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JFE Systems, Inc (JFEYF) Fair Value & Analysis

Technology · US · Market cap $384M

JS JFE Systems, Inc logo JFE Systems, Inc JFEYF · US
Price$12.22
Fair Value$23.34
Upside+91.1%
Quality62/100
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Mixed Growth
Thin margins · 7.4% net margin
generates free cash flow
3.59% dividend yield
Ranks above peers (9/10)
Moderate moat 52/100
Evidence: High Range $17.51 – $29.18 Share as image

Fair value as of: Jul 25, 2026

From 23 valuation models · updated 16 days ago

Fair value updated Jul 25, 2026, revised from $23.73 to $23.34 (−1.6%) since Jun 25, 2026.

A solid business, screening 91% undervalued on our models.

What matters now

  • The price is below even our cautious bear case ($17.51). The market is more pessimistic than our downside scenario.
  • Solid quality (62/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

$16.32 $8.16 Fair Value $23.34 Jan 2022 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 25, 2026.

How to read this chart

54‑month range $8.16 – $16.32 · fair‑value band $17.51 – $29.18 · the $12.22 price screens below the $23.34 fair value. Dashed = 300-day average. As of Jul 25, 2026.

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Analysis

JFE Systems, Inc (JFEYF) currently trades at $12.22, while our model-based Fair Value estimate is $23.34, implying the stock looks roughly 91.1% undervalued today. The Quality Score stands at 62/100 (solid quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, JFE Systems, Inc generated revenue of $57.4B at a net margin of 7.4%. Revenue declined 18.2% year over year. It earns a return on equity of 12.5%. The balance sheet holds a net cash position of $24.9B. Fundamentals as of Jul 25, 2026

Our scenario range runs from $17.51 (bear case) to $29.18 (bull case); at $12.22, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 34% below its 52-week high and 42% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -25% fair-value upside, at 91%, JFEYF screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF $19.96 $24.55 $30.01 72
Growth-Adj P/E $13.08 $18.69 $24.29 68
Rev-Margin DCF $17.52 $23.08 $29.12 67
All 23 models by family
DCF Models
FCF DCF $19.72 $24.79 $31.09 38
Owner Earnings $17.43 $21.68 $26.97 31
5Y Revenue Exit $17.52 $22.86 $29.36 39
5Y EBITDA Exit $23.75 $33.96 $45.38 41
5Y P/E Exit $20.28 $27.79 $35.25 38
10Y Revenue Exit $18.05 $22.72 $28.36 36
10Y EBITDA Exit $21.88 $29.58 $39.05 37
10Y P/E Exit $19.90 $25.76 $32.29 35
Earnings-Based
Graham-Dodd $5.67 $13.56 $17.50 54
PEG = 1.0 $2.37 $3.39 $4.41 46
EPV $12.59 $13.57 $14.39 59
Multiples
P/E Multiple $17.51 $23.34 $29.18 63
P/S Multiple $10.63 $14.17 $17.71 58
P/B Multiple $10.63 $14.17 $17.71 55
EV/EBIT $27.72 $35.16 $42.60 53
EV/EBITDA $29.68 $37.77 $45.87 54
EV/Revenue $16.68 $21.51 $26.35 43
Asset-Based
NCAV (Graham) $3.47 $4.64 $6.93 50
Growth DCF
Growth DCF $19.96 $24.55 $30.01 72
Rev-Margin DCF $17.52 $23.08 $29.12 67
Economic Profit
Residual Income $6.04 $6.79 $10.65 61
ROIC Compounder $12.76 $13.96 $15.08 67
Growth Earnings
Growth-Adj P/E $13.08 $18.69 $24.29 68

Widest divergence: DCF Models ($24.79) versus Asset-Based ($4.64). Highest evidence: Growth DCF (72).

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Key figures & financial health

Revenue (TTM) $57.4B
Revenue growth (YoY) -18.2%
Net margin 7.4%
Return on equity 12.5%
Free cash flow $8.3B FY2026
P/E ratio 14.4
More key figures
Operating margin 13.0%
EPS (TTM) $0.8500
Dividend yield 3.6%
EPS growth (YoY) -37.5%
Net cash $24.9B FY2026

Figures from reported company fundamentals · as of Jul 25, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 65 · Market factors (momentum, volatility) 62

Profitability 55
Margins and returns on capital today
Quality Growth 29
Are margins and returns improving?
Cashflow 80
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 69
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 53
Price trend over the last 3–12 months (market factor)
52W Momentum 58
Distance to the 52-week high (market factor)
Net Issuance 40
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

JFE Systems, Inc. engages in the planning, designing, developing, operating, and maintenance of information systems in Japan.

Full company description

JFE Systems, Inc. engages in the planning, designing, developing, operating, and maintenance of information systems in Japan. The company also offers various business solutions, such as system integration, supply chain management systems, data science, AI, business system and low code development, ERP, BI, e-commerce, system coordination, digital form systems, cost management systems, purchasing management systems, personnel and payroll systems, and quality information management and manufacturing method management systems for the food products industry. In addition, it provides infrastructure solutions comprising cloud, server virtualization, network construction, virtualization technology, information security support, and voice cloud services; office solutions, manufacturing site solutions, and platform construction support services; and systems development and maintenance for sales, production/logistics, accounting, costs, purchasing, supply and demand, quality, accounting, and pensions, etc. The company was formerly known as Kawasaki Steel Systems R&D Corporation and changed its name to JFE Systems, Inc. in 2004. The company was incorporated in 1983 and is headquartered in Minato, Japan. JFE Systems, Inc. is a subsidiary of JFE Steel Corporation.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

JFE Systems, Inc reported revenue of $57.8B in FY2026 versus $50.4B in FY2022, a compound +3.5%/yr. Reported net income was $4.3B in FY2026, compounding +3.6%/yr from FY2022.

Growth Quality 67/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
$57.8B
Latest YoY
−9.7%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.8%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.5%
Avg. growth/yr (18Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.0%
Revenue +3.5%/yr
FY22 $50.4B
FY23 $56.5B
FY24 $62.0B
FY25 $64.0B
FY26 $57.8B
Net income +3.6%/yr
FY22 $3.7B
FY23 $4.3B
FY24 $5.0B
FY25 $5.4B
FY26 $4.3B
Character of growth · EPS growth decomposed (2015-2026) +11.8 % p.a.
Revenue per share −0.2 pp

of which total revenue +5.7 pp · buybacks/dilution −5.8 pp

EBIT margin +9.1 pp
Tax rate +2.1 pp
Residual (interest, one-offs) +0.8 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "JFE Systems, Inc Fair Value". https://www.fairvalue-calculator.com/stock/JFEYF

Peer Group

Information Technology Services · 476 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 62 · Above median
Fair Value upside +91% · Top 25%
Return on equity (TTM) 13% · Above median
Return on assets 8% · Top 25%
Net margin (TTM) 7% · Above median
Operating margin (TTM) 13% · Top 25%
Revenue growth -18% · Bottom 25%
Dividend yield (TTM) 3.6% · Above median

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 14.4× · Cheaper than median
P/FCF 0.0× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 21
FUTURE 0 · sector 30
PAST 50 · sector 36
HEALTH 0 · sector 97
DIVIDEND 72 · sector 37

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Jul 25, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.92 $143.90 -39%
Accenture plc ACNN 2,460 MXN 250.95 MXN -90%
Infosys Limited INFY ₹1,156 ₹1,457 +26%
HCL Technologies Limited HCLTECH ₹1,204 ₹1,230 +2%
Wipro Limited WIPRO ₹178.43 ₹226.81 +27%
Tech Mahindra Limited TECHM ₹1,455 ₹1,086 -25%
Samsung SDS Co 018260 199,300 KRW 196,390 KRW -1%
Persistent Systems Limited PERSISTENT ₹5,059 ₹2,364 -53%
Hyundai Autoever Corporation 307950 393,000 KRW 133,088 KRW -66%
Coforge Limited COFORGE ₹1,541 ₹702.84 -54%

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Frequently asked questions

Is JFE Systems, Inc (JFEYF) overvalued or undervalued?
As of Jul 25, 2026, our model estimates a fair value of $23.34 versus a price of $12.22, about +91% (undervalued).
What is the fair value of JFEYF?
Our model-based fair value for JFE Systems, Inc is $23.34 (as of Jul 25, 2026), built from audited fundamentals. The current price is $12.22.
What is the quality score of JFEYF?
JFE Systems, Inc has a Quality Score of 62/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of JFE Systems, Inc (JFEYF)?
JFE Systems, Inc reported trailing-twelve-month revenue of about $57.4B (latest available figure, as of Jul 25, 2026).
What is the net profit margin of JFEYF?
The net profit margin of JFE Systems, Inc is about 7.4%, meaning it keeps roughly 7.4% of revenue as net income. Based on the latest reported figures.
Does JFE Systems, Inc pay a dividend?
JFE Systems, Inc currently shows a dividend yield of about 3.59% relative to its recent price (as of Jul 25, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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