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Cube System Inc.
(2335)
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Rating:75Outperform
Price Target:
¥1,186.00
▲(6.56% Upside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by solid financial performance (improving profitability and a very low-debt balance sheet), supported by attractive valuation (low P/E and high dividend yield). Offsetting these positives, technical indicators point to weaker near-term momentum and cash flow quality remains a key area to monitor due to volatility and modest operating cash flow relative to earnings.
Positive Factors
Revenue Growth and Profitability
Renewed revenue growth alongside stronger gross margin and operating profit indicates improving execution. If sustained, the higher margin base can support earnings growth and strengthen the economics of Cube System’s IT services over the next several quarters.
Negative Factors
Uneven Cash Conversion
Positive cash flow is encouraging, but its volatility and low conversion relative to earnings suggest working-capital or project-timing effects. Persistent gaps could constrain internally funded growth and make reported profitability less dependable for capital planning.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Profitability
Renewed revenue growth alongside stronger gross margin and operating profit indicates improving execution. If sustained, the higher margin base can support earnings growth and strengthen the economics of Cube System’s IT services over the next several quarters.
Read all positive factors
Cube System Inc. (2335) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥16.30B
Dividend Yield4.18%
Average Volume (3M)29.06K
Price to Earnings (P/E)10.5
Beta (1Y)0.47
Revenue Growth0.10%
EPS Growth20.74%
CountryJP
Employees938
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)103.28
Shares Outstanding15,750,000
10 Day Avg. Volume21,320
30 Day Avg. Volume29,060
Financial Highlights & Ratios
PEG Ratio0.42
Price to Book (P/B)1.35
Price to Sales (P/S)0.83
P/FCF Ratio32.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)115.7
Revenue Forecast (FY)¥23.00B
Cube System Inc. Business Overview & Revenue Model
Company Description
Headquartered in Tokyo, Japan, Cube System Inc. provides a broad spectrum of technology services to clients both domestically and internationally. The company specializes in system integration and IT outsourcing, alongside offering a comprehensive...
How the Company Makes Money
Cube System Inc. primarily makes money by charging customers for IT services delivered under project-based and recurring service arrangements. Key revenue streams include: (1) systems integration and software development fees, where the company ea...
Cube System Inc. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
62
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 18.50B | 18.35B | 18.02B | 16.33B | 16.10B |
| Gross Profit | 4.30B | 3.95B | 3.92B | 3.57B | 3.45B |
| EBITDA | 1.71B | 1.45B | 1.58B | 1.51B | 1.49B |
| Net Income | 1.56B | 1.26B | 1.07B | 989.67M | 944.70M |
Balance Sheet | |||||
| Total Assets | 14.90B | 14.37B | 13.49B | 12.55B | 10.25B |
| Cash, Cash Equivalents and Short-Term Investments | 6.95B | 6.23B | 6.84B | 6.85B | 5.06B |
| Total Debt | 230.00M | 230.00M | 230.00M | 240.28M | 241.12M |
| Total Liabilities | 3.49B | 3.49B | 3.35B | 2.93B | 3.03B |
| Stockholders Equity | 11.40B | 10.87B | 10.13B | 9.62B | 7.17B |
Cash Flow | |||||
| Free Cash Flow | 469.00M | 216.00M | 974.95M | 879.39M | 971.81M |
| Operating Cash Flow | 767.00M | 255.00M | 1.04B | 891.96M | 1.02B |
| Investing Cash Flow | 371.00M | -68.00M | -259.85M | -304.71M | -134.34M |
| Financing Cash Flow | -521.00M | -780.00M | -672.01M | 1.10B | -324.11M |
Cube System Inc. Technical Analysis
Positive
1113.00
Price Trends
1064.88
Positive
1045.01
Positive
1050.14
Positive
Market Momentum
9.77
Negative
60.71
Neutral
83.45
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2335, the sentiment is Positive. The current price of 1113 is above the 20-day moving average (MA) of 1080.95, above the 50-day MA of 1064.88, and above the 200-day MA of 1050.14, indicating a bullish trend. The MACD of 9.77 indicates Negative momentum. The RSI at 60.71 is Neutral, neither overbought nor oversold. The STOCH value of 83.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2335.
Cube System Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥16.30B | 10.51 | ― | 3.60% | 0.10% | 20.74% | |
73 Outperform | ¥12.73B | 7.85 | ― | 1.19% | 15.87% | 39.37% | |
66 Neutral | ¥18.39B | 26.45 | ― | ― | 14.72% | -22.02% | |
64 Neutral | ¥17.91B | 19.91 | ― | 1.75% | 15.06% | 52.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | ¥16.35B | 19.66 | ― | ― | -0.96% | 110.52% |
* Technology Sector Average
JP:2335
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277.00
-117.43
-29.77%
Cube System Inc. Corporate Events
Cube System Details Dependency and Independence in Ties with Nomura Research Institute
Jun 17, 2026
Cube System Inc. has disclosed that Nomura Research Institute, Ltd. holds 20.21% of its voting rights and is classified as an other affiliated company, underscoring NRI’s role as both a key shareholder and major customer. In the most recent ...
Cube System Seals Capital and Business Alliance With System Create
Jun 2, 2026
Cube System Inc. has entered into a capital and business alliance with Fukuoka-based System Create Co., Ltd., building on a longstanding subcontracting relationship to strengthen both firms’ system development and SES capabilities. The partn...
Cube System Holds Earnings Steady as It Invests for Complex DX Projects
May 29, 2026
Cube System Inc., a Japanese system integrator specializing in IT solutions for corporate and government clients, continues to focus on system development that supports digital transformation and cloud migration. Its business spans SIer services, ...
Cube System Lifts Profit and Dividend on Margin Gains, Sees Further Sales Growth in FY2027
May 29, 2026
Cube System Inc. reported modest revenue growth for the year ended March 31, 2026, with net sales edging up 0.8% to ¥18.5 billion but delivering a stronger 24.0% jump in profit attributable to owners of parent to ¥1.56 billion, as margin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.