Systems Engineering Consultants Co., Ltd. (JP:3741)
:3741
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Systems Engineering Consultants Co., Ltd.
(3741)
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Rating:80Outperform
Price Target:
¥4,318.00
▲(38.40% 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
Profitability
Consistently high net and EBIT margins indicate durable operating economics in the company's software-infrastructure business. Strong margins support reinvestment, buffer cyclical revenue swings, and enable sustainable cash generation and shareholder returns over the medium term.
Negative Factors
Cash-Flow Volatility
Intermittent negative operating and free cash flow despite reported profits points to working-capital swings or timing differences. This variability can complicate capital allocation, constrain discretionary investment or dividends, and raise the need for conservative liquidity management.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability
Consistently high net and EBIT margins indicate durable operating economics in the company's software-infrastructure business. Strong margins support reinvestment, buffer cyclical revenue swings, and enable sustainable cash generation and shareholder returns over the medium term.
Read all positive factors
Systems Engineering Consultants Co., Ltd. (3741) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥35.62B
Dividend Yield1.74%
Average Volume (3M)124.77K
Price to Earnings (P/E)19.5
Beta (1Y)1.08
Revenue Growth8.98%
EPS Growth12.22%
CountryJP
Employees347
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)127.76
Shares Outstanding10,240,000
10 Day Avg. Volume118,140
30 Day Avg. Volume124,770
Financial Highlights & Ratios
PEG Ratio1.59
Price to Book (P/B)2.85
Price to Sales (P/S)2.62
P/FCF Ratio18.40
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)147.1
Revenue Forecast (FY)¥11.70B
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
86
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
66
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.42B | 11.22B | 10.30B | 8.53B | 7.49B | 6.56B |
| Gross Profit | 3.06B | 3.33B | 3.07B | 2.55B | 2.24B | 1.97B |
| EBITDA | 1.83B | 1.94B | 1.94B | 1.58B | 1.32B | 1.14B |
| Net Income | 1.30B | 1.51B | 1.34B | 1.11B | 878.83M | 780.30M |
Balance Sheet | ||||||
| Total Assets | 10.68B | 12.44B | 12.04B | 10.11B | 9.39B | 8.60B |
| Cash, Cash Equivalents and Short-Term Investments | 5.60B | 3.32B | 2.23B | 2.97B | 3.08B | 3.23B |
| Total Debt | 326.75M | 36.00M | 46.55M | 36.00M | 36.00M | 36.00M |
| Total Liabilities | 1.66B | 2.12B | 2.71B | 1.71B | 1.79B | 1.51B |
| Stockholders Equity | 9.01B | 10.31B | 9.33B | 8.40B | 7.60B | 7.09B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.60B | -275.22M | 345.47M | 431.18M | 629.42M |
| Operating Cash Flow | 0.00 | 1.70B | -250.49M | 384.07M | 526.79M | 642.95M |
| Investing Cash Flow | 0.00 | -46.88M | -40.97M | -139.18M | -303.57M | 28.72M |
| Financing Cash Flow | 0.00 | -561.12M | -445.43M | -352.99M | -381.51M | -290.70M |
Systems Engineering Consultants Co., Ltd. Technical Analysis
Positive
3120.00
Price Trends
3224.16
Positive
3342.00
Positive
2895.97
Positive
Market Momentum
170.32
Negative
68.12
Neutral
72.73
Neutral
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 3120 is below the 20-day moving average (MA) of 3240.10, below the 50-day MA of 3224.16, and above the 200-day MA of 2895.97, indicating a bullish trend. The MACD of 170.32 indicates Negative momentum. The RSI at 68.12 is Neutral, neither overbought nor oversold. The STOCH value of 72.73 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥35.62B | 19.48 | ― | 1.74% | 8.98% | 12.22% | |
79 Outperform | ¥23.67B | 11.47 | ― | ― | 13.54% | 54.38% | |
75 Outperform | ¥84.39B | 7.02 | ― | 2.35% | 31.18% | 62.92% | |
74 Outperform | ¥23.87B | 18.05 | ― | 3.62% | 8.28% | -9.94% | |
68 Neutral | ¥16.00B | -40.95 | ― | ― | 12.01% | -191.28% | |
64 Neutral | ¥12.94B | 15.38 | ― | 0.91% | 23.90% | 167.68% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:3741
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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.