JFE Systems, Inc. (4832) AI Stock Analysis

• Market Cap: ¥71.21B
• Dividend Yield: 2.65%
• Average Volume (3M): 28.44K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.71
• Revenue Growth: 3.62%
• EPS Growth: 8.01%
• Country: JP
• Employees: 1,864
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 45.78
• Shares Outstanding: 31,412,000
• 10 Day Avg. Volume: 19,650
• 30 Day Avg. Volume: 28,440
• PEG Ratio: 0.96
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 5.83
• 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: 76 Outperform
• Price Target: ¥2,592.00 ▲(7.96% Upside)

JFE Systems, Inc. exhibits strong financial performance with robust revenue and net income growth, supported by a solid balance sheet and healthy cash flows. The technical analysis shows a positive trend, although some indicators suggest caution. The valuation is attractive with a reasonable P/E ratio and a good dividend yield, making the stock appealing for both growth and income investors.

Positive Factors

Strong free cash flow generation

Sustained free cash flow growth underpins durable financial flexibility: funds capital expenditure, software development, and dividends without heavy external financing. This supports reinvestment in services, M&A optionality, and resilience through IT spending cycles over the next several quarters.

Healthy balance sheet with low leverage

A solid equity base and low leverage reduce refinancing and solvency risk, enabling the company to fund growth initiatives and absorb demand shocks. Financial strength improves supplier/customer confidence and preserves strategic optionality for investments or restructuring over the medium term.

Stable gross margins and improving net margin

Consistent gross margins and rising net margins indicate effective pricing and cost controls in system integration and software services. Margin durability enhances return on incremental revenue, supports long-term profitability, and provides capacity to invest in product development and client retention.

Negative Factors

Recent negative revenue growth

Reported year-over-period revenue decline signals potential loss of client spending or competitive pressure. Even with margin gains, shrinking top-line limits absolute profit expansion and reduces scalability of operating leverage, constraining sustainable earnings and reinvestment capacity over coming quarters.

Room to improve operating margins

Suboptimal EBIT/EBITDA margins suggest operational inefficiencies or higher overhead in service delivery. Without improvements, margin compression could reduce cash generation and competitive pricing flexibility, hindering long-term ability to fund growth initiatives and returns to shareholders.

Moderate reliance on liabilities

A moderate reliance on liabilities raises sensitivity to interest rates and refinancing conditions. While current leverage may be manageable, increased liability dependence can constrain capital allocation and raise fixed costs, reducing resilience to macro shocks and limiting strategic investments over the medium term.

JFE Systems, Inc. Business Overview & Revenue Model

Company Description

JFE Systems, Inc. provides information systems integration, operation, and maintenance services in Japan. The company provides business systems integration services, including planning and consulting for information systems; design, development, and implementation of building information systems; operating, maintaining, and providing outsourcing services; and enhancing information systems. It also offers product-based solutions, such as building ERP/SCM/production planning systems, BI systems, cost management systems, procurement systems, electronic documentation systems, and quality information management and recipe management systems for the food industry, as well as various packaged software solutions. In addition, the company provides infrastructure/cloud computing solutions, which includes SaaS, PaaS, and IaaS; and system coordination and migration solutions. It serves finance, food products, logistics, automotive, and other manufacturing industries. JFE Systems, Inc. was formerly known as Kawasaki Steel Systems R&D Corporation and changed its name to JFE Systems, Inc. in 2004. The company was founded in 1983 and is headquartered in Tokyo, Japan. JFE Systems, Inc. is a subsidiary of JFE Steel Corporation.

How the Company Makes Money

JFE Systems generates revenue through multiple streams, primarily by offering customized software development and IT consulting services to businesses across various sectors. The company charges clients for system integration projects, which often involve tailor-made solutions designed to meet specific operational needs. Additionally, JFE Systems earns income from ongoing maintenance and support contracts, providing clients with essential updates and security services. The company also benefits from licensing fees associated with proprietary software products and platforms. Strategic partnerships with other technology firms and service providers enhance JFE Systems' market reach and allow it to offer bundled services, further contributing to its revenue. Overall, the combination of project-based work, recurring service contracts, and software licensing forms the core of JFE Systems' financial model.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	64.11B	63.97B	62.03B	56.47B	50.39B	46.47B
Gross Profit	15.44B	15.08B	14.78B	12.50B	11.48B	10.32B
EBITDA	9.97B	10.28B	9.88B	8.77B	8.07B	7.17B
Net Income	5.68B	5.44B	4.97B	4.32B	3.72B	3.09B
Balance Sheet
Total Assets	52.99B	53.07B	46.92B	42.56B	39.34B	36.13B
Cash, Cash Equivalents and Short-Term Investments	24.78B	24.05B	7.33B	17.99B	15.96B	329.32M
Total Debt	2.23B	3.53B	2.01B	1.48B	1.88B	2.51B
Total Liabilities	18.92B	18.92B	16.88B	15.78B	15.49B	15.06B
Stockholders Equity	32.98B	33.01B	29.03B	25.88B	23.08B	20.39B
Cash Flow
Free Cash Flow	0.00	8.57B	6.36B	4.95B	3.82B	5.16B
Operating Cash Flow	0.00	8.74B	7.37B	6.00B	5.16B	6.09B
Investing Cash Flow	0.00	-3.18B	-1.33B	-1.29B	-1.65B	-1.10B
Financing Cash Flow	0.00	-2.79B	-2.75B	-2.68B	-1.82B	-1.84B

JFE Systems, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2401.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4832, the sentiment is Negative. The current price of 2401 is above the 20-day moving average (MA) of 2373.25, above the 50-day MA of 2295.12, and above the 200-day MA of 2010.77, indicating a neutral trend. The MACD of -9.84 indicates Positive momentum. The RSI at 42.10 is Neutral, neither overbought nor oversold. The STOCH value of 26.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4832.

JFE Systems, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4287	80 Outperform	¥5.72B	12.66	―	2.09%	―	―
6599	78 Outperform	¥4.24B	11.81	―	1.57%	4.40%	35.86%
4832	76 Outperform	¥71.21B	14.52	―	2.65%	3.62%	8.01%
6597	67 Neutral	¥8.14B	15.96	―	1.65%	3.70%	107.81%
6862	64 Neutral	¥12.82B	22.28	―	1.03%	17.06%	30.17%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6836	55 Neutral	¥4.31B	151.39	―	―	17.29%	―

JFE Systems, Inc. Corporate Events

JFE Systems to Appoint Hajime Nagai as New Representative Director in June 2026

JFE Systems, Inc. has resolved at its January 28, 2026 board meeting to appoint Hajime Nagai as Representative Director and Executive Vice President, with the formal appointment scheduled for late June 2026 at the Ordinary General Meeting of Shareholders. The move, framed as a step to strengthen the company’s management structure, brings in Nagai, currently a Senior Vice President with a long career in the JFE Group’s steel operations and production management, who will first serve as a full-time advisor from April 1, 2026; this leadership change signals a strategic effort to reinforce governance and operational oversight, which may influence the company’s future direction and execution capabilities.

The most recent analyst rating on (JP:4832) stock is a Buy with a Yen2714.00 price target. To see the full list of analyst forecasts on JFE Systems, Inc. stock, see the JP:4832 Stock Forecast page.

JFE Systems Sees Steady Growth in Key IT Businesses but Cuts FY2026 Outlook Amid JFE Group Slowdown

JFE Systems reported that in the third quarter of the fiscal year ending March 2026, its key growth areas—digital manufacturing, ERP solutions, IT infrastructure and security, and smart solutions—continued to perform steadily, but overall results declined year-on-year due to a reduction in workload tied to the JFE Group’s Steelworks System Refresh Project. Looking ahead to the full fiscal year, the company expects solid growth in external business but a challenging environment in the JFE Group segment because of ongoing workload reductions and delays in new orders, and it is forecasting declines in both net sales and operating income compared with the previous year while still maintaining its planned annual dividend of ¥68 per share to prioritize shareholder returns.

The most recent analyst rating on (JP:4832) stock is a Buy with a Yen2714.00 price target. To see the full list of analyst forecasts on JFE Systems, Inc. stock, see the JP:4832 Stock Forecast page.

JFE Systems Posts Lower Nine-Month Profit but Maintains Dividend and Full-Year Outlook

JFE Systems reported consolidated net sales of ¥43.66 billion for the nine months ended December 31, 2025, down 7.4% year on year, with operating profit falling 13.9% to ¥4.56 billion and profit attributable to owners of parent declining 14.4% to ¥3.20 billion, reflecting weaker business performance and lower earnings per share after a stock split. Despite the earnings contraction, the company’s financial position improved modestly, with total assets of ¥52.14 billion, higher equity and an equity-to-asset ratio rising to 66.3%, while management maintained its full-year forecast of lower revenue and profit and confirmed unchanged dividend plans for the fiscal year, signaling confidence in balance sheet strength but a cautious outlook for growth.

The most recent analyst rating on (JP:4832) stock is a Buy with a Yen2714.00 price target. To see the full list of analyst forecasts on JFE Systems, Inc. stock, see the JP:4832 Stock Forecast page.

JFE Systems Revises Earnings Forecast Amid Project Delays

JFE Systems, Inc. reported a decline in overall results for the second quarter of the fiscal year ending March 2026, primarily due to reduced workload in the Steelworks System Refresh Project within the JFE Group business. Despite steady performance in other key growth areas, the company revised down its earnings forecast, projecting net sales of 58.44 billion yen and operating income of 5.58 billion yen, while maintaining its annual dividend plan to ensure shareholder returns.

The most recent analyst rating on (JP:4832) stock is a Buy with a Yen2407.00 price target. To see the full list of analyst forecasts on JFE Systems, Inc. stock, see the JP:4832 Stock Forecast page.

JFE Systems Revises Financial Forecasts Amid Project Delays

JFE Systems, Inc. has revised its full-year financial forecast for the fiscal year ending March 31, 2026, due to a decrease in workload from the Steelworks System Refresh Project and delays in securing anticipated new orders. The company now expects a slight decrease in net sales and a more significant drop in profits, although the year-end dividend forecast remains unchanged.

The most recent analyst rating on (JP:4832) stock is a Buy with a Yen2407.00 price target. To see the full list of analyst forecasts on JFE Systems, Inc. stock, see the JP:4832 Stock Forecast page.

JFE Systems Reports Decline in Financial Results and Revises Forecast

JFE Systems, Inc. reported a decline in its consolidated financial results for the six months ended September 30, 2025, with net sales decreasing by 2.1% compared to the previous year. The company also revised its forecast for the fiscal year ending March 31, 2026, anticipating further declines in net sales and profits, which may impact its market positioning and stakeholder confidence.

The most recent analyst rating on (JP:4832) stock is a Buy with a Yen2407.00 price target. To see the full list of analyst forecasts on JFE Systems, Inc. stock, see the JP:4832 Stock Forecast page.