System D Inc. (3804) AI Stock Analysis

• Market Cap: ¥13.25B
• Dividend Yield: 1.16%
• Average Volume (3M): 2.00K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.06
• Revenue Growth: 7.42%
• EPS Growth: 10.13%
• Country: JP
• Employees: 280
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Application
• EPS (TTM): 54.46
• Shares Outstanding: 6,498,000
• 10 Day Avg. Volume: 670
• 30 Day Avg. Volume: 2,000
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥2,311.00
• Price Target Upside: 11.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥2,311.00 ▲(11.64% Upside)

System D Inc. demonstrates strong financial performance with excellent profitability and cash flow management, which is the most significant factor in its overall score. The technical analysis suggests a bearish trend, which slightly dampens the outlook. The valuation is fair, with a reasonable P/E ratio and a modest dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

System D Inc. Business Overview & Revenue Model

Company Description

System D Inc. (3804) is a technology-driven company specializing in providing innovative software solutions and services primarily for the logistics and supply chain sectors. The company focuses on optimizing operational efficiency through advanced data analytics, cloud computing, and automation technologies. System D Inc. offers a range of products including inventory management systems, transportation management software, and real-time tracking solutions, catering to both small and large enterprises seeking to enhance their operational capabilities.

How the Company Makes Money

System D Inc. generates revenue through a multi-faceted model that includes subscription fees for its software as a service (SaaS) products, one-time sales of software licenses, and consulting services related to implementation and optimization of its solutions. Key revenue streams include recurring monthly or annual subscriptions from clients utilizing its cloud-based platforms, as well as additional income from training and support services. The company has secured significant partnerships with major logistics providers and e-commerce platforms, which not only expands its customer base but also enhances its service offerings, contributing to sustained revenue growth.

System D Inc. Financial Statement Overview

Summary

System D Inc. demonstrates strong financial performance with robust revenue growth, efficient operations, and excellent cash flow management. The company has a low debt-to-equity ratio and maintains financial stability, though there is a slight decline in net income and a minor increase in total liabilities.

Income Statement

System D Inc. has demonstrated strong financial performance with a consistent increase in revenue over the past years, indicating robust growth. The EBIT and EBITDA margins are healthy, reflecting efficient operations and a strong profit structure. However, the slight decline in net income in the current year compared to the previous year suggests some pressure on bottom-line profitability.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, highlighting its conservative leverage strategy. The return on equity is solid, indicating effective use of shareholders' funds. The equity ratio is high, suggesting financial stability and a strong buffer against liabilities, though there is a slight increase in total liabilities that warrants monitoring.

Cash Flow

System D Inc. exhibits excellent cash flow management with significant growth in free cash flow, driven by strong operating cash flows. The operating cash flow to net income ratio underscores the company's ability to convert profits into cash, enhancing liquidity and operational flexibility. The free cash flow to net income ratio is also strong, indicating effective capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.70B	4.63B	4.74B	4.23B	3.84B	3.85B
Gross Profit	2.05B	2.00B	2.07B	1.95B	1.82B	1.76B
EBITDA	948.62M	1.34B	1.38B	1.33B	1.20B	1.09B
Net Income	587.99M	555.95M	632.70M	591.58M	573.60M	510.69M
Balance Sheet
Total Assets	6.59B	6.96B	6.25B	5.90B	4.70B	4.58B
Cash, Cash Equivalents and Short-Term Investments	2.06B	2.03B	1.19B	1.23B	1.14B	1.09B
Total Debt	342.00M	313.36M	433.35M	561.71M	40.26M	148.63M
Total Liabilities	2.30B	2.46B	2.15B	2.32B	1.60B	1.59B
Stockholders Equity	4.30B	4.51B	4.09B	3.58B	3.10B	2.98B
Cash Flow
Free Cash Flow	0.00	1.10B	348.76M	-318.29M	389.73M	562.20M
Operating Cash Flow	0.00	1.50B	900.33M	1.17B	868.04M	1.12B
Investing Cash Flow	0.00	-398.54M	-682.47M	-1.49B	-478.04M	-551.10M
Financing Cash Flow	0.00	-266.74M	-255.83M	406.51M	-342.14M	-198.40M

System D Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2070.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3804, the sentiment is Neutral. The current price of 2070 is below the 20-day moving average (MA) of 2213.95, below the 50-day MA of 2152.44, and above the 200-day MA of 1691.46, indicating a neutral trend. The MACD of -9.65 indicates Positive momentum. The RSI at 39.15 is Neutral, neither overbought nor oversold. The STOCH value of 5.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3804.

System D Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3856	82 Outperform	¥17.83B	13.20		0.38%	-54.70%	-73.05%
3804	71 Outperform	¥13.25B	20.11		1.16%	7.42%	10.13%
5591	69 Neutral	¥8.92B	49.41		―	―	―
4015	66 Neutral	¥11.80B	43.60		―	62.19%	40.77%
5248	62 Neutral	¥13.88B	31.49		―	69.06%	464.48%
Sector *	50 Neutral	C$3.36B	0.08	-5.03%	7.63%	9.15%	-16.14%
3823	38 Underperform	¥6.45B	―		―	99.79%	7.36%