Strong Balance SheetA materially lower debt-to-equity ratio reflects prudent leverage management and a capital structure weighted to equity. This durable strength increases financial flexibility for investments, M&A or downturns and reduces refinancing risk over the next 2–6 months.

High Gross And Operating MarginsConsistently strong gross and operating margins indicate sustainable cost discipline and operational efficiency. Margin durability supports internal reinvestment, competitive pricing flexibility and resilience to input cost swings over a multi-quarter horizon.

Efficient Cash ConversionA near-1 FCF-to-net-income ratio and robust operating cash flow point to high earnings quality and reliable cash generation. This durability underpins capital allocation (capex/dividends) and reduces reliance on external funding for medium-term strategic needs.

Bears Say

Weak Revenue TrendA multi-year negative revenue trend signals structural demand or market-share challenges that hit scale economics. Even with margin strength, prolonged top-line weakness constrains long-term growth, R&D investment and the company’s ability to expand revenue streams.

Volatile Free Cash FlowMaterial FCF volatility reduces predictability of capital deployment and can force defensive choices during down periods. For a company relying on internal cash for expansion or shareholder returns, this variability increases execution risk over the coming quarters.

Declining Net MarginA gradual fall in net margin despite stable gross margins suggests rising operating costs, tax/finance pressures or one-off items. Continued erosion would weaken return on equity and limit the sustainability of current profitability levels across medium-term planning.

3804 FAQ

What was System D Inc.’s price range in the past 12 months?

System D Inc. lowest stock price was ¥1432.00 and its highest was ¥2503.00 in the past 12 months.

What is System D Inc.’s market cap?

System D Inc.’s market cap is ¥9.64B.

When is System D Inc.’s upcoming earnings report date?

System D Inc.’s upcoming earnings report date is Mar 16, 2026 which is in 21 days.

How were System D Inc.’s earnings last quarter?

System D Inc. released its earnings results on Dec 15, 2025. The company reported ¥21.54 earnings per share for the quarter, beating the consensus estimate of N/A by ¥21.54.

Is System D Inc. overvalued?

According to Wall Street analysts System D Inc.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does System D Inc. pay dividends?

System D Inc. pays a Annually dividend of ¥28 which represents an annual dividend yield of 1.51%. See more information on System D Inc. dividends here

What is System D Inc.’s EPS estimate?

System D Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does System D Inc. have?

System D Inc. has 6,498,000 shares outstanding.

What happened to System D Inc.’s price movement after its last earnings report?

System D Inc. reported an EPS of ¥21.54 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.885%.

Which hedge fund is a major shareholder of System D Inc.?

Currently, no hedge funds are holding shares in JP:3804

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

System D Inc.

System D Inc. (3804) is a technology company specializing in innovative software solutions and digital services. Focused on the telecommunications and information technology sectors, the company develops a range of products that enhance network efficiency and optimize data management. Its core offerings include cloud-based platforms, cybersecurity solutions, and enterprise resource planning (ERP) systems designed to meet the needs of various industries, from small businesses to large corporations.