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O.B.System Inc. (5576) AI Stock Analysis

JP:5576

O.B.System Inc.

(TSE/TYO:5576)

Select Model
Rating:80Outperform
Price Target:JPY 3,692.00â–²(22.66% Upside)
Action:reiterated
Date:08/05/26

O.B.System Inc. earns a score of 80, reflecting strong financials and attractive valuation as primary drivers. The company's solid balance sheet, revenue growth, and low P/E provide a compelling investment case. Technical indicators show an uptrend with some near-term weakness, but overall market momentum remains positive. Cash flow volatility is a minor concern but does not overshadow the company's strengths.

Positive Factors
Accelerating Revenue GrowthSustained revenue growth, with recent acceleration, indicates solid demand and expanding business activity. If maintained, this trend can support operating leverage, strengthen the company’s market position, and provide a durable base for further profit growth over the next several quarters.
Negative Factors
Volatile Cash ConversionWeak recent operating cash conversion means reported earnings are not consistently translating into cash available to the business. If this persists, working-capital needs or timing effects could constrain reinvestment, dividends, and the company’s ability to fund expansion internally.

O.B.System Inc. (5576) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%JP:5576+12.17%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 7.00B
Dividend Yield
3.82%
Average Volume (3M)
2,673
Price to Earnings (P/E)
10.3
Beta (1Y)
0.28
Revenue Growth
20.58%
EPS Growth
41.21%
Country
Japan
Employees
624
Sector
Technology
Sector Strength
61
Industry
Information Technology Services

O.B.System Inc. Business Overview & Revenue Model

Company Description

O.B.System Inc. is a Japanese company specializing in system integration services. The firm offers comprehensive system consultation and develops custom application software compatible with a variety of computing platforms, including mainframes, work...

O.B.System Inc. Financial Statement Overview

Summary

Strong revenue growth and expanding margins, coupled with a debt-free balance sheet, indicate robust financial health. However, cash flow volatility tempers the overall picture.

Income Statement

85Very Positive

Balance Sheet

92Very Positive

Cash Flow

70Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue9.44B8.66B7.68B6.90B6.16B5.99B
Gross Profit1.88B1.68B1.45B1.21B1.03B926.70M
EBITDA959.82M786.13M761.03M605.00M514.96M425.52M
Net Income680.02M601.16M485.25M441.58M497.48M338.55M
Balance Sheet
Total Assets7.93B7.62B6.63B6.02B5.33B4.94B
Cash, Cash Equivalents and Short-Term Investments2.26B2.29B2.64B2.91B3.39B3.21B
Total Debt217.82M271.68M0000
Total Liabilities1.92B1.92B1.51B1.31B1.50B1.56B
Stockholders Equity6.01B5.70B5.11B4.71B3.83B3.37B
Cash Flow
Free Cash Flow0314.23M431.65M24.63M298.06M203.12M
Operating Cash Flow0329.44M461.99M30.97M305.82M210.72M
Investing Cash Flow0146.12M-444.89M-7.25M-18.11M76.35M
Financing Cash Flow0-271.81M-184.13M92.68M-106.85M-83.08M

O.B.System Inc. Technical Analysis

Technical Analysis SentimentNeutral
Last Price3010.00

Price Trends

50DMA3010.95Negative
100DMA2913.75Positive
200DMA2803.40Positive

Market Momentum

MACD20.73Positive
RSI44.97Neutral
STOCH7.30Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5576, the sentiment is Neutral. The current price of 3010.00 is below the 20-day moving average (MA) of 3104.25, below the 50-day MA of 3010.95, and above the 200-day MA of 2803.40, indicating a neutral trend. The MACD of 20.73 indicates Positive momentum. The RSI at 44.97 is Neutral, neither overbought nor oversold. The STOCH value of 7.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5576.

O.B.System Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:5576 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4752JP:475283OutperformJPY 7.05B8.55―4.14%7.77%5.97%
JP:4396JP:439681OutperformJPY 31.32B16.64―2.12%15.42%27.83%
JP:4072JP:407281OutperformJPY 35.53B11.20―3.04%11.79%55.44%
JP:2488JP:248880OutperformJPY 8.18B11.27―3.34%6.26%22.54%
JP:5576JP:557680OutperformJPY 7.12B10.29―3.82%20.58%41.21%
JP:4053JP:405374OutperformJPY 23.18B24.41――18.07%-0.13%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%

* Technology Sector Average

Performance Comparison

-20%0%20%40%JP:5576JP:2488JP:4053JP:4072JP:4396JP:4752Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:5576 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5576O.B.System Inc.3010.00345.6812.97%
JP:2488JTP Co., Ltd.1465.00-2.79-0.19%
JP:4053Sun Asterisk, Inc.578.00148.0034.42%
JP:4072Densan System Holdings Co. Ltd.3290.00-167.86-4.85%
JP:4396System Support, Inc.1507.0024.621.66%
JP:4752Showa System Engineering Corporation1593.00-97.14-5.75%
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: Aug 04, 2026