Business Engineering Corporation (4828) AI Stock Analysis

• Market Cap: €60.28B
• Dividend Yield: 2.31%
• Average Volume (3M): 24.85K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.87
• Revenue Growth: 6.59%
• EPS Growth: 26.96%
• Country: JP
• Employees: 699
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 69.61
• Shares Outstanding: 12,000,000
• 10 Day Avg. Volume: 35,630
• 30 Day Avg. Volume: 24,850
• PEG Ratio: 0.08
• Price to Book (P/B): 3.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.02
• 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: €5,235.80
• Price Target Upside: 2.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• 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 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

Business 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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	20.16B	20.78B	19.49B	18.51B	17.76B	17.86B
Gross Profit	8.71B	9.09B	7.85B	6.99B	5.88B	5.56B
EBITDA	5.13B	5.51B	4.58B	3.95B	3.14B	2.62B
Net Income	2.99B	3.33B	2.63B	2.33B	1.64B	1.29B
Balance Sheet
Total Assets	16.56B	18.45B	15.72B	13.41B	11.49B	10.48B
Cash, Cash Equivalents and Short-Term Investments	8.15B	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	4.08B	5.07B	4.77B	4.12B	4.02B	4.08B
Stockholders Equity	12.48B	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: 5100.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4828	73 Outperform	€60.28B	18.08	27.18%	2.31%	6.59%	26.96%
Sector *	50 Neutral	AU$1.52B	1.92	-28.25%	3.31%	16.21%	-7.40%
AN5		€287.94M	14.59	7.48%	2.83%	―	―
3836	67 Neutral	¥55.22B	17.05		1.70%	19.57%	46.10%
3673	65 Neutral	¥66.96B	118.27		0.69%	19.15%	―
4477	64 Neutral	¥45.95B	99.85		―	36.82%	―
4323	63 Neutral	¥45.74B	18.59		1.46%	12.00%	16.52%

Business Engineering Corporation Corporate Events

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.