Systena Corporation (2317) AI Stock Analysis

• Market Cap: ¥154.02B
• Dividend Yield: 2.3%
• Average Volume (3M): 643.03K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.49
• Revenue Growth: 13.82%
• EPS Growth: 37.07%
• Country: JP
• Employees: 5,239
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 8.68
• Shares Outstanding: 425,880,000
• 10 Day Avg. Volume: 561,900
• 30 Day Avg. Volume: 643,033
• PEG Ratio: 0.65
• Price to Book (P/B): 4.07
• Price to Sales (P/S): 1.58
• P/FCF Ratio: 17.16
• 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): 31.17
• Revenue Forecast (FY): ¥92.07B

• Rating: 76 Outperform
• Price Target: ¥499.00 ▼(-2.92% Downside)
• Action: Reiterated Date: 10/28/25
• Date: Action: Reiterated 10/28/25

Systena Corporation's strong financial performance, characterized by robust revenue growth and effective cost management, is the primary driver of its stock score. The positive technical indicators further support the stock's upward momentum, although caution is advised due to potential overbought conditions. The valuation is reasonable, with a solid dividend yield enhancing investor returns. Overall, the company is well-positioned within the Information Technology Services industry.

Positive Factors

Low Leverage & Strong Equity

Systena's extremely low leverage and high equity ratio provide durable financial flexibility, lowering solvency risk and enabling investment in growth or M&A without stressing creditors. A 26% ROE indicates efficient capital use that supports sustainable shareholder returns over months.

High Profitability & Margins

Consistently healthy gross and operating margins reflect pricing power and operational efficiency in service delivery. Robust margins increase resilience to cost shocks, fund reinvestment in capabilities and recurring services, and support profit growth on modest revenue increases over the medium term.

Strong Cash Generation

High cash conversion from earnings demonstrates reliable cash generation from operations, enabling sustained funding of working capital, dividends and strategic investments. Strong cash flow continuity enhances financial stability and supports execution of multi-quarter growth initiatives.

Negative Factors

Slowing Asset Growth

A year-over-year decline in total assets may indicate underinvestment in capacity, platforms, or backlog build-up. Over a 2-6 month horizon this can constrain the firm's ability to scale delivery for larger contracts, slowing revenue expansion and limiting long-term operational leverage.

Declining Free Cash Flow Trend

Although FCF remains substantial, a declining free cash flow trend can reduce financial flexibility to invest in product development, hire talent, or smooth seasonality. If the trend persists it may pressure discretionary spending and undermine capacity to fund strategic initiatives.

Limited Disclosure on Customer/Segment Concentration

Absence of segment and customer concentration disclosure raises structural risk: revenue may be reliant on a few clients or sectors. This opacity complicates assessment of client dependency and retention risk, increasing vulnerability to client loss or sector downturns over the medium term.

Systena Corporation Business Overview & Revenue Model

Company Description

Systena Corporation engages in the solution and framework design, IT service, business solution, and cloud businesses in Japan. It also designs, manufactures, and sells IoT/M2M routers, LTE/3G/WiMAX2+/PHS routers, Wi-Fi board, Android terminal, wireless digital signage, antenna, etc., as well as software development, evaluation and verification, and IT services. In addition, the company is involved in the provision of BPO service, IT support service, various market research, and welfare, and employment consulting services for people with disabilities; and planning and operation of social games for mobiles, smartphones, and PCs. Further, it engages in the planning, development, sale, and other services in the fields of AI, IoT, robots, fintech, and social media; mobile and communication development and verification support, solution, and consumer businesses, including SNS gaming; research and development of smart devices and automotive devices; trend survey of the technologies and services; development and sales of computer and related equipment software products, encryption and certification products, and IoT solution packages; and provision of personnel for computer engineers and technicians. The company was founded in 1981 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Systena Corporation generates revenue through a diversified model that includes fees for IT consulting, system integration projects, and software development services. The company monetizes its expertise by charging clients for tailored solutions that address specific business needs, often on a project basis or through long-term service contracts. Key revenue streams include recurring income from maintenance and support services for the systems it implements, as well as revenue from cloud services. Additionally, partnerships with technology providers and integration firms enhance its offerings, allowing Systena to tap into new markets and customer bases, contributing significantly to its overall earnings.

Systena Corporation Financial Statement Overview

Summary

Systena Corporation demonstrates a commendable financial position with robust revenue growth, strong profit margins, and effective cash flow management. The low leverage and high return on equity indicate a stable and efficient use of resources. While the company has shown consistent performance, opportunities exist to enhance asset growth and free cash flow generation.

Income Statement

Systena Corporation has exhibited strong revenue growth with a 8.68% increase from 2024 to 2025. Gross profit margin and net profit margin are impressive at 25.09% and 10.14% respectively, indicating effective cost management. EBIT and EBITDA margins are also robust at 14.44% and 14.73%, reflecting solid operational performance. The consistent upward trajectory in revenue and profitability metrics enhances the income statement's overall strength.

Balance Sheet

The balance sheet reflects solid financial health with a low debt-to-equity ratio of 0.05, indicating minimal leverage risk. Return on equity (ROE) is healthy at 26.12%, showcasing effective utilization of equity for generating profits. The equity ratio stands strong at 62.73%, underscoring financial stability. However, a slight decline in total assets year-over-year suggests potential areas for improvement in asset growth.

Cash Flow

Cash flow metrics are strong with a high operating cash flow to net income ratio of 0.95 and a free cash flow to net income ratio of 0.91, indicating efficient cash generation relative to earnings. Although there is a decline in free cash flow from the previous year, the company maintains significant free cash flow levels, supporting its financial flexibility. Continued focus on enhancing free cash flow growth would further bolster the cash flow statement.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	93.12B	83.62B	76.94B	74.53B	65.27B	60.87B
Gross Profit	24.19B	20.98B	18.08B	18.39B	16.13B	14.37B
EBITDA	16.14B	12.32B	10.53B	10.44B	9.09B	8.29B
Net Income	11.17B	8.48B	7.23B	7.32B	5.99B	4.97B
Balance Sheet
Total Assets	53.49B	51.76B	54.04B	48.88B	43.48B	38.89B
Cash, Cash Equivalents and Short-Term Investments	25.21B	22.83B	30.89B	25.03B	21.66B	19.04B
Total Debt	1.55B	1.55B	1.55B	1.55B	1.55B	1.55B
Total Liabilities	16.12B	18.81B	15.44B	14.23B	13.30B	12.89B
Stockholders Equity	36.89B	32.47B	38.10B	34.17B	29.76B	25.63B
Cash Flow
Free Cash Flow	10.40B	7.70B	8.82B	6.52B	5.15B	6.79B
Operating Cash Flow	10.82B	8.02B	9.16B	7.67B	5.67B	7.23B
Investing Cash Flow	-1.75B	-2.62B	-372.00M	-2.00B	-681.00M	-1.58B
Financing Cash Flow	-4.35B	-14.02B	-3.50B	-2.89B	-1.91B	-1.98B

Systena Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 514.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2317, the sentiment is Negative. The current price of 514 is above the 20-day moving average (MA) of 440.90, above the 50-day MA of 485.84, and above the 200-day MA of 469.01, indicating a bearish trend. The MACD of -17.53 indicates Negative momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of 78.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2317.

Systena Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3636	77 Outperform	¥77.58B	9.87	―	3.28%	5.28%	28.90%
4396	76 Outperform	¥26.23B	16.07	―	1.70%	22.25%	31.88%
2317	76 Outperform	¥154.02B	14.15	―	2.30%	13.82%	37.07%
9715	75 Outperform	¥151.58B	10.80	11.52%	2.76%	4.00%	38.72%
9682	66 Neutral	¥177.23B	15.39	18.89%	2.78%	11.90%	60.66%
4725	65 Neutral	¥32.20B	10.11	10.34%	4.82%	-3.03%	38.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Systena Corporation Corporate Events

Systena Reveals Strong FY2025 Results at Unlisted Parent SMS Holdings

Systena Corporation disclosed the finalized financial results of its unlisted parent SMS Holdings Corporation, which primarily conducts investment and management consulting activities and owns 29% of Systena’s voting rights. SMS is chaired by the same executive who leads Systena, underscoring tight governance and capital ties despite the lack of notable day-to-day business transactions.

For the fiscal year ended December 31, 2025, SMS reported total assets of about ¥9.65 billion, net assets of approximately ¥6.03 billion, and current and non-current liabilities totaling roughly ¥3.61 billion. While its operating activities produced a loss, substantial non-operating income drove ordinary profit of about ¥1.44 billion and net profit of roughly ¥1.14 billion, indicating a solid financial base at the parent level that may reassure Systena shareholders about the stability and capitalization of its controlling stakeholder.

The most recent analyst rating on (JP:2317) stock is a Buy with a Yen468.00 price target. To see the full list of analyst forecasts on Systena Corporation stock, see the JP:2317 Stock Forecast page.

Systena Lifts Nine-Month Profit 45% and Confirms Full-Year Outlook

Systena Corporation reported strong results for the nine months to December 31, 2025, with net sales rising 15.7% year on year to ¥70.1 billion and profit attributable to owners of parent jumping 45.4% to ¥8.6 billion. Operating and ordinary profits also grew more than 30%, while the equity ratio improved to 69.0%, reflecting a solid balance sheet and healthier cash position.

The company maintained its full-year forecast for the period ending March 31, 2026, targeting ¥90.2 billion in net sales and a 22.2% increase in full-year profit, alongside a planned annual dividend of ¥13 per share. The combination of strong interim performance, stable cash dividends, and unchanged guidance underlines management’s confidence in continued growth momentum and may reinforce Systena’s standing among investors seeking steady returns in the Japanese IT sector.

The most recent analyst rating on (JP:2317) stock is a Buy with a Yen472.00 price target. To see the full list of analyst forecasts on Systena Corporation stock, see the JP:2317 Stock Forecast page.

Systena Posts Double-Digit Profit Growth and Strong Balance Sheet for Nine-Month Period

Systena Corporation reported strong consolidated results for the nine months ended December 31, 2025, with net sales rising 15.7% year on year to ¥70.1 billion and profit attributable to owners of parent surging 45.4% to ¥8.6 billion, reflecting improved profitability and higher comprehensive income. The company’s financial position also strengthened, as total assets increased to ¥53.5 billion, equity-to-asset ratio improved to 69.0%, and cash and cash equivalents expanded to ¥26.0 billion, while maintaining its dividend plan and leaving its full-year earnings and dividend forecasts for the fiscal year ending March 31, 2026 unchanged, signaling confidence in continued growth and stable shareholder returns.

The most recent analyst rating on (JP:2317) stock is a Buy with a Yen608.00 price target. To see the full list of analyst forecasts on Systena Corporation stock, see the JP:2317 Stock Forecast page.