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O.B.System Inc. (JP:5576)
:5576
Japanese Market
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O.B.System Inc. (5576) AI Stock Analysis

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JP:5576

O.B.System Inc.

(5576)

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Neutral 64 (OpenAI - 4o)
Rating:64Neutral
Price Target:
O.B.System Inc. shows strong financial performance, particularly with its balance sheet and profitability. The stock's undervaluation and attractive dividend yield further support its potential. However, technical indicators suggest caution due to downward price trends, and cash flow data gaps require attention. Overall, the stock presents a moderate investment opportunity in the Information Technology Services sector.

O.B.System Inc. (5576) vs. iShares MSCI Japan ETF (EWJ)

O.B.System Inc. Business Overview & Revenue Model

Company DescriptionO.B.System Inc. (5576) is a technology company specializing in providing innovative solutions in the fields of automation and software development. The company offers a range of products and services, including integrated systems for manufacturing automation, enterprise software solutions, and cloud-based services designed to enhance operational efficiency for businesses across various industries.
How the Company Makes MoneyO.B.System Inc. generates revenue primarily through the sale of its proprietary software and automation systems. The company offers licensing agreements for its software products, which include ongoing support and updates. Additionally, O.B.System Inc. provides consulting and implementation services for its automation solutions, charging clients for both the installation and customization of systems to fit their specific needs. Recurring revenue is also obtained through subscription-based models for its cloud services. Strategic partnerships with industry leaders further bolster its revenue streams, allowing O.B.System Inc. to expand its market reach and integrate its solutions with other leading technologies.

O.B.System Inc. Financial Statement Overview

Summary
O.B.System Inc. demonstrates robust financial health with strong income growth and profitability. The balance sheet is a highlight with zero debt and a high equity ratio, indicating financial stability. However, cash flow performance requires attention due to recent data gaps, which slightly dampen the overall financial performance score.
Income Statement
88
Very Positive
O.B.System Inc. shows strong revenue growth, with a TTM increase of 9.5% compared to last year, driven by consistent gross profit margins at approximately 18.5%. The net profit margin is solid at 6.2% for TTM, showcasing profitability. EBIT and EBITDA margins remain stable at 7.7% and 8.1%, respectively, indicating efficient operational management.
Balance Sheet
92
Very Positive
The company maintains an excellent balance sheet with zero debt, resulting in a debt-to-equity ratio of 0. The equity ratio is robust at 79.6% for TTM, reflecting strong financial stability. Return on equity stands at 9.1% for TTM, indicating effective use of shareholder funds.
Cash Flow
65
Positive
Cash flow metrics show some concerns with the absence of reported operating and free cash flow for TTM, hindering growth and performance assessment. Previous periods show positive free cash flow and a strong operating cash flow to net income ratio, but recent data gaps affect the score.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.61B7.68B6.90B6.16B5.99B6.07B
Gross Profit1.41B1.45B1.21B1.03B926.70M877.82M
EBITDA658.30M761.03M605.00M514.96M425.52M390.91M
Net Income461.05M485.25M441.58M497.48M338.55M275.88M
Balance Sheet
Total Assets7.36B6.47B5.88B5.22B4.84B4.58B
Cash, Cash Equivalents and Short-Term Investments2.39B2.64B2.91B3.39B3.21B3.00B
Total Debt334.86M0.000.000.000.000.00
Total Liabilities2.13B1.36B1.17B1.39B1.47B1.52B
Stockholders Equity5.23B5.11B4.71B3.83B3.37B3.06B
Cash Flow
Free Cash Flow0.00431.65M24.63M298.06M203.12M301.45M
Operating Cash Flow0.00461.99M30.97M305.82M210.72M316.50M
Investing Cash Flow0.00-444.89M-7.25M-18.11M76.35M-345.74M
Financing Cash Flow0.00-184.13M92.68M-106.85M-83.08M-33.45M

O.B.System Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2931.00
Price Trends
50DMA
2846.10
Positive
100DMA
2808.50
Positive
200DMA
2550.97
Positive
Market Momentum
MACD
47.44
Negative
RSI
72.33
Negative
STOCH
95.65
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5576, the sentiment is Positive. The current price of 2931 is above the 20-day moving average (MA) of 2926.57, above the 50-day MA of 2846.10, and above the 200-day MA of 2550.97, indicating a bullish trend. The MACD of 47.44 indicates Negative momentum. The RSI at 72.33 is Negative, neither overbought nor oversold. The STOCH value of 95.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5576.

O.B.System 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
75
Outperform
¥7.35B10.031.26%31.91%50.55%
72
Outperform
¥6.16B15.172.46%8.71%4.70%
68
Neutral
¥6.27B14.721.17%13.34%-10.63%
68
Neutral
¥5.32B13.944.56%3.08%-9.62%
65
Neutral
¥6.19B42.631.09%-5.47%-68.77%
64
Neutral
¥7.15B14.652.68%6.07%0.36%
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:5576
O.B.System Inc.
3,115.00
939.95
43.22%
JP:3940
Nomura System Corporation Co., Ltd.
134.00
21.12
18.71%
JP:3988
SYS Holdings Co. Ltd.
600.00
142.62
31.18%
JP:4398
BroadBand Security, Inc.
1,368.00
-68.50
-4.77%
JP:6888
Acmos Inc.
548.00
51.69
10.41%
JP:8226
Rikei Corporation
511.00
205.95
67.51%
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: Apr 08, 2025