JFE Systems, Inc. (4832) AI Stock Analysis

• Market Cap: ¥68.66B
• Dividend Yield: 2.69%
• Average Volume (3M): 24.02K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.65
• Revenue Growth: 4.18%
• EPS Growth: 22.05%
• Country: JP
• Employees: 1,864
• Sector: Technology
• Sector Strength: 87
• Industry: Computer Hardware
• EPS (TTM): 34.91
• Shares Outstanding: 31,412,000
• 10 Day Avg. Volume: 24,920
• 30 Day Avg. Volume: 24,016
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥2,241.00
• Price Target Upside: -1.15% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ¥2,241.00 ▼(-1.15% Downside)

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 Japan-based company engaged in the provision of system integration services and development of software solutions. It operates primarily in the information technology sector, offering comprehensive services including system planning, design, development, operation, and maintenance. The company's core products and services focus on areas such as enterprise resource planning (ERP), supply chain management (SCM), and cloud computing solutions, catering to diverse industries including manufacturing, distribution, and finance.

How the Company Makes Money

JFE Systems, Inc. generates revenue through a combination of service-based and product-based income streams. The company earns money primarily by providing system integration services, where it designs and implements customized IT solutions for businesses. This involves consultancy fees, project management charges, and maintenance contracts. Additionally, JFE Systems licenses its proprietary software products, such as ERP and SCM solutions, to companies, generating income through licensing fees and subscription models. The company may also engage in strategic partnerships with other technology firms to enhance its service offerings, further contributing to its revenue. Key factors influencing its earnings include the demand for digital transformation across industries and its ability to deliver innovative and efficient IT solutions.

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: 2267.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2267 is above the 20-day moving average (MA) of 2064.25, above the 50-day MA of 1932.74, and above the 200-day MA of 1678.90, indicating a bullish trend. The MACD of 65.81 indicates Negative momentum. The RSI at 72.21 is Negative, neither overbought nor oversold. The STOCH value of 92.12 is Negative, 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	¥68.66B	12.09		2.69%	4.18%	22.05%
6599	71 Outperform	¥3.33B	10.46		1.79%	-1.94%	2.49%
6597	66 Neutral	¥8.43B	19.36		1.47%	1.71%	46.50%
6862	65 Neutral	¥6.38B	16.23		1.69%	33.14%	-37.77%
Sector *	55 Neutral	$296.27M	4.23	-5.17%	2.67%	9.75%	-67.81%
6836	42 Neutral	¥6.62B	1,099.75		―	17.90%	―

JFE Systems, Inc. Corporate Events

JFE Systems Reports Strong Q1 Performance and Plans Increased Shareholder Returns

JFE Systems, Inc. reported strong performance in its IT Infrastructure, Smart Solutions, and ERP Solutions businesses, which helped offset revenue declines in the JFE Group division. Despite a forecasted year-on-year decrease in sales and operating income, the company plans to enhance shareholder returns by increasing its dividend payout ratio to approximately 50%, with an annual dividend forecast of 68 yen per share.

JFE Systems Reports Q1 Growth Amidst Forecasted Annual Decline

JFE Systems, Inc. reported a slight increase in net sales by 0.9% for the three months ended June 30, 2025, with significant growth in operating profit and profit attributable to owners of the parent, showing increases of 24.5% and 27.2% respectively. The company also completed a two-for-one stock split, impacting earnings per share calculations. Despite the positive quarterly results, JFE Systems forecasts a decline in full-year net sales and profits, indicating potential challenges ahead.