Justsystems Corporation (4686) AI Stock Analysis

• Market Cap: ¥245.66B
• Dividend Yield: 0.43%
• Average Volume (3M): 102.36K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.54
• Revenue Growth: 15.01%
• EPS Growth: 19.66%
• Country: JP
• Employees: 303
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 60.00
• Shares Outstanding: 64,224,800
• 10 Day Avg. Volume: 88,210
• 30 Day Avg. Volume: 102,360
• PEG Ratio: 2.96
• Price to Book (P/B): 2.06
• Price to Sales (P/S): 4.86
• P/FCF Ratio: 14.45
• 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: 79 Outperform
• Price Target: ¥4,517.00 ▲(3.36% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by strong financial performance (elite margins, debt-free balance sheet, solid cash generation). Technicals add support with the stock trading above key moving averages and positive MACD, while valuation tempers the result due to a mid-20s P/E and a low dividend yield.

Positive Factors

Profitability

Exceptionally high gross, operating and net margins reflect durable pricing power and a scalable software business model. These margins provide structural cash flow surplus to fund R&D, support enterprise customers and absorb cyclical shocks over the next 2–6 months.

Debt-free Balance Sheet

A zero-debt balance sheet materially reduces financial risk and enhances strategic optionality. It supports funding for product investment, M&A or shareholder returns without refinancing risk, giving multi-month resilience and flexibility in capital allocation decisions.

Cash Generation Quality

Strong cash conversion indicates earnings quality and real operating cash generation capacity. Reliable FCF funds operations, support for enterprise deployments and reinvestment, lowering reliance on external capital and underpinning durable financial health.

Negative Factors

Modest Revenue Growth

Top-line growth is modest and lumpy, limiting the company’s ability to compound earnings despite high margins. Limited organic revenue expansion constrains scale benefits, increases dependence on renewals and upsells, and could cap medium-term earnings trajectory.

Volatile Cash-Flow Conversion

Intermittent gaps between accounting earnings and cash flow reduce predictability for investment and distributions. Volatility may reflect working-capital swings or one-offs, creating funding variability that could constrain spending or returns in weaker quarters.

Erosion in ROE / Margins

Declining ROE and easing margins suggest profitability is not scaling with the expanding equity base and may signal competitive pressure or higher operating costs. If persistent, this can reduce capital efficiency and slower long-term shareholder return growth.

Justsystems Corporation Business Overview & Revenue Model

Company Description

Justsystems Corporation is a Japanese software development company that specializes in creating innovative software solutions for both individual and enterprise customers. The company is well-known for its word processing software, Ichitaro, and its ATOK Japanese input method system. Additionally, Justsystems offers a variety of enterprise solutions, including data management software and educational technology products, catering to different sectors such as education, business, and government.

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

High-quality fundamentals: exceptionally strong profitability (gross margin ~78%, operating ~41%, net ~28%), a debt-free balance sheet with steadily growing assets/equity, and solid free-cash-flow generation. Offsets are modest/uneven revenue growth and some historical volatility in cash-flow conversion.

Income Statement

Profitability is a standout: the latest annual period shows very strong gross margin (~78%), operating margin (~41%), and net margin (~28%). Revenue has been generally stable over the last several years, with a small decline in 2024 followed by a return to growth in 2025. The main weakness is that top-line growth is modest overall versus the level of profitability, and margins eased from the 2023 peak even though they remain exceptionally high.

Balance Sheet

The balance sheet is exceptionally conservative with zero debt across the periods provided, which meaningfully lowers financial risk and increases flexibility. Equity and total assets have steadily grown over time, supporting balance-sheet resilience. A modest watch item is that returns on equity have come down from earlier highs (notably below 2021–2022 levels), suggesting profitability is not scaling as fast as the expanding equity base.

Cash Flow

Cash generation is solid, with free cash flow closely matching net income in the latest year (roughly 100%), indicating good earnings quality and conversion. However, cash flow coverage of earnings has been inconsistent (below 1.0 in multiple years), and free cash flow dipped in 2024 before rebounding strongly in 2025—showing some volatility despite the overall healthy level of cash generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	46.56B	44.55B	40.98B	41.95B	41.68B	41.17B
Gross Profit	36.58B	34.77B	32.43B	33.17B	31.88B	29.91B
EBITDA	21.74B	20.62B	19.27B	21.09B	19.04B	16.87B
Net Income	13.05B	12.33B	11.64B	13.40B	12.16B	10.96B
Balance Sheet
Total Assets	127.76B	121.04B	109.10B	99.46B	86.22B	75.40B
Cash, Cash Equivalents and Short-Term Investments	105.53B	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	19.50B	16.01B	15.10B	15.78B	14.92B	14.33B
Stockholders Equity	108.25B	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: Negative
• Last Price: 4370.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4686, the sentiment is Negative. The current price of 4370 is above the 20-day moving average (MA) of 4199.25, below the 50-day MA of 4711.00, and below the 200-day MA of 4398.14, indicating a bearish trend. The MACD of -252.10 indicates Positive momentum. The RSI at 30.69 is Neutral, neither overbought nor oversold. The STOCH value of 25.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4686.

Justsystems Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4686	79 Outperform	¥245.66B	16.71	―	0.43%	15.01%	19.66%
3741	75 Outperform	¥38.59B	26.41	―	1.74%	21.97%	15.89%
3915	68 Neutral	¥23.86B	15.44	―	―	17.93%	91.21%
4475	68 Neutral	¥29.25B	21.78	―	0.39%	30.59%	65.14%
3850	65 Neutral	¥15.09B	18.72	―	0.91%	15.28%	60.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3778	52 Neutral	¥116.70B	156.88	―	0.14%	36.42%	28.23%

Justsystems Corporation Corporate Events

Justsystems Delivers Double-Digit Profit Growth and Higher EPS for Nine Months to December 2025

Justsystems Corporation reported robust results for the nine months ended December 31, 2025, with net sales rising 16.8% year on year to ¥38.5 billion and operating profit climbing 24.0% to ¥17.5 billion. Ordinary profit increased 24.9% to ¥17.9 billion, while profit attributable to owners of parent grew 24.2% to ¥12.1 billion, lifting basic earnings per share to ¥189.11 from ¥152.21 a year earlier. The company’s financial position also strengthened, as total assets expanded to ¥132.2 billion and net assets to ¥115.7 billion, pushing the equity ratio to 87.5%. Reflecting this solid performance and balance sheet, Justsystems maintained its dividend stance, having already paid a ¥12.00 interim dividend and forecasting a full-year total of ¥24.00 per share for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:4686) stock is a Buy with a Yen5392.00 price target. To see the full list of analyst forecasts on Justsystems Corporation stock, see the JP:4686 Stock Forecast page.