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SYS Holdings Co. Ltd.
(3988)
Select Model
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Rating:73Outperform
Price Target:
¥607.00
▲(3.58% Upside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by solid financial performance—steady revenue growth and strong cash conversion—partly offset by softer profitability margins and rising leverage. Technicals are moderately positive but not decisively strong versus the 200-day trend, while valuation (P/E 12.48) and a modest dividend yield provide additional support.
Positive Factors
Strong cash conversion
A FCF-to-net-income ratio of ~68% shows the business converts earnings into cash efficiently. That durable cash generation provides internal funding for hiring, technology investment, and working capital, reducing reliance on external financing and supporting resilience across business cycles.
Negative Factors
Weakening profitability margins
Declining net and operating margins point to rising cost pressure or pricing limits in services. Lower profitability reduces retained earnings and the cushion for reinvestment, making it harder to fund growth or absorb wage inflation without impairing returns over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash conversion
A FCF-to-net-income ratio of ~68% shows the business converts earnings into cash efficiently. That durable cash generation provides internal funding for hiring, technology investment, and working capital, reducing reliance on external financing and supporting resilience across business cycles.
Read all positive factors
SYS Holdings Co. Ltd. (3988) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.83B
Dividend Yield1.46%
Average Volume (3M)5.27K
Price to Earnings (P/E)12.5
Beta (1Y)0.39
Revenue Growth14.08%
EPS Growth6.64%
CountryJP
Employees1,669
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)43.99
Shares Outstanding10,630,995
10 Day Avg. Volume5,530
30 Day Avg. Volume5,270
Financial Highlights & Ratios
PEG Ratio-1.32
Price to Book (P/B)1.58
Price to Sales (P/S)0.42
P/FCF Ratio15.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SYS Holdings Co. Ltd. Business Overview & Revenue Model
Company Description
SYS Holdings Co., Ltd. engages in the software development and solutions business. It operates through the single segment: Comprehensive Information Services. The Comprehensive Information Services segment provides three solutions such as global m...
How the Company Makes Money
SYS Holdings primarily earns revenue by providing IT services to corporate customers. Key revenue streams typically include: (1) contract/project-based system development and related IT solution work, where the company charges customers based on p...
SYS Holdings Co. Ltd. Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.45B | 14.05B | 12.40B | 10.52B | 7.58B | 6.30B |
| Gross Profit | 3.38B | 3.11B | 2.79B | 2.38B | 1.69B | 1.40B |
| EBITDA | 1.01B | 935.00M | 946.89M | 755.14M | 536.20M | 482.00M |
| Net Income | 464.21M | 423.00M | 471.62M | 370.24M | 305.98M | 276.55M |
Balance Sheet | ||||||
| Total Assets | 8.22B | 7.91B | 6.61B | 6.30B | 4.37B | 3.90B |
| Cash, Cash Equivalents and Short-Term Investments | 4.44B | 4.47B | 3.54B | 3.49B | 2.74B | 2.46B |
| Total Debt | 1.65B | 1.94B | 1.22B | 1.61B | 491.20M | 465.00M |
| Total Liabilities | 4.18B | 4.16B | 3.25B | 3.39B | 1.82B | 1.63B |
| Stockholders Equity | 4.04B | 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
Neutral
586.00
Price Trends
528.63
Positive
530.40
Positive
545.99
Negative
Market Momentum
5.52
Negative
53.24
Neutral
27.45
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 586 is above the 20-day moving average (MA) of 537.38, above the 50-day MA of 528.63, and above the 200-day MA of 545.99, indicating a neutral trend. The MACD of 5.52 indicates Negative momentum. The RSI at 53.24 is Neutral, neither overbought nor oversold. The STOCH value of 27.45 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥152.20B | 13.18 | ― | 3.30% | 10.67% | 23.70% | |
76 Outperform | ¥5.51B | 16.05 | ― | 2.43% | -6.94% | -18.87% | |
75 Outperform | ¥28.00B | 11.01 | ― | 1.21% | 5.85% | 5.71% | |
73 Outperform | ¥5.83B | 12.48 | ― | 1.23% | 14.08% | 6.64% | |
71 Outperform | ¥23.25B | 13.42 | ― | 2.83% | 15.21% | 12.50% | |
69 Neutral | ¥6.69B | 8.42 | ― | 3.37% | 4.97% | 8.75% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:3988
SYS Holdings Co. Ltd.
540.00
-10.85
-1.97%
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JP:3940
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3.27%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.