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

JP:9651

Japan Process Development Co., Ltd.

(TSE/TYO:9651)

Select Model
Rating:79Outperform
Price Target:JPY 2,170.00▲(19.23% Upside)
Action:reiterated
Date:10/09/26

The overall score reflects strong underlying fundamentals and an attractive valuation, partially offset by moderately weak near-term technical momentum. The company’s profitable growth, debt-free balance sheet, and generally solid cash generation are the primary drivers of the high score. A reasonable P/E combined with a healthy dividend yield further supports the rating. Short-term technical softness and cash flow volatility limit the score from reaching the highest tier but do not undermine the stock’s overall quality.

Positive Factors
Debt-free balance sheetA debt-free capital structure materially reduces interest-rate exposure and financial risk, while steadily rising equity indicates retained balance-sheet strength. This gives the company flexibility to continue investing in operations and withstand periods of weaker profitability without relying heavily on external financing.
Negative Factors
Volatile operating cash flowThe sharp decline and wide variation in operating cash flow make cash generation less predictable despite continued revenue growth. Lower cash inflow can constrain internally funded investment and dividends, while making working-capital timing more important to the company’s near-term financial resilience.

Japan Process Development Co., Ltd. (9651) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%30%JP:9651+9.85%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 17.88B
Dividend Yield
3.67%
Average Volume (3M)
19.03K
Price to Earnings (P/E)
15.3
Beta (1Y)
0.58
Revenue Growth
14.03%
EPS Growth
-22.34%
Country
Japan
Employees
780
Sector
Technology
Sector Strength
61
Industry
Information Technology Services

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...

How the Company Makes Money

The company primarily makes money by delivering contracted IT services to clients. Key revenue streams generally include: (1) System development projects, where the company earns fees for requirements definition, design, programming, testing, and imp...

Japan Process Development Co., Ltd. Financial Statement Overview

Summary

Financial performance is a clear strength, with consistently growing revenue, healthy profitability, and a very strong, debt-free balance sheet. Solid returns on equity and rising assets and equity support a high score, while cash flow volatility and weaker recent cash generation slightly temper an otherwise robust profile.

Income Statement

86Very Positive

Balance Sheet

94Very Positive

Cash Flow

72Positive
Financial statement breakdown
BreakdownTTMMay 2025May 2024May 2023May 2022May 2021
Income Statement
Total Revenue12.36B12.12B10.47B9.47B8.92B7.95B
Gross Profit2.77B2.69B2.28B2.04B1.92B1.76B
EBITDA1.59B1.54B1.19B1.02B953.82M819.37M
Net Income1.16B1.14B1.48B730.51M682.60M532.84M
Balance Sheet
Total Assets11.26B14.59B14.49B13.00B12.52B11.92B
Cash, Cash Equivalents and Short-Term Investments4.03B7.19B6.81B5.38B4.91B5.06B
Total Debt000000
Total Liabilities1.34B2.97B3.40B2.54B2.44B2.25B
Stockholders Equity9.92B11.63B11.09B10.46B10.08B9.67B
Cash Flow
Free Cash Flow173.89M173.89M474.50M968.49M291.04M536.09M
Operating Cash Flow191.16M191.16M498.89M1.05B312.37M572.13M
Investing Cash Flow425.62M425.62M1.03B-291.07M435.90M259.77M
Financing Cash Flow-665.79M-665.79M-444.41M-347.58M-347.34M-386.55M

Japan Process Development Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price1820.00

Price Trends

50DMA1950.28Negative
100DMA1904.67Negative
200DMA1841.52Positive

Market Momentum

MACD-26.00Positive
RSI39.04Neutral
STOCH43.06Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9651, the sentiment is Negative. The current price of 1820.00 is below the 20-day moving average (MA) of 1891.85, below the 50-day MA of 1950.28, and below the 200-day MA of 1841.52, indicating a neutral trend. The MACD of -26.00 indicates Positive momentum. The RSI at 39.04 is Neutral, neither overbought nor oversold. The STOCH value of 43.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9651.

Japan Process Development Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:9651 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3771JP:377182OutperformJPY 31.45B12.46―3.72%9.34%3.51%
JP:3826JP:382682OutperformJPY 5.26B11.55―2.73%13.99%-36.97%
JP:3921JP:392179OutperformJPY 22.50B12.05―3.61%7.78%9.63%
JP:9651JP:965179OutperformJPY 17.68B15.25―3.67%14.03%-22.34%
JP:3648JP:364878OutperformJPY 17.63B9.54―3.49%12.33%13.11%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%

* Technology Sector Average

Performance Comparison

-20%0%20%JP:9651JP:3648JP:3771JP:3826JP:3921Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:9651 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:9651Japan Process Development Co., Ltd.1853.00137.338.00%
JP:3648AGS Corporation1031.00-414.54-28.68%
JP:3771System Research Co., Ltd.1881.00-72.04-3.69%
JP:3826System Integrator Corp.477.000.380.08%
JP:3921NEOJAPAN Inc.1606.00-158.85-9.00%

Japan Process Development Co., Ltd. Corporate Events

Japan Process Development Delivers Higher Q1 Profits and Boosts Dividend Payout

Sep 30, 2026

Japan Process Development Co., Ltd. reported solid consolidated results for the first quarter of the fiscal year ending May 31, 2027, with net sales rising 8.6% year-on-year to ¥2,989 million and operating profit increasing 11.9% to ¥382 mi...

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: Oct 09, 2026