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

• Market Cap: ¥34.05B
• Dividend Yield: 2.95%
• Average Volume (3M): 25.30K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.93
• Revenue Growth: 11.20%
• EPS Growth: 12.36%
• Country: JP
• Employees: 1,442
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): 38.64
• Shares Outstanding: 16,720,000
• 10 Day Avg. Volume: 22,360
• 30 Day Avg. Volume: 25,303
• PEG Ratio: 1.90
• Price to Book (P/B): 2.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,075.00
• Price Target Upside: 1.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: ¥2,357.00 ▲(15.71%Upside)

System Research Co., Ltd. achieves a strong overall stock score due to its robust financial performance and solid technical analysis indicators. While the valuation is fair, the high RSI and Stochastic indicators suggest potential caution for investors. The absence of earnings call data or corporate events means these factors do not influence the score.

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

Company Description

System Research Co., Ltd. (3771) is a Japanese company primarily engaged in the provision of information technology and software services. The company specializes in offering system integration services, software development, and IT consulting solutions. These services cater to various industries, including finance, manufacturing, and retail, providing clients with tailored technology solutions to enhance their operational efficiency and business processes.

How the Company Makes Money

System Research Co., Ltd. generates revenue through several key streams, primarily centered around its IT and software services. The company earns income by providing system integration services, which involve designing and implementing comprehensive IT systems for clients. Additionally, software development constitutes a significant revenue stream, where the company develops custom applications and software solutions tailored to client needs. IT consulting services also contribute to earnings, as the company offers expert advice and strategic planning to help businesses optimize their technology use. Partnerships with other technology firms and long-term contracts with major clients further bolster its revenue through sustained service agreements and collaborative projects.

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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	25.93B	23.32B	21.56B	18.41B	16.16B
Gross Profit	6.03B	5.36B	4.82B	4.12B	3.47B
EBITDA	3.29B	2.86B	2.32B	2.24B	1.72B
Net Income	2.19B	1.97B	1.60B	1.49B	1.09B
Balance Sheet
Total Assets	17.53B	16.15B	14.18B	12.88B	11.20B
Cash, Cash Equivalents and Short-Term Investments	8.20B	8.33B	7.37B	6.35B	5.84B
Total Debt	1.30B	1.44B	1.40B	1.40B	1.43B
Total Liabilities	5.70B	5.63B	5.05B	4.75B	4.05B
Stockholders Equity	11.81B	10.51B	9.12B	8.12B	7.14B
Cash Flow
Free Cash Flow	971.47M	1.50B	1.51B	1.23B	942.47M
Operating Cash Flow	2.06B	2.46B	1.80B	1.29B	1.09B
Investing Cash Flow	-1.14B	-926.71M	-273.30M	-254.65M	-144.11M
Financing Cash Flow	-1.04B	-546.50M	-501.65M	-526.75M	-466.15M

System Research Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2037.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2037 is above the 20-day moving average (MA) of 1918.00, above the 50-day MA of 1870.48, and above the 200-day MA of 1592.29, indicating a bullish trend. The MACD of 30.52 indicates Negative momentum. The RSI at 69.47 is Neutral, neither overbought nor oversold. The STOCH value of 91.93 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3763	82 Outperform	¥35.10B	18.18		1.94%	3.22%	13.30%
3771	81 Outperform	¥34.05B	15.40		2.95%	11.20%	12.36%
3921	77 Outperform	¥24.10B	15.59		2.32%	13.73%	61.79%
3712	72 Outperform	¥17.02B	14.14		2.17%	2.71%	9.95%
5254	68 Neutral	¥31.94B	42.00		―	40.09%	31.05%
4259	55 Neutral	¥39.15B	―		―	17.02%	-314.32%
Sector *	50 Neutral	C$3.11B	2.54	-63.57%	2.26%	4.49%	-6.15%

System Research Co., Ltd. Corporate Events

System Research Co., Ltd. Reports Strong Q1 2025 Financial Results

System Research Co., Ltd. reported a strong financial performance for the three months ended June 30, 2025, with a 12.1% increase in net sales and a significant rise in operating profit by 26.8% compared to the previous year. This growth underscores the company’s robust market positioning and operational efficiency, benefiting stakeholders through improved profitability and financial stability.

System Research Co., Ltd. Announces Restricted Stock Compensation Plan

System Research Co., Ltd. has announced a resolution to dispose of 19,250 treasury shares as restricted stock compensation for six of its directors. This move, approved by the Board of Directors, is part of a new compensation plan aimed at aligning the interests of directors with shareholders and enhancing corporate value. The plan involves granting monetary compensation claims to directors, which will be used to acquire restricted stock, fostering long-term commitment and shared value. This strategic decision reflects the company’s focus on sustainable growth and stakeholder alignment.

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

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

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

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.