Justsystems Corporation (4686) AI Stock Analysis

• Market Cap: ¥225.75B
• Dividend Yield: 0.43%
• Average Volume (3M): 102.36K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.59
• 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: 69 Neutral
• Price Target: ¥4,013.00 ▼(-8.17% Downside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

Strong financial performance (exceptional margins and a debt-free balance sheet) supports the score, but it is held back by weak technical momentum (trading below key moving averages with negative MACD) and only moderate valuation support (P/E ~21 with a low dividend yield).

Positive Factors

High Profitability

Sustained exceptionally high margins indicate durable product pricing power and low incremental costs for software distribution. This margin profile supports strong internal funding for R&D, customer support, and targeted investments, providing a long-term competitive cushion even with modest top-line growth.

Debt-free Balance Sheet

A zero-debt balance sheet meaningfully reduces financial risk and increases strategic flexibility. It enables the company to fund growth, absorb cyclical shocks, or pursue acquisitions without refinancing risk, strengthening long-term resilience and capital-allocation optionality.

Strong Cash Generation

Free cash flow that approximately equals net income demonstrates high earnings quality and the ability to self-fund operations and investments. Consistent FCF supports sustainable maintenance of core products, incremental investments, and potential shareholder returns over the medium term.

Negative Factors

Moderate, Uneven Revenue Growth

Top-line growth is modest and episodically uneven, limiting scalability of profits over time. Reliance on a narrow set of core Japanese-language productivity products may constrain addressable market expansion and makes long-term earnings growth dependent on successful product or market diversification.

Volatile Cash Flow Conversion

Inconsistent cash conversion and occasional FCF declines introduce forecasting risk and complicate capital allocation. This volatility can constrain steady investment or shareholder-return programs in weaker years and raises the importance of prudent liquidity management.

Declining Return on Equity

ROE compression suggests the company’s profitability has not scaled proportionally with growing equity, possibly from reinvestment at lower incremental returns or margin normalization. Persistent ROE decline would weaken capital efficiency and pressure long-term shareholder returns.

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

Very strong profitability (high gross, operating, and net margins), a debt-free and steadily growing balance sheet, and generally solid cash generation. Offsets are modest/uneven revenue growth and some 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	21.73B	20.61B	19.63B	21.27B	19.19B	16.93B
Net Income	13.05B	12.33B	11.64B	13.40B	12.16B	10.96B
Balance Sheet
Total Assets	127.76B	121.05B	109.11B	99.47B	86.23B	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	16.02B	15.10B	15.79B	14.93B	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	13.03B	16.80B	14.06B	12.97B
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: Negative
• 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 3680.00, above the 50-day MA of 4271.20, and below the 200-day MA of 4413.29, indicating a bearish trend. The MACD of -190.72 indicates Negative momentum. The RSI at 33.58 is Neutral, neither overbought nor oversold. The STOCH value of 46.29 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
3741	75 Outperform	¥35.16B	19.37	―	1.74%	21.97%	15.89%
4686	69 Neutral	¥225.75B	21.08	―	0.43%	15.01%	19.66%
3915	68 Neutral	¥20.46B	9.96	―	―	17.93%	91.21%
4475	68 Neutral	¥31.27B	27.58	―	0.39%	30.59%	65.14%
3850	65 Neutral	¥14.44B	25.11	―	0.91%	15.28%	60.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3778	52 Neutral	¥111.14B	367.27	―	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.