System Research Co., Ltd. (JP:3771)
:3771
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System Research Co., Ltd.
(3771)
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Rating:77Outperform
Price Target:
¥1,858.00
▼(-8.43% Downside)
Action:ReiteratedDate:10/30/25
System Research Co., Ltd. scores well due to its strong financial performance and reasonable valuation. The technical analysis suggests some short-term caution but indicates longer-term strength. The absence of earnings call data and corporate events does not impact the overall score significantly.
Positive Factors
Balance sheet strength
Conservative leverage and high equity backing provide durable financial flexibility. A D/E of 0.11 and 67.4% equity ratio reduce refinancing and solvency risk, while an 18.6% ROE shows efficient capital use, supporting long-term investment, dividend capacity, and resilience in downturns.
Negative Factors
Free cash flow decline
A ~35% drop in free cash flow and a FCF/net income ratio of 0.44 weaken the company’s capacity to self-fund growth or increase distributions. If sustained, lower FCF limits strategic flexibility, risks higher external financing needs, and can constrain capital allocation for long-term initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Conservative leverage and high equity backing provide durable financial flexibility. A D/E of 0.11 and 67.4% equity ratio reduce refinancing and solvency risk, while an 18.6% ROE shows efficient capital use, supporting long-term investment, dividend capacity, and resilience in downturns.
Read all positive factors
System Research Co., Ltd. (3771) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥27.37B
Dividend Yield2.93%
Average Volume (3M)65.13K
Price to Earnings (P/E)12.7
Beta (1Y)0.86
Revenue Growth11.25%
EPS Growth18.69%
CountryJP
Employees1,442
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)40.04
Shares Outstanding16,720,000
10 Day Avg. Volume28,730
30 Day Avg. Volume65,130
Financial Highlights & Ratios
PEG Ratio0.96
Price to Book (P/B)2.19
Price to Sales (P/S)1.00
P/FCF Ratio26.66
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)N/A
Revenue Forecast (FY)N/A
System Research Co., Ltd. Business Overview & Revenue Model
Company Description
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....
How the Company Makes Money
System Research Co., Ltd. primarily makes money by delivering IT services under customer contracts. Key revenue streams typically include: (1) systems integration and custom development fees earned from building and implementing customer-specific ...
System Research Co., Ltd. Financial Statement Overview
Summary
Income Statement
87
Very Positive
Balance Sheet
91
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.68B | 25.93B | 23.32B | 21.56B | 18.41B | 16.16B |
| Gross Profit | 6.21B | 6.03B | 5.36B | 4.82B | 4.12B | 3.47B |
| EBITDA | 3.34B | 3.20B | 2.88B | 2.66B | 2.20B | 1.68B |
| Net Income | 2.28B | 2.19B | 1.97B | 1.60B | 1.49B | 1.09B |
Balance Sheet | ||||||
| Total Assets | 16.02B | 17.53B | 16.15B | 14.18B | 12.88B | 11.20B |
| Cash, Cash Equivalents and Short-Term Investments | 7.08B | 8.20B | 8.33B | 7.37B | 6.35B | 5.84B |
| Total Debt | 1.36B | 1.30B | 1.44B | 1.40B | 1.40B | 1.43B |
| Total Liabilities | 4.74B | 5.70B | 5.63B | 5.05B | 4.75B | 4.05B |
| Stockholders Equity | 11.26B | 11.81B | 10.51B | 9.12B | 8.12B | 7.14B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 971.47M | 1.59B | 1.59B | 1.28B | 1.01B |
| Operating Cash Flow | 0.00 | 2.06B | 2.46B | 1.80B | 1.29B | 1.09B |
| Investing Cash Flow | 0.00 | -1.14B | -926.71M | -273.30M | -254.65M | -144.11M |
| Financing Cash Flow | 0.00 | -1.04B | -546.50M | -501.65M | -526.75M | -466.15M |
System Research Co., Ltd. Technical Analysis
Neutral
2029.00
Price Trends
1726.31
Positive
1816.99
Negative
1893.15
Negative
Market Momentum
6.64
Negative
52.48
Neutral
40.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3771, the sentiment is Neutral. The current price of 2029 is above the 20-day moving average (MA) of 1709.93, above the 50-day MA of 1726.31, and above the 200-day MA of 1893.15, indicating a neutral trend. The MACD of 6.64 indicates Negative momentum. The RSI at 52.48 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3771.
System Research Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥27.37B | 12.67 | ― | 2.93% | 11.25% | 18.69% | |
74 Outperform | ¥4.95B | 12.19 | ― | 2.28% | 16.55% | -21.42% | |
72 Outperform | ¥47.42B | 23.84 | ― | 1.50% | 11.96% | 15.12% | |
70 Outperform | ¥24.93B | 13.84 | ― | 4.58% | 6.58% | 35.23% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
47 Neutral | ¥5.50B | -18.61 | ― | ― | -37.31% | 68.53% |
* Technology Sector Average
JP:3771
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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.