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System D Inc.
(3804)
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Rating:66Neutral
Price Target:
¥475.00
▼(-75.07% Downside)
Action:Reiterated
Date:03/27/26
The score is primarily supported by strong financial performance (healthy margins and very low leverage). It is tempered by a mixed technical picture (below the 200-day average with negative MACD) and a valuation that appears only moderately attractive given a mid-20s P/E and a ~1.8% dividend yield.
Positive Factors
Conservative balance sheet / very low leverage
Very low leverage and steady equity growth give the company lasting financial flexibility. This reduces refinancing and solvency risk during downturns, supports sustained investment in R&D or product development, and provides capacity for opportunistic M&A or shareholder returns without stressing liquidity.
Negative Factors
Sustained revenue slowdown and recent declines
A multi-year top-line slowdown erodes growth optionality and can compress future earnings power. If the revenue decline persists, it may force margin trade-offs, limit reinvestment capacity, and reduce expected returns on new initiatives, making long-term growth recovery more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / very low leverage
Very low leverage and steady equity growth give the company lasting financial flexibility. This reduces refinancing and solvency risk during downturns, supports sustained investment in R&D or product development, and provides capacity for opportunistic M&A or shareholder returns without stressing liquidity.
Read all positive factors
System D Inc. (3804) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥8.46B
Dividend Yield1.51%
Average Volume (3M)1.83K
Price to Earnings (P/E)7.1
Beta (1Y)0.19
Revenue Growth4.34%
EPS Growth-10.36%
CountryJP
Employees290
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)62.33
Shares Outstanding19,494,000
10 Day Avg. Volume1,050
30 Day Avg. Volume1,833
Financial Highlights & Ratios
PEG Ratio1.55
Price to Book (P/B)2.50
Price to Sales (P/S)2.49
P/FCF Ratio11.72
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 D Inc. Business Overview & Revenue Model
Company Description
System D Inc. is a Japanese enterprise specializing in the creation and distribution of tailored software solutions for diverse industrial sectors. Their product range features offerings for educational institutions, wellness programs, public sect...
System D Inc. Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
86
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.26B | 5.03B | 4.63B | 4.74B | 4.23B | 3.84B |
| Gross Profit | 2.28B | 2.18B | 2.00B | 2.07B | 1.95B | 1.82B |
| EBITDA | 1.38B | 1.43B | 1.34B | 1.38B | 1.33B | 1.20B |
| Net Income | 591.80M | 627.89M | 555.95M | 632.70M | 591.58M | 573.60M |
Balance Sheet | ||||||
| Total Assets | 7.61B | 7.37B | 6.96B | 6.25B | 5.90B | 4.70B |
| Cash, Cash Equivalents and Short-Term Investments | 2.90B | 2.50B | 2.03B | 1.19B | 1.23B | 1.14B |
| Total Debt | 133.38M | 193.37M | 313.36M | 433.35M | 561.71M | 40.26M |
| Total Liabilities | 2.34B | 2.36B | 2.46B | 2.15B | 2.32B | 1.60B |
| Stockholders Equity | 5.27B | 5.01B | 4.51B | 4.09B | 3.58B | 3.10B |
Cash Flow | ||||||
| Free Cash Flow | 1.07B | 1.07B | 1.49B | 702.51M | 68.53M | 842.93M |
| Operating Cash Flow | 1.08B | 1.08B | 1.50B | 900.33M | 1.17B | 868.04M |
| Investing Cash Flow | -741.00M | -741.00M | -398.54M | -682.47M | -1.49B | -478.04M |
| Financing Cash Flow | -261.67M | -261.67M | -266.74M | -255.83M | 406.51M | -342.14M |
System D Inc. Technical Analysis
Neutral
1905.00
Price Trends
463.16
Negative
503.87
Negative
567.61
Negative
Market Momentum
-8.05
Negative
46.17
Neutral
65.42
Neutral
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 1905 is above the 20-day moving average (MA) of 429.90, above the 50-day MA of 463.16, and above the 200-day MA of 567.61, indicating a neutral trend. The MACD of -8.05 indicates Negative momentum. The RSI at 46.17 is Neutral, neither overbought nor oversold. The STOCH value of 65.42 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥30.64B | 11.79 | ― | 2.93% | 12.16% | 18.96% | |
74 Outperform | ¥4.98B | 10.74 | ― | 2.28% | 16.55% | -21.42% | |
66 Neutral | ¥8.46B | 7.06 | ― | 1.51% | 4.34% | -10.36% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
48 Neutral | ¥7.17B | -74.71 | ― | ― | 16.57% | 26.56% | |
47 Neutral | ¥5.29B | -16.24 | ― | ― | -29.01% | 82.89% |
* Technology Sector Average
JP:3804
System D Inc.
440.00
-221.21
-33.46%
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Softfront Holdings
144.00
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JP:3771
System Research Co., Ltd.
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JP:3826
System Integrator Corp.
451.00
45.83
11.31%
JP:7527
SystemSoft Corporation
51.00
-21.00
-29.17%
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.