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

• Market Cap: ¥5.82B
• Dividend Yield: 1.23%
• Average Volume (3M): 5.27K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.51
• Revenue Growth: 11.62%
• EPS Growth: -16.59%
• Country: JP
• Employees: 1,520
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 5.49
• Shares Outstanding: 10,630,995
• 10 Day Avg. Volume: 5,530
• 30 Day Avg. Volume: 5,270
• 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: 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: 68 Neutral
• Price Target: ¥643.00 ▲(9.73% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

SYS Holdings Co. Ltd. demonstrates strong financial performance with consistent revenue growth and robust cash flow generation. The technical analysis indicates neutral to slightly bearish sentiment, while the valuation suggests the stock is fairly priced. The absence of significant earnings call insights or corporate events limits additional context.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and adapt to client needs, supporting long-term business sustainability.

Cash Flow Generation

Strong cash flow generation enhances liquidity and provides the company with the flexibility to invest in growth opportunities and manage debt effectively.

Stable Capital Structure

A stable capital structure with a strong equity ratio supports financial resilience and the capacity to withstand economic fluctuations.

Negative Factors

Declining Profit Margins

Declining profit margins can impact overall profitability, requiring the company to address cost management to maintain financial health.

Increased Debt Levels

Increased debt levels can strain financial resources and limit strategic flexibility, especially if interest rates rise, impacting long-term stability.

Profitability Decline

A decline in profitability metrics like return on equity can signal challenges in generating returns from investments, affecting investor confidence and growth potential.

SYS Holdings Co. Ltd. Business Overview & Revenue Model

Company Description

SYS Holdings Co., Ltd., through its subsidiaries, provides information technology services in Japan and internationally. It offers information services for manufacturing companies related to the automobile, heavy industries, machine tool, steel, hauling, and transportation machine sectors; social information infrastructure solutions; and mobile applications for corporations. The company was founded in 1991 and is headquartered in Nagoya, Japan.

How the Company Makes Money

SYS Holdings generates revenue through multiple streams including software licensing and services, property rental income from its real estate assets, and management fees from its investment portfolio. The company partners with technology firms and financial institutions to enhance its service offerings and expand its market reach. Additionally, SYS Holdings capitalizes on emerging market trends and consumer demands, positioning itself strategically to maximize its earnings potential through both organic growth and acquisitions.

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

SYS Holdings Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 586.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 586 is above the 20-day moving average (MA) of 551.70, above the 50-day MA of 567.84, and above the 200-day MA of 568.93, indicating a bearish trend. The MACD of -4.35 indicates Negative momentum. The RSI at 44.04 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
4752	81 Outperform	¥7.17B	8.94	―	3.37%	5.25%	23.64%
3940	78 Outperform	¥6.82B	16.54	―	2.43%	2.92%	-0.94%
4396	76 Outperform	¥27.04B	16.07	―	1.70%	22.25%	31.88%
2317	76 Outperform	¥160.18B	14.15	―	2.30%	13.82%	37.07%
2349	72 Outperform	¥27.82B	11.78	―	1.21%	7.21%	0.30%
3988	68 Neutral	¥5.82B	14.48	―	1.23%	11.62%	-16.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%