Systena Corporation (2317) AI Stock Analysis

• Market Cap: ¥151.48B
• Dividend Yield: 2.3%
• Average Volume (3M): 643.03K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.50
• 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): 31.9
• Revenue Forecast (FY): ¥92.45B

• Rating: 76 Outperform
• Price Target: ¥472.00 ▼(-8.17% 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

Strong Revenue Growth

Systena's double-digit revenue growth is a durable sign of expanding client engagements and market traction in IT services. Sustained top-line expansion increases scale benefits, supports reinvestment in capabilities, and underpins recurring maintenance and managed-service revenue streams over the medium term.

Healthy Profit Margins

Robust gross and operating margins indicate effective cost control and pricing power in system integration and software services. Margin durability supports cash generation, funds strategic hires and R&D, and cushions profitability through IT spending cycles, improving long-term business resilience.

Conservative Balance Sheet

Very low leverage and a strong equity ratio provide financial flexibility to invest in growth, pursue selective M&A, or withstand downturns without stressing liquidity. High ROE reflects efficient capital use, enabling sustained shareholder returns and strategic optionality over multiple quarters.

Negative Factors

Declining Total Assets

A year-over-year decline in total assets may signal underinvestment in capacity, IP, or scaling infrastructure. Over the medium term this can constrain the firm's ability to take on larger or concurrent projects, limiting revenue scalability and the ability to expand service offerings.

Free Cash Flow Softness

Although cash generation ratios remain strong, a decline in free cash flow versus the prior year reduces internal funding for strategic initiatives. Persisting FCF softness could pressure reinvestment, dividend policy or balance sheet strengthening if not reversed through operating improvements.

Limited Disclosure on Client Concentration

The company’s disclosures lack detail on key customers or partner concentrations. For a project-based IT services firm, undisclosed concentration risks reduce revenue visibility and increase vulnerability to losing a large client, making medium-term revenue predictability weaker.

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 primarily makes money by providing IT services to corporate customers under project-based and ongoing service arrangements. A core revenue stream is system development and integration work (e.g., designing, building, and implementing software and related systems) where revenue is recognized based on contracted project fees and delivery milestones. The company also generates revenue from recurring/continuing engagements such as system operation, maintenance, and support services, which are typically billed on a monthly or periodic basis under service contracts. In addition, Systena earns revenue from providing IT solutions and related services that may include infrastructure setup/support and other technology offerings delivered as part of client projects or managed services. Specific details on the contribution of individual segments, major customer/partner concentration, or named strategic partnerships are null.

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	31.36B	25.27B	22.06B	19.31B
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 423.55, above the 50-day MA of 460.62, and above the 200-day MA of 471.31, indicating a bearish trend. The MACD of -9.95 indicates Negative momentum. The RSI at 41.28 is Neutral, neither overbought nor oversold. The STOCH value of 38.33 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	¥72.83B	7.46	―	3.28%	5.28%	28.90%
4396	76 Outperform	¥22.82B	11.39	―	1.70%	22.25%	31.88%
2317	76 Outperform	¥151.48B	14.81	―	2.30%	13.82%	37.07%
9715	75 Outperform	¥147.83B	9.34	11.52%	2.76%	4.00%	38.72%
9682	66 Neutral	¥169.13B	15.99	18.89%	2.78%	11.90%	60.66%
4725	65 Neutral	¥30.97B	10.75	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.