JFE Systems, Inc. (4832) AI Stock Analysis

• Market Cap: ¥60.50B
• Dividend Yield: 1.66%
• Average Volume (3M): 26.30K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.66
• Revenue Growth: 3.13%
• EPS Growth: 9.54%
• Country: JP
• Employees: 1,864
• Sector: Technology
• Sector Strength: 91
• Industry: Computer Hardware
• EPS (TTM): 54.17
• Shares Outstanding: 31,412,000
• 10 Day Avg. Volume: 32,500
• 30 Day Avg. Volume: 26,303
• PEG Ratio: -10.15
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,058.00
• Price Target Upside: 7.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥2,241.00 ▲(16.72%Upside)

JFE Systems, Inc. exhibits strong financial performance, underscored by robust revenue and net income growth, stable margins, and efficient cost management. The technical indicators show strong bullish momentum, although caution is warranted due to overbought signals. The valuation is attractive with a reasonable P/E ratio and a modest dividend yield, indicating potential for income. These factors collectively contribute to a positive overall stock score.

JFE Systems, Inc. Business Overview & Revenue Model

Company Description

JFE Systems, Inc. (4832) is a technology company based in Japan, specializing in providing comprehensive IT solutions to various industries. The company offers a wide range of services, including system integration, software development, and IT infrastructure management. Its core products and services are designed to enhance operational efficiency and business performance for clients in sectors such as manufacturing, logistics, and finance.

How the Company Makes Money

JFE Systems, Inc. generates revenue primarily through its system integration and software development services. The company engages in projects that involve designing, implementing, and maintaining IT systems tailored to the specific needs of its clients. Revenue is also obtained through long-term maintenance contracts and IT consultancy services. Key partnerships with technology vendors and strategic alliances help in expanding their service offerings and improving market reach, contributing significantly to the company's earnings.

JFE Systems, Inc. Financial Statement Overview

Summary

JFE Systems, Inc. demonstrates strong financial health with impressive growth in revenue and net income. The stability of margins and efficient cost management underscore the company's profitability. A solid balance sheet with low leverage enhances financial stability, while robust cash flows provide liquidity and support future growth initiatives. Continued focus on margin improvement and optimizing the capital structure could further strengthen the financial position.

Income Statement

The company has shown strong revenue growth with a consistent upward trend. The gross profit margin has been stable, reflecting efficient cost management. Net profit margin has also improved, indicating effective revenue transformation into profit. However, there is room for improvement in EBIT and EBITDA margins to enhance operational efficiency.

Balance Sheet

The company maintains a healthy equity base with a favorable debt-to-equity ratio, suggesting low financial leverage risk. The return on equity has been strong, highlighting effective management of shareholder funds. However, the equity ratio indicates a moderate reliance on liabilities, which could be optimized further.

Cash Flow

Cash flow generation is robust with a consistent growth in free cash flow, indicating strong operational cash generation capability. The operating cash flow to net income ratio is healthy, suggesting good cash conversion. The free cash flow to net income ratio also supports strong liquidity and financial flexibility.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	63.97B	62.03B	56.47B	50.39B	46.47B
Gross Profit	15.08B	14.78B	12.50B	11.48B	10.32B
EBITDA	10.28B	9.88B	8.77B	8.07B	7.17B
Net Income	5.44B	4.97B	4.32B	3.72B	3.09B
Balance Sheet
Total Assets	53.07B	46.92B	42.56B	39.34B	36.13B
Cash, Cash Equivalents and Short-Term Investments	24.05B	7.33B	4.04B	2.01B	329.32M
Total Debt	3.53B	2.01B	1.48B	1.88B	2.51B
Total Liabilities	18.92B	16.88B	15.78B	15.49B	15.06B
Stockholders Equity	33.01B	29.03B	25.88B	23.08B	20.39B
Cash Flow
Free Cash Flow	8.57B	6.36B	4.95B	3.82B	5.16B
Operating Cash Flow	8.74B	7.37B	6.00B	5.16B	6.09B
Investing Cash Flow	-3.18B	-1.33B	-1.29B	-1.65B	-1.10B
Financing Cash Flow	-2.79B	-2.75B	-2.68B	-1.82B	-1.84B

JFE Systems, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1920.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4832, the sentiment is Positive. The current price of 1920 is above the 20-day moving average (MA) of 1837.75, above the 50-day MA of 1770.96, and above the 200-day MA of 1608.17, indicating a bullish trend. The MACD of 57.83 indicates Negative momentum. The RSI at 74.65 is Negative, neither overbought nor oversold. The STOCH value of 78.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4832.

JFE Systems, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4832	79 Outperform	¥60.50B	11.12		1.66%	3.13%	9.54%
6599	71 Outperform	¥3.29B	10.51		1.84%	-6.10%	-26.21%
6597	66 Neutral	¥7.84B	19.78		1.53%	-2.04%	8.15%
Sector *	63 Neutral	$33.80B	5.84	-11.67%	1.84%	5.28%	-18.34%
6862	60 Neutral	¥5.88B	15.03		1.85%	29.04%	-74.63%
6836	42 Neutral	¥7.50B	592.82		―	14.80%	70.15%

JFE Systems, Inc. Corporate Events

JFE Systems Revises Dividend Forecasts Amid Strong Performance

JFE Systems, Inc. announced a revision to its dividend forecasts, reflecting steady progress in its full-year performance forecast for the fiscal year ending March 2025. The decision aligns with the company’s policy of distributing profits based on profit levels, reinvestment plans, and financial conditions, aiming for a payout ratio of 35%. This revision will be discussed at the upcoming Annual General Meeting of Shareholders.

JFE Systems Reports Modest Growth and Announces Stock Split

JFE Systems, Inc. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a modest increase in net sales and profits compared to the previous year. The company also announced a two-for-one stock split effective April 1, 2025, and provided a forecast for the next fiscal year, anticipating a decline in sales and profits. This financial performance and strategic move may impact the company’s market position and shareholder value.