Japaniace Co., Ltd. (9558) AI Stock Analysis

• Market Cap: ¥9.27B
• Dividend Yield: 4.59%
• Average Volume (3M): 6.48K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.64
• Revenue Growth: 8.03%
• EPS Growth: 34.39%
• Country: JP
• Employees: 1,704
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 49.79
• Shares Outstanding: 4,012,600
• 10 Day Avg. Volume: 6,360
• 30 Day Avg. Volume: 6,483
• PEG Ratio: 0.72
• Price to Book (P/B): 2.86
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 9.34
• 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: ¥2,436.00 ▲(13.41% Upside)

The score is supported primarily by strong financial performance (consistent growth, improving profitability, and near-zero leverage) and favorable valuation (low P/E and high dividend yield). These positives are partially offset by weak technical momentum, with the stock trading below key moving averages and a negative MACD.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, positioning Japaniace for sustained expansion.

Balance Sheet Health

A debt-free balance sheet reduces financial risk, providing Japaniace with flexibility to invest in growth opportunities and weather economic downturns.

Governance Enhancement

Enhancing governance structures can improve management transparency and decision-making, potentially leading to better strategic outcomes and investor confidence.

Negative Factors

Volatile Cash Flow

Volatile cash flow can complicate financial planning and limit Japaniace's ability to consistently fund operations and growth initiatives.

Profit Forecast Revision

Revising profit forecasts downward suggests potential operational challenges that could impact future profitability and strategic execution.

Moderate Margins

Moderate margins may limit Japaniace's ability to generate high returns compared to peers, affecting competitive positioning and profitability.

Japaniace Co., Ltd. Business Overview & Revenue Model

Company Description

Japaniace Co.,Ltd. engages in the advanced engineering business in Japan. The company offers software design, development, testing, operation, and maintenance services; network and server design and construction, operation, and maintenance services to telecommunications carriers, finance, distribution, and government offices; and mechanical design and electrical/electronic design of products and equipment centered on automobiles, OA equipment, digital equipment, and robots, as well as supports Japanese manufacturing manufacturers. It also provides advanced IT services, including cloud infrastructure design and construction and migration support from on-premise environments to the cloud; construction, operation, and maintenance of Salesforce; and cloud development and big data services. The company was founded in 1999 and is headquartered in Yokohama, Japan.

How the Company Makes Money

Japaniace Co., Ltd. generates revenue primarily through its comprehensive suite of IT services. The company charges clients for custom software development projects, ongoing IT support, and system integration services. Key revenue streams include long-term contracts with enterprise clients and government agencies, ensuring consistent income. Additionally, Japaniace may engage in strategic partnerships with technology providers to enhance its service offerings and expand its market reach, contributing to its earnings.

Japaniace Co., Ltd. Financial Statement Overview

Summary

Japaniace Co., Ltd. is financially robust, with strong revenue growth, impressive profitability, and solid cash flow metrics. The absence of debt and high return on equity reflect a well-managed and stable financial position. The company's consistent growth trajectory and effective cost control measures are commendable, making it a financially sound choice in the software infrastructure industry.

Income Statement

Japaniace Co., Ltd. has shown strong revenue growth over the past years, with a notable increase of 13.4% from 2023 to 2024. The company's gross profit margin stands at 25.8% for 2024, indicating efficient cost management. Net profit margin has improved to 6.4%, reflecting enhanced profitability. With an EBIT margin of 8.4% and an EBITDA margin of 8.6%, the company maintains robust operational efficiency.

Balance Sheet

Japaniace Co., Ltd. exhibits a strong balance sheet with no debt, resulting in a favorable debt-to-equity ratio of 0. The return on equity is an impressive 24.1%, highlighting effective use of shareholder funds. The equity ratio of 60.5% underscores financial stability and a strong asset base.

Cash Flow

The company demonstrates excellent cash flow management, with a substantial free cash flow growth rate of 68.4% from 2023 to 2024. The operating cash flow to net income ratio is 1.3, suggesting efficient cash generation relative to net earnings. Additionally, the free cash flow to net income ratio is 1.3, indicating strong cash profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.81B	11.21B	9.89B	8.32B	7.24B	6.67B
Gross Profit	3.08B	2.90B	2.54B	2.03B	1.71B	1.50B
EBITDA	1.09B	963.07M	851.00M	626.00M	359.06M	305.78M
Net Income	794.63M	722.61M	616.11M	442.25M	275.90M	236.37M
Balance Sheet
Total Assets	5.67B	4.95B	4.59B	3.94B	3.16B	3.23B
Cash, Cash Equivalents and Short-Term Investments	3.67B	3.00B	2.68B	2.36B	1.72B	1.92B
Total Debt	300.00M	0.00	0.00	602.00K	1.45M	4.39M
Total Liabilities	2.59B	1.95B	1.73B	1.49B	1.20B	1.30B
Stockholders Equity	3.08B	3.00B	2.86B	2.45B	1.96B	1.93B
Cash Flow
Free Cash Flow	0.00	917.46M	544.83M	595.65M	51.16M	392.65M
Operating Cash Flow	0.00	938.16M	566.88M	599.94M	64.02M	423.71M
Investing Cash Flow	0.00	-31.33M	-45.53M	-6.77M	-12.21M	-38.90M
Financing Cash Flow	0.00	-583.51M	-206.67M	48.91M	-255.07M	-126.53M

Japaniace Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2148.00
• 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:9558, the sentiment is Positive. The current price of 2148 is below the 20-day moving average (MA) of 2190.05, below the 50-day MA of 2261.38, and below the 200-day MA of 2169.99, indicating a bullish trend. The MACD of 8.21 indicates Negative momentum. The RSI at 70.29 is Negative, neither overbought nor oversold. The STOCH value of 94.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9558.

Japaniace Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3633	76 Outperform	¥11.72B	14.42	―	2.16%	2.75%	25.24%
9558	75 Outperform	¥9.27B	11.55	―	4.59%	8.03%	34.39%
4374	71 Outperform	¥10.73B	21.54	―	0.47%	19.35%	71.74%
4430	71 Outperform	¥9.30B	10.13	―	3.06%	27.08%	18.85%
2315	62 Neutral	¥15.73B	85.46	30.04%	―	-7.33%	441.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5129	42 Neutral	¥5.87B	-2.34	―	―	-38.47%	-1453.85%

Japaniace Co., Ltd. Corporate Events

Japaniace Co., Ltd. Revises Financial Forecasts Amid Challenges

Japaniace Co., Ltd. has revised its financial forecasts for the fiscal year ending November 30, 2025, due to challenges in meeting initial plans, including the loss of a large-scale contract development project. Despite securing a public tender project and exceeding net sales expectations, the company anticipates lower operating, ordinary, and net profits compared to earlier forecasts. Nevertheless, compared to the previous fiscal year, Japaniace expects a 7.8% increase in net sales and a 5.4% increase in ordinary profit.

Japaniace Co., Ltd. to Enhance Governance with New Supervisory Structure

Japaniace Co., Ltd. has announced its decision to transition from a Company with an Audit & Supervisory Board to a Company with an Audit & Supervisory Committee. This change aims to strengthen corporate governance, enhance management transparency, and expedite decision-making processes by involving more outside directors in supervisory roles and delegating some decision-making authority to individual directors. The transition is expected to be finalized following shareholder approval in February 2026.

Japaniace Co., Ltd. Reports Strong Q3 Financial Results

Japaniace Co., Ltd. reported a significant improvement in its financial performance for the third quarter of the fiscal year ending November 30, 2025, with net sales increasing by 7.2% year-on-year. The company also saw substantial growth in operating profit, ordinary profit, and net profit, indicating a positive trend in its financial health. The forecast for the full fiscal year also shows expected growth in net sales and profits, suggesting continued positive momentum for the company.