Toho System Science Co., Ltd. (4333) AI Stock Analysis

• Market Cap: ¥21.88B
• Dividend Yield: 3.86%
• Average Volume (3M): 27.24K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.79
• Revenue Growth: 0.50%
• EPS Growth: 17.15%
• Country: JP
• Employees: 549
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 17.07
• Shares Outstanding: 20,798,988
• 10 Day Avg. Volume: 37,350
• 30 Day Avg. Volume: 27,236
• PEG Ratio: 1.86
• Price to Book (P/B): 2.56
• Price to Sales (P/S): 1.30
• P/FCF Ratio: 16.85
• 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: 81 Outperform
• Price Target: ¥1,358.00 ▲(15.67% Upside)

The score is driven primarily by strong financial strength (notably zero debt and solid profitability) and robust recent growth, partially tempered by uneven cash conversion. Technicals are constructive with upward trend signals, while valuation is supportive with a mid-teens P/E and a ~3.8% dividend yield.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market expansion and increased demand for services, supporting long-term business sustainability.

Zero Debt

Having zero debt reduces financial risk and interest expenses, providing more flexibility for strategic investments and growth initiatives.

Management Integration

The integration aims to enhance operational efficiency and capitalize on digital transformation trends, potentially boosting competitive positioning.

Negative Factors

Cash Flow Volatility

Volatile cash flow can impact financial stability, making it challenging to plan long-term investments and manage operational needs effectively.

Margin Expansion

Limited margin expansion suggests growth may not be translating into improved profitability, potentially affecting long-term earnings potential.

Equity Dip

A dip in equity despite rising earnings may indicate capital returns or other balance-sheet movements, which could affect financial health.

Toho System Science Co., Ltd. Business Overview & Revenue Model

Company Description

Toho System Science Co., Ltd. develops software in Japan. The company develops systems related to the life insurance, non-life insurance, securities, and banking businesses, as well as credit and leases, telecommunication, and infrastructure construction. It also provides computer operations management services and information system services. The company was incorporated in 1971 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Toho System Science Co., Ltd. generates revenue through its comprehensive suite of IT services. The company's primary revenue streams include fees from system development and integration projects, IT consulting services, and ongoing maintenance and support contracts. By collaborating with clients in industries like finance and manufacturing, Toho System Science helps improve operational efficiency and technological infrastructure, leading to recurring income through long-term service agreements. Key partnerships with technology providers also enhance its service offerings, thus contributing to its financial growth.

Toho System Science Co., Ltd. Financial Statement Overview

Summary

Strong financial profile supported by sharp recent revenue acceleration and steady, healthy profitability, plus an exceptionally conservative balance sheet with zero debt. Main offset is cash-flow quality/consistency: operating cash flow has trailed net income and free cash flow has been volatile, reducing predictability.

Income Statement

Revenue has expanded strongly over the period, highlighted by a sharp acceleration in the latest year (FY2025 revenue growth of ~40% vs low-to-mid single digits in FY2024). Profitability is steady and healthy for the sector, with gross margin holding around ~17–18% and operating margin around ~9–10% while net margin improved versus earlier years (~6.9% in FY2025 vs ~5.4% in FY2020). The key weakness is that margins have not meaningfully expanded alongside the revenue step-up, suggesting growth is coming with limited operating leverage.

Balance Sheet

The balance sheet is very conservative with zero debt reported across all periods, which materially reduces financial risk and interest-rate sensitivity. Shareholders’ equity remains sizable (¥8.8B in FY2025) and returns on equity are solid-to-improving (~13.5% in FY2025 vs ~8.9% in FY2020), indicating good capital efficiency. A watch item is that equity dipped from FY2024 to FY2025, even as earnings rose, which may reflect capital returns or balance-sheet movements that should be monitored for persistence.

Cash Flow

Cash generation is generally sound, with free cash flow closely tracking net income in recent years (about ~0.99x in FY2024–FY2025), supporting earnings quality. However, cash conversion is not consistently strong: operating cash flow covered net income by less than 1x in every year shown (roughly ~0.67x in FY2025 and ~0.42x in FY2020), implying working-capital drag and/or timing effects. Free cash flow growth is also volatile (including sharp declines and a very large rebound), which lowers predictability despite the positive latest-year outcome.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.35B	17.34B	16.28B	15.45B	14.21B	12.19B
Gross Profit	2.16B	3.04B	2.90B	2.78B	2.53B	2.17B
EBITDA	1.14B	1.67B	1.62B	1.56B	1.38B	1.12B
Net Income	765.56M	1.19B	1.08B	1.12B	942.73M	748.51M
Balance Sheet
Total Assets	13.64B	12.98B	13.48B	12.81B	12.13B	11.38B
Cash, Cash Equivalents and Short-Term Investments	9.84B	9.17B	9.75B	9.13B	8.43B	8.01B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	4.39B	4.15B	4.11B	4.04B	4.01B	3.80B
Stockholders Equity	9.25B	8.82B	9.37B	8.77B	8.12B	7.58B
Cash Flow
Free Cash Flow	40.49M	1.34B	1.24B	1.14B	902.66M	946.13M
Operating Cash Flow	40.49M	1.36B	1.25B	1.19B	942.62M	984.46M
Investing Cash Flow	0.00	-23.31M	-17.48M	-68.35M	-39.97M	-29.45M
Financing Cash Flow	0.00	-1.92B	-615.90M	-424.21M	-482.01M	-364.11M

Toho System Science Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1174.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4333, the sentiment is Negative. The current price of 1174 is above the 20-day moving average (MA) of 1168.15, above the 50-day MA of 1155.42, and below the 200-day MA of 1182.97, indicating a bearish trend. The MACD of -5.39 indicates Positive momentum. The RSI at 42.14 is Neutral, neither overbought nor oversold. The STOCH value of 20.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4333.

Toho System Science Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4333	81 Outperform	¥21.88B	15.96	―	3.86%	0.50%	17.15%
3771	77 Outperform	¥32.83B	13.42	―	2.93%	11.53%	23.23%
3835	75 Outperform	¥20.08B	17.06	―	3.14%	0.50%	-2.92%
3921	74 Outperform	¥24.93B	13.98	―	2.53%	16.13%	62.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4448	49 Neutral	¥14.96B	-11.37	―	―	14.63%	-760.87%
4192	41 Neutral	¥10.79B	-27.30	―	―	22.18%	28.27%

Toho System Science Co., Ltd. Corporate Events

Toho System Science Shareholders Approve Creation of Joint Holding Company with R&D Computer

Toho System Science Co., Ltd., a Tokyo Stock Exchange Prime Market-listed IT services and systems development firm, has moved to strengthen its corporate structure and strategic positioning through a management integration with R&D Computer Co., Ltd. At an extraordinary general meeting of shareholders held on January 16, 2026, shareholders approved a joint share transfer plan under which Toho System Science and R&D Computer will establish Toranvia Co., Ltd. as a joint holding company and wholly owning parent of both firms, with the transaction scheduled to take effect on April 1, 2026. The same proposal was also approved at R&D Computer’s extraordinary shareholders’ meeting, clearing a key governance hurdle for the creation of the new holding structure, which is expected to consolidate management and potentially enhance the group’s competitiveness and operational efficiency in the IT services market.

The most recent analyst rating on (JP:4333) stock is a Buy with a Yen1357.00 price target. To see the full list of analyst forecasts on Toho System Science Co., Ltd. stock, see the JP:4333 Stock Forecast page.

Toho System Science Announces Executive Changes

Toho System Science Co., Ltd. announced changes in its executive officers, effective December 1, 2025. Takanori Ishii will become the Managing Executive Officer and General Manager of Sales & Development Headquarters and Division V, while Keiko Otsuka will be the Executive Officer and General Manager of Division V. These changes are part of the company’s strategy to strengthen its leadership and enhance operational efficiency.

Toho System Science Announces Consistent Interim Dividend Payout

Toho System Science Co., Ltd. has announced an interim dividend of ¥20 per share, consistent with the previous fiscal year’s results, with a total dividend payout of ¥346 million. This decision reflects the company’s commitment to maintaining stable dividends while balancing business performance and internal fund security, with no changes to the year-end dividend forecast.

Toho System Science Reports Profit Growth Amid Slight Sales Decline

Toho System Science Co., Ltd. reported a slight decrease in net sales for the first half of 2025, but saw significant improvements in operating and ordinary profits, indicating enhanced operational efficiency. The company forecasts continued growth in net sales and profits for the full fiscal year ending March 31, 2026, reflecting a positive outlook despite the challenging economic environment.

Toho System Science Announces Extraordinary Shareholder Meeting for Strategic Integration

Toho System Science Co., Ltd. has announced the establishment of a record date for an Extraordinary General Meeting of Shareholders to discuss the approval of a Share Transfer Plan. This plan involves creating a joint holding company through a share transfer with R&D Computer Co., Ltd., indicating a strategic move towards management integration and potential growth in the technology sector.

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

Toho System Science Co., Ltd. and R&D Computer Co., Ltd. have announced a management integration through the establishment of a joint holding company, Toranvia Co., Ltd., set to take effect on April 1, 2026. This integration aims to leverage digital transformation trends and enhance operational efficiency, positioning the companies to capitalize on growing market demands for IT solutions and information security amid increasing cyber threats.