System Location Co., Ltd. (2480) AI Stock Analysis

• Market Cap: ¥6.10B
• Dividend Yield: 2.26%
• Average Volume (3M): 1.10K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.61
• Revenue Growth: -2.61%
• EPS Growth: -4.16%
• Country: JP
• Employees: 56
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 29.75
• Shares Outstanding: 3,570,000
• 10 Day Avg. Volume: 1,150
• 30 Day Avg. Volume: 1,100
• PEG Ratio: -1.34
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 3.01
• P/FCF Ratio: 10.46
• 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: 80 Outperform
• Price Target: ¥1,938.00 ▲(19.63% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by strong financial quality (high margins, zero debt, and excellent cash conversion). Technicals add support with price above key moving averages and positive MACD, while valuation is reasonable with a moderate P/E and a modest dividend yield. The main constraint is weaker recent growth and some margin normalization.

Positive Factors

Strong Profitability

High margins indicate efficient operations and strong pricing power, which can sustain profitability even in competitive markets.

Conservative Balance Sheet

A debt-free balance sheet provides financial flexibility and reduces risk, allowing the company to invest in growth opportunities.

Strong Cash Generation

Robust cash generation supports reinvestment in the business and shareholder returns, enhancing long-term financial health.

Negative Factors

Revenue Decline

A decline in revenue suggests challenges in market demand or competitive pressures, which could impact future growth prospects.

Margin Normalization

Decreasing margins may indicate rising costs or pricing pressures, potentially affecting long-term profitability.

Free Cash Flow Volatility

Volatility in free cash flow growth can signal operational instability, affecting the company's ability to fund future initiatives consistently.

System Location Co., Ltd. Business Overview & Revenue Model

Company Description

System Location Co., Ltd. (2480) is a Japanese company specializing in the development and provision of IT solutions and services. Operating primarily in the technology and communications sectors, the company offers a wide range of services including systems integration, software development, and IT infrastructure management. Additionally, System Location Co., Ltd. provides location-based services and solutions that cater to various industries, enhancing operational efficiency and data analytics capabilities for its clients.

How the Company Makes Money

System Location Co., Ltd. generates revenue through multiple streams, primarily focusing on IT solutions and services. The company earns income by providing systems integration and software development services to businesses in need of custom IT solutions. It also makes money from managing IT infrastructure for clients, ensuring efficient and secure operations. Another significant revenue source comes from their location-based services, which are used by companies to optimize logistics, track assets, and improve customer engagement through data-driven insights. Strategic partnerships with technology providers and ongoing contracts with corporate clients further bolster the company's earnings, providing a stable and recurring revenue base.

System Location Co., Ltd. Financial Statement Overview

Summary

High-quality fundamentals: strong profitability (2025 ~77% gross margin, ~30% EBIT margin, ~20% net margin), an exceptionally conservative balance sheet with zero debt and growing equity, and strong cash generation (operating cash flow ~3.0x net income; free cash flow ~97% of net income). Main risks are softer near-term growth (2025 revenue down ~1.2% YoY) and margin normalization from peak levels, plus some variability in free cash flow growth.

Income Statement

Profitability is strong with consistently high gross profit and solid operating profitability (2025: ~77% gross margin, ~30% EBIT margin) and healthy net margins (~20%). However, growth has weakened: revenue declined in 2025 (down ~1.2% vs. prior year) and margins have trended down from the exceptionally strong 2022 levels, indicating some normalization or higher costs.

Balance Sheet

Balance sheet is very conservative with zero debt across all reported periods and a growing equity base (equity up meaningfully from 2020 to 2025). Returns on equity are positive and generally solid (roughly ~9%–14%), though they have eased recently (2025 below 2024 and 2022), suggesting profitability is not rising as fast as equity.

Cash Flow

Cash generation is strong: operating cash flow consistently exceeds net income (2025 operating cash flow is ~3.0x net income), and free cash flow conversion is high (2025 free cash flow is ~97% of net income). The main weakness is volatility in free cash flow growth (notably a decline in 2024 after a strong 2023), even though absolute free cash flow remains healthy.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.68B	1.67B	1.74B	1.70B	1.30B	1.14B
Gross Profit	1.30B	1.28B	1.37B	1.40B	1.12B	954.74M
EBITDA	711.23M	682.95M	760.47M	736.40M	653.65M	547.17M
Net Income	302.40M	330.83M	373.93M	369.34M	422.44M	391.45M
Balance Sheet
Total Assets	4.42B	4.38B	4.38B	3.98B	3.60B	3.28B
Cash, Cash Equivalents and Short-Term Investments	2.17B	2.17B	1.94B	1.66B	1.98B	1.99B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	699.51M	681.34M	822.69M	799.26M	549.50M	564.00M
Stockholders Equity	3.72B	3.70B	3.55B	3.18B	3.05B	2.71B
Cash Flow
Free Cash Flow	0.00	479.88M	417.93M	499.57M	329.35M	211.42M
Operating Cash Flow	0.00	495.63M	541.92M	596.60M	397.72M	357.59M
Investing Cash Flow	0.00	-135.17M	-90.79M	-737.40M	-300.14M	110.56M
Financing Cash Flow	0.00	-134.00M	-133.99M	-176.19M	-109.01M	-86.22M

System Location Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1620.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2480, the sentiment is Positive. The current price of 1620 is below the 20-day moving average (MA) of 1726.35, below the 50-day MA of 1711.78, and above the 200-day MA of 1595.38, indicating a bullish trend. The MACD of 4.72 indicates Positive momentum. The RSI at 52.30 is Neutral, neither overbought nor oversold. The STOCH value of 30.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2480.

System Location Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2480	80 Outperform	¥6.10B	15.93	―	2.26%	-2.61%	-4.16%
9307	78 Outperform	¥17.76B	18.41	―	1.49%	1.23%	0.12%
9324	66 Neutral	¥73.92B	19.47	―	2.18%	12.03%	30.12%
9319	65 Neutral	¥32.84B	17.64	―	2.59%	4.02%	18.12%
9322	65 Neutral	¥22.80B	34.12	―	1.13%	3.37%	9.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
9313	56 Neutral	¥6.61B	21.11	―	2.29%	0.08%	105.25%