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

• Market Cap: ¥22.62B
• Dividend Yield: 3.86%
• Average Volume (3M): 27.24K
• Price to Earnings (P/E): 16.5
• Beta (1Y): 0.80
• 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

Toho System Science Co., Ltd. demonstrates solid financial performance with strong revenue growth, high profitability margins, and excellent balance sheet health characterized by zero debt and robust equity. Cash flow metrics reinforce the company's efficient cash management and growth trajectory. The company is well-positioned for future growth while maintaining stability and liquidity.

Income Statement

The company has demonstrated consistent growth in revenue over the years, with a revenue growth rate of 5.4% in the most recent year (2024). The gross profit margin remains strong at approximately 17.8% for 2024, and the net profit margin is healthy at 6.6%. EBITDA margin is also solid at 9.9%. Such metrics indicate a profitable operation with stable margins, although net income slightly decreased in 2024, reflecting potential for improvement in cost management.

Balance Sheet

The company maintains excellent financial health with no debt, resulting in a debt-to-equity ratio of 0. The equity ratio stands at 69.5%, indicating a strong equity base. The return on equity is a robust 11.6%, showcasing efficient use of equity to generate profits. Overall, the balance sheet reflects a stable and low-risk financial position.

Cash Flow

Free cash flow has consistently grown, with a growth rate of 8.1% in 2024. The operating cash flow to net income ratio is strong at 1.16, suggesting effective conversion of profits into cash. The free cash flow to net income ratio is also commendable at 1.14, indicating efficient capital expenditure management. These metrics suggest strong cash flow generation and management.

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: Neutral
• Last Price: 1174.00
• 50DMA: Positive
• 100DMA: Positive
• 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:4333, the sentiment is Neutral. The current price of 1174 is above the 20-day moving average (MA) of 1173.85, above the 50-day MA of 1144.40, and below the 200-day MA of 1182.86, indicating a neutral trend. The MACD of 12.19 indicates Negative momentum. The RSI at 57.57 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥22.62B	16.50	―	3.86%	0.50%	17.15%
3771	77 Outperform	¥33.62B	13.79	―	2.93%	11.53%	23.23%
3835	75 Outperform	¥21.05B	17.85	―	3.14%	0.50%	-2.92%
3921	74 Outperform	¥26.53B	14.87	―	2.53%	16.13%	62.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4448	49 Neutral	¥17.32B	-13.43	―	―	14.63%	-760.87%
4192	41 Neutral	¥10.88B	-27.39	―	―	22.18%	28.27%

Toho System Science Co., Ltd. Corporate Events

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.