Cube System Inc. (2335) AI Stock Analysis

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Cube System Inc.

(TSE/TYO:2335)

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Rating:67.6Neutral

Price Target:JPY 1,085.00▲(6.27% Upside)

Action:downgraded

Date:11/10/26

The company's strong fundamentals, characterized by a rock-solid, debt-free balance sheet and attractive valuation with a high dividend yield, are the primary strengths. However, the score is significantly weighed down by weak technical momentum, with the stock in a clear downtrend across all timeframes, and a notable deterioration in cash flow quality that requires monitoring.

Positive Factors

Improving Revenue and ProfitabilityThe company reports several years of steady revenue growth, with 2026 revenue up 6.5%, while net margin improved to about 8.5% from 6.9% and operating profit increased. This combination indicates stronger earnings capacity and supports reinvestment, resilience, and durable customer-service economics over the next several quarters.

Negative Factors

Weak Cash ConversionOperating cash flow remains much weaker than reported earnings despite recovering from 2025, indicating working-capital or timing effects. If this pattern persists, accounting profits may translate less reliably into usable cash, limiting internally funded investment and reducing resilience during periods of weaker demand.

Cube System Inc. (2335) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 15.39B
Dividend Yield: 4.76%
Average Volume (3M): 38.55K
Price to Earnings (P/E): 10.1
Beta (1Y): 0.45
Revenue Growth: -0.28%
EPS Growth: 31.14%
Country: Japan
Employees: 938
Sector: Technology
Sector Strength: 61
Industry: Information Technology Services

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 ra...

How the Company Makes Money

Cube System Inc. generates revenue primarily by providing IT services to business clients on a contract basis. Key revenue streams include: (1) system integration and custom software development fees, typically earned through project-based contracts...

Cube System Inc. Financial Statement Overview

Summary

Solid profitability and a pristine balance sheet are offset by weakening cash flow conversion. The income statement shows healthy margin improvement and net income growth, while the balance sheet is nearly debt-free with strong equity returns. However, operating cash flow has declined significantly relative to net income, indicating potential working capital issues.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	18.50B	18.50B	18.35B	18.02B	16.33B	16.10B
Gross Profit	4.30B	4.30B	3.95B	3.92B	3.57B	3.45B
EBITDA	1.71B	1.71B	1.45B	1.58B	1.51B	1.49B
Net Income	1.56B	1.56B	1.26B	1.07B	989.67M	944.70M
Balance Sheet
Total Assets	14.90B	14.90B	14.37B	13.49B	12.55B	10.25B
Cash, Cash Equivalents and Short-Term Investments	6.95B	6.95B	6.23B	6.84B	6.85B	5.06B
Total Debt	230.00M	230.00M	230.00M	230.00M	240.28M	241.12M
Total Liabilities	3.49B	3.49B	3.49B	3.35B	2.93B	3.03B
Stockholders Equity	11.40B	11.40B	10.87B	10.13B	9.62B	7.17B
Cash Flow
Free Cash Flow	0	469.00M	216.00M	974.95M	879.39M	971.81M
Operating Cash Flow	0	767.00M	255.00M	1.04B	891.96M	1.02B
Investing Cash Flow	0	371.00M	-68.00M	-259.85M	-304.71M	-134.34M
Financing Cash Flow	0	-521.00M	-780.00M	-672.01M	1.10B	-324.11M

Cube System Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price1021.00

Price Trends

50DMA1046.16Negative

100DMA1044.16Negative

200DMA1029.22Negative

Market Momentum

MACD-10.49Positive

RSI41.19Neutral

STOCH45.11Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2335, the sentiment is Negative. The current price of 1021.00 is below the 20-day moving average (MA) of 1023.55, below the 50-day MA of 1046.16, and below the 200-day MA of 1029.22, indicating a bearish trend. The MACD of -10.49 indicates Positive momentum. The RSI at 41.19 is Neutral, neither overbought nor oversold. The STOCH value of 45.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2335.

Cube System Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:2335 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4053	74Outperform	JPY 22.98B	23.48	―	―	18.07%	-0.13%
JP:3683	69Neutral	JPY 12.48B	6.88	―	3.01%	10.95%	17.52%
JP:4418	69Neutral	JPY 16.60B	17.80	―	―	-0.96%	107.29%
JP:2335	68Neutral	JPY 14.91B	10.07	―	4.76%	-0.28%	31.14%
JP:6572	65Neutral	JPY 13.86B	14.41	―	2.22%	16.73%	105.01%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

JP:2335 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:2335	Cube System Inc.	1021.00	-2.56	-0.25%
JP:3683	Cyberlinks Co., Ltd.	1004.00	-301.38	-23.09%
JP:4053	Sun Asterisk, Inc.	555.00	113.00	25.57%
JP:4418	Japan Data Science Consortium Co Ltd.	943.00	-447.00	-32.16%
JP:6572	RPA Holdings, Inc.	218.00	-90.09	-29.24%

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.

Date of analysis: Nov 10, 2026

Cube System Inc. AI Stock Analysis