Systems Engineering Consultants Co., Ltd. (JP:3741)
:3741
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Systems Engineering Consultants Co., Ltd.
(3741)
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Rating:75Outperform
Price Target:
¥3,306.00
▲(5.96% Upside)
Action:ReiteratedDate:01/14/26
The score is driven primarily by strong financial fundamentals (rapid revenue growth, solid margins, and very low leverage), offset by the recent deterioration in cash generation. Technically the trend is positive, but overbought signals increase short-term risk. Valuation is not cheap (P/E ~24) and the dividend yield is modest, which limits upside from a valuation standpoint.
Positive Factors
Revenue growth & margins
Sustained ~20% revenue growth combined with high EBIT and net margins indicates a scalable software-infrastructure business with durable gross economics and pricing power. This profitable growth profile supports reinvestment into product and sales capabilities while sustaining operating profitability over the medium term.
Negative Factors
Weakened operating cash flow
The deterioration in operating cash flow points to weaker accrual-to-cash conversion despite accounting profitability. If this trend persists, it will constrain internally generated capital for R&D, capex, and working capital, potentially forcing external financing and reducing strategic flexibility over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & margins
Sustained ~20% revenue growth combined with high EBIT and net margins indicates a scalable software-infrastructure business with durable gross economics and pricing power. This profitable growth profile supports reinvestment into product and sales capabilities while sustaining operating profitability over the medium term.
Read all positive factors
Systems Engineering Consultants Co., Ltd. (3741) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥30.46B
Dividend Yield1.74%
Average Volume (3M)124.77K
Price to Earnings (P/E)19.4
Beta (1Y)1.03
Revenue Growth21.97%
EPS Growth15.89%
CountryJP
Employees347
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)40.28
Shares Outstanding10,240,000
10 Day Avg. Volume118,140
30 Day Avg. Volume124,770
Financial Highlights & Ratios
PEG Ratio-0.44
Price to Book (P/B)2.47
Price to Sales (P/S)2.24
P/FCF Ratio-83.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)152
Revenue Forecast (FY)¥12.00B
Systems Engineering Consultants Co., Ltd. Business Overview & Revenue Model
Company Description
Systems Engineering Consultants Co.,LTD., a software development company, provides real-time software solutions in mobile networking, Internet technology, and public infrastructure fields in Japan. Its mobile networking business develops embedded ...
How the Company Makes Money
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Systems Engineering Consultants Co., Ltd. Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.42B | 10.30B | 8.53B | 7.49B | 6.56B | 6.53B |
| Gross Profit | 3.06B | 3.07B | 2.55B | 2.24B | 1.97B | 1.85B |
| EBITDA | 1.83B | 1.94B | 1.58B | 1.32B | 1.14B | 1.08B |
| Net Income | 1.30B | 1.34B | 1.11B | 878.83M | 780.30M | 727.68M |
Balance Sheet | ||||||
| Total Assets | 10.68B | 12.04B | 10.11B | 9.39B | 8.60B | 8.09B |
| Cash, Cash Equivalents and Short-Term Investments | 5.60B | 2.23B | 2.97B | 3.08B | 3.23B | 2.85B |
| Total Debt | 326.75M | 46.55M | 36.00M | 36.00M | 36.00M | 36.00M |
| Total Liabilities | 1.66B | 2.71B | 1.71B | 1.79B | 1.51B | 1.51B |
| Stockholders Equity | 9.01B | 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
Neutral
3120.00
Price Trends
3482.41
Negative
3222.07
Negative
2820.79
Positive
Market Momentum
-163.68
Negative
46.47
Neutral
39.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3741, the sentiment is Neutral. The current price of 3120 is below the 20-day moving average (MA) of 3173.02, below the 50-day MA of 3482.41, and above the 200-day MA of 2820.79, indicating a neutral trend. The MACD of -163.68 indicates Negative momentum. The RSI at 46.47 is Neutral, neither overbought nor oversold. The STOCH value of 39.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3741.
Systems Engineering Consultants Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥30.46B | 19.37 | ― | 1.74% | 21.97% | 15.89% | |
75 Outperform | ¥69.35B | 9.67 | ― | 2.35% | 22.52% | 271.71% | |
74 Outperform | ¥25.76B | 13.43 | ― | 3.62% | 6.02% | -11.83% | |
68 Neutral | ¥21.45B | 9.96 | ― | ― | 17.93% | 91.21% | |
65 Neutral | ¥13.62B | 25.11 | ― | 0.91% | 15.28% | 60.07% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | ¥15.78B | 8.71 | ― | ― | ― | ― |
* Technology Sector Average
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Systems Engineering Consultants Co., Ltd. Corporate Events
Systems Engineering Consultants Delivers Profit Growth and Confirms Guidance Despite Stock Split
Feb 9, 2026
Systems Engineering Consultants reported non-consolidated net sales of ¥8,068 million for the nine months ended December 31, 2025, up 13.8% year on year, with operating profit rising 9.2% to ¥1,364 million and net profit increasing 12.2%...
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.