Japan Business Systems, Inc. (5036) AI Stock Analysis

0 Followers

Japan Business Systems, Inc.

(TSE/TYO:5036)

Select Model

Rating:62Neutral

Price Target:JPY 1,660.00▲(6.00% Upside)

Action:reiterated

Date:11/14/26

The stock presents a mixed outlook led by an exceptionally attractive valuation and strong top-line revenue growth. However, these strengths are heavily counterbalanced by severe cash burn, rising debt leverage, and persistent bearish technical momentum. Long-term performance will depend on improving cash conversion and reversing the current downtrend.

Positive Factors

Strong Revenue GrowthSustained multi-year revenue expansion indicates growing demand for the company’s enterprise cloud and infrastructure services. Continued top-line momentum can support scale benefits, deepen customer relationships, and create a durable base for further investment in delivery capabilities.

Negative Factors

Persistent Negative Cash FlowRepeated negative operating and free cash flow shows that reported earnings have not consistently converted into cash. This can increase reliance on external funding, limit investment flexibility, and make it harder to absorb operating setbacks while the business continues to grow.

Japan Business Systems, Inc. (5036) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 70.56B
Dividend Yield: 3.19%
Average Volume (3M): 124.53K
Price to Earnings (P/E): 10.1
Beta (1Y): 0.68
Revenue Growth: 26.65%
EPS Growth: 25.67%
Country: Japan
Employees: 2,839
Sector: Technology
Sector Strength: 61
Industry: Software - Infrastructure

Japan Business Systems, Inc. Business Overview & Revenue Model

Company Description

Founded in Tokyo in 1990, Japan Business Systems, Inc. (JBS) specializes in delivering comprehensive cloud integration and associated services. The company's operations are divided into three core segments: Cloud Integration, Cloud Services, and Lice...

How the Company Makes Money

Japan Business Systems generates revenue primarily by providing IT services to corporate customers across the lifecycle of IT environments. Key revenue streams typically include: (1) system integration and project-based services, where the company is...

Japan Business Systems, Inc. Financial Statement Overview

Summary

Aggressive revenue expansion and an impressive 23.3% ROE are heavily offset by persistent negative free cash flows, poor cash conversion, and a growing debt burden.

Income Statement

85Very Positive

Balance Sheet

68Positive

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Sep 2026	Sep 2025	Sep 2024	Sep 2023	Sep 2022
Income Statement
Total Revenue	208.34B	218.57B	172.58B	140.86B	112.80B	86.33B
Gross Profit	19.98B	20.66B	17.86B	14.57B	13.08B	10.78B
EBITDA	10.23B	9.89B	8.69B	3.98B	5.15B	4.80B
Net Income	7.06B	7.01B	5.63B	1.51B	3.35B	2.65B
Balance Sheet
Total Assets	101.62B	100.40B	75.16B	61.62B	49.87B	38.85B
Cash, Cash Equivalents and Short-Term Investments	5.23B	4.75B	2.94B	3.37B	5.34B	7.57B
Total Debt	26.02B	31.75B	23.78B	19.71B	13.22B	6.46B
Total Liabilities	72.79B	70.28B	47.91B	38.88B	27.65B	19.14B
Stockholders Equity	28.68B	29.97B	27.14B	22.73B	22.22B	19.71B
Cash Flow
Free Cash Flow	-3.32B	-3.44B	-3.32B	-7.85B	-4.73B	711.00M
Operating Cash Flow	1.14B	-2.22B	1.14B	-320.00M	-206.00M	3.47B
Investing Cash Flow	-4.74B	-343.00M	-4.74B	-7.66B	-7.04B	-3.97B
Financing Cash Flow	3.13B	4.10B	3.13B	6.05B	4.99B	4.01B

Japan Business Systems, Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price1566.00

Price Trends

50DMA1659.97Negative

100DMA1592.47Negative

200DMA1574.32Negative

Market Momentum

MACD-2.25Positive

RSI37.76Neutral

STOCH28.29Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5036, the sentiment is Negative. The current price of 1566.00 is below the 20-day moving average (MA) of 1800.55, below the 50-day MA of 1659.97, and below the 200-day MA of 1574.32, indicating a bearish trend. The MACD of -2.25 indicates Positive momentum. The RSI at 37.76 is Neutral, neither overbought nor oversold. The STOCH value of 28.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5036.

Japan Business Systems, Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:5036 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4475	83Outperform	JPY 80.79B	41.66	―	0.46%	17.01%	34.74%
JP:3915	73Outperform	JPY 26.94B	13.16	―	0.77%	19.19%	93.45%
JP:4434	71Outperform	JPY 24.29B	20.67	―	1.31%	23.79%	―
JP:3741	68Neutral	JPY 27.49B	12.05	―	2.23%	3.67%	17.00%
JP:3850	66Neutral	JPY 15.72B	14.79	―	2.03%	23.85%	56.39%
JP:5036	62Neutral	JPY 71.40B	10.07	―	3.19%	26.65%	25.67%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

JP:5036 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5036	Japan Business Systems, Inc.	1566.00	200.31	14.67%
JP:3741	Systems Engineering Consultants Co., Ltd.	2685.00	65.11	2.49%
JP:3850	NTT Data Intramart Corporation	3245.00	-762.04	-19.02%
JP:3915	TerraSky Co., Ltd.	2086.00	6.42	0.31%
JP:4434	Serverworks Co., Ltd.	3050.00	1276.38	71.96%
JP:4475	HENNGE K.K.	2378.00	1039.55	77.67%

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 14, 2026

Japan Business Systems, Inc. AI Stock Analysis