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

System Research Co., Ltd. (3771) AI Stock Analysis

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JP

System Research Co., Ltd.

(3771)

Rating:80Outperform
Price Target:
¥2,075.00
▲(9.85%Upside)
System Research Co., Ltd. exhibits strong financial performance, particularly in revenue growth and balance sheet stability, which are the most significant factors driving its stock score. Technical analysis supports a bullish trend, adding to the positive outlook. Valuation metrics indicate the stock is fairly valued with a decent dividend yield, enhancing its appeal.

System Research Co., Ltd. (3771) vs. iShares MSCI Japan ETF (EWJ)

System Research Co., Ltd. Business Overview & Revenue Model

Company DescriptionSystem Research Co., Ltd. (3771) is a technology company primarily engaged in the development and provision of software solutions and IT services. The company operates in various sectors, including finance, telecommunications, and public sectors, offering a range of products such as system integration, IT infrastructure management, and consulting services. It is committed to delivering innovative and efficient technology solutions to enhance business operations and drive digital transformation for its clients.
How the Company Makes MoneySystem Research Co., Ltd. generates revenue through multiple streams centered around its software solutions and IT services. The primary revenue model involves fees from system integration projects where the company designs and implements customized IT systems for clients. Additionally, the company earns income from IT infrastructure management services, providing ongoing support and maintenance for clients' IT environments. Consulting services also contribute to revenue, as System Research Co., Ltd. offers expertise to help organizations improve their technology strategies and processes. The company may form strategic partnerships with technology vendors and other service providers to enhance its offerings and expand its market reach, thereby contributing to its overall earnings.

System Research Co., Ltd. Financial Statement Overview

Summary
System Research Co., Ltd. is financially sound with strong revenue growth and profitability metrics. The balance sheet reflects conservative leverage and strong equity backing, enhancing financial stability. Although cash flow generation shows room for improvement, the overall financial health is robust, positioning it well for future growth.
Income Statement
87
Very Positive
System Research Co., Ltd. has demonstrated strong revenue growth, with a notable increase from ¥23,320 million to ¥25,931 million, a growth rate of approximately 11.2%. Gross profit margin stands at 23.2%, indicating efficient cost management. Net profit margin improved to 8.5%, reflecting enhanced profitability. Both EBIT margin and EBITDA margin are solid, at 11.6% and 12.7% respectively, showcasing robust operational efficiency.
Balance Sheet
91
Very Positive
The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.11, indicating conservative leverage. Return on Equity (ROE) is healthy at 18.6%, suggesting efficient use of equity to generate profits. The equity ratio is strong at 67.4%, highlighting a stable financial position with substantial equity backing its assets.
Cash Flow
78
Positive
System Research Co., Ltd. experienced a decline in free cash flow by approximately 35.3%, which may indicate increased capital expenditures or other cash outflows. However, the operating cash flow to net income ratio is robust at 0.94, reflecting efficient cash conversion from earnings. The free cash flow to net income ratio is moderate at 0.44, suggesting room for improvement in cash flow generation relative to net income.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue25.29B25.93B23.32B21.56B18.41B16.16B
Gross Profit5.76B6.03B5.36B4.82B4.12B3.47B
EBITDA2.89B3.29B2.86B2.32B2.24B1.72B
Net Income2.05B2.19B1.97B1.60B1.49B1.09B
Balance Sheet
Total Assets16.46B17.53B16.15B14.18B12.88B11.20B
Cash, Cash Equivalents and Short-Term Investments8.18B8.20B8.33B7.37B6.35B5.84B
Total Debt1.70B1.30B1.44B1.40B1.40B1.43B
Total Liabilities5.28B5.70B5.63B5.05B4.75B4.05B
Stockholders Equity11.17B11.81B10.51B9.12B8.12B7.14B
Cash Flow
Free Cash Flow0.00971.47M1.50B1.51B1.23B942.47M
Operating Cash Flow0.002.06B2.46B1.80B1.29B1.09B
Investing Cash Flow0.00-1.14B-926.71M-273.30M-254.65M-144.11M
Financing Cash Flow0.00-1.04B-546.50M-501.65M-526.75M-466.15M

System Research Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1889.00
Price Trends
50DMA
1832.64
Positive
100DMA
1713.28
Positive
200DMA
1556.88
Positive
Market Momentum
MACD
30.29
Positive
RSI
52.37
Neutral
STOCH
38.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3771, the sentiment is Positive. The current price of 1889 is below the 20-day moving average (MA) of 1892.60, above the 50-day MA of 1832.64, and above the 200-day MA of 1556.88, indicating a neutral trend. The MACD of 30.29 indicates Positive momentum. The RSI at 52.37 is Neutral, neither overbought nor oversold. The STOCH value of 38.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3771.

System Research Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥35.84B18.56
1.90%3.22%13.30%
80
Outperform
¥24.21B15.66
3.00%13.73%61.79%
80
Outperform
¥31.58B14.28
3.18%11.20%12.36%
72
Outperform
¥16.75B13.91
2.20%2.71%9.95%
64
Neutral
¥31.68B41.66
40.09%31.05%
63
Neutral
$34.07B6.13-11.73%1.80%5.33%-18.31%
55
Neutral
¥33.95B
17.02%-314.32%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3771
System Research Co., Ltd.
1,889.00
362.90
23.78%
JP:3712
Information Planning Co., Ltd.
5,000.00
891.59
21.70%
JP:3763
Pro-Ship Incorporated
2,897.00
1,510.37
108.92%
JP:3921
NEOJAPAN Inc.
1,730.00
-10.24
-0.59%
JP:4259
ExaWizards Inc.
393.00
50.00
14.58%
JP:5254
Arent, Inc.
4,845.00
-345.00
-6.65%

System Research Co., Ltd. Corporate Events

System Research Co., Ltd. Announces Dividend Distribution for Fiscal Year 2025
May 27, 2025

System Research Co., Ltd. announced a resolution to distribute dividends of surplus, with a dividend of 60 yen per share for the fiscal year ending March 31, 2025. This decision reflects the company’s commitment to returning profits to shareholders while maintaining a stable financial structure and aiming for a long-term payout ratio of 40%.

System Research Co., Ltd. Announces Leadership Changes
May 8, 2025

System Research Co., Ltd. announced a change in its leadership, with Toshiyuki Yamada retiring from his role as Representative Director and Chairman, effective after the upcoming shareholders’ meeting in June 2025. The company has proposed new director candidates, including Yoshinobu Ohta and Satoshi Nakagawa, to strengthen its board and continue its strategic direction.

System Research Co., Ltd. Introduces Restricted Stock Plan to Align Director and Shareholder Interests
May 8, 2025

System Research Co., Ltd. announced the introduction of a restricted stock remuneration plan for its directors, aiming to align their interests with shareholders and enhance corporate value. The plan, pending shareholder approval, will allocate up to 25,000 shares annually and is designed to incentivize directors to contribute to the company’s long-term success.

System Research Co., Ltd. Reports Strong Financial Performance for FY2025
May 8, 2025

System Research Co., Ltd. reported an 11.1% increase in net sales for the fiscal year ending March 31, 2025, reaching 25,931 million yen. The company’s operating profit also rose by 10.8% to 2,997 million yen, reflecting strong financial performance. Despite a decrease in cash and cash equivalents, the company maintained a solid equity ratio of 67.3%. The dividend per share was adjusted to 60 yen following a two-for-one share split. The company forecasts continued growth in the next fiscal year, with a projected 13% increase in net sales.

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 27, 2025