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

• Market Cap: ¥5.94B
• Dividend Yield: 1.07%
• Average Volume (3M): 12.48K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.52
• Revenue Growth: 12.89%
• EPS Growth: -8.37%
• Country: JP
• Employees: 1,520
• Sector: Technology
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): 6.83
• Shares Outstanding: 10,582,939
• 10 Day Avg. Volume: 4,520
• 30 Day Avg. Volume: 12,483
• PEG Ratio: 0.27
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.17
• 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

• Rating: 81 Outperform
• Price Target: ¥635.00 ▲(12.99%Upside)

SYS Holdings Co. Ltd.'s strong financial performance, marked by robust revenue growth and efficient cash flow management, is the primary driver of its stock score. The positive technical indicators and attractive valuation further enhance its investment appeal in the Information Technology Services industry.

SYS Holdings Co. Ltd. Business Overview & Revenue Model

Company Description

SYS Holdings Co. Ltd. is a Japanese company specializing in information technology services. It operates in sectors such as system development, IT consulting, and software solutions, offering a range of services including system integration, software development, and IT infrastructure management. The company is known for its expertise in creating customized IT solutions tailored to meet the specific needs of its clients across various industries.

How the Company Makes Money

SYS Holdings Co. Ltd. generates revenue primarily through its IT services and solutions offerings. The company's key revenue streams include fees from system development projects, IT consulting services, and ongoing software maintenance and support contracts. Additionally, SYS Holdings may engage in strategic partnerships with other technology firms to enhance its service offerings and expand its market reach, thereby contributing to its revenue growth. The company's ability to deliver customized, high-quality IT solutions helps it maintain long-term relationships with clients, ensuring a steady flow of income from repeat business and referrals.

SYS Holdings Co. Ltd. Financial Statement Overview

Summary

SYS Holdings demonstrates strong financial performance with significant revenue growth, effective cost management, and high profitability metrics. The company maintains low leverage and strong cash flow management, positioning it well for future growth.

Income Statement

SYS Holdings Co. Ltd. demonstrates strong financial performance with a consistent upward trajectory in revenue, showing a 17.86% growth from 2023 to 2024. Gross Profit Margin stands at 22.49%, and Net Profit Margin at 3.80%, reflecting effective cost management and profitability. EBIT Margin of 5.52% and EBITDA Margin of 7.64% indicate operational efficiency. The company's robust growth and profitability metrics signal a well-managed income statement.

Balance Sheet

The company maintains a solid balance sheet with a Debt-to-Equity Ratio of 0.36, indicating low leverage and financial stability. An Equity Ratio of 50.88% reflects strong asset financing through equity. Return on Equity (ROE) of 14.02% suggests efficient use of equity to generate profits. The balance sheet shows a strong equity base, though further improvement in asset utilization could enhance performance.

Cash Flow

SYS Holdings showcases strong cash flow management with a Free Cash Flow growth of 55.23% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio is 1.53, and the Free Cash Flow to Net Income Ratio is 1.27, indicating good cash conversion and efficient operations. The positive cash flow trends underscore the company's ability to generate and manage cash effectively, supporting future growth and stability.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	12.90B	12.40B	10.52B	7.58B	6.30B	5.89B
Gross Profit	2.95B	2.79B	2.38B	1.69B	1.40B	1.33B
EBITDA	929.28M	946.89M	755.14M	536.20M	482.00M	382.88M
Net Income	474.21M	471.62M	370.24M	305.98M	276.55M	221.00M
Balance Sheet
Total Assets	6.92B	6.61B	6.30B	4.30B	3.90B	3.53B
Cash, Cash Equivalents and Short-Term Investments	3.62B	3.54B	3.49B	2.74B	2.46B	2.33B
Total Debt	1.35B	1.22B	1.61B	491.20M	465.00M	540.00M
Total Liabilities	3.53B	3.25B	3.39B	1.75B	1.63B	1.51B
Stockholders Equity	3.39B	3.36B	2.91B	2.55B	2.27B	2.03B
Cash Flow
Free Cash Flow	0.00	601.13M	387.42M	255.24M	325.33M	346.00M
Operating Cash Flow	0.00	721.02M	436.52M	303.61M	366.02M	402.02M
Investing Cash Flow	0.00	-246.02M	-401.58M	33.31M	-114.33M	-97.32M
Financing Cash Flow	0.00	-469.35M	593.33M	-52.15M	-136.26M	222.25M

SYS Holdings Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 562.00
• 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:3988, the sentiment is Positive. The current price of 562 is above the 20-day moving average (MA) of 546.30, above the 50-day MA of 538.50, and above the 200-day MA of 516.98, indicating a bullish trend. The MACD of 3.87 indicates Negative momentum. The RSI at 56.24 is Neutral, neither overbought nor oversold. The STOCH value of 67.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
3988	81 Outperform	¥5.94B	13.63		1.07%	12.89%	-8.37%
6888	79 Outperform	¥5.29B	15.47		4.61%	-1.08%	-22.95%
4198	74 Outperform	¥5.11B	13.47		3.50%	23.31%	23.31%
6182	73 Outperform	¥7.02B	23.35		―	-2.23%	-44.50%
8226	71 Outperform	¥5.53B	8.37		1.64%	54.35%	72.76%
5576	64 Neutral	¥6.67B	13.39		2.84%	11.42%	12.23%
Sector *	50 Neutral	AU$1.49B	1.70	-28.24%	3.29%	16.24%	-7.89%