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

• Market Cap: ¥5.93B
• Dividend Yield: 2.26%
• Average Volume (3M): 1.10K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.65
• Revenue Growth: -2.61%
• EPS Growth: -4.16%
• Country: JP
• Employees: 56
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 30.61
• 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: ―

System Location Co., Ltd. scores well based on its strong financial performance and solid technical indicators. The company's robust balance sheet and effective cash management are significant positives. While technical analysis shows a positive trend, caution is advised due to a high stochastic value. The valuation is fair, with a reasonable P/E ratio and a decent dividend yield, making it appealing for both growth and income investors.

Positive Factors

Balance Sheet Health

A debt-free balance sheet with a high equity ratio provides financial stability and flexibility for future investments, reducing leverage risks.

Cash Flow Management

Consistent free cash flow generation supports ongoing operations and strategic investments, ensuring long-term business sustainability.

Profitability

High profit margins indicate efficient cost management, enhancing the company's ability to reinvest in growth and maintain competitive positioning.

Negative Factors

Revenue Growth

Decelerating revenue growth may signal market saturation or increased competition, potentially impacting future expansion and earnings potential.

Operating Cash Flow

A decline in operating cash flow relative to net income suggests inefficiencies in cash conversion, which could affect liquidity and operational flexibility.

EPS Growth

A significant drop in EPS growth reflects challenges in maintaining profitability, which may impact investor confidence and long-term value creation.

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

System Location Co., Ltd. demonstrates strong financial health, characterized by high profitability, a debt-free balance sheet, and solid cash flow management. While growth has moderated, the company's financial foundation remains sound, with ample flexibility for future investments or strategic initiatives.

Income Statement

System Location Co., Ltd. exhibits strong profitability with impressive gross and net profit margins, indicating efficient cost management. However, the revenue growth rate has slightly decelerated over recent periods, suggesting a potential plateau in market expansion.

Balance Sheet

The company's balance sheet is robust, with no debt and a high equity ratio, highlighting financial stability and low leverage risks. The consistent increase in stockholders' equity further emphasizes strong shareholder value.

Cash Flow

Cash flow analysis reveals stable free cash flow generation and prudent capital expenditure. However, the recent decline in operating cash flow compared to net income suggests potential inefficiencies in cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• 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 1649.80, below the 50-day MA of 1642.22, and above the 200-day MA of 1518.17, indicating a bullish trend. The MACD of 14.31 indicates Negative momentum. The RSI at 57.62 is Neutral, neither overbought nor oversold. The STOCH value of 71.18 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	¥5.93B	16.28	―	2.26%	-2.61%	-4.16%
9313	77 Outperform	¥6.26B	7.16	―	2.29%	0.08%	105.25%
9319	75 Outperform	¥27.11B	14.34	―	2.59%	4.02%	18.12%
9324	70 Outperform	¥65.20B	20.34	―	2.18%	12.03%	30.12%
9307	65 Neutral	¥16.43B	18.09	―	1.49%	1.23%	0.12%
9322	65 Neutral	¥19.67B	26.68	―	1.13%	3.37%	9.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%