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System D Inc.
(3804)
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Rating:74Outperform
Price Target:
¥498.00
▼(-73.86% Downside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by strong financial quality (low leverage and solid profitability) and very favorable valuation (low P/E with a dividend). These positives are moderated by weaker technical positioning versus longer-term moving averages and the recent top-line slowdown alongside some cash-flow variability.
Positive Factors
Conservative balance sheet
Very low leverage and steadily growing equity provide durable financial flexibility, lowering refinancing and solvency risk. A conservative capital structure supports sustained investment in product and R&D during cycles, reducing bankruptcy risk and enabling strategic options over the next 2–6 months and beyond.
Negative Factors
Top-line slowdown
The recent multi-year revenue deceleration signals weakening demand or competitive pressure that can erode future scale economics. If top-line declines persist, margin durability and investment funding could be pressured, making profitable growth and market-share recovery more challenging over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and steadily growing equity provide durable financial flexibility, lowering refinancing and solvency risk. A conservative capital structure supports sustained investment in product and R&D during cycles, reducing bankruptcy risk and enabling strategic options over the next 2–6 months and beyond.
Read all positive factors
System D Inc. (3804) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥8.55B
Dividend Yield2.1%
Average Volume (3M)1.83K
Price to Earnings (P/E)7.1
Beta (1Y)0.29
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
440.64
Positive
488.81
Negative
544.42
Negative
Market Momentum
-0.12
Positive
50.68
Neutral
13.16
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 1905 is above the 20-day moving average (MA) of 444.30, above the 50-day MA of 440.64, and above the 200-day MA of 544.42, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 13.16 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥30.76B | 12.50 | ― | 2.93% | 10.84% | 11.95% | |
74 Outperform | ¥8.55B | 7.14 | ― | 1.51% | 4.34% | -10.36% | |
74 Outperform | ¥5.48B | 10.35 | ― | 2.28% | 16.86% | -14.98% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
48 Neutral | ¥6.81B | -65.08 | ― | ― | 15.38% | -30.93% | |
44 Neutral | ¥5.61B | 177.42 | ― | ― | -0.48% | ― |
* Technology Sector Average
JP:3804
System D Inc.
445.00
-235.95
-34.65%
JP:2321
Softfront Holdings
130.00
-68.00
-34.34%
JP:3771
System Research Co., Ltd.
1,929.00
-119.05
-5.81%
JP:3826
System Integrator Corp.
500.00
78.19
18.54%
JP:7527
SystemSoft Corporation
55.00
-4.00
-6.78%
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.