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Systems Engineering Consultants Co., Ltd. (JP:3741)
:3741
Japanese Market
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Systems Engineering Consultants Co., Ltd. (3741) AI Stock Analysis

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JP:3741

Systems Engineering Consultants Co., Ltd.

(3741)

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Outperform 80 (OpenAI - 5.2)
Rating:80Outperform
Price Target:
¥3,258.00
▲(4.42% Upside)
Action:Reiterated
Date:05/14/26
Overall score is driven primarily by strong financial quality (high profitability and very low leverage) and favorable technical trend signals. The score is tempered by historically volatile cash-flow conversion and a valuation that appears reasonable but not deeply discounted.
Positive Factors
High and stable profit margins
Sustained net and EBIT margins indicate durable operating strength and pricing power. This margin profile supports reinvestment and shareholder distributions, cushions against revenue swings, and signals scalable cost structure and long-term earnings quality.
Negative Factors
Volatile cash-flow conversion
Historic swings between negative and positive operating/FCF point to working-capital sensitivity or timing issues. That volatility reduces predictability of internally generated funds, can force short-term financing needs, and complicates multi-year planning.
Read all positive and negative factors
Positive Factors
Negative Factors
High and stable profit margins
Sustained net and EBIT margins indicate durable operating strength and pricing power. This margin profile supports reinvestment and shareholder distributions, cushions against revenue swings, and signals scalable cost structure and long-term earnings quality.
Read all positive factors

Systems Engineering Consultants Co., Ltd. (3741) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Systems Engineering Consultants Co.,LTD. (SEC), established in Tokyo, Japan, in 1970, is a dedicated software development firm specializing in real-time solutions for mobile networking, Internet technology, and public infrastructure domains within...
How the Company Makes Money
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Systems Engineering Consultants Co., Ltd. Financial Statement Overview

Summary
Strong profitability and accelerating recent revenue growth support the score, backed by an exceptionally conservative, low-debt balance sheet. The main offset is uneven cash-flow conversion, with historical periods of negative operating/free cash flow despite positive earnings.
Income Statement
86
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
66
Positive
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue11.22B10.30B8.53B7.49B6.56B
Gross Profit3.33B3.07B2.55B2.24B1.97B
EBITDA1.94B1.94B1.58B1.32B1.14B
Net Income1.51B1.34B1.11B878.83M780.30M
Balance Sheet
Total Assets12.44B12.04B10.11B9.39B8.60B
Cash, Cash Equivalents and Short-Term Investments3.32B2.23B2.97B3.08B3.23B
Total Debt36.00M46.55M36.00M36.00M36.00M
Total Liabilities2.12B2.71B1.71B1.79B1.51B
Stockholders Equity10.31B9.33B8.40B7.60B7.09B
Cash Flow
Free Cash Flow1.60B-275.22M345.47M431.18M629.42M
Operating Cash Flow1.70B-250.49M384.07M526.79M642.95M
Investing Cash Flow-46.88M-40.97M-139.18M-303.57M28.72M
Financing Cash Flow-561.12M-445.43M-352.99M-381.51M-290.70M

Systems Engineering Consultants Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3120.00
Price Trends
50DMA
3456.02
Negative
100DMA
3359.23
Negative
200DMA
3122.23
Negative
Market Momentum
MACD
-119.75
Positive
RSI
36.22
Neutral
STOCH
13.09
Positive
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 3120 is below the 20-day moving average (MA) of 3162.30, below the 50-day MA of 3456.02, and below the 200-day MA of 3122.23, indicating a bearish trend. The MACD of -119.75 indicates Positive momentum. The RSI at 36.22 is Neutral, neither overbought nor oversold. The STOCH value of 13.09 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥30.03B19.161.74%8.98%12.22%
78
Outperform
¥29.26B17.6915.26%62.04%
75
Outperform
¥71.31B10.322.35%31.18%62.92%
74
Outperform
¥25.24B19.523.62%8.28%-9.94%
64
Neutral
¥14.00B16.160.91%23.90%167.67%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
57
Neutral
¥15.39B-22.5217.69%-175.52%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3741
Systems Engineering Consultants Co., Ltd.
2,833.00
404.18
16.64%
JP:3850
NTT Data Intramart Corporation
3,035.00
-529.54
-14.86%
JP:3915
TerraSky Co., Ltd.
2,155.00
-79.21
-3.55%
JP:4434
Serverworks Co., Ltd.
1,772.00
-277.90
-13.56%
JP:4847
Intelligent Wave Inc.
952.00
-82.54
-7.98%
JP:5036
Japan Business Systems, Inc.
1,557.00
212.77
15.83%

Systems Engineering Consultants Co., Ltd. Corporate Events

Systems Engineering Consultants to Streamline Leadership as Chairperson Retires
May 14, 2026
Systems Engineering Consultants Co., Ltd. announced that Chairperson and Representative Director Itsushi Akiyama will retire from his role as Representative Director upon the expiration of his term. His retirement is scheduled to take effect at th...
Systems Engineering Consultants Posts Higher Earnings and Boosts Balance Sheet Strength
May 12, 2026
Systems Engineering Consultants reported robust results for the fiscal year ended March 31, 2026, with net sales rising 9.0% to ¥11.22 billion and profit increasing 12.3% to ¥1.51 billion, while margins remained healthy despite a slight ...
Systems Engineering Consultants Lifts Earnings Outlook and Hikes Dividend on Strong Project Demand
Apr 27, 2026
Systems Engineering Consultants has raised its non-consolidated financial forecast for the fiscal year ended March 31, 2026, reflecting stronger than expected demand in contactless IC-related technologies, medical projects, and government and muni...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 14, 2026