System Integrator Corp. (3826) AI Stock Analysis

• Market Cap: ¥4.74B
• Dividend Yield: 2.28%
• Average Volume (3M): 27.30K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.66
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 216
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 12.34
• Shares Outstanding: 11,078,400
• 10 Day Avg. Volume: 38,630
• 30 Day Avg. Volume: 27,300
• PEG Ratio: -0.17
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -8.15
• 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: 63 Neutral
• Price Target: ¥458.00 ▲(2.69% Upside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

Overall score reflects strong solvency (debt-free balance sheet) and attractive valuation (low P/E with a dividend), offset by a major 2025 cash-flow reversal and weak technical trend/momentum with the stock trading below key moving averages.

Positive Factors

Debt-free balance sheet

A debt-free balance sheet materially lowers financial risk and preserves strategic optionality. Over the next 2–6 months this provides flexibility to absorb cash-flow swings, support the dividend, fund working capital or selective M&A, and avoid refinancing risk if operating cash remains pressured.

Consistent revenue growth

Mid-teens revenue growth indicates ongoing market traction and product-market fit in the application software niche. Durable top-line expansion supports reinvestment in R&D and sales, and underpins medium-term margin recovery if the company converts growth into higher recurring revenue and scale efficiencies.

Healthy software gross margins

Sustained gross margins in the low-to-mid 30s reflect software economics that can support operating leverage. If the firm stabilizes operating costs, these margins allow durable profitability, cash generation and continued shareholder distributions, even as near-term operating profit fluctuates.

Negative Factors

2025 cash-flow reversal

A sudden switch to negative operating and free cash flow reduces internal funding capacity and raises the risk of funding shortfalls. Over months this can force difficult choices—cutting dividends, delaying product investment, or accessing external financing—weakening execution momentum if not remedied.

Earnings volatility and compressed operating profit

Material profit volatility undermines planning and investor confidence. Compressed operating margins and swings in net income suggest sensitivity to project timing or pricing pressure; persistent variability would weaken the company's ability to fund steady dividends and long-term investments.

Limited scale and investor liquidity

A relatively small headcount and low average trading volume point to modest scale compared with larger software peers. This constrains R&D and sales scale, reduces likelihood of rapid market share gains, and creates limited liquidity for investors, making large strategic moves or financings harder to execute quickly.

System Integrator Corp. Business Overview & Revenue Model

Company Description

System Integrator Corp. plans, develops, and sells packaging software and cloud services in Japan. It offers ERP, EC, omni channel, project management, database development and design support, application design, and e-learning tools. The company's products include AISIA, a design recognition solution; TOPSIC, an online and in real time cloud solution to evaluate a range of engineers' programming skills from beginner to advanced; SI Object Browser, a database development support tool; SI Object Browser ER, a data modeling tool; and SI Object Browser Designer, an AI design document preparation tool. Its products also comprise SI Object Browser PM, an integrated project management tool; SI Web Shopping, an EC site construction package software; and GRANDIT, a Web-based ERP. In addition, the company offers consulting services. System Integrator Corp. was founded in 1995 and is headquartered in Saitama, Japan.

System Integrator Corp. Financial Statement Overview

Summary

Financials are mixed: a very strong, debt-free balance sheet supports stability, but cash flow deteriorated sharply in 2025 (negative operating and free cash flow) and recent profitability/earnings consistency weakened versus prior years.

Income Statement

Revenue has been relatively steady with modest growth most years, but momentum softened in the latest period (revenue down slightly in 2025 vs. 2024). Profitability is generally healthy for a software business (gross margin ~32–35%), yet operating profitability has compressed from 2022 levels and net income has been volatile (strong in 2024, notably lower in 2025). Overall, the income statement shows solid underlying economics but weaker recent earnings power and consistency.

Balance Sheet

The balance sheet is very strong: the company carries no debt across the period shown, which materially lowers financial risk and provides flexibility. Equity has grown over time and returns on equity have been attractive at points (notably 2024), though they also fluctuate with earnings variability. Overall financial leverage is minimal, making the balance sheet a clear strength.

Cash Flow

Cash generation is the main weak spot. Operating cash flow and free cash flow were solid in several years (2021–2024), but 2025 shows a sharp reversal with negative operating cash flow and negative free cash flow. This swing suggests working-capital or timing pressures and reduces confidence in near-term cash conversion, even though prior years indicate the business can generate cash.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	5.02B	4.77B	4.84B	4.49B	4.82B	4.26B
Gross Profit	1.66B	1.53B	1.61B	1.56B	1.67B	1.40B
EBITDA	545.29M	421.20M	350.23M	429.21M	790.40M	544.81M
Net Income	620.22M	583.41M	944.46M	280.10M	391.01M	293.06M
Balance Sheet
Total Assets	5.44B	4.98B	4.75B	3.81B	3.60B	3.53B
Cash, Cash Equivalents and Short-Term Investments	3.30B	2.97B	2.99B	1.96B	1.63B	1.47B
Total Debt	15.34M	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.41B	865.33M	1.09B	937.65M	885.03M	1.10B
Stockholders Equity	4.03B	4.11B	3.67B	2.87B	2.71B	2.43B
Cash Flow
Free Cash Flow	0.00	-456.89M	260.23M	610.99M	260.55M	366.05M
Operating Cash Flow	0.00	-360.38M	275.07M	625.57M	406.45M	683.56M
Investing Cash Flow	0.00	-69.81M	958.21M	-123.68M	-160.31M	-363.69M
Financing Cash Flow	0.00	-131.01M	-86.87M	-168.94M	-88.44M	-142.79M

System Integrator Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4491	82 Outperform	¥5.83B	10.91	―	1.87%	6.18%	29.79%
4333	81 Outperform	¥22.43B	19.31	―	3.86%	0.50%	17.15%
3771	77 Outperform	¥28.02B	12.67	―	2.93%	11.53%	23.23%
3826	63 Neutral	¥4.74B	9.17	―	2.28%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4829	50 Neutral	¥4.70B	93.82	―	2.78%	-4.90%	-85.89%
7527	47 Neutral	¥4.32B	-18.61	―	―	-40.57%	83.14%