Japan Business Systems, Inc. (5036) AI Stock Analysis

• Market Cap: ¥80.06B
• Dividend Yield: 2.35%
• Average Volume (3M): 154.23K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.73
• Revenue Growth: 22.52%
• EPS Growth: 271.71%
• Country: JP
• Employees: 2,700
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 36.35
• Shares Outstanding: 48,366,400
• 10 Day Avg. Volume: 133,480
• 30 Day Avg. Volume: 154,230
• PEG Ratio: 0.05
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 0.40
• P/FCF Ratio: -21.01
• 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: 75 Outperform
• Price Target: ¥1,842.00 ▲(11.50% Upside)

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

Consistent revenue growth and operational efficiency improvements indicate a strong market position and potential for sustained expansion.

Strategic Partnerships

Strategic partnerships enhance service offerings and expand market reach, contributing to long-term revenue stability and growth.

Operational Efficiency

Improved operational efficiency, as seen in rising EBIT and EBITDA margins, supports profitability and competitive positioning.

Negative Factors

Cash Flow Challenges

Negative free cash flow growth indicates potential liquidity issues, which could limit investment in growth initiatives and increase reliance on external financing.

Rising Debt Levels

While currently manageable, rising debt levels could strain financial resources and limit strategic flexibility if not controlled.

Low Net Profit Margin

A low net profit margin indicates potential inefficiencies or pricing pressures, which may impact long-term profitability and shareholder returns.

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, 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 Money

Japan 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. demonstrates 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, which could pose risks if not managed carefully. Negative free cash flow highlights the need for better cash management strategies.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	166.82B	172.58B	140.86B	112.80B	86.33B	74.95B
Gross Profit	17.37B	17.86B	14.57B	13.08B	10.88B	8.50B
EBITDA	8.09B	8.69B	3.98B	5.15B	4.68B	2.87B
Net Income	4.98B	5.63B	1.51B	3.35B	2.65B	1.56B
Balance Sheet
Total Assets	83.70B	74.47B	60.95B	49.61B	38.79B	29.49B
Cash, Cash Equivalents and Short-Term Investments	4.54B	3.04B	3.37B	5.34B	7.75B	4.01B
Total Debt	20.89B	23.73B	19.71B	12.91B	6.35B	5.71B
Total Liabilities	58.30B	47.22B	38.22B	27.39B	19.08B	16.15B
Stockholders Equity	25.39B	27.14B	22.73B	22.22B	19.71B	13.34B
Cash Flow
Free Cash Flow	0.00	-3.32B	-7.85B	-4.73B	711.00M	945.00M
Operating Cash Flow	0.00	1.14B	-320.00M	-206.00M	3.47B	1.96B
Investing Cash Flow	0.00	-4.74B	-7.66B	-7.04B	-3.97B	-894.00M
Financing Cash Flow	0.00	3.13B	6.05B	4.99B	4.01B	-1.08B

Japan Business Systems, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1652.00
• 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:5036, the sentiment is Positive. The current price of 1652 is below the 20-day moving average (MA) of 1662.25, above the 50-day MA of 1560.04, and above the 200-day MA of 1396.84, indicating a bullish trend. The MACD of 41.81 indicates Negative momentum. The RSI at 69.51 is Neutral, neither overbought nor oversold. The STOCH value of 86.56 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3854	84 Outperform	¥64.89B	17.50	―	1.93%	11.45%	28.42%
5036	75 Outperform	¥80.06B	14.22	―	2.35%	22.52%	271.71%
4431	75 Outperform	¥60.55B	34.37	―	0.52%	26.98%	19.69%
4475	69 Neutral	¥42.84B	31.08	―	0.39%	30.59%	65.14%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4419	55 Neutral	¥50.99B	58.74	―	―	29.31%	62.60%

Japan Business Systems, Inc. Corporate Events

Japan Business Systems Reports Robust Financial Growth and Strategic Expansion

Japan Business Systems, Inc. reported significant financial growth for the year ending September 30, 2025, with a 22.5% increase in net sales and a 65.3% rise in operating profit compared to the previous year. The company also announced a substantial increase in dividends, reflecting its strong financial position and commitment to shareholder returns. The inclusion of Sure Biz Cloud, Inc. as a subsidiary and the transition to the TSE Prime Market are expected to enhance its market presence and operational capabilities.

The most recent analyst rating on (JP:5036) stock is a Hold with a Yen1579.00 price target. To see the full list of analyst forecasts on Japan Business Systems, Inc. stock, see the JP:5036 Stock Forecast page.