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System Support, Inc.
(4396)
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Rating:71Outperform
Price Target:
¥1,056.00
▼(-26.97% Downside)
Action:Reiterated
Date:03/24/26
The score is driven primarily by strong financial performance (improving margins, high ROE, and solid free cash flow) and a supportive valuation (low P/E with a ~2.7% dividend yield). These positives are partially offset by weak technicals, with the stock trading below key moving averages and negative momentum indicators.
Positive Factors
Revenue growth trend
Consistent revenue expansion, with acceleration in the latest year, signals durable demand for core services and supports predictable top-line growth. That expanding revenue base enables scalable investment in products and sales, improving the runway for sustainable earnings and cash generation over 2–6 months and beyond.
Negative Factors
Rising leverage
The recent increase in leverage reduces financial flexibility and raises interest-cost sensitivity, which can constrain discretionary spending or bolt-on M&A. Over a multi-quarter horizon, higher debt levels amplify downside risk if operating cash flow weakens, making liquidity and covenant monitoring more important.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth trend
Consistent revenue expansion, with acceleration in the latest year, signals durable demand for core services and supports predictable top-line growth. That expanding revenue base enables scalable investment in products and sales, improving the runway for sustainable earnings and cash generation over 2–6 months and beyond.
Read all positive factors
System Support, Inc. (4396) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥21.63B
Dividend Yield1.7%
Average Volume (3M)45.01K
Price to Earnings (P/E)12.5
Beta (1Y)0.64
Revenue Growth15.21%
EPS Growth12.50%
CountryJP
Employees1,484
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)83.37
Shares Outstanding20,800,000
10 Day Avg. Volume41,880
30 Day Avg. Volume45,006
Financial Highlights & Ratios
PEG Ratio0.97
Price to Book (P/B)4.63
Price to Sales (P/S)1.03
P/FCF Ratio13.20
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)101.4
Revenue Forecast (FY)¥36.40B
System Support, Inc. Business Overview & Revenue Model
Company Description
Operating both in Japan and internationally, System Support Inc. delivers a comprehensive suite of IT services. The company develops and implements various specialized software solutions, such as Tate Yakusha for managing construction project data...
System Support, Inc. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.80B | 26.94B | 22.03B | 19.27B | 16.20B | 14.43B |
| Gross Profit | 8.64B | 7.50B | 6.09B | 5.23B | 4.34B | 3.74B |
| EBITDA | 3.00B | 2.54B | 2.01B | 1.66B | 1.38B | 1.12B |
| Net Income | 1.72B | 1.46B | 1.22B | 1.01B | 785.69M | 674.50M |
Balance Sheet | ||||||
| Total Assets | 15.27B | 13.66B | 9.93B | 8.87B | 7.82B | 6.78B |
| Cash, Cash Equivalents and Short-Term Investments | 5.98B | 5.84B | 4.25B | 3.57B | 3.25B | 2.70B |
| Total Debt | 3.26B | 1.99B | 1.06B | 1.21B | 1.21B | 1.00B |
| Total Liabilities | 8.44B | 7.64B | 4.87B | 4.75B | 4.39B | 3.79B |
| Stockholders Equity | 6.83B | 6.01B | 5.06B | 4.12B | 3.42B | 2.99B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 2.11B | 1.32B | 901.40M | 913.58M | 488.16M |
| Operating Cash Flow | 0.00 | 2.38B | 1.47B | 1.07B | 1.01B | 709.23M |
| Investing Cash Flow | 0.00 | -792.60M | -419.54M | -324.49M | -274.70M | -276.55M |
| Financing Cash Flow | 0.00 | -4.83M | -513.24M | -462.04M | -240.62M | -165.71M |
System Support, Inc. Technical Analysis
Neutral
1446.00
Price Trends
1003.52
Positive
1075.08
Negative
1265.98
Negative
Market Momentum
14.66
Negative
60.46
Neutral
82.75
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4396, the sentiment is Neutral. The current price of 1446 is above the 20-day moving average (MA) of 975.39, above the 50-day MA of 1003.52, and above the 200-day MA of 1265.98, indicating a neutral trend. The MACD of 14.66 indicates Negative momentum. The RSI at 60.46 is Neutral, neither overbought nor oversold. The STOCH value of 82.75 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4396.
System Support, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥30.28B | 12.34 | ― | 4.36% | 7.11% | 20.05% | |
77 Outperform | ¥27.80B | 9.74 | ― | 2.93% | 7.86% | 28.33% | |
75 Outperform | ¥27.76B | 10.91 | ― | 1.21% | 5.85% | 5.71% | |
71 Outperform | ¥21.63B | 12.49 | ― | 1.70% | 15.21% | 12.50% | |
69 Neutral | ¥31.48B | 10.52 | ― | 2.22% | 12.35% | 56.74% | |
65 Neutral | ¥31.00B | 8.73 | 10.34% | 4.82% | -2.76% | 36.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:4396
System Support, Inc.
1,041.00
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-17.91%
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16.29%
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.