Computer Institute Of Japan (TSE:4826) Stock Still Looks Cheap After 20.7% Profit Growth

Simply Wall St · 2d ago

Computer Institute of Japan closed today at ¥521 after earnings that quietly reinforced a bigger story. The stock has already logged a 6.5% gain over the past month, yet the trailing P/E sits at 16.1x, below both software peers and the broader Japan software industry. The headline from this report is simple. Earnings grew 20.7% over the past year while net profit margin reached 6.1%. For anyone looking beyond today’s tick-by-tick moves, the comparison now sits between that earnings profile and a valuation that still reflects a clear discount.

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FY 2026 Earnings Summary

Revenue (FY 2026 TTM vs. FY 2025 TTM): ¥29,424.0m vs. ¥26,899.0m (change of 9.4%)
Net Income (excluding extraordinary items, FY 2026 TTM vs. FY 2025 TTM): ¥1,804.0m vs. ¥1,495.0m (change of 20.7%)
Basic EPS (earnings per share, FY 2026 TTM vs. FY 2025 TTM): ¥31.94 vs. ¥26.09 (change of 22.4%)
Net Profit Margin (FY 2026 TTM vs. FY 2025 TTM): 6.1% vs. 5.6% (change of 0.5 percentage points)

Prefer clean visuals instead of another wall of figures and footnotes? View Computer Institute of Japan’s full financial picture, including its valuation, earnings profile and recent performance, in the interactive company report for Computer Institute of Japan.

TSE:4826 Trailing 12-Month Earnings & Revenue History as at Aug 2026

Computer Institute of Japan: Earnings Support a Steady Growth Story

For investors leaning positive on Computer Institute of Japan, the latest earnings profile broadly backs that stance. Revenue of ¥29,424.0m and net income of ¥1,804.0m both sit ahead of the prior year comparison, with basic EPS moving to ¥31.94. Net profit margin at 6.1% versus 5.6% signals improving efficiency rather than a one off spike. Together with modestly positive 30 day and 90 day returns, the numbers indicate a business that is gradually building earnings power from its digital and systems work.

Where The Computer Institute of Japan Bear Case Still Bites

On the cautious side, Computer Institute of Japan still runs on relatively slim margins for an IT services and solutions company, with net profit margin at 6.1%. That leaves limited room for error if wage costs or project mix move against it. The stock’s recent gains of about 6.5% over 30 days and 5.5% over 90 days also suggest expectations have already reset higher. Any slowdown in revenue growth from the ¥26,899.0m to ¥29,424.0m step could quickly refocus attention on execution risk and contract visibility.

With Computer Institute of Japan now trading at ¥521 and sentiment leaning on earnings strength and dividends, the real question is whether the balance sheet and cash flows quietly tell a different story. Check the full solvency and liquidity breakdown in the financial health analysis of Computer Institute of Japan stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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