Business Engineering Corporation (4828) AI Stock Analysis

• Market Cap: €84.73B
• Dividend Yield: 2.17%
• Average Volume (3M): 30.63K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.87
• Revenue Growth: 16.12%
• EPS Growth: 46.57%
• Country: JP
• Employees: 699
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 93.38
• Shares Outstanding: 12,000,000
• 10 Day Avg. Volume: 42,060
• 30 Day Avg. Volume: 30,630
• PEG Ratio: 0.49
• Price to Book (P/B): 3.27
• Price to Sales (P/S): 2.10
• P/FCF Ratio: 12.80
• 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: 77 Outperform
• Price Target: ¥8,683.00 ▲(12.91% Upside)

Business Engineering Corporation's strong financial performance is the most significant factor driving its stock score, supported by solid profitability and financial stability. Technical analysis indicates positive momentum, although caution is advised due to potential overbought conditions. Valuation is fair, with a reasonable P/E ratio and moderate dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term sustainability.

Financial Stability

Low debt levels reduce financial risk and increase flexibility, supporting sustainable growth and resilience against economic fluctuations.

Cash Generation

Strong cash generation supports reinvestment in growth opportunities and provides a buffer against financial challenges, ensuring long-term viability.

Negative Factors

Operating Cash Flow Decline

A decline in operating cash flow could indicate potential challenges in cash management, affecting the company's ability to fund operations and growth.

Market Competition

High competition in the software industry can pressure margins and require continuous innovation, impacting long-term profitability.

Operating Cash Flow to Net Income Ratio

A decreasing ratio may suggest inefficiencies in converting income to cash, potentially impacting liquidity and financial health over time.

Business Engineering Corporation Business Overview & Revenue Model

Company Description

Business 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 Money

The company generates revenue primarily through its consulting services and software solutions. Key revenue streams include project-based contracts with clients in multiple sectors, recurring revenue from software licenses and maintenance agreements, and fees from training and support services. Strategic partnerships with technology providers and industry leaders further enhance its offerings, allowing the company to deliver comprehensive solutions that drive customer satisfaction and retention, thus contributing to its overall earnings.

Business Engineering Corporation Financial Statement Overview

Summary

Business Engineering Corporation displays strong financial performance with a solid gross profit margin, consistent revenue growth, low leverage, and effective cash management. The company is well-positioned for future financial stability and growth.

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	21.77B	20.78B	19.49B	18.51B	17.76B	17.71B
Gross Profit	9.71B	9.09B	7.85B	6.99B	5.88B	5.44B
EBITDA	6.29B	5.51B	4.58B	3.95B	3.14B	2.62B
Net Income	3.90B	3.33B	2.63B	2.33B	1.64B	1.29B
Balance Sheet
Total Assets	19.38B	18.45B	15.72B	13.41B	11.49B	10.48B
Cash, Cash Equivalents and Short-Term Investments	9.93B	9.35B	8.38B	6.97B	4.95B	4.08B
Total Debt	0.00	100.00M	100.00M	100.00M	100.00M	470.78M
Total Liabilities	5.51B	5.07B	4.77B	4.12B	4.02B	4.08B
Stockholders Equity	13.87B	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: 7690.00
• 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 7690 is above the 20-day moving average (MA) of 6931.50, above the 50-day MA of 6503.71, and above the 200-day MA of 5057.20, indicating a bullish trend. The MACD of 329.49 indicates Negative momentum. The RSI at 69.18 is Neutral, neither overbought nor oversold. The STOCH value of 85.25 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
3836	77 Outperform	¥66.33B	17.51	―	1.39%	13.38%	24.62%
4828	77 Outperform	€84.73B	20.34	31.13%	2.17%	16.12%	46.57%
4719	76 Outperform	€57.84B	16.90	7.99%	3.03%	8.26%	9.09%
4323	72 Outperform	¥52.85B	20.35	―	1.64%	13.48%	35.63%
4477	64 Neutral	¥38.76B	67.42	―	―	27.97%	-5.25%
3673	63 Neutral	¥64.41B	84.69	―	0.62%	18.86%	―
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 Financial Growth and Announces Stock Split

Business Engineering Corporation reported a significant increase in its financial performance for the six months ended September 30, 2025, with net sales rising by 21.7% and profit attributable to owners of the parent increasing by 50.2% compared to the previous year. The company also announced a five-for-one stock split effective January 1, 2026, which is expected to impact the forecasted dividends and earnings per share, reflecting a strategic move to enhance shareholder value.

The most recent analyst rating on (JP:4828) stock is a Buy with a Yen7459.00 price target. To see the full list of analyst forecasts on Business Engineering Corporation stock, see the JP:4828 Stock Forecast page.

Business Engineering Corporation Announces Stock Split and Dividend Increase

Business Engineering Corporation announced a stock split to increase market liquidity and broaden its investor base, effective January 1, 2026. The company also revised its dividend forecast with an increase and abolished its shareholder benefit system, reflecting strategic adjustments to enhance shareholder value.

The most recent analyst rating on (JP:4828) stock is a Buy with a Yen7459.00 price target. To see the full list of analyst forecasts on Business Engineering Corporation stock, see the JP:4828 Stock Forecast page.

Business Engineering Corporation Revises Financial Forecast Upwards for FY 2026

Business Engineering Corporation announced an upward revision to its financial forecast for the fiscal year ending March 31, 2026, citing strong performance in the second quarter driven by increased IT investments in the manufacturing sector. The revised forecast predicts record highs in both sales and profits, with net sales and profits exceeding previous forecasts due to enhanced sales promotion activities, new business development, and favorable tax treatment.

The most recent analyst rating on (JP:4828) stock is a Buy with a Yen7459.00 price target. To see the full list of analyst forecasts on Business Engineering Corporation stock, see the JP:4828 Stock Forecast page.