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Cybozu, Inc. (JP:4776)
:4776
Japanese Market

Cybozu, Inc. (4776) AI Stock Analysis

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JP:4776

Cybozu, Inc.

(4776)

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Outperform 71 (OpenAI - 5.2)
Rating:71Outperform
Price Target:
¥2,440.00
▼(-18.56% Downside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by strong financial performance (accelerating revenue growth, major margin expansion, and a very conservative balance sheet) and supported by reasonable valuation. This is meaningfully offset by weak technicals, with the stock in a clear downtrend and negative momentum signals.
Positive Factors
Recurring SaaS subscription model
Cybozu's revenue base is anchored in cloud SaaS subscriptions, creating recurring, predictable income and higher customer retention versus one‑time license sales. This model supports durable revenue visibility, scalable per‑user economics and steady renewal-driven growth over the next several quarters.
Very high gross margins
Sustained ~90% gross margins give Cybozu substantial operating leverage and pricing flexibility. High gross margins allow the company to absorb increased sales and marketing or R&D spending while preserving profitability, supporting durable margin sustainability as cloud adoption and platform usage scale.
Conservative balance sheet
Near‑zero leverage and expanding equity provide strong financial resilience and optionality. The conservative capital structure reduces refinancing risk, supports capital allocation for product investment or M&A, and improves the company's ability to withstand cyclicality over a multi‑month horizon.
Negative Factors
Historical profitability volatility
Past swings in profit margins introduce execution risk: although margins improved materially in 2024–2025, historical volatility means improvements may not be fully durable. Management must sustain execution across product, pricing and cost control to convert recent gains into stable long‑term profitability.
Earnings-to-cash timing variability
Despite strong recent free cash flow, persistent earnings-to-cash coverage below 1.0 signals working‑capital or timing effects that can weaken cash reliability. This variability can constrain reinvestment or increase short‑term financing needs if growth accelerates or receivables spike.
Past leverage spike (capital structure instability)
A prior surge in leverage shows the balance sheet has been materially weaker in stress periods. While debt is minimal today, the historical spike highlights governance or funding‑choice risk: financing decisions could reintroduce leverage under pressure, reducing long‑term financial stability if adverse events recur.

Cybozu, Inc. (4776) vs. iShares MSCI Japan ETF (EWJ)

Cybozu, Inc. Business Overview & Revenue Model

Company DescriptionCybozu, 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 MoneyCybozu, Inc. generates revenue primarily through the sale of its software products and cloud-based services. The company adopts a subscription-based model for its cloud services, where customers pay recurring fees to access and utilize platforms like 'kintone'. This model ensures a steady stream of revenue as businesses continue to use and rely on these services for their operations. The company also earns income through licensing fees for its on-premise software solutions and offers consulting and support services that contribute to its earnings. Cybozu's strategic partnerships with various technology firms and its focus on expanding its presence internationally further bolster its revenue streams by reaching a wider customer base.

Cybozu, Inc. Financial Statement Overview

Summary
Strong and improving fundamentals: consistent revenue growth through 2020–2025 with re-acceleration in 2024–2025, a sharp step-up in profitability (net margin ~18.8% in 2025; operating margin ~27%) and exceptionally high/stable gross margins (~90%). Balance sheet is a major strength with near-zero leverage in 2025 and expanding equity. Main risk is historical volatility in profitability and less-than-perfect earnings-to-cash alignment despite strong recent free cash flow.
Income Statement
86
Very Positive
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
90
Very Positive
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
78
Positive
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.
BreakdownTTMDec 2025Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue33.49B37.43B29.68B25.43B22.07B18.49B
Gross Profit30.24B33.69B26.73B23.07B20.12B17.15B
EBITDA10.00B12.83B7.53B5.58B2.56B2.65B
Net Income5.33B7.03B3.56B2.49B66.00M551.00M
Balance Sheet
Total Assets25.40B30.14B21.09B19.25B15.91B14.04B
Cash, Cash Equivalents and Short-Term Investments7.16B11.69B5.59B6.49B5.12B4.80B
Total Debt39.00M35.00M0.000.004.68B2.20B
Total Liabilities11.04B12.32B9.46B8.00B11.28B7.67B
Stockholders Equity14.30B17.81B11.63B11.25B4.63B6.37B
Cash Flow
Free Cash Flow0.007.80B2.91B2.10B-1.65B-888.00M
Operating Cash Flow0.0010.68B5.60B4.55B1.33B472.00M
Investing Cash Flow0.00-3.10B-3.09B-2.53B-3.12B-1.49B
Financing Cash Flow0.00-1.39B-3.60B-777.00M1.93B1.70B

Cybozu, Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2996.00
Price Trends
50DMA
2499.40
Negative
100DMA
2771.32
Negative
200DMA
3168.63
Negative
Market Momentum
MACD
-101.28
Negative
RSI
44.45
Neutral
STOCH
39.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4776, the sentiment is Neutral. The current price of 2996 is above the 20-day moving average (MA) of 2195.45, above the 50-day MA of 2499.40, and below the 200-day MA of 3168.63, indicating a neutral trend. The MACD of -101.28 indicates Negative momentum. The RSI at 44.45 is Neutral, neither overbought nor oversold. The STOCH value of 39.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4776.

Cybozu, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥6.87B25.180.57%21.03%32.29%
71
Outperform
¥102.40B14.571.02%26.47%142.77%
68
Neutral
¥7.04B17.4611.32%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
¥148.73B71.9427.65%96.11%
55
Neutral
¥128.29B144.6031.57%
49
Neutral
¥177.02B112.18-19.16%19.57%-16.67%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4776
Cybozu, Inc.
2,232.00
-638.97
-22.26%
JP:3994
Money Forward
3,190.00
-816.00
-20.37%
JP:4060
rakumo Inc.
1,179.00
376.29
46.88%
JP:4397
TeamSpirit, Inc.
426.00
9.00
2.16%
JP:4443
Sansan, Inc.
1,174.00
-873.00
-42.65%
JP:4478
freee K.K.
2,150.00
-1,750.00
-44.87%

Cybozu, Inc. Corporate Events

Cybozu Doubles Operating Profit and Lifts Dividend on Strong 2025 Results
Feb 12, 2026

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
Feb 10, 2026

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
Jan 30, 2026

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
Jan 28, 2026

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.

Cybozu Posts Strong November 2025 Sales on Expanding Cloud Business
Dec 23, 2025

Cybozu reported preliminary consolidated sales and cloud-related business sales for November 2025, showing strong year-on-year growth in both overall and cloud-specific revenues, supported in part by price revisions introduced for its cloud services from November 2024. Cumulative consolidated and cloud sales for the fiscal year to November continued to rise at double-digit rates versus 2024, underscoring the company’s expanding subscription base and reinforcing its full-year guidance, while providing investors with monthly transparency on performance trends that highlight the growing importance of its cloud business to overall profitability.

Cybozu, Inc. Issues Correction to Q3 FY2025 Financial Results
Dec 18, 2025

Cybozu, Inc. announced a correction to its Q3 financial results presentation for fiscal year 2025, originally released on November 13, 2025, due to discrepancies in the description of financial highlights. This announcement demonstrates the company’s commitment to transparency and accuracy, enhancing its integrity and trust among stakeholders.

Cybozu, Inc. Announces Correction to Q2 2025 Financial Results Presentation
Dec 18, 2025

Cybozu, Inc. announced a correction to its Q2 2025 financial results presentation due to errors identified in the initially issued report on August 8, 2025. The changes, specifically related to financial highlights, aim to provide accurate information, ensuring transparency and reinforcing the company’s commitment to reliable investor communication.

Cybozu, Inc. Issues Correction for Q1 FY2025 Financial Highlights
Dec 18, 2025

Cybozu, Inc. has issued a correction to an earlier financial results presentation for the first quarter of fiscal year 2025, addressing errors found in the financial highlights section. While the exact details of the correction were not detailed, the announcement demonstrates the company’s commitment to transparency and accuracy in its communications, potentially reassuring stakeholders about the reliability of its reporting processes.

Cybozu Forecasts Growth in 2026 Amid Continued Cloud Investments
Dec 18, 2025

Cybozu, Inc. announced its earnings and dividend forecast for the fiscal year ending December 31, 2026, projecting solid growth in its cloud services business with expected net sales of ¥42,168 million. Although investments will increase in areas such as personnel, advertising, and data center operations, the company foresees an increase in profitability and plans to return a dividend of ¥50 per share, reflecting ongoing efforts to balance growth and shareholder returns.

Cybozu, Inc. Reports Growth in October 2025 Sales
Nov 25, 2025

Cybozu, Inc. reported its preliminary monthly consolidated sales and cloud-related business sales for October 2025, showing continued growth in both areas. The company has experienced a steady increase in sales figures, reflecting strong market demand and effective business strategies, which may positively impact its market positioning and stakeholder confidence.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 18, 2026