Keyware Solutions Inc. (3799) AI Stock Analysis

• Market Cap: ¥10.33B
• Dividend Yield: 4.16%
• Average Volume (3M): 8.14K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.86
• Revenue Growth: 4.52%
• EPS Growth: 51.81%
• Country: JP
• Employees: 1,272
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 9,110,000
• 10 Day Avg. Volume: 6,850
• 30 Day Avg. Volume: 8,143
• PEG Ratio: 0.14
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.28
• P/FCF Ratio: -10.17
• 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: 78 Outperform
• Price Target: ¥1,425.00 ▲(34.56% Upside)

The score is driven primarily by strong FY2025 growth/profit improvements and a conservative, debt-free balance sheet, supported by an attractive P/E and dividend yield. The key risk tempering the score is the sharp deterioration in FY2025 cash flow (negative operating and free cash flow), while technically the stock is trending strongly but appears stretched on momentum indicators.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust market demand and effective business strategies, enhancing long-term competitive positioning.

Debt-Free Balance Sheet

A debt-free balance sheet provides financial flexibility and reduces risk, supporting sustainable growth and resilience against economic fluctuations.

Improved Profitability

Improved profitability through higher margins enhances the company's ability to reinvest in growth and withstand competitive pressures.

Negative Factors

Weak Cash Generation

Negative cash flow raises concerns about liquidity and operational efficiency, potentially impacting the company's ability to fund future initiatives.

Equity Decline

A decline in equity can limit financial stability and flexibility, making the company more vulnerable to economic downturns and operational risks.

Mid-Single-Digit Margins

Mid-single-digit margins indicate vulnerability to cost increases, which can erode profitability and competitive advantage if not managed effectively.

Keyware Solutions Inc. Business Overview & Revenue Model

Company Description

Keyware Solutions Inc. creates and sells information systems for the support of social infrastructure in Japan. It offers medical service systems to various medical services divisions, such as examination, nutrition, medical professions, and clinic management analysis systems; transportation operations, includes fare collection, train station revenue administration, settlement with other train lines, and IC cards; social infrastructure solutions; public traffic systems, such as new traffic management and train operation information network systems; passengers-related information systems, including train approaching status displays and destination guide displays, as well as train seat reservation system; and mass media related solutions. The company also provides communication data for fixed phones and mobile phones, packet communication data, customer management, rate management, billing administration, collection administration, and linkage and backbone systems; and air traffic and monitoring control management systems, as well as mobile telecommunications. In addition, it offers various solutions, including applications for ERP, patent administration, medical services, and IP telephony; and support services, including creation, implementation, operation, maintenance, and training services; system integration services, as well as sells hardware, systems, package software products, and related supplies. It offers its products and services for use in financial services, distribution and logistics, manufacturing, telecommunications, transportation, media, government agencies, medical services, network administration, system monitoring, transmission control, and interface control fields, as well as for service providers. The company was formerly known as Nippon Electronics Development Co., Ltd. and changed its name to Keyware Solutions Inc. in January 2001. Keyware Solutions Inc. was founded in 1965 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Keyware Solutions Inc. generates revenue primarily through service contracts for IT consulting, software development, and system integration projects. The company earns income by developing customized software solutions and providing ongoing support and maintenance services to its clients. Additionally, Keyware Solutions offers cloud services and IT infrastructure management, which contribute to its revenue streams. The company may also form strategic partnerships with other technology firms to enhance its service offerings and expand its client base, further driving its earnings.

Keyware Solutions Inc. Financial Statement Overview

Summary

Keyware Solutions Inc. demonstrates strong financial performance with robust revenue growth and solid balance sheet stability. However, recent cash flow challenges highlight potential liquidity concerns.

Income Statement

Keyware Solutions Inc. shows strong revenue growth with a notable increase in gross profit margin over the years. The TTM data reflects a stable EBIT margin, though slightly lower than the previous year. Net profit margin is robust but has seen a slight decline in the TTM period, indicating some pressure on net income.

Balance Sheet

The company has a very healthy balance sheet with a strong equity base. The debt-to-equity ratio is exceptionally low, indicating low leverage and financial stability. Return on equity is solid, reflecting efficient use of shareholder capital.

Cash Flow

The cash flow statements indicate some fluctuations, with a significant drop in operating cash flow in the TTM period. Although free cash flow has grown over the years, the recent absence of operating cash flow poses a potential risk to liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.63B	21.10B	20.51B	19.17B	18.43B	18.63B
Gross Profit	4.27B	4.03B	3.84B	3.44B	2.96B	2.98B
EBITDA	1.44B	1.57B	1.30B	818.61M	845.78M	845.93M
Net Income	1.11B	1.03B	729.50M	482.80M	556.04M	685.89M
Balance Sheet
Total Assets	10.26B	10.78B	12.53B	11.15B	10.75B	10.31B
Cash, Cash Equivalents and Short-Term Investments	2.50B	1.86B	1.96B	1.04B	910.39M	1.10B
Total Debt	0.00	0.00	0.00	0.00	375.00M	1.59B
Total Liabilities	2.91B	3.21B	3.89B	3.35B	3.29B	4.26B
Stockholders Equity	7.34B	7.57B	8.64B	7.81B	7.46B	6.05B
Cash Flow
Free Cash Flow	0.00	-579.58M	1.09B	531.07M	373.63M	-269.11M
Operating Cash Flow	0.00	-333.36M	1.18B	653.67M	552.71M	-193.90M
Investing Cash Flow	0.00	398.22M	-157.63M	-50.85M	-394.10M	-82.23M
Financing Cash Flow	0.00	-166.05M	-99.72M	-474.62M	-343.60M	153.49M

Keyware Solutions Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1059.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3799, the sentiment is Positive. The current price of 1059 is below the 20-day moving average (MA) of 1234.85, below the 50-day MA of 1173.24, and above the 200-day MA of 995.15, indicating a bullish trend. The MACD of 31.73 indicates Negative momentum. The RSI at 80.63 is Negative, neither overbought nor oversold. The STOCH value of 87.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3799.

Keyware Solutions Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2332	80 Outperform	¥8.54B	11.81	―	3.16%	14.02%	2.74%
3799	78 Outperform	¥10.33B	9.87	―	4.16%	4.52%	51.81%
3940	75 Outperform	¥6.26B	15.68	―	2.43%	2.92%	-0.94%
2488	73 Outperform	¥7.82B	12.52	―	2.78%	13.58%	20.32%
4769	70 Outperform	¥8.11B	16.14	―	3.79%	9.11%	26.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Keyware Solutions Inc. Corporate Events

Keyware Solutions Inc. Reports Strong Q2 Financial Performance

Keyware Solutions Inc. reported a significant improvement in its financial performance for the second quarter of the fiscal year ending March 31, 2026. The company saw an 8.2% increase in sales and a remarkable 534.8% rise in operating income compared to the same period last year. This growth reflects the company’s strategic initiatives and market positioning, which have positively impacted its operations and stakeholder confidence. Despite the exclusion of a subsidiary, Keyware Service Inc., the company maintains a strong financial position with a stable ownership equity ratio.