System D Inc. (3804) AI Stock Analysis

• Market Cap: ¥13.45B
• Dividend Yield: 1.16%
• Average Volume (3M): 983.00
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.06
• Revenue Growth: 7.42%
• EPS Growth: 10.13%
• Country: JP
• Employees: 280
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): 54.46
• Shares Outstanding: 6,498,000
• 10 Day Avg. Volume: 950
• 30 Day Avg. Volume: 983
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,416.00
• Price Target Upside: 15.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥2,416.00 ▲(15.05% Upside)

System D Inc. demonstrates strong financial health with excellent profitability, operational efficiency, and cash flow management. The technical analysis presents mixed signals, with potential overbought conditions and bearish momentum. The valuation is fair, with a reasonable P/E ratio and modest dividend yield. The overall stock score reflects the company's robust financial performance as the most significant factor.

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. presents a strong financial position with excellent profitability and operational efficiency. The company has a robust balance sheet with low leverage and high equity, and impressive cash flow generation. The slight decline in revenue is a minor concern, but overall 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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.71B	4.63B	4.74B	4.23B	3.84B	3.85B
Gross Profit	2.04B	2.00B	2.07B	1.95B	1.82B	1.76B
EBITDA	1.27B	1.34B	1.38B	1.33B	1.20B	1.09B
Net Income	583.94M	555.95M	632.70M	591.58M	573.60M	510.69M
Balance Sheet
Total Assets	6.41B	6.96B	6.25B	5.90B	4.70B	4.58B
Cash, Cash Equivalents and Short-Term Investments	1.53B	2.03B	1.19B	1.23B	1.14B	1.09B
Total Debt	283.37M	313.36M	433.35M	561.71M	40.26M	148.63M
Total Liabilities	1.96B	2.46B	2.15B	2.32B	1.60B	1.59B
Stockholders Equity	4.46B	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: Positive
• Last Price: 2100.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3804, the sentiment is Positive. The current price of 2100 is above the 20-day moving average (MA) of 2080.05, below the 50-day MA of 2171.48, and above the 200-day MA of 1745.87, indicating a neutral trend. The MACD of -18.23 indicates Negative momentum. The RSI at 48.95 is Neutral, neither overbought nor oversold. The STOCH value of 74.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	80 Outperform	¥13.45B	20.40		1.16%	7.42%	10.13%
5591	69 Neutral	¥8.52B	47.21		―	34.82%	67.32%
4015	66 Neutral	¥10.88B	40.20		―	62.19%	40.77%
Sector *	61 Neutral	$35.55B	8.91	-10.55%	1.87%	8.47%	-8.26%
3856	60 Neutral	¥19.41B	8.79		0.29%	-40.21%	-54.31%
5248	60 Neutral	¥11.96B	27.15		―	69.06%	464.48%
3823	40 Neutral	¥8.02B	―		―	99.79%	7.36%