R&D Computer Co. Ltd. (3924) AI Stock Analysis

• Market Cap: ¥16.80B
• Dividend Yield: 3.98%
• Average Volume (3M): 26.60K
• Price to Earnings (P/E): 18.9
• Beta (1Y): 0.33
• Revenue Growth: -5.92%
• EPS Growth: 3.16%
• Country: JP
• Employees: 560
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 2.69
• Shares Outstanding: 17,967,900
• 10 Day Avg. Volume: 27,470
• 30 Day Avg. Volume: 26,600
• PEG Ratio: -0.70
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 16.99
• 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: 75 Outperform
• Price Target: ¥1,034.00 ▲(9.30% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is primarily supported by strong financial resilience (notably a debt-free balance sheet and ongoing profitability/FCF), tempered by the latest period’s revenue and margin deterioration and softer cash flow. Technically, the stock shows weak short-term trend (below key short/mid-term averages) despite near-oversold RSI, while valuation is helped by an attractive dividend yield with a moderate P/E.

Positive Factors

Debt-Free Balance Sheet

A debt-free balance sheet provides financial flexibility and reduces solvency risk, allowing the company to invest in growth opportunities without the burden of interest payments.

Management Integration

The management integration aims to enhance value across the SIer industry, expand the customer base, and improve project efficiency, positioning the company to better address industry changes.

Improved Profitability

Improved profitability despite sales decline indicates enhanced operational efficiency, which can lead to sustainable earnings growth and stronger financial health.

Negative Factors

Revenue Decline

A material decline in revenue raises concerns about the company's ability to maintain market share and growth, potentially impacting long-term earnings stability.

Margin Compression

Margin compression can erode profitability, making it challenging to sustain earnings growth and invest in future opportunities, affecting long-term competitiveness.

Weaker Cash Flow

Weaker cash flow indicates potential liquidity issues and limits the company's ability to fund operations and growth initiatives, impacting financial stability.

R&D Computer Co. Ltd. Business Overview & Revenue Model

Company Description

R&D Computer Co.,Ltd. provides system integration, infrastructure, package, cloud, and embedded control system solutions in Japan. It offers system integration services for financial industry, such as banking, insurance, securities, and credit card industries; and distribution industry, public sector, medical field, etc. The company also provides infrastructure solution, such as servers; construction of networks; construction of system infrastructure, such as databases and application infrastructure, as well as related operation and maintenance services; and virtualization technology services. In addition, it is involved in the development, maintenance, and operation of package-based SI and services. The company was formerly known as Nippon Computer Gakuin Institute, Inc. and changed its name to R&D Computer Co., Ltd. in June 1971. R&D Computer Co., Ltd. was incorporated in 1971 and is headquartered in Tokyo, Japan.

How the Company Makes Money

R&D Computer Co. Ltd. generates revenue through the sale of its computer hardware products, including personal computers and servers, to both individual consumers and enterprise clients. Additionally, the company earns money through licensing fees for its proprietary software solutions and providing maintenance and support services. Key revenue streams also include partnerships with other technology firms to integrate and distribute their products and the provision of consulting services to help businesses optimize their IT infrastructure. Strategic alliances and collaborations with industry leaders contribute significantly to its earnings by expanding its market reach and enhancing product offerings.

R&D Computer Co. Ltd. Financial Statement Overview

Summary

Strong overall financial quality supported by a debt-free balance sheet and consistently positive earnings and free cash flow. Offsetting this strength, the latest year shows a material revenue decline with margin contraction and weaker operating/free cash flow versus 2024, increasing near-term durability risk.

Income Statement

Profitability is solid for an IT services business, with EBIT margins generally around ~10–13% and net margins improving from ~5% (2020–2021) to ~7–9% (2023–2025). Growth was strong in 2022–2024 (low-to-high teens), but the latest year shows a sharp reversal with revenue down materially and margins contracting versus 2024, which raises near-term earnings durability risk.

Balance Sheet

The balance sheet is very strong with zero reported debt across all periods and a steadily growing equity base, supporting financial flexibility and low solvency risk. Returns on equity are healthy (roughly low-teens to low-20s), though they eased in 2025 versus 2024, consistent with the recent profitability slowdown.

Cash Flow

Cash generation is positive with free cash flow consistently positive and generally close to net income (free cash flow running at ~85–97% of net income in most years). However, operating cash flow covers less than half of EBITDA (roughly ~0.47–0.49 in recent years), and both operating cash flow and free cash flow declined in 2025 versus 2024, suggesting weaker cash conversion and some volatility despite an overall constructive multi-year trend.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.49B	13.73B	13.73B	11.58B	9.60B	8.88B
Gross Profit	2.91B	2.84B	3.05B	2.51B	1.83B	1.49B
EBITDA	1.81B	1.74B	1.92B	1.42B	1.01B	692.82M
Net Income	1.06B	1.02B	1.23B	772.10M	627.21M	430.74M
Balance Sheet
Total Assets	8.18B	8.35B	8.71B	7.50B	6.50B	5.75B
Cash, Cash Equivalents and Short-Term Investments	4.66B	3.96B	3.90B	3.26B	3.21B	2.68B
Total Debt	150.00M	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.37B	2.35B	2.94B	2.64B	2.13B	1.80B
Stockholders Equity	5.79B	5.97B	5.75B	4.85B	4.37B	3.95B
Cash Flow
Free Cash Flow	0.00	716.24M	1.05B	831.67M	771.29M	382.06M
Operating Cash Flow	0.00	829.67M	1.13B	981.62M	793.73M	398.71M
Investing Cash Flow	0.00	-9.29M	-122.09M	-644.37M	-106.58M	-25.21M
Financing Cash Flow	0.00	-771.94M	-369.25M	-286.55M	-170.84M	-161.70M

R&D Computer Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 946.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3924, the sentiment is Neutral. The current price of 946 is below the 20-day moving average (MA) of 949.95, below the 50-day MA of 954.38, and above the 200-day MA of 878.02, indicating a neutral trend. The MACD of -9.34 indicates Positive momentum. The RSI at 45.69 is Neutral, neither overbought nor oversold. The STOCH value of 78.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3924.

R&D Computer Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4396	76 Outperform	¥26.23B	16.07	―	1.70%	22.25%	31.88%
3924	75 Outperform	¥16.80B	18.93	―	3.98%	-5.92%	3.16%
3676	73 Outperform	¥20.16B	29.34	―	2.36%	-2.68%	-12.83%
4072	73 Outperform	¥32.55B	11.50	―	2.22%	9.57%	315.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4053	58 Neutral	¥15.72B	32.07	―	―	9.82%	-32.60%
3968	56 Neutral	¥18.50B	13.86	―	1.72%	26.24%	29.73%

R&D Computer Co. Ltd. Corporate Events

R&D Computer Slashes Earnings Forecast but Keeps Dividend Unchanged

R&D Computer Co., Ltd. has sharply revised its full-year consolidated forecast for the fiscal year ending March 31, 2026, cutting projected net sales from 14.5 billion yen to 13.3 billion yen and slashing expected profit attributable to owners of the parent from 1.25 billion yen to 550 million yen.

The company attributed the weaker outlook to a decline in project development orders as clients shift to in-house production, offshore resources, and smaller or extended large-scale projects, while also booking extraordinary losses tied to business integration costs with Toho System Science Co., Ltd., though it kept its planned year-end dividend unchanged at 19 yen per share.

Despite resolving prior unprofitable large-scale projects and seeing improved profit margins with no new loss-making contracts, overall operating and ordinary income are now forecast to fall due to the lower sales base, signaling a more challenging demand environment even as shareholder returns are maintained.

The most recent analyst rating on (JP:3924) stock is a Buy with a Yen1118.00 price target. To see the full list of analyst forecasts on R&D Computer Co. Ltd. stock, see the JP:3924 Stock Forecast page.

R&D Computer Lifts Profit but Cuts Full-Year Outlook as Sales Decline

R&D Computer reported nine‑month net sales of ¥9.18 billion, down 7.2% year on year, but boosted operating profit 16.4% to ¥1.01 billion and ordinary profit 15.9%, while profit attributable to owners fell 20.8% to ¥498 million and basic EPS dropped to ¥27.78. The company maintained a strong equity-to-asset ratio of 73.0%, raised its interim dividend to ¥19 per share, and revised its full-year forecast to project lower sales and a 46.3% decline in full-year profit to ¥550 million, signaling earnings pressure despite solid balance sheet metrics.

R&D plans a full-year dividend of ¥38 per share, up from the prior year, underscoring its shareholder-return stance even as it anticipates an 8.3% decline in annual net sales to ¥13.3 billion and only modest growth in operating profit. With total assets edging down to ¥8.02 billion and net assets at ¥5.88 billion, the updated guidance and downward profit outlook highlight a more challenging operating environment and may temper investor expectations despite improved profitability in the latest nine‑month period.

The most recent analyst rating on (JP:3924) stock is a Buy with a Yen1118.00 price target. To see the full list of analyst forecasts on R&D Computer Co. Ltd. stock, see the JP:3924 Stock Forecast page.

R&D Computer Shareholders Approve Share Transfer Plan for Management Integration with Toho System Science

R&D Computer Co., Ltd. announced that shareholders at an extraordinary shareholders meeting have approved a share transfer plan, a key step in a previously disclosed management integration with Toho System Science Co., Ltd. The same proposal was also approved at Toho System Science’s extraordinary shareholders meeting, clearing the way for the establishment of a joint holding company through a joint stock transfer. This shareholder backing solidifies the companies’ integration roadmap and marks a significant milestone in restructuring their corporate governance and ownership, which is expected to reshape their competitive positioning within the IT and systems market once the joint holding structure is implemented.

The most recent analyst rating on (JP:3924) stock is a Buy with a Yen1082.00 price target. To see the full list of analyst forecasts on R&D Computer Co. Ltd. stock, see the JP:3924 Stock Forecast page.