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

• Market Cap: ¥17.21B
• Dividend Yield: 3.98%
• Average Volume (3M): 26.60K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.36
• Revenue Growth: -5.92%
• EPS Growth: 3.16%
• Country: JP
• Employees: 560
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 18.46
• 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: 79 Outperform
• Price Target: ¥1,083.00 ▲(14.48% Upside)

The score is driven primarily by strong underlying financial quality (notably a debt-free balance sheet and positive multi-year earnings/FCF), partially offset by the most recent year’s revenue decline, margin compression, and weaker cash flow. Technicals are supportive with price above key moving averages and positive MACD, and valuation is reasonable with a solid dividend yield.

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

R&D Computer Co. Ltd. maintains a strong financial position, characterized by healthy profitability, effective cost management, and low financial leverage. The company demonstrates consistent revenue and profit growth. However, limited cash flow data for the TTM slightly impacts the cash flow analysis.

Income Statement

R&D Computer Co. Ltd. demonstrates strong profitability with a solid Gross Profit Margin of 20.0% and a robust Net Profit Margin of 7.7% for the TTM. The company shows consistent revenue growth, with a notable 19.9% increase from 2022 to 2023. EBIT and EBITDA margins remain healthy, reflecting efficient operational management.

Balance Sheet

The balance sheet is strong, characterized by a low Debt-to-Equity Ratio, indicating minimal leverage risk. The company's Equity Ratio of 71.3% signifies a strong equity base. Return on Equity is impressive at 19.0% for the TTM, highlighting excellent returns for shareholders.

Cash Flow

Despite strong operating performance, the cash flow metrics are limited due to missing TTM data. Historically, Free Cash Flow growth has been positive, and the Operating Cash Flow to Net Income Ratio was 0.91 in the last annual report, suggesting a stable cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• Last Price: 946.00
• 50DMA: Positive
• 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:3924, the sentiment is Positive. The current price of 946 is below the 20-day moving average (MA) of 950.90, above the 50-day MA of 934.36, and above the 200-day MA of 829.57, indicating a bullish trend. The MACD of 9.83 indicates Negative momentum. The RSI at 64.61 is Neutral, neither overbought nor oversold. The STOCH value of 48.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
3924	79 Outperform	¥17.21B	15.52	―	3.98%	-5.92%	3.16%
2391	75 Outperform	¥8.57B	20.33	―	3.47%	-0.94%	-7.43%
3918	74 Outperform	¥12.69B	12.54	―	3.61%	-2.26%	3.37%
2335	71 Outperform	¥16.61B	14.71	―	3.60%	2.46%	-5.85%
3683	68 Neutral	¥14.90B	11.74	―	1.19%	13.46%	91.02%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3657	50 Neutral	¥11.85B	-17.30	―	5.03%	3.97%	63.06%

R&D Computer Co. Ltd. Corporate Events

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.

R&D Computer Co., Ltd. Announces Extraordinary Shareholders Meeting for Joint Holding Company Plan

R&D Computer Co., Ltd. has announced the setting of a record date for an upcoming extraordinary shareholders meeting on January 16, 2026, to discuss the approval of a share transfer plan. This meeting is part of a strategic move to establish a joint holding company with Toho System Science Co., Ltd., which is expected to impact the company’s operational structure and market strategy.

R&D Computer Co. Ltd. and Toho System Science Co. Ltd. Announce Management Integration

R&D Computer Co., Ltd. and Toho System Science Co., Ltd. are integrating their management to form a new joint holding company, aiming to enhance value across the SIer industry. This merger is expected to expand their customer base, improve project efficiency, and strengthen their management and human resource structures, positioning them to better address changes in cybersecurity, AI, and digital transformation.

R&D Computer and Toho System Science Announce Joint Holding Company

R&D Computer Co., Ltd. and Toho System Science Co., Ltd. have announced a management integration through the establishment of a joint holding company, Toranvia Co., Ltd., effective April 1, 2026. This strategic move aims to enhance corporate value by leveraging digital transformation and addressing growing demands for information security, amidst increasing market opportunities in IT solutions and system integration.

R&D Computer Co., Ltd. Announces Interim Dividend Increase

R&D Computer Co., Ltd. has announced an interim dividend of ¥19 per share, approved by its Board of Directors, with a record date of September 30, 2025. This decision aligns with the company’s policy to consistently return profits to shareholders while strengthening its management structure and internal reserves, reflecting an increase from the previous year’s interim dividend.

R&D Computer Co., Ltd. Reports Improved Profits Despite Sales Decline

R&D Computer Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a decrease in net sales by 8% compared to the previous year. Despite the drop in sales, the company achieved significant growth in operating profit and ordinary profit, with increases of 41% and 38% respectively, indicating improved operational efficiency. The company’s equity-to-asset ratio improved to 73.1%, reflecting a stronger financial position. The company also announced a slight increase in annual dividends per share, signaling confidence in its future performance.

R&D Computer Co., Ltd. Achieves Compliance with Prime Market Standards

R&D Computer Co., Ltd. announced its compliance with the listing maintenance standards of the Tokyo Stock Exchange’s Prime Market as of September 30, 2025. After initially failing to meet the market capitalization of tradable shares requirement, the company implemented strategic initiatives to achieve compliance. This compliance underscores the company’s commitment to sustainable growth and enhancing corporate value over the medium to long term.