System D Inc. (3804) AI Stock Analysis

• Market Cap: ¥11.14B
• Dividend Yield: 1.51%
• Average Volume (3M): 1.83K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.13
• Revenue Growth: 8.65%
• EPS Growth: 12.86%
• Country: JP
• Employees: 280
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 21.54
• Shares Outstanding: 6,498,000
• 10 Day Avg. Volume: 1,050
• 30 Day Avg. Volume: 1,833
• PEG Ratio: 1.54
• Price to Book (P/B): 2.50
• Price to Sales (P/S): 2.49
• P/FCF Ratio: 11.72
• 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: 65 Neutral
• Price Target: ¥2,075.00 ▲(8.92% Upside)

System D Inc.'s overall stock score reflects its strong financial performance and reasonable valuation, offset by technical indicators suggesting bearish momentum. The absence of recent earnings call insights and corporate events limits additional context.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low debt enhances financial stability and provides flexibility for strategic investments and growth opportunities.

Operational Efficiency

Operational efficiency with healthy margins indicates effective management and the ability to sustain profitability over the long term.

Cash Generation Ability

Strong cash generation relative to net income supports ongoing operations and provides resources for reinvestment and shareholder returns.

Negative Factors

Revenue Growth Challenges

Negative revenue growth may hinder the company's ability to expand its market presence and could impact long-term profitability.

Cash Flow Volatility

Volatile cash flow can pose risks to the company's ability to fund operations and investments, potentially affecting financial stability.

Declining Net Profit Margin

A declining net profit margin suggests challenges in maintaining profitability, which could impact long-term financial performance.

System D Inc. Business Overview & Revenue Model

Company Description

System D Inc. (3804) is a technology company specializing in innovative software solutions and digital services. Focused on the telecommunications and information technology sectors, the company develops a range of products that enhance network efficiency and optimize data management. Its core offerings include cloud-based platforms, cybersecurity solutions, and enterprise resource planning (ERP) systems designed to meet the needs of various industries, from small businesses to large corporations.

How the Company Makes Money

System D Inc. generates revenue primarily through the sale of its software products and subscription services. The company utilizes a Software-as-a-Service (SaaS) model, allowing clients to pay for access to its platforms on a recurring basis. Key revenue streams include licensing fees for software deployments, maintenance and support services, and professional consulting for implementation and customization. Additionally, System D Inc. has formed strategic partnerships with major telecommunications providers, enabling them to integrate their solutions into existing infrastructures, thereby expanding their market reach and driving sales growth.

System D Inc. Financial Statement Overview

Summary

System D Inc. presents a strong financial position across all verticals. The company exhibits excellent profitability and operational efficiency, supported by a robust balance sheet with low leverage and high equity. Cash flow generation is particularly strong, indicating effective financial management and potential for future growth. The slight decline in revenue warrants attention, but overall, the financial health is impressive.

Income Statement

System D Inc. demonstrates strong profitability with a consistent gross profit margin around 43% and a net profit margin improving to 12% in the latest year. Revenue growth has been stable, with a slight decline of 2.2% in the most recent year, which is a minor concern. EBIT and EBITDA margins are robust at 18% and 29%, respectively, indicating efficient operational management.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.07, reflecting minimal leverage. Return on equity is solid at 12.3%, showcasing effective use of shareholder funds. The equity ratio is high at 64.7%, indicating a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

System D Inc. has shown impressive cash flow management with a significant free cash flow growth of over 215% in the latest year. The operating cash flow to net income ratio is robust at 2.7, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is also high at 1.98, highlighting efficient capital expenditure management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.10B	5.03B	4.63B	4.74B	4.23B	3.84B
Gross Profit	2.21B	2.18B	2.00B	2.07B	1.95B	1.82B
EBITDA	1.56B	1.43B	1.34B	1.38B	1.33B	1.20B
Net Income	700.39M	627.89M	555.95M	632.70M	591.58M	573.60M
Balance Sheet
Total Assets	7.21B	7.36B	6.96B	6.25B	5.90B	4.70B
Cash, Cash Equivalents and Short-Term Investments	2.78B	2.50B	2.03B	1.19B	1.23B	1.14B
Total Debt	222.00M	193.37M	313.36M	433.35M	561.71M	40.26M
Total Liabilities	2.34B	2.35B	2.46B	2.15B	2.32B	1.60B
Stockholders Equity	4.87B	5.01B	4.51B	4.09B	3.58B	3.10B
Cash Flow
Free Cash Flow	0.00	1.07B	1.10B	348.76M	-318.29M	389.73M
Operating Cash Flow	0.00	1.08B	1.50B	900.33M	1.17B	868.04M
Investing Cash Flow	0.00	-741.00M	-398.54M	-682.47M	-1.49B	-478.04M
Financing Cash Flow	0.00	-261.67M	-266.74M	-255.83M	406.51M	-342.14M

System D Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1905.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3804, the sentiment is Negative. The current price of 1905 is above the 20-day moving average (MA) of 1795.25, below the 50-day MA of 1914.90, and below the 200-day MA of 1941.81, indicating a bearish trend. The MACD of -60.24 indicates Negative momentum. The RSI at 28.44 is Positive, neither overbought nor oversold. The STOCH value of 32.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3804.

System D Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3804	65 Neutral	¥11.14B	17.62	―	1.51%	8.65%	12.86%
5591	65 Neutral	¥8.31B	41.84	―	―	35.46%	59.47%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5248	59 Neutral	¥8.70B	36.44	―	―	-11.49%	40.26%
4015	57 Neutral	¥8.62B	57.69	―	―	49.33%	104.72%
3823	43 Neutral	¥6.97B	-69.95	―	―	134.28%	94.74%
3856	43 Neutral	¥7.41B	1.94	―	1.45%	-40.21%	-54.31%