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

• Market Cap: ¥16.94B
• 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): 27.11
• 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: 84 Outperform
• Price Target: ―

Japan Process Development Co., Ltd. exhibits strong financial performance with significant revenue and cash flow growth, zero debt, and efficient asset utilization. The technical analysis supports a positive price trend, although detailed momentum indicators are unavailable. The attractive P/E ratio and dividend yield further enhance the stock's appeal, resulting in a solid overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and enhance its service offerings, ensuring long-term sustainability and competitiveness in the IT sector.

Balance Sheet Health

A debt-free balance sheet with a strong equity base enhances financial stability, providing flexibility for future investments and cushioning against economic downturns.

Cash Flow Management

Robust cash flow growth and efficient cash management highlight the company's ability to generate substantial cash, supporting reinvestment and shareholder returns.

Negative Factors

Profit Margins

While profitability metrics are positive, relatively modest profit margins could limit the company's ability to absorb cost increases or invest aggressively in growth opportunities.

Market Competition

Operating in a highly competitive industry may pressure pricing and margins, necessitating continuous innovation and differentiation to maintain market position.

Growth Sustainability

While growth is positive, sustaining this rate amid evolving technology trends and competitive pressures could be challenging, requiring strategic investments and innovation.

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: 1775.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 1775 is above the 20-day moving average (MA) of 1727.80, above the 50-day MA of 1707.79, and above the 200-day MA of 1497.13, indicating a bullish trend. The MACD of 17.04 indicates Negative momentum. The RSI at 60.77 is Neutral, neither overbought nor oversold. The STOCH value of 61.77 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	84 Outperform	¥16.94B	11.35	―	2.99%	12.78%	90.80%
4284	79 Outperform	¥11.87B	13.90	―	2.45%	9.77%	93.99%
4299	79 Outperform	¥14.99B	12.36	―	3.56%	3.96%	-3.68%
3937	68 Neutral	¥12.97B	13.07	―	3.78%	0.43%	44.79%
3800	68 Neutral	¥14.05B	18.98	―	3.62%	0.85%	12.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3856	43 Neutral	¥7.86B	3.56	―	1.45%	-40.21%	-54.31%