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System Research Co., Ltd. (JP:3771)
:3771
Japanese Market

System Research Co., Ltd. (3771) Price & Analysis

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3771 Stock Chart & Stats

¥2029.00
-¥13.00(-0.92%)
At close: 4:00 PM EST
¥2029.00
-¥13.00(-0.92%)

Bulls Say, Bears Say

Bulls Say
Strong Balance Sheet / Low LeverageA very low debt-to-equity ratio (0.11) and a high equity ratio (67.4%) provide durable financial flexibility. This conservative capital structure supports investment in projects, cushions cyclical revenue swings typical in IT services, and reduces refinancing risk over the medium term.
Consistent Revenue Growth With Healthy MarginsSustained revenue growth (~11% year-on-year) combined with double-digit operating margins indicates structural operational efficiency in delivering SI and services. Consistent margins imply scalable delivery and pricing power, supporting sustainable profitability as revenue grows over multiple reporting periods.
Recurring Services Revenue MixA significant portion of revenue comes from operation, maintenance and support fees billed periodically. This recurring revenue component smooths overall cash flow, increases customer lifetime value and enables predictable maintenance-driven demand, reducing reliance on one-off project wins.
Bears Say
Declining Free Cash FlowA ~35% drop in free cash flow is a material structural concern: it reduces internal funding for capex, strategic initiatives, and shareholder returns. If the decline reflects higher working capital or capex needs rather than one-off items, it could constrain growth investments and weaken financial resilience.
Moderate Free Cash Flow ConversionOnly ~44% of net income converting to free cash flow signals lower cash generation quality relative to earnings. Persistently weak conversion limits the company’s capacity to fund organic growth, smooth dividends, or repay debt without altering capital allocation or improving working capital management.
Project-based Revenue Volatility / Contract UncertaintyHeavy reliance on system-integration projects creates inherent revenue and margin cyclicality. The unspecified contract mix (fixed-price vs T&M) increases earnings and cashflow predictability risk: fixed-price work can compress margins on overruns, while T&M can lead to utilization-driven revenue swings.

System Research Co., Ltd. News

3771 FAQ

What was System Research Co., Ltd.’s price range in the past 12 months?
System Research Co., Ltd. lowest stock price was ¥1342.00 and its highest was ¥2280.00 in the past 12 months.
    What is System Research Co., Ltd.’s market cap?
    System Research Co., Ltd.’s market cap is ¥29.06B.
      When is System Research Co., Ltd.’s upcoming earnings report date?
      System Research Co., Ltd.’s upcoming earnings report date is May 13, 2026 which is in 46 days.
        How were System Research Co., Ltd.’s earnings last quarter?
        System Research Co., Ltd. released its earnings results on Jan 30, 2026. The company reported ¥40.04 earnings per share for the quarter, beating the consensus estimate of N/A by ¥40.04.
          Is System Research Co., Ltd. overvalued?
          According to Wall Street analysts System Research Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium
            Does System Research Co., Ltd. pay dividends?
            System Research Co., Ltd. pays a Annually dividend of ¥60 which represents an annual dividend yield of 2.93%. See more information on System Research Co., Ltd. dividends here
              What is System Research Co., Ltd.’s EPS estimate?
              System Research Co., Ltd.’s EPS estimate for its next earnings report is not yet available.
              How many shares outstanding does System Research Co., Ltd. have?
              System Research Co., Ltd. has 16,720,000 shares outstanding.
                What happened to System Research Co., Ltd.’s price movement after its last earnings report?
                System Research Co., Ltd. reported an EPS of ¥40.04 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.925%.
                  Which hedge fund is a major shareholder of System Research Co., Ltd.?
                  Currently, no hedge funds are holding shares in JP:3771
                  What is the TipRanks Smart Score and how is it calculated?
                  Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                    Company Description

                    System Research Co., Ltd.

                    System Research Co.,Ltd. offers software development services in Japan. It also provides outsourcing and web related services. System Research Co.,Ltd. was founded in 1981 and is headquartered in Nagoya, Japan.

                    System Research Co., Ltd. (3771) Earnings & Revenues

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