JFE Systems, Inc. (4832) AI Stock Analysis

• Market Cap: ¥63.26B
• Dividend Yield: 2.8%
• Average Volume (3M): 28.44K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.68
• Revenue Growth: 3.62%
• EPS Growth: 8.01%
• Country: JP
• Employees: 1,864
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 21.28
• 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: ¥2,354.00 ▲(11.46% 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

Revenue Growth

Consistent revenue growth indicates expanding market presence and effective product offerings, supporting long-term business sustainability.

Cash Flow Generation

Strong cash flow generation enhances liquidity and financial flexibility, enabling investment in growth opportunities and resilience against downturns.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk, providing stability and capacity for strategic investments.

Negative Factors

Margin Improvement

Limited margin improvement potential may restrict profitability growth, impacting long-term operational efficiency and shareholder returns.

Equity Ratio

Moderate reliance on liabilities could pose risks in economic downturns, necessitating careful management of financial obligations.

Technical Indicators

Negative technical indicators may reflect underlying market concerns, potentially affecting investor confidence and stock performance.

JFE Systems, Inc. Business Overview & Revenue Model

Company Description

JFE Systems, Inc. (4832) is a leading technology company based in Japan, specializing in the development and provision of innovative software solutions and IT services. The company operates primarily within the information technology sector, focusing on areas such as system integration, cloud computing, and cybersecurity. JFE Systems is known for its advanced solutions that cater to various industries, including finance, manufacturing, and healthcare, enabling businesses to enhance operational efficiency and security.

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.

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	9.89B	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: Positive
• Last Price: 2112.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 2112 is above the 20-day moving average (MA) of 1953.25, above the 50-day MA of 2074.84, and above the 200-day MA of 1863.51, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 60.01 is Neutral, neither overbought nor oversold. The STOCH value of 91.90 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	76 Outperform	¥63.26B	12.86	―	2.80%	3.62%	8.01%
6862	75 Outperform	¥6.47B	16.44	―	1.32%	17.06%	30.17%
6599	71 Outperform	¥3.85B	10.71	―	1.47%	4.40%	35.86%
6597	68 Neutral	¥8.04B	18.46	―	1.65%	3.70%	107.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6836	42 Neutral	¥4.83B	169.83	―	―	17.29%	―

JFE Systems, Inc. Corporate Events

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.