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Business Engineering Corporation (JP:4828)
:4828

Business Engineering Corporation (4828) AI Stock Analysis

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Business Engineering Corporation

(Munich:4828)

Rating:73Outperform
Price Target:
¥5,834.00
▲(14.39%Upside)
Business Engineering Corporation is a robust investment option, driven primarily by its strong financial health and consistent performance metrics. While technical indicators suggest potential short-term volatility, the company's solid financial foundation and fair valuation provide a compelling case for long-term investors.

Business Engineering Corporation (4828) vs. iShares MSCI Japan ETF (EWJ)

Business Engineering Corporation Business Overview & Revenue Model

Company DescriptionBusiness Engineering Corporation plans, develops, sells, and leases information and communications systems worldwide. The company provides software products, such as mcframe, a business package for the management of production, sales, and costs; mcframe GA, an ERP package designed for Japanese companies to expand their businesses; mcframe RAKU-PAD to convert handwritten paper forms into tablet data entry forms; GLASIAOUS, a global accounting service for expanding businesses overseas; Global MES, a multisite global manufacturing execution system; mcframe MOTION Human-Tracking that converts workers' movements and postures into three-dimensional data; mcframe MOTION VR-learning training systems; and mcframe SIGNAL CHAIN that monitors and analyzes the operational status of manufacturing equipment, as well as maintains equipment. It also offers SAP solutions, which cover various types of customer's business processes, including SAP, SCM, BI, and others. In addition, the company is involved in the planning and development of computer networks, as well as provision of consulting services for corporate management, and information and communications systems. The company serves pharmaceuticals, electrical equipment, electronics, oil, chemicals, and machinery, as well as companies in the trading, logistics, information, and service industries. The company was formerly known as Toyo Business Engineering Corporation. Business Engineering Corporation was incorporated in 1980 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyBusiness Engineering Corporation makes money through a combination of software licensing fees, consulting services, and maintenance contracts. The company derives a significant portion of its revenue from licensing its proprietary ERP software to enterprises, which often involves initial setup fees and ongoing subscription-based revenue. Additionally, the company provides consulting services to assist clients in optimizing their business processes, which generates service-based income. The maintenance and support contracts offer a steady stream of recurring revenue, as businesses often require ongoing assistance and updates for their ERP systems. Key partnerships with technology providers and enterprise clients also play a critical role in expanding the company's market reach and enhancing its service offerings.

Business Engineering Corporation Financial Statement Overview

Summary
Business Engineering Corporation has a strong financial performance with solid profitability, low leverage, and effective cash management. High profit margins and a strong balance sheet with minimal debt underscore stability and resilience.
Income Statement
86
Very Positive
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
82
Very Positive
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
75
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue20.16B20.78B19.49B18.51B17.76B17.86B
Gross Profit8.71B9.09B7.85B6.99B5.88B5.56B
EBITDA5.13B5.51B4.58B3.95B3.14B2.62B
Net Income2.99B3.33B2.63B2.33B1.64B1.29B
Balance Sheet
Total Assets16.56B18.45B15.72B13.41B11.49B10.48B
Cash, Cash Equivalents and Short-Term Investments8.15B9.35B8.38B6.97B4.95B4.08B
Total Debt0.00100.00M100.00M100.00M100.00M470.78M
Total Liabilities4.08B5.07B4.77B4.12B4.02B4.08B
Stockholders Equity12.48B13.38B10.95B9.29B7.48B6.40B
Cash Flow
Free Cash Flow0.003.42B2.57B2.57B1.56B1.78B
Operating Cash Flow0.003.52B3.55B3.28B2.29B2.54B
Investing Cash Flow0.00-1.48B-1.13B-696.63M-713.17M-817.10M
Financing Cash Flow0.00-1.07B-1.00B-549.06M-701.76M196.98M

Business Engineering Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5100.00
Price Trends
50DMA
4601.80
Positive
100DMA
4176.05
Positive
200DMA
3995.79
Positive
Market Momentum
MACD
159.49
Positive
RSI
55.84
Neutral
STOCH
7.22
Positive
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 5100 is above the 20-day moving average (MA) of 5027.75, above the 50-day MA of 4601.80, and above the 200-day MA of 3995.79, indicating a bullish trend. The MACD of 159.49 indicates Positive momentum. The RSI at 55.84 is Neutral, neither overbought nor oversold. The STOCH value of 7.22 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
€60.28B18.0827.18%2.31%6.59%26.96%
50
Neutral
AU$1.52B1.92-28.25%3.31%16.21%-7.40%
DEAN5
€287.94M14.597.48%2.83%
67
Neutral
¥55.22B17.05
1.70%19.57%46.10%
65
Neutral
¥66.96B118.27
0.69%19.15%
64
Neutral
¥45.95B99.85
36.82%
63
Neutral
¥45.74B18.59
1.46%12.00%16.52%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4828
Business Engineering Corporation
5,100.00
1,155.09
29.28%
DE:AN5
Alpha Systems Inc.
20.20
3.46
20.67%
JP:3673
Broadleaf Co., Ltd.
732.00
152.74
26.37%
JP:3836
AVANT GROUP CORPORATION
1,511.00
122.66
8.84%
JP:4323
Japan System Techniques Co., Ltd.
1,825.00
182.19
11.09%
JP:4477
BASE, Inc.
399.00
129.00
47.78%

Business Engineering Corporation Corporate Events

Business Engineering Corporation Maintains Independence Amid ZUKEN Inc. Affiliation
Jun 27, 2025

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
May 13, 2025

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
May 13, 2025

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
May 13, 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.

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: Jun 25, 2025