Japan Process Development Co., Ltd. (9651) AI Stock Analysis

• Market Cap: ¥17.49B
• Dividend Yield: 2.99%
• Average Volume (3M): 6.70K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.43
• Revenue Growth: 12.78%
• EPS Growth: 90.80%
• Country: JP
• Employees: 698
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 30.53
• Shares Outstanding: 10,645,020
• 10 Day Avg. Volume: 5,190
• 30 Day Avg. Volume: 6,700
• PEG Ratio: 0.09
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 1.32
• P/FCF Ratio: 29.16
• 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: 80 Outperform
• Price Target: ¥2,082.00 ▲(9.58% Upside)

The score is primarily supported by strong financial quality (notably the debt-free balance sheet and improving profitability) and favorable valuation (moderate P/E with a solid dividend). Technicals add support via a clear uptrend, tempered by near-term overbought signals.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion potential.

Balance Sheet Health

A debt-free balance sheet reduces financial risk and provides flexibility, enhancing the company's ability to invest in growth opportunities.

Profitability Improvement

Improving operating margins reflect efficient cost management and pricing power, contributing to sustainable earnings growth.

Negative Factors

Cash Flow Volatility

Volatile cash flow can create uncertainty in financial planning and may impact the company's ability to consistently fund operations and growth.

Earnings Volatility

Sharp changes in net margin may indicate reliance on one-time benefits, posing a risk to consistent earnings performance.

Cash Conversion Issues

Inconsistent cash conversion can affect liquidity and limit the company's ability to reinvest in business operations or return capital to shareholders.

Japan Process Development Co., Ltd. Business Overview & Revenue Model

Company Description

Japan Process Development Co., Ltd. provides system integration and software development services in Japan. The company develops control systems, such as power plant monitoring and control, automated power distribution, bullet and local train traffic control, and transport management systems, as well as training simulators for power plant operators; automotive systems, including onboard control, engine control and transmissions control, external recognition, central gateway control, and car navigation systems; and particular information systems comprising satellite imagery ground, image analysis, sound-related, geographical information, and remote sensing systems. It also offers embedded systems consists of solid-state drives, IoT construction machines, and medical equipment; and industry and ICT solutions, such as rail ticket vending and station ticket counter machines, weather radars, and IoT security and image classification systems, as well as constructs private cloud environments. Japan Process Development Co., Ltd. was incorporated in 1967 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Japan Process Development Co., Ltd. generates revenue through a combination of service fees for its IT solutions, project-based income from system integration and software development, and consulting fees. The company partners with various clients across different industries, offering customized solutions that leverage its expertise in technology to drive client business objectives. By continuously adapting to technological advancements and maintaining strong client relationships, the company ensures a steady flow of projects and consulting engagements, which are key contributors to its earnings.

Japan Process Development Co., Ltd. Financial Statement Overview

Summary

The company demonstrates strong financial performance with substantial revenue growth, robust profitability metrics, a highly stable balance sheet with no debt, and impressive cash flow management. The overall financial health is solid, providing a stable foundation for future growth.

Income Statement

The company exhibits strong revenue growth with a 6.1% increase from the previous year, alongside robust profitability metrics such as a gross profit margin of 21.6% and a net profit margin of 7.7%. The EBIT margin stands at 10.1% and EBITDA margin at 10.8%, indicating efficient operational management. These metrics suggest a well-performing business with solid financial health in the software industry.

Balance Sheet

The balance sheet is highly stable, with no debt and a strong equity position making up 81.7% of total assets. The return on equity (ROE) is 7.0%, highlighting effective use of equity to generate profits. The company maintains a healthy cash position, indicating strong financial resilience.

Cash Flow

Cash flow metrics are impressive, with a significant 232.7% growth in free cash flow, supported by a strong operating cash flow to net income ratio of 1.44. The free cash flow to net income ratio is 1.32, showcasing efficient cash management and the ability to generate substantial cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.84B	10.47B	9.47B	8.92B	7.95B	7.64B
Gross Profit	2.42B	2.28B	2.04B	1.92B	1.76B	1.70B
EBITDA	2.13B	1.19B	1.02B	953.82M	819.37M	746.13M
Net Income	1.51B	1.48B	730.51M	682.60M	532.84M	544.18M
Balance Sheet
Total Assets	12.79B	14.47B	12.80B	12.31B	11.74B	11.78B
Cash, Cash Equivalents and Short-Term Investments	5.65B	6.81B	5.38B	4.91B	5.06B	4.79B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.79B	3.38B	2.35B	2.23B	2.06B	2.11B
Stockholders Equity	11.00B	11.09B	10.46B	10.08B	9.67B	9.68B
Cash Flow
Free Cash Flow	0.00	474.50M	968.49M	291.04M	536.09M	808.14M
Operating Cash Flow	0.00	498.89M	1.05B	312.37M	572.13M	840.78M
Investing Cash Flow	0.00	1.03B	-291.07M	435.90M	259.77M	696.51M
Financing Cash Flow	0.00	-444.41M	-347.58M	-347.34M	-386.55M	-250.11M

Japan Process Development Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1900.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9651, the sentiment is Positive. The current price of 1900 is above the 20-day moving average (MA) of 1821.40, above the 50-day MA of 1759.10, and above the 200-day MA of 1530.47, indicating a bullish trend. The MACD of 27.06 indicates Positive momentum. The RSI at 56.53 is Neutral, neither overbought nor oversold. The STOCH value of 45.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9651.

Japan Process Development Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9651	80 Outperform	¥17.49B	11.31	―	2.99%	12.78%	90.80%
4284	79 Outperform	¥12.60B	14.67	―	2.45%	9.77%	93.99%
4299	76 Outperform	¥15.39B	12.58	―	3.56%	3.96%	-3.68%
3800	71 Outperform	¥14.14B	19.13	―	3.62%	0.85%	12.73%
3937	68 Neutral	¥12.95B	13.23	―	3.78%	0.43%	44.79%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3856	43 Neutral	¥7.41B	1.94	―	1.45%	-40.21%	-54.31%

Japan Process Development Co., Ltd. Corporate Events

Japan Process Development Delivers Strong Q2 FY2026 Earnings and Bolsters Financial Strength

Japan Process Development Co., Ltd. reported strong consolidated results for the second quarter of the fiscal year ending May 31, 2026, with net sales rising 17.6% year-on-year to ¥5,835 million and operating profit up 37.4% to ¥739 million, reflecting continued top-line expansion and improved profitability. Ordinary profit increased 15.1% to ¥753 million and profit attributable to owners of parent climbed 20.0% to ¥558 million, lifting basic earnings per share to ¥57.64, while the company’s financial position remained solid as total assets stood at ¥13,614 million and the capital adequacy ratio improved to 83.3%, underscoring a robust balance sheet and operational strength despite a decline in comprehensive income; the company also indicated plans for semi-annual statement filing in early January and a dividend payment in early February, signaling ongoing shareholder returns.