O.B.System Inc. (5576) AI Stock Analysis

• Market Cap: ¥7.15B
• Dividend Yield: 2.68%
• Average Volume (3M): 3.62K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.50
• Revenue Growth: 6.07%
• EPS Growth: 0.36%
• Country: JP
• Employees: 448
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 63.12
• Shares Outstanding: 2,367,000
• 10 Day Avg. Volume: 3,640
• 30 Day Avg. Volume: 3,616
• PEG Ratio: 1.27
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 13.18
• 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

• Rating: 64 Neutral
• 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. Business Overview & Revenue Model

Company Description

O.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 Money

O.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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.61B	7.68B	6.90B	6.16B	5.99B	6.07B
Gross Profit	1.41B	1.45B	1.21B	1.03B	926.70M	877.82M
EBITDA	658.30M	761.03M	605.00M	514.96M	425.52M	390.91M
Net Income	461.05M	485.25M	441.58M	497.48M	338.55M	275.88M
Balance Sheet
Total Assets	7.36B	6.47B	5.88B	5.22B	4.84B	4.58B
Cash, Cash Equivalents and Short-Term Investments	2.39B	2.64B	2.91B	3.39B	3.21B	3.00B
Total Debt	334.86M	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.13B	1.36B	1.17B	1.39B	1.47B	1.52B
Stockholders Equity	5.23B	5.11B	4.71B	3.83B	3.37B	3.06B
Cash Flow
Free Cash Flow	0.00	431.65M	24.63M	298.06M	203.12M	301.45M
Operating Cash Flow	0.00	461.99M	30.97M	305.82M	210.72M	316.50M
Investing Cash Flow	0.00	-444.89M	-7.25M	-18.11M	76.35M	-345.74M
Financing Cash Flow	0.00	-184.13M	92.68M	-106.85M	-83.08M	-33.45M

O.B.System Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2931.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8226	75 Outperform	¥7.35B	10.03	―	1.26%	31.91%	50.55%
3940	72 Outperform	¥6.16B	15.17	―	2.46%	8.71%	4.70%
3988	68 Neutral	¥6.27B	14.72	―	1.17%	13.34%	-10.63%
6888	68 Neutral	¥5.32B	13.94	―	4.56%	3.08%	-9.62%
4398	65 Neutral	¥6.19B	42.63	―	1.09%	-5.47%	-68.77%
5576	64 Neutral	¥7.15B	14.65	―	2.68%	6.07%	0.36%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%