Consistent Revenue And Margin ImprovementSustained double-digit revenue growth and rising gross margins signal durable demand for Ryoyu's systems integration and IT services. Over 2-6 months this underpins predictable top-line expansion and better unit economics, supporting reinvestment in services and longer-term margin resiliency.

Robust Balance Sheet And High Equity RatioLow leverage and a strong equity ratio provide financial flexibility to fund organic growth, absorb shocks, and pursue strategic investments. A rising ROE indicates effective capital deployment, improving the firm's ability to sustain operations and support customers over the medium term.

Improving Free Cash Flow GenerationStronger free cash flow increases capacity to fund capex, service liabilities, and return capital without relying on external financing. Over the next several months this enhances balance sheet resilience and gives management optionality for strategic initiatives or cyclical downturns.

Bears Say

Slight Increase In Total LiabilitiesEven from a low-leverage position, rising liabilities can gradually constrain flexibility if the trend continues. Over a multi-month horizon, an unchecked increase could raise refinancing needs or interest exposure, reducing funds available for growth and investments.

Limited EBITDA Margin ImprovementModest EBITDA margin progress indicates profit improvement has relied more on revenue growth than on operational leverage. Without faster efficiency gains, margin expansion may stall, limiting long-term earnings scalability and the firm's ability to absorb cost inflation or competitive pricing pressure.

Dip In Operating Cash Flow To Net Income RatioA weakening operating cash conversion rate can signal timing issues in receivables or higher working capital needs. Persisting dips would erode free cash flow and could force reliance on financing for working capital, reducing financial flexibility over the next several months.

4685 FAQ

What was Ryoyu Systems Co., Ltd.’s price range in the past 12 months?

Ryoyu Systems Co., Ltd. lowest stock price was ¥2765.00 and its highest was ¥4415.00 in the past 12 months.

What is Ryoyu Systems Co., Ltd.’s market cap?

Ryoyu Systems Co., Ltd.’s market cap is ¥48.71B.

When is Ryoyu Systems Co., Ltd.’s upcoming earnings report date?

Ryoyu Systems Co., Ltd.’s upcoming earnings report date is May 12, 2026 which is in 96 days.

How were Ryoyu Systems Co., Ltd.’s earnings last quarter?

Ryoyu Systems Co., Ltd. released its earnings results on Jan 30, 2026. The company reported ¥87.41 earnings per share for the quarter, beating the consensus estimate of N/A by ¥87.41.

Is Ryoyu Systems Co., Ltd. overvalued?

According to Wall Street analysts Ryoyu Systems Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Ryoyu Systems Co., Ltd. pay dividends?

Ryoyu Systems Co., Ltd. pays a Semiannually dividend of ¥42.5 which represents an annual dividend yield of 2.7%. See more information on Ryoyu Systems Co., Ltd. dividends here

What is Ryoyu Systems Co., Ltd.’s EPS estimate?

Ryoyu Systems Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Ryoyu Systems Co., Ltd. have?

Ryoyu Systems Co., Ltd. has 12,779,712 shares outstanding.

What happened to Ryoyu Systems Co., Ltd.’s price movement after its last earnings report?

Ryoyu Systems Co., Ltd. reported an EPS of ¥87.41 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -1.633%.

Which hedge fund is a major shareholder of Ryoyu Systems Co., Ltd.?

Currently, no hedge funds are holding shares in JP:4685

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

Ryoyu Systems Co., Ltd.

Ryoyu Systems Co., Ltd. provides information technology (IT) solutions for various industries in Japan. The company offers system development services for production management systems; system maintenance/operation/monitoring services, including design of information systems and communication network; and IT infrastructure construction services comprising planning, design, construction, and operation of IT platforms, such as computers, peripherals, network devices, and communication cables. It also provides analysis solutions, including aerodynamic/structural analysis of aircraft, rockets, and engines and mechanical devices, as well as collision/impact analysis of automobiles; CAD design services; product lifecycle management system that integrates and manages various data, processes, and resources; information security operation services; and digital businesses support services. The company was founded in 1968 and is headquartered in Tokyo, Japan.