Systems Engineering Consultants Co., Ltd. (3741) AI Stock Analysis

• Market Cap: ¥26.20B
• Dividend Yield: 1.97%
• Average Volume (3M): 47.73K
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.77
• Revenue Growth: 20.63%
• EPS Growth: 21.52%
• Country: JP
• Employees: 347
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 82.71
• Shares Outstanding: 5,120,000
• 10 Day Avg. Volume: 35,550
• 30 Day Avg. Volume: 47,726
• PEG Ratio: 1.47
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 39.11
• 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

• Rating: 76 Outperform
• Price Target: ¥6,602.00 ▲(25.75%Upside)

Systems Engineering Consultants Co., Ltd. demonstrates strong financial performance with significant revenue growth and minimal leverage, which are the primary drivers of the stock's overall score. The bullish technical indicators support a positive trend, although the high RSI indicates potential overbought conditions. Valuation metrics suggest the stock is fairly priced, with a reasonable P/E ratio and dividend yield contributing to its attractiveness. The absence of earnings call and corporate events data means these factors did not influence the overall score.

Systems Engineering Consultants Co., Ltd. Business Overview & Revenue Model

Company Description

Systems Engineering Consultants Co., Ltd. (3741) is a Japanese company specializing in providing comprehensive engineering consulting services. The company operates primarily in the information technology and telecommunications sectors, offering an array of services including software development, systems integration, and IT infrastructure management. Its core products and services are tailored to enhance operational efficiency and technological advancement for various industries.

How the Company Makes Money

Systems Engineering Consultants Co., Ltd. generates revenue through a combination of service-based and project-based engagements. The company earns income by delivering specialized engineering consulting services, software development projects, and systems integration solutions to its clients. Revenue streams include fees for consulting services, software licensing, maintenance contracts, and custom IT solutions development. The company may also engage in strategic partnerships and collaborations with technology providers to enhance its service offerings, contributing to its overall revenue generation.

Systems Engineering Consultants Co., Ltd. Financial Statement Overview

Summary

Strong revenue growth and profitability with minimal leverage and high equity ratios. However, cash flow challenges due to negative free cash flow in the most recent period slightly temper the financial outlook.

Income Statement

The company has demonstrated strong revenue growth with a 20.6% increase from the previous year, reflecting robust market demand and effective sales strategies. Gross profit margin and EBIT margin stand at 29.8% and 17.4% respectively, indicating efficient cost management and operational profitability. The net profit margin is also healthy at 13.1%, showing solid bottom-line performance. Overall, the income statement reflects a company with increasing revenue and profitability, positioning it well within the competitive software industry.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.004, indicating minimal leverage and sound financial stability. The equity ratio of 79.2% suggests a high proportion of assets financed by equity, further strengthening the company's financial position. Return on equity is a solid 14.4%, showcasing effective utilization of shareholder funds. The company's high equity and low debt levels mitigate potential financial risks, providing a stable foundation for future growth.

Cash Flow

The cash flow statement shows a decline in operating cash flow, resulting in negative free cash flow in the most recent period. This is a concern as it suggests cash flow constraints despite the company's profitability. However, the free cash flow to net income ratio was positive in previous years, indicating potential for cash flow recovery. Overall, while the cash flow position requires improvement, historical performance suggests resilience.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.55B	10.30B	8.53B	7.49B	6.56B	6.53B
Gross Profit	2.88B	3.07B	2.55B	2.24B	1.97B	1.85B
EBITDA	1.72B	1.94B	1.58B	1.32B	1.14B	1.08B
Net Income	1.26B	1.34B	1.11B	878.83M	780.30M	727.68M
Balance Sheet
Total Assets	10.47B	11.78B	10.11B	9.19B	8.43B	7.94B
Cash, Cash Equivalents and Short-Term Investments	3.00B	2.23B	2.97B	3.08B	3.23B	2.85B
Total Debt	121.00M	36.00M	36.00M	36.00M	36.00M	36.00M
Total Liabilities	1.56B	2.45B	1.71B	1.58B	1.33B	1.36B
Stockholders Equity	8.90B	9.33B	8.40B	7.60B	7.09B	6.58B
Cash Flow
Free Cash Flow	0.00	-275.22M	345.47M	431.18M	629.42M	-76.76M
Operating Cash Flow	0.00	-250.49M	384.07M	526.79M	642.95M	-52.13M
Investing Cash Flow	0.00	-40.97M	-139.18M	-303.57M	28.72M	-40.65M
Financing Cash Flow	0.00	-445.43M	-352.99M	-381.51M	-290.70M	-423.19M

Systems Engineering Consultants Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5250.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3741, the sentiment is Positive. The current price of 5250 is below the 20-day moving average (MA) of 5381.50, above the 50-day MA of 4927.10, and above the 200-day MA of 4508.86, indicating a neutral trend. The MACD of 104.77 indicates Positive momentum. The RSI at 50.46 is Neutral, neither overbought nor oversold. The STOCH value of 10.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3741.

Systems Engineering Consultants Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4493	80 Outperform	¥17.95B	32.69		0.17%	24.15%	-7.80%
4847	79 Outperform	¥29.65B	20.83		3.55%	7.50%	0.64%
3741	76 Outperform	¥26.20B	19.43		1.97%	20.63%	21.52%
3992	76 Outperform	¥20.52B	24.42		1.77%	3.71%	-14.56%
3850	65 Neutral	¥18.53B	54.49		0.92%	32.25%	87.20%
Sector *	63 Neutral	$33.26B	5.86	-11.55%	1.91%	5.52%	-20.13%

Systems Engineering Consultants Co., Ltd. Corporate Events

Systems Engineering Consultants Announces Board Changes

Systems Engineering Consultants Co., Ltd. announced changes in its board of directors, effective after the upcoming General Meeting of Shareholders on June 26, 2025. The company plans to appoint Kunihiro Nishimura as an Outside Director, while Tsutomu Sakaida and Ryoko Ueoka are candidates for positions as Outside Directors and Audit and Supervisory Committee Members. These changes are part of the company’s strategy to strengthen its governance and align with Tokyo Stock Exchange requirements for independent officers.

Systems Engineering Consultants Exceeds Forecasts and Increases Dividends

Systems Engineering Consultants Co., Ltd. announced that its actual financial results for the fiscal year ended March 2025 exceeded its forecasts due to strong performance in government, medical, and defense sectors. The company also declared a higher dividend payout, including a commemorative dividend, reflecting its 20th anniversary as a public company and its commitment to shareholder returns.

Systems Engineering Consultants Co., Ltd. Reports Strong Financial Growth for FY 2025

Systems Engineering Consultants Co., Ltd. reported a significant increase in its non-consolidated financial results for the fiscal year ending March 31, 2025, with net sales rising by 20.6% and operating profit by 22.2% compared to the previous year. The company also announced an increase in dividends, reflecting its strong financial performance and commitment to shareholder returns, while maintaining a stable financial position with a high equity-to-asset ratio.