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

• Market Cap: ¥25.30B
• Dividend Yield: 2.06%
• Average Volume (3M): 46.92K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.76
• Revenue Growth: 20.63%
• EPS Growth: 21.52%
• Country: JP
• Employees: 347
• Sector: Technology
• Sector Strength: 93
• Industry: Software - Infrastructure
• EPS (TTM): 82.71
• Shares Outstanding: 5,120,000
• 10 Day Avg. Volume: 45,250
• 30 Day Avg. Volume: 46,916
• PEG Ratio: 2.70
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥6,602.00
• Price Target Upside: 33.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥5,370.00 ▲(8.59%Upside)

The company's strong financial performance is the most significant factor, providing a solid foundation for future growth. However, technical indicators suggest weak market momentum, and the valuation is fair but not compelling. The absence of recent earnings call data and corporate events limits additional insights.

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

Company Description

Systems Engineering Consultants Co., Ltd. (3741) is a Japanese company that operates in the information technology and engineering sectors. The company specializes in providing engineering and IT solutions, including software development, systems integration, and consulting services. It serves a diverse range of industries, including telecommunications, automotive, and manufacturing, by delivering innovative technology solutions and support.

How the Company Makes Money

Systems Engineering Consultants Co., Ltd. generates revenue through a variety of streams, primarily centered around its core offerings in software development, systems integration, and consulting services. The company earns income by developing custom software solutions tailored to the needs of its clients, which often involves long-term contracts and maintenance agreements. Systems integration projects also provide significant revenue, as the company assists businesses in implementing and optimizing complex IT systems. Additionally, the consultancy services offered by the company, which include strategic IT advice and project management, contribute to its earnings. Collaboration with various industries, including telecommunications and automotive, often involves partnerships or joint ventures that can enhance revenue through shared projects and innovation. Key factors contributing to the company's earnings include its expertise in cutting-edge technologies and its ability to adapt solutions to meet specific client needs.

Systems Engineering Consultants Co., Ltd. Financial Statement Overview

Summary

Systems Engineering Consultants Co., Ltd. shows strong revenue growth and profitability with minimal leverage and high equity ratios. However, cash flow constraints due to declining operating cash flow and negative free cash flow reduce the overall score, though historical resilience suggests potential recovery.

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

Systems Engineering Consultants Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4945.00
• 50DMA: Negative
• 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:3741, the sentiment is Negative. The current price of 4945 is below the 20-day moving average (MA) of 5086.00, below the 50-day MA of 5110.00, and above the 200-day MA of 4572.63, indicating a neutral trend. The MACD of -52.42 indicates Positive momentum. The RSI at 43.55 is Neutral, neither overbought nor oversold. The STOCH value of 31.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
4847	76 Outperform	¥28.28B	19.87		4.65%	7.50%	0.64%
3992	71 Outperform	¥19.95B	23.75		1.82%	3.71%	-14.56%
Sector *	68 Neutral	¥228.97B	14.57	7.50%	2.73%	9.28%	6.70%
3741	67 Neutral	¥25.30B	18.76		2.06%	20.63%	21.52%
4493	67 Neutral	¥16.56B	30.16		0.18%	24.15%	-7.80%
3850	65 Neutral	¥17.56B	51.64		0.97%	32.25%	87.20%

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.