O.B.System Inc. (JP:5576)
:5576
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O.B.System Inc.
(5576)
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Rating:80Outperform
Price Target:
¥3,525.00
▲(20.27% Upside)
Action:ReiteratedDate:04/23/26
The score is led by strong financial performance (healthy growth, improving profitability, and a very low-debt balance sheet) and an attractive valuation (low P/E and solid dividend yield). Technicals remain supportive due to a clear uptrend, but overbought momentum signals add near-term pullback risk.
Positive Factors
Conservative balance sheet / very low leverage
Near-zero debt and a very low debt-to-equity ratio provide durable financial flexibility. This lowers interest burden, supports capital allocation for capex, dividends or M&A, and improves resilience to cyclical shocks, strengthening long-term strategic optionality.
Negative Factors
Volatile operating cash flow / weak cash conversion
Inconsistent operating cash flow and poor cash conversion in FY2026 point to working-capital timing or receivables issues. This undermines the quality of reported earnings, constrains reinvestment or dividend funding, and raises monitoring needs for sustained free cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / very low leverage
Near-zero debt and a very low debt-to-equity ratio provide durable financial flexibility. This lowers interest burden, supports capital allocation for capex, dividends or M&A, and improves resilience to cyclical shocks, strengthening long-term strategic optionality.
Read all positive factors
O.B.System Inc. (5576) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥6.58B
Dividend Yield3.13%
Average Volume (3M)2.62K
Price to Earnings (P/E)6.6
Beta (1Y)0.31
Revenue Growth12.64%
EPS Growth23.13%
CountryJP
Employees448
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)200.01
Shares Outstanding2,367,000
10 Day Avg. Volume2,600
30 Day Avg. Volume2,616
Financial Highlights & Ratios
PEG Ratio0.42
Price to Book (P/B)1.02
Price to Sales (P/S)0.67
P/FCF Ratio18.58
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
O.B.System Inc. Business Overview & Revenue Model
Company Description
O.B.System Inc. engages in the system integration service business in Japan. It offers system consultation services; and develops application software for general-purpose computers, workstations, personal computers, and microcomputers. The company...
How the Company Makes Money
null...
O.B.System Inc. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
64
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.61B | 8.66B | 7.68B | 6.90B | 6.16B | 5.99B |
| Gross Profit | 1.41B | 1.68B | 1.45B | 1.21B | 1.03B | 926.70M |
| EBITDA | 658.30M | 786.13M | 761.03M | 605.00M | 514.96M | 425.52M |
| Net Income | 461.05M | 601.16M | 485.25M | 441.58M | 497.48M | 338.55M |
Balance Sheet | ||||||
| Total Assets | 7.36B | 7.62B | 6.63B | 6.02B | 5.33B | 4.94B |
| Cash, Cash Equivalents and Short-Term Investments | 2.39B | 2.29B | 2.64B | 2.91B | 3.39B | 3.21B |
| Total Debt | 334.86M | 271.68M | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 2.13B | 1.92B | 1.51B | 1.31B | 1.50B | 1.56B |
| Stockholders Equity | 5.23B | 5.70B | 5.11B | 4.71B | 3.83B | 3.37B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 314.23M | 431.65M | 24.63M | 298.06M | 203.12M |
| Operating Cash Flow | 0.00 | 329.44M | 461.99M | 30.97M | 305.82M | 210.72M |
| Investing Cash Flow | 0.00 | 146.12M | -444.89M | -7.25M | -18.11M | 76.35M |
| Financing Cash Flow | 0.00 | -271.81M | -184.13M | 92.68M | -106.85M | -83.08M |
O.B.System Inc. Technical Analysis
Positive
2931.00
Price Trends
2627.17
Positive
2726.33
Negative
2754.02
Negative
Market Momentum
11.07
Negative
62.90
Neutral
91.30
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 2581.79, above the 50-day MA of 2627.17, and above the 200-day MA of 2754.02, indicating a neutral trend. The MACD of 11.07 indicates Negative momentum. The RSI at 62.90 is Neutral, neither overbought nor oversold. The STOCH value of 91.30 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥6.58B | 6.58 | ― | 3.13% | 12.64% | 23.13% | |
80 Outperform | ¥6.82B | 10.46 | ― | 3.37% | 4.81% | 20.71% | |
73 Outperform | ¥7.05B | 15.27 | ― | 2.78% | 9.41% | 0.89% | |
71 Outperform | ¥22.44B | 11.39 | ― | 1.70% | 20.32% | 18.86% | |
69 Neutral | ¥31.51B | 14.61 | ― | 2.22% | 11.22% | 55.88% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | ¥17.21B | -16.73 | ― | ― | 9.34% | -52.97% |
* Technology Sector Average
JP:5576
O.B.System Inc.
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13.97%
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.