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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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Neutral 68 (OpenAI - 4o)
Rating:68Neutral
Price Target:
¥1,590.00
▲(8.98% Upside)
Japan Business Systems, Inc. has a solid financial foundation with strong revenue growth and improving margins, but it faces challenges with profitability and cash flow management. The technical analysis indicates weak momentum, which could impact short-term performance. However, the stock's reasonable valuation and attractive dividend yield provide a positive offset, making it a moderately appealing investment.

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

Japan Business Systems, Inc. Business Overview & Revenue Model

Company DescriptionJapan 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, and monitors cloud migration plans; implements Microsoft Cloud services; and offers maintenance, operation, and support services to enhance cloud utilization, focusing on Microsoft Cloud. The company also engages in cloud solutions, licenses, and the resale of related equipment; and provides equipment for on-premise infrastructure and private cloud services. Japan Business Systems, Inc. was incorporated in 1990 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyJapan Business Systems, Inc. generates revenue primarily through its diverse IT service offerings, including system integration projects, cloud service subscriptions, and ongoing IT infrastructure management contracts. Key revenue streams include fees from project-based work, recurring revenues from managed services, and licensing fees from proprietary software solutions. Additionally, the company has established strategic partnerships with major technology providers, which enable it to enhance its service offerings and expand its market reach, contributing significantly to its overall earnings.

Japan Business Systems, Inc. Financial Statement Overview

Summary
Japan Business Systems, Inc. shows strong revenue growth and improving gross margins, indicating solid operational performance. However, profitability metrics such as net profit margin and ROE suggest room for improvement. The balance sheet shows increased leverage, and negative free cash flow highlights the need for better cash management strategies.
Income Statement
85
Very Positive
Japan Business Systems, Inc. has shown consistent revenue growth with a 26.6% increase from 2022 to 2023 and a further 24.9% increase from 2023 to 2024 (TTM). The gross profit margin improved to 10.7% in 2024 (TTM) from 9.9% in 2023. EBIT margin for 2024 (TTM) is stable at 3.7%, showing slight improvement over previous years. However, net profit margin is relatively low at 1.5% in 2024 (TTM), indicating room for profitability improvement.
Balance Sheet
70
Positive
The company's debt-to-equity ratio increased to 0.70 in 2024 (TTM) from 0.57 in 2023, reflecting higher leverage. The equity ratio stands at 38.4%, suggesting a stable equity position. ROE has decreased to 9.2% in 2024 (TTM) from 15.1% in 2023, indicating reduced efficiency in generating profits from equity. Overall, the balance sheet shows stability but with increased debt levels.
Cash Flow
60
Neutral
Free cash flow has been negative, showing a concerning trend with no improvement in 2024 (TTM). The operating cash flow to net income ratio is unavailable due to zero cash flow, indicating potential cash management issues. The company needs to improve its cash flow generation to support operations and growth.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue166.82B140.86B112.80B86.33B74.95B68.25B
Gross Profit17.37B14.57B13.08B10.88B8.50B8.48B
EBITDA8.09B3.98B5.15B4.68B2.87B1.93B
Net Income4.98B1.51B3.35B2.65B1.56B833.00M
Balance Sheet
Total Assets83.70B60.95B49.61B38.79B29.49B30.20B
Cash, Cash Equivalents and Short-Term Investments4.54B3.37B5.34B7.75B4.01B4.02B
Total Debt20.89B19.71B12.91B6.35B5.71B6.60B
Total Liabilities58.30B38.22B27.39B19.08B16.15B18.30B
Stockholders Equity25.39B22.73B22.22B19.71B13.34B11.90B
Cash Flow
Free Cash Flow0.00-7.85B-4.73B711.00M945.00M2.72B
Operating Cash Flow0.00-320.00M-206.00M3.47B1.96B3.22B
Investing Cash Flow0.00-7.66B-7.04B-3.97B-894.00M-480.00M
Financing Cash Flow0.006.05B4.99B4.01B-1.08B-998.00M

Japan Business Systems, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1459.00
Price Trends
50DMA
1497.58
Negative
100DMA
1457.07
Positive
200DMA
1217.54
Positive
Market Momentum
MACD
-9.26
Positive
RSI
43.68
Neutral
STOCH
44.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5036, the sentiment is Negative. The current price of 1459 is below the 20-day moving average (MA) of 1496.68, below the 50-day MA of 1497.58, and above the 200-day MA of 1217.54, indicating a neutral trend. The MACD of -9.26 indicates Positive momentum. The RSI at 43.68 is Neutral, neither overbought nor oversold. The STOCH value of 44.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
¥53.89B32.740.54%27.02%21.10%
68
Neutral
¥66.52B13.352.74%22.09%143.20%
66
Neutral
¥46.90B39.880.29%30.64%33.06%
63
Neutral
¥62.14B17.562.02%10.20%22.51%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
59
Neutral
¥61.97B67.2934.54%398.15%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5036
Japan Business Systems, Inc.
1,459.00
487.12
50.12%
JP:3854
I'LL Inc.
2,475.00
-684.40
-21.66%
JP:4419
Finatext Holdings Ltd.
1,197.00
231.00
23.91%
JP:4431
Smaregi, Inc.
2,755.00
-96.51
-3.38%
JP:4475
HENNGE K.K.
1,399.00
194.84
16.18%
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: Oct 18, 2025