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

• Market Cap: ¥33.62B
• Dividend Yield: 2.93%
• Average Volume (3M): 65.13K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.91
• Revenue Growth: 11.53%
• EPS Growth: 23.23%
• Country: JP
• Employees: 1,442
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 41.02
• Shares Outstanding: 16,720,000
• 10 Day Avg. Volume: 28,730
• 30 Day Avg. Volume: 65,130
• PEG Ratio: 0.96
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 26.66
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥2,365.00 ▲(16.56% Upside)

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

Revenue Growth

Consistent revenue growth indicates expanding market reach and effective product adoption, supporting long-term business sustainability.

Balance Sheet Strength

A low debt-to-equity ratio enhances financial stability and flexibility, allowing the company to invest in growth opportunities without excessive risk.

Profitability Metrics

Improved profitability metrics suggest efficient operations and cost management, which can sustain competitive advantage and shareholder value.

Negative Factors

Cash Flow Generation

Declining free cash flow could limit the company's ability to fund new projects and return capital to shareholders, impacting long-term growth.

Cash Flow to Net Income Ratio

A moderate cash flow to net income ratio suggests potential inefficiencies in cash conversion, which may affect liquidity and investment capacity.

Cash Flow Management

Suboptimal cash flow management can constrain operational flexibility and limit strategic investments, affecting long-term competitiveness.

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. generates revenue primarily through its software solutions and IT services. The company earns money by charging clients for system integration projects, custom software development, and ongoing IT support and consulting services. Key revenue streams include project-based contracts, long-term service agreements, and maintenance fees for software products. Additionally, the company may engage in partnerships with other firms to enhance its service offerings, thereby expanding its customer base and increasing its earnings potential. These strategic alliances can lead to joint ventures, co-development of technologies, and access to new markets, further contributing to the company's financial growth.

System Research Co., Ltd. Financial Statement Overview

Summary

System Research Co., Ltd. demonstrates strong financial health with robust revenue growth and profitability metrics. The balance sheet is solid with low leverage and strong equity backing. However, there is room for improvement in cash flow generation, which slightly tempers the overall financial performance score.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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	3.35B	3.29B	2.86B	2.32B	2.24B	1.72B
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	1.50B	1.51B	1.23B	942.47M
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

• Technical Analysis Sentiment: Neutral
• Last Price: 2029.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2010.95, above the 50-day MA of 1991.92, and above the 200-day MA of 1939.42, indicating a bullish trend. The MACD of 7.19 indicates Positive momentum. The RSI at 50.23 is Neutral, neither overbought nor oversold. The STOCH value of 44.84 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3763	82 Outperform	¥49.31B	17.13	―	1.92%	20.81%	68.06%
3712	80 Outperform	¥20.90B	17.52	―	1.81%	6.39%	6.38%
3771	77 Outperform	¥33.62B	13.79	―	2.93%	11.53%	23.23%
3921	74 Outperform	¥26.53B	14.87	―	2.53%	16.13%	62.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4259	61 Neutral	¥54.03B	-28.98	―	―	8.98%	-581.59%
5254	58 Neutral	¥22.75B	42.79	―	―	40.99%	-36.76%

System Research Co., Ltd. Corporate Events

System Research Co., Ltd. Announces Corrections to Financial Results

System Research Co., Ltd. announced corrections to its previously released consolidated financial results for the six months ended September 30, 2025. The corrections involve adjustments to the cash flow statements, with revised figures showing an increase in net cash provided by operating activities and a higher net cash used in financing activities. These corrections could impact stakeholders’ understanding of the company’s financial position and cash management strategies.

The most recent analyst rating on (JP:3771) stock is a Buy with a Yen2365.00 price target. To see the full list of analyst forecasts on System Research Co., Ltd. stock, see the JP:3771 Stock Forecast page.

System Research Co., Ltd. Reports Strong Financial Growth for H1 2025

System Research Co., Ltd. reported a significant increase in its financial performance for the six months ending September 30, 2025, with net sales rising by 12.3% and operating profit increasing by 24.3% compared to the previous year. This growth reflects the company’s strong market positioning and effective operational strategies, which have positively impacted its profitability and stakeholder confidence.

The most recent analyst rating on (JP:3771) stock is a Buy with a Yen2363.00 price target. To see the full list of analyst forecasts on System Research Co., Ltd. stock, see the JP:3771 Stock Forecast page.