SYS Holdings Co. Ltd. (3988) AI Stock Analysis

• Market Cap: ¥6.52B
• Dividend Yield: 1.18%
• Average Volume (3M): 10.29K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.53
• Revenue Growth: 13.34%
• EPS Growth: -10.63%
• Country: JP
• Employees: 1,520
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 13.65
• Shares Outstanding: 10,582,939
• 10 Day Avg. Volume: 12,640
• 30 Day Avg. Volume: 10,293
• PEG Ratio: -1.32
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 15.44
• 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: ¥606.00
• Price Target Upside: 2.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥651.00 ▲(9.97% Upside)

SYS Holdings Co. Ltd. demonstrates strong financial performance with consistent revenue growth and robust cash flow generation, which are the most significant factors supporting the stock score. The technical analysis indicates a mixed trend, with potential bullish momentum in the longer term. Valuation metrics suggest the stock is reasonably priced, with a modest dividend yield adding to its appeal. The absence of earnings call and corporate events data did not impact the score.

SYS Holdings Co. Ltd. Business Overview & Revenue Model

Company Description

SYS Holdings Co. Ltd. (3988) is a technology-driven company engaged in the development and provision of IT solutions. The company specializes in system integration, software development, and IT infrastructure services. SYS Holdings primarily serves clients across various industries, including finance, manufacturing, and public sectors, delivering customized solutions that enhance operational efficiency and business innovation.

How the Company Makes Money

SYS Holdings Co. Ltd. generates revenue primarily through its services in system integration, where it designs and implements comprehensive IT systems for clients. The company also earns from software development projects, creating bespoke software solutions tailored to the specific needs of its clients. Additionally, SYS Holdings provides IT infrastructure services, which include consulting, maintenance, and support services. The company's revenue is further bolstered by partnerships with technology providers and its ability to deliver cutting-edge solutions that meet evolving market demands.

SYS Holdings Co. Ltd. Financial Statement Overview

Summary

SYS Holdings Co. Ltd. exhibits solid financial health with consistent revenue growth and strong cash flow generation. While profitability margins have slightly declined, the company maintains a stable capital structure. The increased reliance on debt warrants monitoring, but overall, the financial position is strong, supporting future growth opportunities.

Income Statement

SYS Holdings Co. Ltd. has demonstrated consistent revenue growth over the years, with a notable 6.36% increase in the latest period. The gross profit margin has remained stable around 22%, indicating efficient cost management. However, the net profit margin has slightly decreased to 3.01%, suggesting increased expenses or cost pressures. The EBIT and EBITDA margins have also shown a slight decline, which could impact profitability if not addressed.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.51, indicating a higher reliance on debt financing, which could pose a risk if interest rates rise. The return on equity has decreased to 11.27%, reflecting a slight decline in profitability. However, the equity ratio remains strong at approximately 47.4%, suggesting a solid capital structure.

Cash Flow

SYS Holdings has shown a strong free cash flow growth, moving from negative growth to a significant increase, which is a positive sign for liquidity. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is robust at 68.08%, highlighting strong cash conversion capabilities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.05B	14.05B	12.40B	10.52B	7.58B	6.30B
Gross Profit	3.11B	3.11B	2.79B	2.38B	1.69B	1.40B
EBITDA	924.63M	935.00M	946.89M	755.14M	536.20M	482.00M
Net Income	422.77M	423.00M	471.62M	370.24M	305.98M	276.55M
Balance Sheet
Total Assets	7.91B	7.91B	6.61B	6.30B	4.30B	3.90B
Cash, Cash Equivalents and Short-Term Investments	4.47B	4.47B	3.54B	3.49B	2.74B	2.46B
Total Debt	1.93B	1.93B	1.22B	1.61B	491.20M	465.00M
Total Liabilities	4.16B	4.16B	3.25B	3.39B	1.75B	1.63B
Stockholders Equity	3.75B	3.75B	3.36B	2.91B	2.55B	2.27B
Cash Flow
Free Cash Flow	0.00	384.00M	601.13M	387.42M	255.24M	325.33M
Operating Cash Flow	0.00	564.00M	721.02M	436.52M	303.61M	366.02M
Investing Cash Flow	0.00	-330.00M	-246.02M	-401.58M	33.31M	-114.33M
Financing Cash Flow	0.00	560.00M	-469.35M	593.33M	-52.15M	-136.26M

SYS Holdings Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 592.00
• 50DMA: Positive
• 100DMA: Positive
• 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:3988, the sentiment is Neutral. The current price of 592 is below the 20-day moving average (MA) of 615.20, above the 50-day MA of 584.74, and above the 200-day MA of 537.44, indicating a neutral trend. The MACD of 7.87 indicates Positive momentum. The RSI at 46.01 is Neutral, neither overbought nor oversold. The STOCH value of 36.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3988.

SYS Holdings Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8226	71 Outperform	¥6.67B	8.77	12.34%	1.36%	31.91%	50.55%
3988	70 Outperform	¥6.52B	15.32	―	1.18%	13.34%	-10.63%
4198	68 Neutral	¥4.62B	18.11	9.41%	3.82%	7.72%	-24.97%
6888	67 Neutral	¥5.35B	14.33	11.48%	4.55%	3.08%	-9.62%
5576	64 Neutral	¥6.87B	14.98	―	2.67%	6.24%	-4.10%
6182	57 Neutral	¥5.90B	57.09	19.85%	―	-5.89%	-83.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%