COMSYS Holdings (1721) AI Stock Analysis

• Market Cap: ¥638.04B
• Dividend Yield: 2.66%
• Average Volume (3M): 479.83K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.61
• Revenue Growth: 5.14%
• EPS Growth: 12.52%
• Country: JP
• Employees: 17,405
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 133,000,000
• 10 Day Avg. Volume: 466,820
• 30 Day Avg. Volume: 479,830
• PEG Ratio: 1.14
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 52.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥6,249.00 ▲(32.56% Upside)
• Action: Reiterated Date: 11/30/25
• Date: Action: Reiterated 11/30/25

COMSYS Holdings scores well due to its strong financial performance and bullish technical indicators. The stock's valuation is reasonable, though the high RSI and Stochastic values suggest caution due to potential overbought conditions.

Positive Factors

Strong profitability and margins

COMSYS exhibits consistently strong gross and net margins and efficient EBIT/EBITDA performance. Durable margins indicate the firm can sustain profitability across projects, supporting reinvestment, workforce pay and competitive bidding over the next several quarters.

Solid balance sheet and low leverage

The company's low leverage and strong equity base provide financial flexibility for capex, M&A or cyclical downturns. High ROE shows effective capital deployment, reducing refinancing risk and enabling steadier returns to stakeholders over a multi-quarter horizon.

Consistent free cash flow generation

Consistent operating cash conversion and recovered free cash flow signal durable cash generation from services and staffing operations. Strong cash flow supports working capital needs, dividend capacity and strategic investments without relying heavily on external funding.

Negative Factors

Modest revenue growth rate

A low single-digit revenue growth rate suggests limited top-line expansion absent inorganic moves or new service wins. For a staffing and engineering outsourcer, slow revenue growth can cap margin expansion and makes operational efficiency and cost control imperative for longer-term profit improvement.

Business model reliant on personnel utilization

COMSYS's core revenues depend on staffing utilization, project wins and retaining skilled engineers. Structural labor shortages or higher turnover would reduce utilization and raise recruitment costs, pressuring margins and service delivery consistency over several quarters.

Cash flow volatility risk

Although cash generation recovered, the 2022 free cash flow dip highlights sensitivity to project timing, billing cycles and working capital swings. Recurring volatility could constrain discretionary spending and increase reliance on balance sheet flexibility during weaker demand periods.

COMSYS Holdings Business Overview & Revenue Model

Company Description

COMSYS Holdings Corporation, together with its subsidiaries, engages in the telecommunications construction, electrical facilities construction, and information processing related businesses in Japan. It constructs wired and wireless networks, cable TV and related facilities, access networks, mobile facilities, and electric power facilities; installs, replaces, and removes metal and optical fiber communication cables; installs and replaces utility poles; installs, relocates, and removes communication and information processing equipment in communication stations and data centers; and installs mobile phone base stations and wirings, as well as handles configuration settings and troubleshooting of communication equipment. The company also provides IT solutions and develops software for government agencies; constructions physical environments, such as LAN and Wi-Fi systems, including servers, storage facilities, and networks. In addition, it is involved in the construction of underground tunnels for telecommunication facilities, and towers and buildings; biomass and wind power generation; sale of solar power generation facilities for detached homes and electricity from solar power plants; undergrounding of utility poles and civil engineering construction related to water supply and sewerage for regional municipalities; and construction of the gas facility. The company was founded in 2003 and is headquartered in Tokyo, Japan.

How the Company Makes Money

COMSYS Holdings generates revenue primarily through the sale of its telecommunications equipment and software solutions, which includes licensing fees for its proprietary technology. Additionally, the company earns income from service contracts, including installation, maintenance, and technical support services for its products. Key revenue streams also include strategic partnerships with other technology firms, enabling COMSYS to offer bundled services and expand its market reach. The company may also benefit from government and institutional contracts, which provide a stable income source due to long-term agreements.

COMSYS Holdings Financial Statement Overview

Summary

COMSYS Holdings presents a robust financial position with strong profitability, stable revenue growth, and solid cash flow management. The company's low leverage and strong equity base provide financial stability and flexibility.

Income Statement

COMSYS Holdings exhibits strong profitability with stable gross and net profit margins. The gross profit margin over the years has been consistent, and the company shows a healthy revenue growth rate, particularly from 2024 to 2025. The EBIT and EBITDA margins indicate efficient operational management, supporting the company's profitability trajectory.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio, reflecting strong financial stability. The return on equity (ROE) is impressive, showcasing effective use of equity to generate profits. The equity ratio signifies a robust equity base compared to total assets, enhancing financial resilience.

Cash Flow

COMSYS Holdings demonstrates positive cash flow management with consistent free cash flow generation. Although there was a dip in free cash flow in 2022, it rebounded in subsequent years. The operating cash flow to net income ratio remains healthy, indicating good cash conversion from earnings. The free cash flow to net income ratio is also strong, demonstrating efficient capital allocation.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	617.79B	614.63B	571.19B	563.29B	589.03B	563.25B
Gross Profit	85.08B	84.24B	75.71B	69.54B	78.43B	75.99B
EBITDA	59.57B	57.04B	52.72B	42.04B	54.49B	53.71B
Net Income	31.29B	30.08B	27.45B	19.34B	29.21B	29.37B
Balance Sheet
Total Assets	504.99B	539.73B	514.65B	502.13B	524.06B	479.42B
Cash, Cash Equivalents and Short-Term Investments	59.25B	38.79B	52.50B	41.37B	35.11B	33.26B
Total Debt	2.99B	3.01B	4.05B	4.13B	32.33B	5.61B
Total Liabilities	127.06B	158.74B	146.59B	155.41B	180.57B	148.61B
Stockholders Equity	371.93B	375.10B	362.97B	342.03B	338.83B	328.32B
Cash Flow
Free Cash Flow	0.00	7.11B	25.55B	53.10B	-5.58B	13.32B
Operating Cash Flow	0.00	16.63B	44.27B	61.78B	5.24B	25.47B
Investing Cash Flow	0.00	-10.21B	-15.94B	-6.84B	-11.11B	-8.86B
Financing Cash Flow	0.00	-20.22B	-17.21B	-48.23B	6.17B	-20.26B

COMSYS Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4714.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1721, the sentiment is Positive. The current price of 4714 is below the 20-day moving average (MA) of 5149.65, below the 50-day MA of 4853.46, and above the 200-day MA of 3918.86, indicating a bullish trend. The MACD of 197.44 indicates Negative momentum. The RSI at 75.94 is Negative, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1721.

COMSYS Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1721	76 Outperform	¥638.04B	19.42	8.34%	2.66%	5.14%	12.52%
1417	76 Outperform	¥326.42B	15.52	8.12%	2.28%	6.50%	53.04%
1949	74 Outperform	¥345.80B	19.97	12.41%	1.68%	8.09%	20.78%
1959	74 Outperform	¥688.98B	20.52	―	2.15%	-5.20%	-1.20%
1951	73 Outperform	¥569.56B	16.70	―	2.51%	15.47%	64.50%
1942	72 Outperform	¥1.37T	24.12	14.15%	2.00%	16.43%	53.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

COMSYS Holdings Corporate Events

COMSYS Holdings Confirms Reviewed Q3 Results With Higher Profits

COMSYS Holdings reported consolidated net sales of ¥424.7 billion for the nine months ended December 31, 2025, a 1.7% year-on-year increase, with operating profit up 9.8% to ¥32.2 billion and profit attributable to owners of parent rising 15.8% to ¥22.5 billion. The company’s equity ratio remained robust at 69.2%, and it confirmed that an interim review by certified public accountants of its third-quarter consolidated financial statements has been completed with no changes to the figures previously disclosed.

The most recent analyst rating on (JP:1721) stock is a Hold with a Yen5809.00 price target. To see the full list of analyst forecasts on COMSYS Holdings stock, see the JP:1721 Stock Forecast page.

COMSYS to Dispose of Treasury Shares for New Employee Share Delivery System

COMSYS Holdings will dispose of 266,500 treasury shares, worth approximately ¥1.33 billion at ¥4,973 per share, by transferring them to an ESOP trust account at The Master Trust Bank of Japan as part of the introduction of a new share delivery system for employees. The shares, representing about 0.20% of total issued shares, are intended to be granted gradually to eligible domestic employees of the company and its subsidiaries to strengthen performance awareness and engagement, with management emphasizing that the limited dilution and staged delivery should have minimal impact on the stock market and that the pricing, set at the latest market closing price and endorsed by the Audit and Supervisory Committee, is objective and reasonable.

The most recent analyst rating on (JP:1721) stock is a Hold with a Yen5384.00 price target. To see the full list of analyst forecasts on COMSYS Holdings stock, see the JP:1721 Stock Forecast page.

COMSYS Finalizes ESOP-Based Share Delivery System for Group Employees

COMSYS Holdings has finalized the design of a new share delivery system for employees of the parent company and its domestic subsidiaries, structured as an Employee Stock Ownership Plan (ESOP) trust. The scheme is intended to strengthen employee engagement and align staff incentives with long-term business performance by granting company shares or equivalent cash, in principle after retirement, based on an internal points system. As part of the rollout, the company will dispose of a portion of its treasury shares to fund the ESOP trust, and has established rules for how the trust acquires shares, exercises voting rights, distributes dividends, and handles any residual shares or assets at the end of the trust period, including potential share cancellations as a shareholder return measure.

The most recent analyst rating on (JP:1721) stock is a Hold with a Yen5384.00 price target. To see the full list of analyst forecasts on COMSYS Holdings stock, see the JP:1721 Stock Forecast page.

COMSYS Holdings Lifts Nine-Month Profit, Confirms Full-Year Outlook and Dividend Plan

COMSYS Holdings reported modest top-line growth but stronger profitability for the nine months ended December 31, 2025, with net sales rising 1.7% year-on-year to ¥424.7 billion and operating profit up 9.8% to ¥32.2 billion. Profit attributable to owners of the parent climbed 15.8% to ¥22.5 billion, boosting primary earnings per share to ¥192.32 and lifting comprehensive income by 42.9%, while the equity ratio remained solid at just over 69%, underscoring a robust balance sheet. The company maintained its full-year earnings forecast for the year ending March 31, 2026, projecting slight sales growth to ¥620.0 billion and a small decline in operating and ordinary profit but higher bottom-line profit, and it also kept its dividend outlook unchanged, signaling confidence in cash generation and a continued focus on stable shareholder returns.

The most recent analyst rating on (JP:1721) stock is a Hold with a Yen5384.00 price target. To see the full list of analyst forecasts on COMSYS Holdings stock, see the JP:1721 Stock Forecast page.

COMSYS Nears ¥9 Billion Mark in Ongoing Share Buyback Program

COMSYS Holdings has disclosed the latest progress of its ongoing share buyback program, reporting that it repurchased 182,200 shares for approximately ¥880 million via market transactions on the Tokyo Stock Exchange during January 2026. Under the board-authorized program running from May 2025 to March 2026, the company has so far acquired a cumulative 2,403,700 shares at a total cost of about ¥8.88 billion, approaching the upper limit of ¥10 billion, a move that is likely aimed at enhancing capital efficiency and shareholder returns through reducing the number of shares outstanding.

The most recent analyst rating on (JP:1721) stock is a Hold with a Yen5254.00 price target. To see the full list of analyst forecasts on COMSYS Holdings stock, see the JP:1721 Stock Forecast page.

COMSYS Nears ¥8 Billion in Treasury Share Buybacks Under Ongoing Repurchase Program

COMSYS Holdings has disclosed the latest status of its ongoing share buyback program, reporting that it repurchased 164,800 of its own shares on the Tokyo Stock Exchange in December 2025 at a total cost of ¥712.4 million. The buyback is part of a broader program authorized by the board in May and November 2025 to acquire up to 4 million shares or ¥10 billion in stock through March 31, 2026, under which the company has cumulatively bought 2,221,500 shares for approximately ¥8.0 billion by the end of December, signaling a continued focus on capital efficiency and shareholder returns as it approaches the upper bounds of its authorized repurchase capacity.

The most recent analyst rating on (JP:1721) stock is a Buy with a Yen4866.00 price target. To see the full list of analyst forecasts on COMSYS Holdings stock, see the JP:1721 Stock Forecast page.