Business Engineering Corporation (4828) AI Stock Analysis

• Market Cap: ¥81.82B
• Dividend Yield: 1.68%
• Average Volume (3M): 30.63K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.80
• Revenue Growth: 16.12%
• EPS Growth: 46.57%
• Country: JP
• Employees: 699
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 60,000,000
• 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: ¥1,546.00 ▼(-7.48% Downside)
• Action: Reiterated Date: 11/30/25
• Date: Action: Reiterated 11/30/25

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

Very strong balance sheet

The company’s balance sheet shows extremely low financial leverage and high capitalization. A debt-to-equity of 0.007 and 72.6% equity ratio provide resilience versus downturns, while a 24.9% ROE indicates efficient equity use—supporting durable financial stability and capital flexibility.

High and sustainable margins

Robust gross, EBIT and net margins reflect durable pricing power and efficient cost structure in the application software business. Sustained margins like these underpin strong operating cash conversion and provide a buffer to absorb competitive or macro pressures over a multi-quarter horizon.

Consistent cash generation

Free cash flow that matches or exceeds net income and an OCF-to-net-income >1 show reliable cash conversion. This durable cash generation supports reinvestment, dividends or opportunistic M&A without stressing the balance sheet, bolstering long-term financial flexibility.

Negative Factors

Recent revenue deceleration

While longer-term averages may be stronger, the most recent reported top-line growth slowed to 6.6%. A deceleration in revenue growth can reduce operating leverage benefits and makes profitability more dependent on margin maintenance or cost controls over the coming quarters.

Slight decline in operating cash flow

Operating cash flow dipped year-over-year despite solid free cash flow metrics. Persistent or repeated OCF contraction could strain reinvestment capacity and signal timing issues in receivables or working capital, which would weaken cash cushions if the trend continues.

Extremely low financial leverage

Near-zero leverage reduces risk but may also indicate conservative capital deployment. Limited use of debt can constrain the company’s ability to accelerate growth via funded investments or acquisitions, potentially resulting in slower scale expansion versus peers using balanced capital structures.

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 robust profitability, low leverage, and effective cash management. The income statement shows consistent revenue and profit growth, the balance sheet indicates financial stability with low debt, and the cash flow statement reflects sound cash generation.

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	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: Neutral
• Last Price: 1671.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4828, the sentiment is Neutral. The current price of 1671 is above the 20-day moving average (MA) of 1373.85, above the 50-day MA of 1491.30, and above the 200-day MA of 1267.17, indicating a neutral trend. The MACD of -35.50 indicates Negative momentum. The RSI at 46.62 is Neutral, neither overbought nor oversold. The STOCH value of 28.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4828.

Business Engineering Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4071	79 Outperform	¥95.93B	22.31	―	1.19%	22.78%	7.57%
4828	77 Outperform	¥81.82B	21.08	31.13%	1.68%	16.12%	46.57%
4776	70 Outperform	¥107.54B	18.51	―	1.02%	26.47%	142.77%
9629	68 Neutral	¥35.74B	20.63	―	4.58%	4.58%	-15.00%
4432	66 Neutral	¥92.82B	20.24	―	2.59%	5.22%	-6.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4478	55 Neutral	¥144.10B	293.64	―	―	31.57%	―

Business Engineering Corporation Corporate Events

Business Engineering Corporation Releases FY2025 3Q Financial Results Briefing Materials

Business Engineering Corporation has released briefing materials covering its financial results for the third quarter of fiscal year 2025, which ends on March 31, 2026. The materials outline the company’s 3Q performance, its earnings forecast for the full FY2025 period, and provide additional data and investor relations reference information intended to guide stakeholders’ understanding of its current operating trends and future outlook.

The most recent analyst rating on (JP:4828) stock is a Buy with a Yen8847.00 price target. To see the full list of analyst forecasts on Business Engineering Corporation stock, see the JP:4828 Stock Forecast page.

Business Engineering Corp. Lifts Earnings and Full-Year Forecast on Strong Nine-Month Results

Business Engineering Corporation reported strong results for the nine months ended December 31, 2025, with net sales up 21.8% year on year to ¥18.58 billion and profit attributable to owners of parent surging 48.1% to ¥3.70 billion, driving a higher equity base and maintaining a solid equity ratio above 70%. Reflecting this profitability and a five-for-one stock split effective January 1, 2026, the company revised its dividend and full-year forecasts, now projecting full-year net sales of ¥24.3 billion and profit attributable to owners of parent of ¥4.8 billion, implying continued double-digit growth and an enhanced shareholder return policy through higher per-share dividends post-split.

The most recent analyst rating on (JP:4828) stock is a Buy with a Yen8847.00 price target. To see the full list of analyst forecasts on Business Engineering Corporation stock, see the JP:4828 Stock Forecast page.

Business Engineering Lifts Full-Year Guidance and Hikes Dividend on Record Earnings Outlook

Business Engineering Corporation has raised its full-year forecast for the fiscal year ending March 31, 2026, citing strong performance in the first nine months, with net sales and all profit lines now expected to slightly exceed prior guidance and reach record highs. Consolidated net sales are projected to rise to ¥24.3 billion with operating and ordinary profit each at ¥6.4 billion and profit attributable to owners of parent at ¥4.8 billion, while non-consolidated results have also been revised upward, supported by robust business momentum and favorable tax treatment. Reflecting this improved outlook and its policy of maintaining a progressive dividend with a medium- to long-term payout ratio of over 50%, the company has increased its year-end dividend forecast to ¥26 per share, up ¥4 from the previous projection, indicating a stronger commitment to shareholder returns as earnings expand.

The most recent analyst rating on (JP:4828) stock is a Buy with a Yen8847.00 price target. To see the full list of analyst forecasts on Business Engineering Corporation stock, see the JP:4828 Stock Forecast page.