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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 75 (OpenAI - 5.2)
Rating:75Outperform
Price Target:
¥1,997.00
▲(20.88% Upside)
Action:Upgraded
Date:12/11/25
Japan Business Systems, Inc. is performing well with strong technical indicators and a reasonable valuation. The main areas of concern are profitability and cash flow management, which need improvement to sustain growth. The stock's bullish momentum and fair valuation make it an attractive option in the Software - Infrastructure industry.
Positive Factors
Revenue growth & recurring mix
Sustained high revenue growth (31% reported) combined with recurring managed services and project work supports predictable top-line expansion. Over 2-6 months this underpins capacity to scale operations, deepen enterprise relationships, and convert project clients into recurring revenue streams.
Negative Factors
Weak cash generation
Negative free cash flow growth and FCF lagging net income indicate the company struggles to convert accounting profits into spendable cash. Over the medium term this limits self-funded investment, increases reliance on external financing, and heightens liquidity risk if not improved.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & recurring mix
Sustained high revenue growth (31% reported) combined with recurring managed services and project work supports predictable top-line expansion. Over 2-6 months this underpins capacity to scale operations, deepen enterprise relationships, and convert project clients into recurring revenue streams.
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
Japan Business Systems, Inc. provides cloud integration and related services. The company operates through three segments: Cloud Integration Business, Cloud Service Business, and License & Products Business. It develops, implements, establishes, a...
How the Company Makes Money
The company generates revenue primarily by delivering IT services to corporate and institutional clients under project-based and recurring contracts. Key revenue streams typically include: (1) system integration and implementation projects, where ...

Japan Business Systems, Inc. Financial Statement Overview

Summary
Japan Business Systems, Inc. shows strong revenue growth and improving operational efficiency. However, profitability and cash flow management need attention. The balance sheet is stable, but increasing debt levels could become a concern.
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
BreakdownSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue172.58B140.86B112.80B86.33B74.95B
Gross Profit17.86B14.57B13.08B10.78B8.40B
EBITDA8.77B5.63B5.02B4.67B2.83B
Net Income5.63B1.51B3.35B2.65B1.56B
Balance Sheet
Total Assets75.16B61.62B49.87B38.85B29.54B
Cash, Cash Equivalents and Short-Term Investments2.94B3.37B5.34B7.57B4.01B
Total Debt23.78B19.71B13.22B6.46B5.71B
Total Liabilities47.91B38.88B27.65B19.14B16.20B
Stockholders Equity27.14B22.73B22.22B19.71B13.34B
Cash Flow
Free Cash Flow-3.32B-7.85B-4.73B711.00M945.00M
Operating Cash Flow1.14B-320.00M-206.00M3.47B1.96B
Investing Cash Flow-4.74B-7.66B-7.04B-3.97B-894.00M
Financing Cash Flow3.13B6.05B4.99B4.01B-1.08B

Japan Business Systems, Inc. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1652.00
Price Trends
50DMA
1563.55
Positive
100DMA
1601.66
Positive
200DMA
1549.41
Positive
Market Momentum
MACD
40.68
Positive
RSI
50.11
Neutral
STOCH
12.96
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5036, the sentiment is Neutral. The current price of 1652 is below the 20-day moving average (MA) of 1688.20, above the 50-day MA of 1563.55, and above the 200-day MA of 1549.41, indicating a neutral trend. The MACD of 40.68 indicates Positive momentum. The RSI at 50.11 is Neutral, neither overbought nor oversold. The STOCH value of 12.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
¥40.08B25.841.74%8.98%12.22%
75
Outperform
¥76.60B10.892.35%31.18%62.92%
74
Outperform
¥39.13B28.6113.54%54.38%
68
Neutral
¥16.26B-25.7812.01%-191.13%
68
Neutral
¥39.00B25.040.39%22.45%23.34%
64
Neutral
¥12.93B13.960.91%23.90%167.68%
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.
1,651.00
284.43
20.81%
JP:3741
Systems Engineering Consultants Co., Ltd.
3,750.00
1,205.75
47.39%
JP:3850
NTT Data Intramart Corporation
2,622.00
-1,198.21
-31.36%
JP:3915
TerraSky Co., Ltd.
3,485.00
720.49
26.06%
JP:4434
Serverworks Co., Ltd.
2,069.00
-248.24
-10.71%
JP:4475
HENNGE K.K.
1,140.00
-360.77
-24.04%
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: Dec 11, 2025