Runsystem Co., Ltd. (3326) AI Stock Analysis

• Market Cap: ¥3.40B
• Dividend Yield: N/A
• Average Volume (3M): 6.66K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.59
• Revenue Growth: -10.41%
• EPS Growth: -69.48%
• Country: JP
• Employees: 128
• Sector: General
• Sector Strength: N/A
• Industry: Leisure
• EPS (TTM): N/A
• Shares Outstanding: 4,380,900
• 10 Day Avg. Volume: 4,010
• 30 Day Avg. Volume: 6,660
• PEG Ratio: -0.93
• Price to Book (P/B): 10.42
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 2.46K
• 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: 47 Neutral
• Price Target: ¥799.00 ▲(23.49% Upside)
• Action: Reiterated Date: 01/09/26
• Date: Action: Reiterated 01/09/26

The score is primarily held down by weak financial performance (declining profitability and high leverage) and expensive valuation (very high P/E). Technicals are strong (price above key averages and positive MACD) but are tempered by extremely overbought momentum signals that increase downside risk.

Positive Factors

Recurring services revenue

Runsystem's core business includes recurring maintenance and operations contracts tied to deployed systems. That recurring revenue mix increases customer stickiness and predictable cash inflows, supporting medium-term stability and easier planning despite project volatility.

Improving cash conversion

Reported improvement in operating cash conversion indicates higher quality of earnings and better liquidity generation from operations. Over 2-6 months this supports funding of working capital and reduces near-term reliance on external financing, helping operational resilience.

Slight gross margin improvement

A modest uptick in gross margin suggests some pricing power or cost control at the product/service delivery level. If sustained, this provides a foundation for margin recovery when combined with tighter operating cost management, aiding medium-term profitability trends.

Negative Factors

Declining revenue

Revenue contraction near 8% signals weakening demand or loss of contracts. Reduced top-line scale limits operating leverage, makes margin improvement harder, and constrains reinvestment and strategic initiatives, posing sustained headwinds for growth and cash flow generation.

High leverage and low equity ratio

Significant leverage and a low equity ratio reduce financial flexibility and elevate refinancing and interest-rate risk. With constrained free cash flow, higher debt burdens can force austerity on investment and amplify downside in an extended downturn.

Weak operating profitability

Persistently weak EBIT/EBITDA and low net margins reflect operational inefficiencies and margin pressure. Combined with high leverage and falling revenue, weak profitability undermines sustainable cash generation and limits capacity to scale or absorb shocks.

Runsystem Co., Ltd. Business Overview & Revenue Model

Company Description

Runsystem Co.,Ltd. engages in the store management business in Japan. The company is also involved in the operation of amusement facilities, that includes billiards, darts, and karaoke, as well as casino games; and engages in the provision of real estate management services. In addition, it offers child development support and after-school day services; manages and operates cafe store that provides relaxation systems, and food and beverages, as well as sells, maintains, and manages various systems. Runsystem Co.,Ltd. was founded in 1988 and is headquartered in Sayama City, Japan.

How the Company Makes Money

Runsystem generates revenue through several key streams, primarily by offering software licensing for its ERP and SaaS products, which provides companies with essential tools for managing their operations. Additionally, the company earns income from consulting and implementation services, helping clients integrate its software into their existing systems. Ongoing maintenance and support services also contribute to recurring revenue. Strategic partnerships with other technology firms and resellers enhance its market reach and provide additional revenue opportunities. The company may also explore revenue from training programs aimed at educating users on its software solutions.

Runsystem Co., Ltd. Financial Statement Overview

Summary

Financial health appears weak: revenue and profitability declined, operating margins (EBIT/EBITDA) are weak, and the balance sheet shows high leverage with a low equity ratio. Cash flow has improved in conversion but remains volatile with constrained free cash flow.

Income Statement

Runsystem Co., Ltd. has experienced volatility in its income statement, with revenue decreasing from 2024 to 2025. Gross profit margin improved slightly, but net profit margin remains low due to declining net income. EBIT and EBITDA margins are weak, reflecting operational inefficiencies.

Balance Sheet

The company has a high debt-to-equity ratio, indicating significant leverage. The equity ratio is also low, suggesting limited shareholder equity relative to total assets. These factors point to potential financial instability and risk.

Cash Flow

Operating cash flow has shown some recovery, but free cash flow remains constrained. The operating cash flow to net income ratio improved, showing better cash conversion, but overall cash flow stability is a concern due to high financing needs.

Breakdown	TTM	Jun 2024	Mar 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	5.32B	5.41B	7.37B	4.94B	4.35B	4.92B
Gross Profit	1.06B	1.03B	1.01B	511.06M	139.58M	184.47M
EBITDA	376.14M	319.66M	293.19M	-108.92M	-449.22M	-410.55M
Net Income	105.62M	43.41M	99.72M	-235.16M	-682.41M	-951.08M
Balance Sheet
Total Assets	4.47B	3.80B	3.95B	3.42B	3.67B	3.65B
Cash, Cash Equivalents and Short-Term Investments	1.08B	862.66M	1.15B	771.69M	970.39M	486.60M
Total Debt	2.59B	2.69B	2.73B	2.54B	2.61B	2.81B
Total Liabilities	4.20B	3.58B	3.78B	3.34B	3.41B	3.54B
Stockholders Equity	267.21M	219.86M	176.45M	76.73M	253.11M	111.54M
Cash Flow
Free Cash Flow	0.00	930.00K	159.05M	-448.74M	-356.52M	-552.76M
Operating Cash Flow	0.00	249.99M	328.44M	-197.04M	-328.91M	-525.87M
Investing Cash Flow	0.00	-402.48M	128.26M	68.23M	208.00M	13.05M
Financing Cash Flow	0.00	-135.98M	-77.25M	-69.90M	604.71M	141.15M

Runsystem Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 647.00
• 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:3326, the sentiment is Positive. The current price of 647 is below the 20-day moving average (MA) of 790.50, below the 50-day MA of 793.54, and below the 200-day MA of 668.72, indicating a bullish trend. The MACD of 6.17 indicates Negative momentum. The RSI at 68.07 is Neutral, neither overbought nor oversold. The STOCH value of 65.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3326.

Runsystem Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7085	76 Outperform	¥72.63B	16.92	―	2.22%	5.92%	20.63%
7092	74 Outperform	¥43.44B	14.60	―	1.95%	16.36%	38.48%
4680	67 Neutral	¥257.35B	29.55	―	1.51%	11.92%	33.70%
4801	61 Neutral	¥27.06B	14.57	―	1.85%	4.17%	-20.08%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
4343	52 Neutral	¥49.04B	49.41	―	―	6.00%	-184.09%
3326	47 Neutral	¥3.40B	8.17	―	―	-10.41%	-69.48%