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

• Market Cap: ¥8.55B
• Dividend Yield: 4.58%
• Average Volume (3M): 10.36K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.59
• Revenue Growth: 10.90%
• EPS Growth: 30.69%
• Country: JP
• Employees: 1,704
• Sector: Technology
• Sector Strength: 93
• Industry: Software - Infrastructure
• EPS (TTM): 30.01
• Shares Outstanding: 4,012,400
• 10 Day Avg. Volume: 20,170
• 30 Day Avg. Volume: 10,363
• PEG Ratio: 1.76
• Price to Book (P/B): 2.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 757.44
• 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: 83 Outperform
• Price Target: ―

Japaniace Co., Ltd. demonstrates strong financial performance with impressive revenue growth, profitability, and cash flow management, supported by a debt-free balance sheet. The technical indicators show positive momentum, although the high stochastic suggests caution. Valuation metrics, including a low P/E ratio and high dividend yield, further enhance the stock's attractiveness. These factors combined result in a solid overall stock score.

Japaniace Co., Ltd. Business Overview & Revenue Model

Company Description

Japaniace Co., Ltd. is a prominent player in the technology sector, focusing on providing advanced IT solutions and services. The company's core offerings include system integration, software development, and IT infrastructure management, serving a diverse range of industries including finance, manufacturing, and public services.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.21B	9.89B	8.32B	7.24B	6.67B
Gross Profit	2.90B	2.54B	2.03B	1.71B	1.50B
EBITDA	963.07M	851.00M	626.00M	415.58M	305.78M
Net Income	722.61M	616.11M	442.25M	275.90M	236.37M
Balance Sheet
Total Assets	4.95B	4.59B	3.94B	3.16B	3.23B
Cash, Cash Equivalents and Short-Term Investments	3.00B	2.68B	2.36B	1.72B	1.92B
Total Debt	0.00	0.00	602.00K	1.45M	3.39M
Total Liabilities	1.95B	1.73B	1.49B	1.20B	1.30B
Stockholders Equity	3.00B	2.86B	2.45B	1.96B	1.93B
Cash Flow
Free Cash Flow	917.46M	544.83M	595.65M	51.16M	392.65M
Operating Cash Flow	938.16M	566.88M	599.94M	64.02M	423.71M
Investing Cash Flow	-31.33M	-45.53M	-6.77M	-12.21M	-38.90M
Financing Cash Flow	-583.51M	-206.67M	48.91M	-255.07M	-126.53M

Japaniace Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2140.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 2140 is below the 20-day moving average (MA) of 2174.75, below the 50-day MA of 2143.55, and above the 200-day MA of 2107.21, indicating a neutral trend. The MACD of -2.74 indicates Positive momentum. The RSI at 42.23 is Neutral, neither overbought nor oversold. The STOCH value of 7.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9558.

Japaniace Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9558	83 Outperform	¥8.55B	10.67		4.58%	10.90%	30.69%
9719	74 Outperform	¥1.34T	30.99		1.72%	24.10%	11.27%
9735	72 Outperform	¥2.33T	20.44	8.55%	1.91%	3.91%	7.86%
9749	72 Outperform	$637.47B	33.20	13.64%	0.43%	6.92%	25.38%
4768	70 Outperform	¥1.09T	19.29	16.17%	3.12%	15.49%	18.42%
4684	69 Neutral	¥2.68T	38.15	15.31%	1.38%	8.65%	12.22%
Sector *	68 Neutral	¥228.43B	14.64	7.50%	2.70%	9.28%	6.70%

Japaniace Co., Ltd. Corporate Events

Japaniace Co., Ltd. Reports Strong Q1 Financial Performance and Positive Fiscal Year Outlook

Japaniace Co., Ltd. reported a significant increase in its financial performance for the first quarter ending February 28, 2025, with net sales rising by 6.4% and operating profit surging by 50.6% compared to the previous year. The company also announced its forecast for the fiscal year ending November 30, 2025, projecting continued growth in net sales and profits, which suggests a positive outlook for stakeholders and potential investors.

Japaniace Co., Ltd. Secures Funds for IT Workforce Expansion

Japaniace Co., Ltd. has announced a borrowing of ¥300 million from three major banks to secure working capital for anticipated business expansion. This move is part of their strategy to enhance their IT workforce and align with their long-term vision of creating 10,000 digital human resources, with minimal impact expected on their financial results.

Japaniace Co., Ltd. Expands with New Sapporo Office

Japaniace Co., Ltd. has opened a new office in Sapporo City, Hokkaido, as part of its strategy to expand its service capabilities in regions not covered by its existing 11 locations. This new office aims to enhance service provision in the Hokkaido area, although its impact on the company’s overall business performance is expected to be minimal.

Japaniace Co., Ltd. Strengthens Corporate Governance

Japaniace Co., Ltd. has reaffirmed its commitment to corporate governance by complying with all principles of the Corporate Governance Code. The company aims to enhance transparency and accountability through strengthened management oversight and monitoring, particularly from the perspective of Outside Directors and Audit & Supervisory Board Members. This approach is expected to improve the company’s operations and solidify its industry positioning.

Japaniace Co., Ltd. Addresses Controlling Shareholder Matters

Japaniace Co., Ltd. has announced matters concerning its controlling shareholder, Saburo Nishikawa, who holds a significant portion of the company’s voting rights. The company has no current transactions with the controlling shareholder and emphasizes its commitment to protecting minority shareholders by ensuring any future transactions are thoroughly deliberated and justified.