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

• Market Cap: ¥8.61B
• Dividend Yield: 4.59%
• Average Volume (3M): 6.48K
• Price to Earnings (P/E): 11.2
• 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): 74.61
• Shares Outstanding: 4,012,900
• 10 Day Avg. Volume: 6,360
• 30 Day Avg. Volume: 6,483
• PEG Ratio: 1.76
• Price to Book (P/B): 2.65
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 11.20
• 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: ¥2,517.00 ▲(17.18% Upside)

The score is driven primarily by strong financial fundamentals—especially the conservatively leveraged balance sheet and improving profitability—supported by favorable valuation (moderate P/E and high dividend yield). Technical signals are mixed, with neutral momentum and the price below key mid/long-term moving averages, tempering the overall score.

Positive Factors

Conservative Balance Sheet

A conservatively positioned balance sheet with minimal leverage provides durable financial resilience. It supports capital allocation flexibility for R&D, strategic investments or dividends, reduces refinancing risk in downturns, and underpins long-term operational stability.

Sustained Revenue Growth

Consistent top-line expansion and a step-up in scale indicate durable demand and successful market penetration. Structural revenue growth supports ongoing investment in products and scale-driven margin gains, improving long-term competitiveness and resilience.

Strong Free Cash Flow Conversion

Reliable free cash flow conversion demonstrates genuine cash generation capacity, enabling sustainable dividends, reinvestment, and debt servicing. Recovery after the 2021 dip and recent robustness point to resilient cash fundamentals over a multi-year horizon.

Negative Factors

Operating Cash Flow Volatility

Irregular operating cash flow relative to EBITDA suggests working-capital or timing swings that can impair predictability of cash available for growth or payouts. Persistent volatility complicates planning, heightens short- to medium-term funding risk, and can mask earnings quality.

Gross Margin Pressure

A flattening or decline in gross margin versus the recent peak signals pricing or cost pressure that could limit operating leverage. If sustained, margin erosion constrains profit expansion from revenue growth and reduces cash available for reinvestment or shareholder returns.

Re-introduction of Debt

Reintroducing debt after a period of zero leverage marks a shift in capital policy. Even modest leverage raises fixed interest obligations and reduces flexibility; if extended, it could increase financial risk and constrain capital allocation during adverse cycles.

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

Strong balance sheet (very low leverage; debt-to-equity ~0.09 in 2025 after zero debt in 2023–2024) supports resilience. Income statement shows steady revenue expansion and improving profitability (EBIT margin ~4.4% in 2020 to ~8.9% in 2025; net margin ~3.5% to ~6.3%). Cash flow is solid with free cash flow closely tracking net income, but operating cash flow shows some year-to-year volatility.

Income Statement

Revenue has grown steadily over the period (from 2020 to 2025 annual), with a clear step-up in scale, and profitability has improved meaningfully (net margin rising from ~3.5% in 2020 to ~6.3% in 2025). Operating profitability is solid for the profile, with EBIT margin improving from ~4.4% (2020) to ~8.9% (2025). Offsetting this, gross margin has been roughly flat-to-down versus the 2023–2024 peak, suggesting some pricing or cost pressure even as operating leverage supports earnings.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage across the history. Debt has been minimal (including zero debt in 2023–2024) and remains modest in 2025 (debt-to-equity ~0.09). Equity has expanded alongside asset growth, reflecting retained profitability and strengthening capitalization. The main watch item is the re-introduction of debt in 2025 (from zero in 2024), though leverage remains very manageable.

Cash Flow

Cash generation is generally strong relative to earnings, with free cash flow tracking net income closely in every year shown (roughly ~0.80–0.99x). Free cash flow also recovered sharply after the 2021 dip and has remained robust through 2024–2025. However, operating cash flow as a share of EBITDA is somewhat inconsistent (notably weak in 2021 and lower again in 2025 versus 2024), indicating some working-capital or timing volatility despite healthy free cash flow conversion overall.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.81B	12.08B	11.21B	9.89B	8.32B	7.24B
Gross Profit	3.08B	2.90B	2.90B	2.54B	2.03B	1.71B
EBITDA	1.09B	1.10B	963.07M	851.00M	626.00M	359.06M
Net Income	794.63M	765.15M	722.61M	616.11M	442.25M	275.90M
Balance Sheet
Total Assets	5.67B	5.79B	4.95B	4.59B	3.94B	3.16B
Cash, Cash Equivalents and Short-Term Investments	3.67B	3.69B	3.00B	2.68B	2.36B	1.72B
Total Debt	300.00M	300.00M	0.00	0.00	602.00K	1.45M
Total Liabilities	2.59B	2.41B	1.95B	1.73B	1.49B	1.20B
Stockholders Equity	3.08B	3.38B	3.00B	2.86B	2.45B	1.96B
Cash Flow
Free Cash Flow	0.00	800.00M	917.46M	544.83M	595.65M	51.16M
Operating Cash Flow	0.00	819.38M	938.16M	566.88M	599.94M	64.02M
Investing Cash Flow	0.00	-44.85M	-31.33M	-45.53M	-6.77M	-12.21M
Financing Cash Flow	0.00	-82.39M	-583.51M	-206.67M	48.91M	-255.07M

Japaniace Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2148.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9558, the sentiment is Negative. The current price of 2148 is below the 20-day moving average (MA) of 2228.15, below the 50-day MA of 2222.53, and below the 200-day MA of 2187.06, indicating a bearish trend. The MACD of -18.03 indicates Positive momentum. The RSI at 39.53 is Neutral, neither overbought nor oversold. The STOCH value of 19.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥10.92B	13.45	―	2.16%	2.75%	25.24%
9558	75 Outperform	¥8.61B	11.16	―	4.59%	8.03%	34.39%
4374	71 Outperform	¥9.59B	19.25	―	0.47%	19.35%	71.74%
4430	71 Outperform	¥9.53B	10.23	―	3.06%	27.08%	18.85%
2315	62 Neutral	¥15.43B	66.83	30.04%	―	-7.33%	441.81%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5129	42 Neutral	¥5.61B	-2.24	―	―	-38.47%	-1453.85%

Japaniace Co., Ltd. Corporate Events

Japaniace to Acquire COPRO TECHNOLOGY’s SES Business and IT Job Site via Company Split

Japaniace Co., Ltd. will acquire the SES (System Engineering Service) business of COPRO TECHNOLOGY Co., Ltd., including the IT engineer dispatch operations and the job recruitment site “Bscareer IT,” through an absorption-type company split, subject to shareholder approval in February 2026 and scheduled to take effect on March 27, 2026. By paying ¥730 million in cash and taking over all related assets, liabilities, and contractual positions, Japaniace plans to operate the recruitment platform in-house to increase the number of engineers, including freelancers, thereby strengthening its competitiveness, stabilizing its earnings base, and supporting its medium-term strategy to shift from quantitative to qualitative growth in IT human resources.

The most recent analyst rating on (JP:9558) stock is a Buy with a Yen2436.00 price target. To see the full list of analyst forecasts on Japaniace Co., Ltd. stock, see the JP:9558 Stock Forecast page.

Japaniace Posts Earnings Growth, Lifts Dividend and Signals Further Gains for FY2026

Japaniace Co., Ltd. reported non-consolidated net sales of ¥12.08 billion for the fiscal year ended November 30, 2025, up 7.8% year on year, with operating profit rising 3.9% to ¥982 million and net profit up 5.9% to ¥765 million, resulting in higher earnings per share and an improved cash position. The company strengthened its balance sheet as total assets and net assets increased, maintained a high return on equity above 20%, raised its annual dividend from ¥95 to ¥99 per share while keeping a payout ratio just above 50%, and issued guidance for the 2026 fiscal year that projects continued but moderate growth in sales and profits, underscoring a strategy of steady expansion and ongoing shareholder returns in a stable operating environment.

The most recent analyst rating on (JP:9558) stock is a Buy with a Yen2436.00 price target. To see the full list of analyst forecasts on Japaniace Co., Ltd. stock, see the JP:9558 Stock Forecast page.

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.