Cybozu, Inc. (4776) AI Stock Analysis

• Market Cap: ¥91.39B
• Dividend Yield: 1.02%
• Average Volume (3M): 391.29K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.74
• Revenue Growth: 26.47%
• EPS Growth: 142.77%
• Country: JP
• Employees: 1,321
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 42.94
• Shares Outstanding: 52,757,800
• 10 Day Avg. Volume: 432,830
• 30 Day Avg. Volume: 391,286
• PEG Ratio: 0.18
• Price to Book (P/B): 7.31
• Price to Sales (P/S): 3.48
• P/FCF Ratio: 16.69
• 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): 176.6
• Revenue Forecast (FY): ¥42.80B

• Rating: 70 Outperform
• Price Target: ¥2,290.00 ▼(-23.56% Downside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

Score is driven primarily by strong financial performance (accelerating growth, major margin expansion, and a very conservative balance sheet). This is partially offset by weak technicals indicating a broader downtrend, while valuation is moderate with a modest dividend yield.

Positive Factors

Conservative balance sheet

Near-zero leverage and rising equity materially improve financial flexibility and reduce default risk. Over a 2–6 month horizon this supports steady investment in product development, selective M&A or shareholder returns, and resilience to macro shocks without forcing dilutive financing.

Improved cash generation

Substantial improvement in operating and free cash flow signals stronger cash conversion and internal funding capacity. This durable change enables reinvestment in SaaS platform expansion, supports consistent capex and R&D, and reduces reliance on external capital for growth.

High margins and operating leverage

Exceptionally high gross margins reflect a scalable software model with strong pricing power and low incremental costs. Sustained operating and net margin expansion indicates durable earnings leverage as revenue grows, enabling margin reinvestment or higher free cash flow generation over time.

Negative Factors

Historical profitability volatility

Prior swings in profitability reduce predictability of future earnings despite recent strength. For planning and valuation, persistent volatility raises forecasting risk for customers and investors, and could make budgeting, hiring and long-term contracting decisions more conservative.

Inconsistent cash coverage of earnings

Even with recent FCF improvement, sub-1.0 cash coverage historically indicates timing or working-capital variability that can compress available cash in downturns. This structural inconsistency can limit reliable dividend or buyback policies and constrain near-term reinvestment plans.

Past leverage spike

A documented prior spike in leverage shows management has used significant debt in prior cycles. That history implies the capital structure can shift under stress or for opportunistic financing, introducing risk to financial resilience if conditions force repeat borrowing.

Cybozu, Inc. Business Overview & Revenue Model

Company Description

Cybozu, Inc. develops and sells software solutions in Japan, China, Vietnam, Asia, Europe, and the United States. The company offers web-based groupware software that supports team collaboration for companies and public organizations, as well as for small teams, such as inter-company projects, volunteers, and families. Its products and services include Cybozu Office, a groupware for small and midsize enterprises; Cybozu Garoon, a groupware for midsize to large size enterprises; kintone, a PaaS structured as a business app; Cybozu KUNAI, a smartphone app; Cybozu MailWise, a mail sharing system; and Cybozu Remote Service, a relay service for external lines. The company also operates Cybozu Teamwork Research Institute that explores methods to improve teamwork, as well as provides seminars and training courses on these methods. The company was founded in 1997 and is based in Tokyo, Japan.

How the Company Makes Money

Cybozu primarily makes money by selling subscriptions and licenses for its enterprise software products. The largest recurring revenue stream is typically cloud (SaaS) subscriptions, where customers pay ongoing fees (generally per user/seat and/or per service tier) to use products such as kintone and other collaboration/groupware services hosted by Cybozu. The company also generates revenue from on-premises software licensing for customers that purchase and run Cybozu products in their own environments, plus related maintenance/support fees (recurring) tied to those licenses. In addition, Cybozu earns from professional services and ancillary fees associated with implementation, onboarding, training, and other customer support activities (extent and breakdown not provided here). Ecosystem and channel dynamics can also support revenue: sales may be influenced by partner companies and integrators that implement or build solutions/extensions on top of Cybozu platforms (specific partnership terms and revenue contributions: null). Overall, the model is driven by recurring subscription/maintenance income, supplemented by one-time license and services revenue.

Cybozu, Inc. Financial Statement Overview

Summary

Strong and improving fundamentals: consistent revenue growth with re-acceleration in 2024–2025, sharp profitability expansion (net margin ~18.8% in 2025; operating margin ~27%), and exceptionally high/stable gross margins (~90%). Balance sheet is very conservative with near-zero leverage and rising equity. Main risk is historical volatility in profitability and less consistent earnings-to-cash alignment despite much stronger recent free cash flow.

Income Statement

Revenue has grown consistently from 2020–2025, with growth re-accelerating in 2024–2025 (2025: +11.8%). Profitability has expanded sharply: net margin improved from ~0.3% (2022) to ~18.8% (2025), alongside stronger operating profitability (2025 operating margin ~27%). Gross margins remain exceptionally high (~90%) and stable, supporting strong earnings leverage. Key watch-out: results show meaningful volatility earlier in the period (notably 2021–2022 profitability), even though the latest two years are materially stronger.

Balance Sheet

The balance sheet is very conservative today with minimal debt (2025 debt-to-equity ~0.00), a major improvement versus 2022 when leverage was high (debt-to-equity ~1.01). Equity has expanded significantly (2023–2025), strengthening financial resilience and flexibility. Main weakness: the capital structure has not been perfectly steady historically, given the prior leverage spike in 2021–2022.

Cash Flow

Cash generation has improved substantially: operating cash flow rose from ¥1.3B (2022) to ¥10.7B (2025), and free cash flow turned strongly positive (¥7.8B in 2025) after negative free cash flow in 2021–2022. Free cash flow is a healthy share of earnings in recent years (2025: ~73% of net income), indicating solid cash conversion. The main concern is consistency—cash flow coverage of earnings has been below 1.0 across the years shown, suggesting working-capital or timing effects can cause earnings-to-cash variability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.49B	37.43B	29.68B	25.43B	22.07B	18.49B
Gross Profit	30.24B	33.69B	26.73B	23.07B	20.12B	17.15B
EBITDA	10.33B	12.83B	7.25B	5.44B	2.21B	2.60B
Net Income	5.33B	7.03B	3.56B	2.49B	66.00M	551.00M
Balance Sheet
Total Assets	25.40B	30.14B	21.66B	19.63B	16.22B	14.58B
Cash, Cash Equivalents and Short-Term Investments	7.16B	11.69B	5.59B	6.49B	5.12B	4.80B
Total Debt	39.00M	35.00M	0.00	0.00	4.68B	2.20B
Total Liabilities	11.04B	12.32B	10.02B	8.38B	11.59B	8.21B
Stockholders Equity	14.30B	17.81B	11.63B	11.25B	4.63B	6.37B
Cash Flow
Free Cash Flow	0.00	7.80B	2.91B	2.28B	-1.53B	-811.00M
Operating Cash Flow	0.00	10.68B	5.60B	4.55B	1.33B	472.00M
Investing Cash Flow	0.00	-3.10B	-3.09B	-2.53B	-3.12B	-1.49B
Financing Cash Flow	0.00	-1.39B	-3.60B	-777.00M	1.93B	1.70B

Cybozu, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2996.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4776, the sentiment is Negative. The current price of 2996 is above the 20-day moving average (MA) of 2179.45, above the 50-day MA of 2311.46, and below the 200-day MA of 3099.16, indicating a bearish trend. The MACD of -45.42 indicates Positive momentum. The RSI at 39.52 is Neutral, neither overbought nor oversold. The STOCH value of 6.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4776.

Cybozu, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4060	74 Outperform	¥5.97B	21.40	―	0.57%	21.03%	32.29%
4776	70 Outperform	¥91.39B	18.51	―	1.02%	26.47%	142.77%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4443	61 Neutral	¥141.23B	31.57	―	―	27.65%	96.11%
4397	60 Neutral	¥6.64B	27.15	―	―	11.32%	―
4478	55 Neutral	¥121.67B	293.64	―	―	31.57%	―
3994	52 Neutral	¥172.95B	143.78	-19.16%	―	19.57%	-16.67%

Cybozu, Inc. Corporate Events

Cybozu Extends Double-Digit Growth as Cloud Sales Drive Strong February Results

Cybozu reported preliminary consolidated sales of ¥3,406 million for February 2026, bringing cumulative sales for the year to ¥6,773 million and marking year-on-year growth of around 16–17 percent. Cloud-related business remained the main growth engine, with February cloud sales of ¥3,129 million and cumulative cloud revenue of ¥6,236 million, both rising about 17 percent from a year earlier.

The company’s disclosed figures indicate continued strong momentum following its 2025 performance, when sales benefited from revised cloud service pricing introduced in late 2024. Management reaffirmed its practice of releasing monthly preliminary sales data midmonth, giving investors frequent visibility into topline trends as Cybozu works toward its 2026 full-year earnings targets and seeks to reinforce its position in the cloud collaboration market.

The most recent analyst rating on (JP:4776) stock is a Buy with a Yen2405.00 price target. To see the full list of analyst forecasts on Cybozu, Inc. stock, see the JP:4776 Stock Forecast page.

Cybozu Doubles Profit in 2025, Lifts Dividend and Forecasts Further Growth

Cybozu reported strong results for the fiscal year ended December 31, 2025, with net sales rising 26.1% to ¥37.43 billion and operating profit more than doubling to ¥10.10 billion, driving a near-doubling of profit attributable to owners of parent to ¥7.08 billion. Profitability metrics improved significantly, including a higher operating margin and return on equity, while total assets and equity expanded and year-end cash and cash equivalents more than doubled to ¥11.69 billion, underscoring a strengthened financial base.

The company raised its annual dividend to ¥40 per share for 2025 and plans a further increase to ¥50 in 2026, signaling confidence in earnings sustainability and shareholder returns. For 2026, Cybozu forecasts continued but more moderate growth, with net sales expected to rise 12.7% and profit attributable to owners of parent up 5.1%, and it also expanded its consolidation scope by adding Ehime Sports Entertainment Co., Ltd., reflecting ongoing strategic investments and business development.

The most recent analyst rating on (JP:4776) stock is a Buy with a Yen2590.00 price target. To see the full list of analyst forecasts on Cybozu, Inc. stock, see the JP:4776 Stock Forecast page.

Cybozu Starts 2026 with Double-Digit Sales Growth Driven by Cloud Business

Cybozu reported preliminary consolidated sales of ¥3,367 million for January 2026, up 17.0% year on year, underscoring continued topline growth at the start of its current fiscal year. Cloud-related business remained the core driver, generating ¥3,107 million in January sales, a 17.8% year-on-year increase that reinforces the company’s strategic emphasis on recurring cloud revenue.

The company reiterated its full-year 2026 forecast of ¥42,168 million in net sales and ¥7,445 million in profit attributable to owners of parent, suggesting confidence that robust cloud momentum can support its earnings targets. Cybozu also reminded investors that monthly sales figures are preliminary and subject to revision, while maintaining its practice of disclosing monthly sales trends mid-month to provide high transparency for stakeholders.

The most recent analyst rating on (JP:4776) stock is a Buy with a Yen2390.00 price target. To see the full list of analyst forecasts on Cybozu, Inc. stock, see the JP:4776 Stock Forecast page.

Cybozu Plans Higher Year-End Dividend on Confidence in Cloud Growth

Cybozu, Inc. has proposed a year-end dividend of ¥40 per share for the fiscal year ended December 31, 2025, to be submitted for approval at its 29th Annual Shareholders Meeting on March 28, 2026. The planned payout totals ¥1,849 million and will be sourced from retained earnings, with the effective payment date set for March 30, 2026.

The proposed dividend represents a ¥10 increase from the prior fiscal year’s ¥30 year-end dividend, reflecting the company’s policy of balancing agile investment in its mainstay cloud business with shareholder returns. Management cited current-year progress, next fiscal year outlook, cash flow and growth investment needs in justifying the higher payout, signaling confidence in ongoing growth while encouraging long-term share ownership.

The most recent analyst rating on (JP:4776) stock is a Buy with a Yen2390.00 price target. To see the full list of analyst forecasts on Cybozu, Inc. stock, see the JP:4776 Stock Forecast page.

Cybozu Doubles Operating Profit and Lifts Dividend on Strong 2025 Results

Cybozu reported strong consolidated results for the fiscal year ended December 31, 2025, with net sales rising 26.1% year on year to ¥37.43 billion and operating profit more than doubling to ¥10.10 billion. Profit attributable to owners of parent surged 99.2% to ¥7.08 billion, driving basic earnings per share to ¥153.17 and lifting return on equity to 48.1%.

The balance sheet also strengthened, as total assets climbed to ¥30.14 billion and the equity ratio improved to 59.1%, supported by robust operating cash flow of ¥10.67 billion and a higher year-end cash balance. Cybozu plans to raise its annual dividend to ¥40 per share for 2025 and is forecasting further growth in 2026, with net sales seen up 12.7% and profit attributable to owners of parent up 5.1%, underscoring confidence in its earnings power and shareholder returns policy.

Cybozu to Book ¥1.5 Billion Extraordinary Loss on U.S. Subsidiary Shares

Cybozu, Inc. said it will book an extraordinary loss of ¥1,485 million in its non-consolidated results for the year ended December 2025, stemming from an impairment loss on shares of its U.S. consolidated subsidiary, Kintone Corporation, after a decline in the appraised value of a related company’s stock. The company stressed that the U.S. business remains in an investment phase and that it intends to continue funding the operation, citing long-term market growth potential and the possibility of ultimately recouping its investment, while noting the loss has already been factored into its non-consolidated forecast and will not affect consolidated earnings because it is eliminated at the group level.

Cybozu Clarifies Non-Membership Status in FASF and Accounting Governance Approach

Cybozu, Inc. has disclosed that it was not a member of the Financial Accounting Standards Foundation (FASF) as of the end of its fiscal year on December 31, 2025, in line with Tokyo Stock Exchange disclosure requirements. The company emphasized that, despite its non-membership, it maintains a robust framework for understanding and applying accounting standards by regularly attending seminars, consulting reference materials, and working closely with its auditing firms to ensure accurate implementation of changes. While Cybozu currently has no plans to join the FASF, it continues to exchange information with the foundation and is keeping the option of future membership under consideration, signaling ongoing attention to regulatory and accounting governance expectations from investors and other stakeholders.

Cybozu Posts Solid December Sales as Cloud Business Benefits From Pricing Revisions

Cybozu reported preliminary figures for December 2025 showing continued strong growth in both consolidated and cloud-related sales, with monthly consolidated revenue rising to ¥3,415 million and cloud-related revenue to ¥3,104 million. Year-on-year growth rates in the latter months reflect the impact of cloud service price revisions introduced in November 2024, which have lifted reported sales growth compared with the previous year; the company also reiterated its full-year 2025 earnings forecasts and signaled that any revisions will be disclosed promptly, underscoring its focus on transparency for investors tracking its transition toward higher-value cloud services.