System Research Co., Ltd. (JP:3771)
:3771
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System Research Co., Ltd.
(3771)
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Rating:76Outperform
Price Target:
¥1,963.00
▼(-3.25% Downside)
Action:Reiterated
Date:05/13/26
The score is driven primarily by strong financial performance (steady growth, improving profitability, and very low leverage) and supportive valuation (low P/E and ~4% yield). These positives are tempered by mixed-to-weak technicals, with negative MACD and the stock still below longer-term moving averages.
Positive Factors
Consistent revenue growth
Sustained top-line expansion from ¥18.4B to ¥29.1B over 2022–2026 indicates durable demand for the company’s IT services. A growing revenue base supports scale, recurring maintenance contracts, and reinvestment ability, reducing dependence on single large projects.
Negative Factors
Weak cash conversion from operations
Subpar cash conversion versus operating profit points to working-capital timing or client payment terms that depress cash flow. This structural drag can make cash generation volatile, constrain reinvestment or dividend sustainability, and raise dependence on short-term funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent revenue growth
Sustained top-line expansion from ¥18.4B to ¥29.1B over 2022–2026 indicates durable demand for the company’s IT services. A growing revenue base supports scale, recurring maintenance contracts, and reinvestment ability, reducing dependence on single large projects.
Read all positive factors
System Research Co., Ltd. (3771) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥29.39B
Dividend Yield2.93%
Average Volume (3M)65.13K
Price to Earnings (P/E)10.7
Beta (1Y)0.87
Revenue Growth12.16%
EPS Growth18.97%
CountryJP
Employees1,442
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)137.86
Shares Outstanding16,720,000
10 Day Avg. Volume28,730
30 Day Avg. Volume65,130
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)2.07
Price to Sales (P/S)0.96
P/FCF Ratio16.55
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
83
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.68B | 29.08B | 25.93B | 23.32B | 21.56B | 18.41B |
| Gross Profit | 6.21B | 6.76B | 6.03B | 5.36B | 4.82B | 4.12B |
| EBITDA | 3.34B | 3.47B | 3.20B | 2.88B | 2.66B | 2.20B |
| Net Income | 2.28B | 2.61B | 2.19B | 1.97B | 1.60B | 1.49B |
Balance Sheet | ||||||
| Total Assets | 16.02B | 19.46B | 17.53B | 16.15B | 14.18B | 12.88B |
| Cash, Cash Equivalents and Short-Term Investments | 7.08B | 8.43B | 8.20B | 8.33B | 7.37B | 6.35B |
| Total Debt | 1.36B | 580.58M | 1.30B | 1.44B | 1.40B | 1.40B |
| Total Liabilities | 4.74B | 5.97B | 5.70B | 5.63B | 5.05B | 4.75B |
| Stockholders Equity | 11.26B | 13.46B | 11.81B | 10.51B | 9.12B | 8.12B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.68B | 971.47M | 1.59B | 1.59B | 1.28B |
| Operating Cash Flow | 0.00 | 2.50B | 2.06B | 2.46B | 1.80B | 1.29B |
| Investing Cash Flow | 0.00 | -942.32M | -1.14B | -926.71M | -273.30M | -254.65M |
| Financing Cash Flow | 0.00 | -1.33B | -1.04B | -546.50M | -501.65M | -526.75M |
System Research Co., Ltd. Technical Analysis
Positive
2029.00
Price Trends
1701.50
Positive
1783.41
Positive
1881.67
Negative
Market Momentum
10.79
Negative
66.52
Neutral
80.61
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 2029 is above the 20-day moving average (MA) of 1704.25, above the 50-day MA of 1701.50, and above the 200-day MA of 1881.67, indicating a neutral trend. The MACD of 10.79 indicates Negative momentum. The RSI at 66.52 is Neutral, neither overbought nor oversold. The STOCH value of 80.61 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥29.39B | 10.67 | ― | 2.93% | 12.16% | 18.97% | |
74 Outperform | ¥4.87B | 11.95 | ― | 2.28% | 16.55% | -21.42% | |
70 Outperform | ¥22.68B | 7.22 | ― | 4.58% | 6.58% | 35.23% | |
66 Neutral | ¥42.54B | 18.56 | ― | 1.50% | 10.69% | 6.99% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
47 Neutral | ¥5.29B | -20.80 | ― | ― | -29.01% | 82.89% |
* Technology Sector Average
JP:3771
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System Research Co., Ltd. Corporate Events
System Research Strengthens Governance With New Independent Audit Director and Board Continuity
May 11, 2026
System Research Co., Ltd. has proposed the reappointment of its six current directors, including Representative Director and President Hiroshi Hirayama, for approval at its 46th Ordinary General Meeting of Shareholders on June 25, 2026. The move s...
System Research Posts Double-Digit Profit Growth and Hikes Dividend for FY2026
May 11, 2026
System Research reported consolidated net sales of ¥29.08 billion for the fiscal year ended March 31, 2026, up 12.1% year on year, with operating profit rising 15.7% to ¥3.47 billion and profit attributable to owners of parent climbing 1...
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.