	9.92%	―	―	―
3854	63 Neutral	¥72.03B	20.36		1.74%	10.20%	22.51%
4180	63 Neutral	¥169.49B	54.55		0.12%	26.40%	129.49%
3778	53 Neutral	¥115.18B	44.82		0.14%	45.51%	292.77%