Business Engineering Corporation (4828) AI Stock Analysis

• Market Cap: ¥75.86B
• Dividend Yield: 1.58%
• Average Volume (3M): 18.93K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.87
• Revenue Growth: 9.79%
• EPS Growth: 42.15%
• Country: JP
• Employees: 699
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 114.54
• Shares Outstanding: 12,000,000
• 10 Day Avg. Volume: 18,720
• 30 Day Avg. Volume: 18,933
• 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: ¥6,615.38
• Price Target Upside: 4.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥6,623.00 ▲(4.63% Upside)

Business Engineering Corporation's overall stock score is driven by strong financial performance and bullish technical indicators. The company's robust financial metrics and low leverage provide a solid foundation, while technical analysis suggests strong momentum despite overbought signals. Valuation is fair, but not a standout factor.

Business Engineering Corporation Business Overview & Revenue Model

Company Description

Business Engineering Corporation (4828) is a prominent player in the information technology sector, primarily focusing on providing enterprise resource planning (ERP) solutions. The company offers a wide range of services including system integration, consulting, and software development, aimed at enhancing the operational efficiency of its clients. Business Engineering Corporation serves various industries by delivering customized technology solutions tailored to meet specific business needs.

How the Company Makes Money

Business Engineering Corporation generates revenue through a combination of software licensing, consulting services, and system integration projects. A significant portion of its income comes from selling software licenses for its proprietary ERP systems, which clients typically purchase to manage their business operations more effectively. Additionally, the company offers consulting services that help organizations implement and optimize these ERP systems, ensuring seamless integration with existing processes. System integration projects also contribute to the company's earnings, as they involve designing and implementing comprehensive IT solutions that address complex business challenges. Key partnerships with other technology providers may enhance its offerings and expand its client base, further contributing to its revenue streams.

Business Engineering Corporation Financial Statement Overview

Summary

Business Engineering Corporation demonstrates strong financial metrics with solid profitability and growth prospects. The income statement shows a robust EBIT margin of 22.5% and consistent revenue growth. The balance sheet is healthy with a low debt-to-equity ratio of 0.007 and a high return on equity of 24.9%. Cash flow management is sound, with a strong free cash flow to net income ratio of 1.03.

Income Statement

Business Engineering Corporation demonstrates strong financial metrics with a solid gross profit margin of 43.8% and a net profit margin of 16.0% for the latest annual report. The company has achieved consistent revenue growth over the years, with the most recent increase at 6.6%. The EBIT margin is robust at 22.5%, reflecting efficient cost management. Overall, the income statement indicates strong profitability and growth prospects.

Balance Sheet

The balance sheet of Business Engineering Corporation showcases a healthy financial position with a low debt-to-equity ratio of 0.007, indicating minimal financial leverage risks. The return on equity stands at a commendable 24.9%, showing effective use of equity capital to generate profits. An impressive equity ratio of 72.6% highlights the company's strong capitalization and financial stability. These metrics suggest a well-managed balance sheet with low leverage and high financial resilience.

Cash Flow

The cash flow statement reveals strong free cash flow generation, with a free cash flow to net income ratio of 1.03, indicating effective cash conversion of profits. However, there was a slight decrease in operating cash flow compared to the previous year. Despite this, the company maintains a healthy operating cash flow to net income ratio of 1.06, reinforcing its cash-generating capabilities. Overall, the company demonstrates sound cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.78B	20.78B	19.49B	18.51B	17.76B	17.86B
Gross Profit	9.09B	9.09B	7.85B	6.99B	5.88B	5.56B
EBITDA	5.43B	5.51B	4.58B	3.95B	3.14B	2.62B
Net Income	3.33B	3.33B	2.63B	2.33B	1.64B	1.29B
Balance Sheet
Total Assets	18.45B	18.45B	15.72B	13.41B	11.49B	10.48B
Cash, Cash Equivalents and Short-Term Investments	9.35B	9.35B	8.38B	6.97B	4.95B	4.08B
Total Debt	100.00M	100.00M	100.00M	100.00M	100.00M	470.78M
Total Liabilities	5.07B	5.07B	4.77B	4.12B	4.02B	4.08B
Stockholders Equity	13.38B	13.38B	10.95B	9.29B	7.48B	6.40B
Cash Flow
Free Cash Flow	0.00	3.42B	2.57B	2.57B	1.56B	1.78B
Operating Cash Flow	0.00	3.52B	3.55B	3.28B	2.29B	2.54B
Investing Cash Flow	0.00	-1.48B	-1.13B	-696.63M	-713.17M	-817.10M
Financing Cash Flow	0.00	-1.07B	-1.00B	-549.06M	-701.76M	196.98M

Business Engineering Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6330.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4828, the sentiment is Positive. The current price of 6330 is above the 20-day moving average (MA) of 6126.50, above the 50-day MA of 5714.50, and above the 200-day MA of 4442.46, indicating a bullish trend. The MACD of 146.37 indicates Negative momentum. The RSI at 69.29 is Neutral, neither overbought nor oversold. The STOCH value of 91.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4828.

Business Engineering Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4323	76 Outperform	59.94B	23.23	18.06%	1.12%	12.01%	16.50%
4719	76 Outperform	54.89B	16.15	―	2.56%	6.48%	8.22%
3836	75 Outperform	58.91B	16.57	22.02%	1.60%	15.59%	22.71%
4828	73 Outperform	¥75.86B	19.53	32.57%	1.58%	9.79%	42.15%
4477	64 Neutral	39.00B	113.29	―	―	30.45%	56.35%
3673	64 Neutral	66.70B	87.00	3.29%	0.59%	18.44%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Business Engineering Corporation Corporate Events

Business Engineering Corporation Reports Strong Q1 2025 Financial Results

Business Engineering Corporation reported a significant increase in its financial performance for the three months ended June 30, 2025, with net sales rising by 19.8% and profit attributable to owners of the parent increasing by 70.8% compared to the previous year. The company has revised its financial forecast for the fiscal year ending March 31, 2026, indicating expected growth in net sales and profits, which suggests a positive outlook for stakeholders and a strengthened market position.

Business Engineering Corporation Revises Financial Forecast Upward Amid Strong IT Investments

Business Engineering Corporation has revised its financial forecast for the first half of the fiscal year ending March 31, 2026, showing an upward trend in net sales and profits due to strong IT investments in the manufacturing sector. Despite this positive revision, the company maintains its full-year forecast unchanged due to uncertainties in global trade policies, indicating a cautious outlook for future financial adjustments.

Business Engineering Corporation Maintains Independence Amid ZUKEN Inc. Affiliation

Business Engineering Corporation announced its relationship with ZUKEN Inc., an associated company holding a significant voting stake. Despite this affiliation, ZUKEN Inc. does not exert control over Business Engineering Corporation, ensuring its management remains independent. The companies have a capital and business alliance to enhance product and service quality, though there are no direct transactions between them.

Business Engineering Corporation Revises Shareholder Return Policy

Business Engineering Corporation has announced a revision to its shareholder return policy, increasing the dividend payout ratio from over 35% to over 50% as part of its ‘BE 2030’ vision. This change, effective from the fiscal year ending March 31, 2026, aims to enhance shareholder returns and reflects the company’s commitment to its long-term financial strategy.

Business Engineering Corporation Unveils BE 2030 Growth Strategy

Business Engineering Corporation has announced a new growth strategy, BE 2030, following the achievement of its fiscal year 2025 targets ahead of schedule. The strategy outlines the company’s vision and targets for fiscal year 2030, including new capital allocation, shareholder return policies, and financial and M&A policies, positioning the company for future growth and stability.

Business Engineering Corporation Reports Strong Financial Growth for FY 2025

Business Engineering Corporation reported a significant increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 6.6% and profits attributable to owners increasing by 26.8%. The company also announced a higher dividend payout, reflecting its strong financial position and commitment to returning value to shareholders.