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Japan Business Systems, Inc. (JP:5036)
:5036
Japanese Market
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Japan Business Systems, Inc. (5036) AI Stock Analysis

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JP:5036

Japan Business Systems, Inc.

(5036)

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Outperform 71 (OpenAI - 5.2)
Rating:71Outperform
Price Target:
¥1,769.00
▲(7.08% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by mixed financial performance—strong growth and ROE but weak free cash flow and low net margin. Technicals add support with an upward trend and positive momentum, while valuation is a clear positive due to a low P/E and a solid dividend yield.
Positive Factors
Strong revenue growth
Sustained top-line growth near 31% reflects expanding client adoption and service penetration in IT infrastructure. Over 2–6 months this trend supports scale benefits, backlog conversion and investment in service capability, underpinning durable revenue expansion.
Negative Factors
Weak cash generation
Negative free cash flow growth and a low FCF-to-net-income ratio constrain internal funding for capex, R&D and working capital. Over months this raises dependence on external financing and limits flexibility to scale or absorb shocks, increasing execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth
Sustained top-line growth near 31% reflects expanding client adoption and service penetration in IT infrastructure. Over 2–6 months this trend supports scale benefits, backlog conversion and investment in service capability, underpinning durable revenue expansion.
Read all positive factors

Japan Business Systems, Inc. (5036) vs. iShares MSCI Japan ETF (EWJ)

Japan Business Systems, Inc. Business Overview & Revenue Model

Company Description
Founded in Tokyo in 1990, Japan Business Systems, Inc. (JBS) specializes in delivering comprehensive cloud integration and associated services. The company's operations are divided into three core segments: Cloud Integration, Cloud Services, and L...
How the Company Makes Money
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Japan Business Systems, Inc. Financial Statement Overview

Summary
Solid revenue growth and improving EBIT/EBITDA margins support the score, and ROE is strong (20.74%). Offsetting this, net margin is low (3.26%) and cash generation is a key weakness (negative free cash flow growth and weak free cash flow vs. net income). Balance sheet is generally stable, though debt-to-equity has risen to 0.87.
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue196.27B172.58B140.86B112.80B86.33B74.95B
Gross Profit19.37B17.86B14.57B13.08B10.78B8.40B
EBITDA9.94B8.69B3.98B5.15B4.80B2.96B
Net Income6.83B5.63B1.51B3.35B2.65B1.56B
Balance Sheet
Total Assets89.98B75.16B61.62B49.87B38.85B29.54B
Cash, Cash Equivalents and Short-Term Investments5.00B2.94B3.37B5.34B7.57B4.01B
Total Debt21.21B23.78B19.71B13.22B6.46B5.71B
Total Liabilities61.34B47.91B38.88B27.65B19.14B16.20B
Stockholders Equity28.50B27.14B22.73B22.22B19.71B13.34B
Cash Flow
Free Cash Flow-3.32B-3.32B-7.85B-4.73B711.00M945.00M
Operating Cash Flow1.14B1.14B-320.00M-206.00M3.47B1.96B
Investing Cash Flow-4.74B-4.74B-7.66B-7.04B-3.97B-894.00M
Financing Cash Flow3.13B3.13B6.05B4.99B4.01B-1.08B

Japan Business Systems, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1652.00
Price Trends
50DMA
1547.22
Positive
100DMA
1549.57
Positive
200DMA
1561.25
Positive
Market Momentum
MACD
16.90
Negative
RSI
59.99
Neutral
STOCH
78.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5036, the sentiment is Positive. The current price of 1652 is above the 20-day moving average (MA) of 1571.65, above the 50-day MA of 1547.22, and above the 200-day MA of 1561.25, indicating a bullish trend. The MACD of 16.90 indicates Negative momentum. The RSI at 59.99 is Neutral, neither overbought nor oversold. The STOCH value of 78.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5036.

Japan Business Systems, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥30.32B20.031.74%8.98%12.22%
78
Outperform
¥26.84B15.6915.26%62.04%
77
Outperform
¥42.32B28.370.64%22.45%23.34%
71
Outperform
¥72.95B10.602.35%31.18%62.92%
64
Neutral
¥15.48B15.370.91%21.28%73.53%
63
Neutral
¥18.76B-47.5617.69%-175.52%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5036
Japan Business Systems, Inc.
1,616.00
178.53
12.42%
JP:3741
Systems Engineering Consultants Co., Ltd.
3,080.00
550.49
21.76%
JP:3850
NTT Data Intramart Corporation
3,270.00
-545.29
-14.29%
JP:3915
TerraSky Co., Ltd.
2,218.00
-72.70
-3.17%
JP:4434
Serverworks Co., Ltd.
2,402.00
215.96
9.88%
JP:4475
HENNGE K.K.
1,476.00
-259.33
-14.94%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 06, 2026