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

• Market Cap: ¥64.88B
• Dividend Yield: 2.03%
• Average Volume (3M): 64.68K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.59
• Revenue Growth: 22.09%
• EPS Growth: 143.20%
• Country: JP
• Employees: 2,700
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Infrastructure
• EPS (TTM): 19.75
• Shares Outstanding: 48,366,400
• 10 Day Avg. Volume: 100,440
• 30 Day Avg. Volume: 64,676
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,693.00
• Price Target Upside: 18.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥1,517.00 ▲(6.61% Upside)

The overall stock score of 68 reflects strong revenue growth and reasonable valuation, offset by technical indicators suggesting potential bearish momentum and concerns over cash flow management. The company's ability to improve profitability and manage leverage will be crucial for sustaining long-term success.

Japan Business Systems, Inc. Business Overview & Revenue Model

Company Description

Japan Business Systems, Inc. (5036) is a leading information technology services company based in Japan. The company specializes in providing comprehensive IT solutions and services, including system integration, cloud services, and software development. Its core offerings cater to a wide range of sectors, including finance, manufacturing, retail, and public services, enabling organizations to enhance their digital transformation and operational efficiency.

How the Company Makes Money

Japan Business Systems, Inc. generates revenue primarily through its IT services and solutions offerings. The company's key revenue streams include system integration services, where it designs and implements IT systems tailored to client needs, and cloud services, which provide scalable and flexible IT infrastructure solutions. Additionally, JBS earns income from software development projects, often involving custom applications to meet specific client requirements. Strategic partnerships with major technology providers and a strong client base in various industries also contribute significantly to its earnings, enabling JBS to leverage cutting-edge technologies and expand its market reach.

Japan Business Systems, Inc. Financial Statement Overview

Summary

Strong revenue growth and improving gross margins indicate solid operational performance. However, low net profit margin and ROE, along with increased debt levels and negative free cash flow, highlight areas needing improvement.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	140.86B	112.80B	86.33B	74.95B	68.25B
Gross Profit	14.57B	13.08B	10.88B	8.50B	8.48B
EBITDA	3.98B	5.15B	4.61B	2.87B	1.93B
Net Income	1.51B	3.35B	2.65B	1.56B	833.00M
Balance Sheet
Total Assets	60.95B	49.61B	38.79B	29.49B	30.20B
Cash, Cash Equivalents and Short-Term Investments	3.73B	5.34B	7.75B	4.01B	4.02B
Total Debt	19.71B	12.91B	6.35B	5.71B	6.60B
Total Liabilities	38.22B	27.39B	19.08B	16.15B	18.30B
Stockholders Equity	22.73B	22.22B	19.71B	13.34B	11.90B
Cash Flow
Free Cash Flow	-7.85B	-4.73B	711.00M	945.00M	2.72B
Operating Cash Flow	-320.00M	-206.00M	3.47B	1.96B	3.22B
Investing Cash Flow	-7.66B	-7.04B	-3.97B	-894.00M	-480.00M
Financing Cash Flow	6.05B	4.99B	4.01B	-1.08B	-998.00M

Japan Business Systems, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1423.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1423 is below the 20-day moving average (MA) of 1434.15, below the 50-day MA of 1444.44, and above the 200-day MA of 1108.67, indicating a neutral trend. The MACD of 8.86 indicates Positive momentum. The RSI at 46.40 is Neutral, neither overbought nor oversold. The STOCH value of 62.72 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4431	80 Outperform	¥68.18B	40.92		0.43%	31.97%	34.75%
5036	68 Neutral	¥64.88B	13.02		2.03%	22.09%	143.20%
4475	66 Neutral	¥61.72B	52.44		0.16%	30.64%	33.19%
3854	63 Neutral	¥71.90B	23.18		1.65%	9.37%	5.91%
Sector *	61 Neutral	$36.30B	7.26	-7.27%	1.97%	7.74%	-7.92%
4419	58 Neutral	¥70.13B	76.84		―	34.54%	398.15%