Strong Cash GenerationSystem Support reliably converts earnings into cash: operating cash flow 1.63x net income and FCF 1.45x net income. That durable cash conversion supports reinvestment, dividend coverage and debt servicing, giving the company structural flexibility to fund growth and withstand cycles.

High Return On Equity And Stable Capital StructureA 24% ROE indicates efficient use of shareholder capital and strong operating returns. Combined with a 44% equity ratio and modest 0.33 debt/equity, the balance sheet has structural resilience, enabling capital allocation to growth initiatives while maintaining financial stability over the medium term.

Consistent Revenue Growth TrendThe company exhibits ongoing top-line growth driven by subscription managed services, cloud and software sales plus cross-selling. A multi-stream revenue model and documented revenue growth support a durable expansion runway and recurring revenue base that is valuable over 2–6 months and beyond.

Bears Say

Increasing Debt Warrants MonitoringAlthough leverage remains moderate, the recent rise in total debt reduces headroom and could elevate interest expense or constrain strategic flexibility if growth slows. Over a medium horizon, rising debt increases refinancing and covenant risk if not paired with sustained cash generation.

Relatively Modest Net Profit MarginA net margin near 5.4% leaves limited buffer against rising operating costs or price pressure. Even with strong cash conversion, modest net margins constrain retained earnings for reinvestment and make profitability more sensitive to labor, subcontractor or sales cost inflation across the medium term.

Project-based Revenue Can Be LumpyDependence on project work alongside subscriptions creates revenue volatility and forecasting difficulty. Project-driven revenues can be cyclical or lumpy quarter-to-quarter, which may impair predictable margin expansion and capital planning despite strong recurring-service growth.

System Support, Inc. News

System Support Holdings Inc. Completes Acquisition of Echo System Co., Ltd.

System Support, Inc. ( ($JP:4396) ) has shared an announcement. System Support Holdings Inc. has completed the acquisition...

8M ago

4396

System Support Holdings Inc. Acquires Echo System Co., Ltd. to Expand Cloud Integration Business

An update from System Support, Inc. ( ($JP:4396) ) is now available. System Support Holdings Inc. announced its...

9M ago

4396

4396 FAQ

What was System Support, Inc.’s price range in the past 12 months?

System Support, Inc. lowest stock price was ¥840.00 and its highest was ¥1737.50 in the past 12 months.

What is System Support, Inc.’s market cap?

System Support, Inc.’s market cap is ¥25.12B.

When is System Support, Inc.’s upcoming earnings report date?

The company’s upcoming earnings report date is not yet available.

How were System Support, Inc.’s earnings last quarter?

Currently, no data Available

Is System Support, Inc. overvalued?

According to Wall Street analysts System Support, Inc.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does System Support, Inc. pay dividends?

System Support, Inc. pays a Semiannually dividend of ¥30 which represents an annual dividend yield of 1.7%. See more information on System Support, Inc. dividends here

What is System Support, Inc.’s EPS estimate?

System Support, Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does System Support, Inc. have?

System Support, Inc. has 20,800,000 shares outstanding.

What happened to System Support, Inc.’s price movement after its last earnings report?

Currently, no data Available

Which hedge fund is a major shareholder of System Support, Inc.?

Currently, no hedge funds are holding shares in JP:4396

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

System Support, Inc.

System Support Inc. provides various IT services in Japan and internationally. It offers Tate Yakusha, a construction work information management system; Shugyo Yakusha, an attendance/work management system; SHIFTEE, a cloud-based shift management system; Voicetant Writer and Voicetant Recorder, which enables voice operation/input; Cloud Koubou that provides cloud support service; SmartDWH, a cloud-based DWH solution; PinMap that offers customer information mapping service; and MOS, a mobile order reception system. The company also provides system consulting/direction, system integration, IT task support, and outsourcing services, as well as ERP, Oracle, cloud, ServiceNow, RPA, infrastructure, virtualization, and work flow solutions. System Support Inc. was founded in 1980 and is headquartered in Kanazawa, Japan.