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D.I.System Co.,Ltd. (JP:4421)
:4421
Japanese Market
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D.I.System Co.,Ltd. (4421) AI Stock Analysis

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JP:4421

D.I.System Co.,Ltd.

(4421)

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Outperform 70 (OpenAI - 5.2)
Rating:70Outperform
Price Target:
¥1,010.00
▲(5.54% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by strong financial health—especially the zero-debt balance sheet and stable profitability—supported by reasonable valuation and a ~2.94% dividend yield. This is partially offset by weak technical momentum (negative MACD, RSI in the low-40s, and price below key moving averages), which suggests near-term market sentiment remains cautious.
Positive Factors
Balance Sheet Strength
A zero-debt balance sheet and rising equity provide durable financial flexibility: lower fixed financing costs, more room for cyclical shocks, and capacity to fund capex, R&D or dividends from equity rather than new debt, supporting long-term resilience and strategic optionality.
Negative Factors
Slowing Revenue Momentum
A sharp deceleration in revenue growth in 2025 signals weakening top-line momentum that can persist absent strategic changes. Slower growth erodes operating leverage, makes margin expansion harder, and raises the bar for management to find new markets or expand wallet share to sustain long-term earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
A zero-debt balance sheet and rising equity provide durable financial flexibility: lower fixed financing costs, more room for cyclical shocks, and capacity to fund capex, R&D or dividends from equity rather than new debt, supporting long-term resilience and strategic optionality.
Read all positive factors

D.I.System Co.,Ltd. (4421) vs. iShares MSCI Japan ETF (EWJ)

D.I.System Co.,Ltd. Business Overview & Revenue Model

Company Description
D. I. System Co., Ltd., established in 1997 and headquartered in Tokyo, Japan, operates internationally, specializing in a broad spectrum of system integration, education, and security solutions. The company's comprehensive IT offerings encompass ...
How the Company Makes Money
null...

D.I.System Co.,Ltd. Financial Statement Overview

Summary
Overall financials are solid: steady multi-year revenue growth and stable profitability, paired with a very strong balance sheet (debt reduced to zero and growing equity). The main constraints are sharply slower revenue growth in 2025 and volatile free cash flow year-to-year, which reduces confidence in cash conversion stability.
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
70
Positive
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue7.43B7.22B6.83B6.24B5.50B4.66B
Gross Profit1.49B1.47B1.34B1.33B1.18B939.49M
EBITDA387.32M428.34M403.58M396.77M331.06M242.15M
Net Income212.74M256.23M241.78M240.98M194.93M149.23M
Balance Sheet
Total Assets3.41B3.11B2.89B2.77B2.46B2.06B
Cash, Cash Equivalents and Short-Term Investments1.20B1.02B1.07B1.10B900.92M888.42M
Total Debt300.00M0.0058.43M125.05M191.67M0.00
Total Liabilities1.75B1.47B1.45B1.51B1.40B1.00B
Stockholders Equity1.66B1.64B1.44B1.26B1.06B1.02B
Cash Flow
Free Cash Flow206.40M206.40M139.97M316.84M189.46M175.21M
Operating Cash Flow299.04M299.04M173.77M323.86M190.38M191.55M
Investing Cash Flow-217.36M-217.36M-74.90M-10.91M-69.99M-19.41M
Financing Cash Flow-130.63M-130.63M-130.54M-109.63M-107.89M-45.71M

D.I.System Co.,Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price957.00
Price Trends
50DMA
926.80
Negative
100DMA
919.69
Positive
200DMA
933.38
Negative
Market Momentum
MACD
-2.04
Negative
RSI
46.02
Neutral
STOCH
66.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4421, the sentiment is Negative. The current price of 957 is above the 20-day moving average (MA) of 925.40, above the 50-day MA of 926.80, and above the 200-day MA of 933.38, indicating a bearish trend. The MACD of -2.04 indicates Negative momentum. The RSI at 46.02 is Neutral, neither overbought nor oversold. The STOCH value of 66.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4421.

D.I.System Co.,Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥33.42B10.753.39%11.79%55.44%
78
Outperform
¥6.91B10.643.13%20.34%38.42%
76
Outperform
¥5.84B16.212.43%-2.56%-7.81%
73
Outperform
¥6.01B12.731.23%14.08%6.64%
71
Outperform
¥29.11B17.092.83%15.42%27.86%
70
Outperform
¥2.83B12.612.86%7.29%-10.63%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4421
D.I.System Co.,Ltd.
922.00
-11.01
-1.18%
JP:3940
Nomura System Corporation Co., Ltd.
129.00
-7.58
-5.55%
JP:3988
SYS Holdings Co. Ltd.
560.00
13.09
2.39%
JP:4072
Densan System Holdings Co. Ltd.
3,160.00
545.78
20.88%
JP:4396
System Support, Inc.
1,425.00
102.30
7.73%
JP:5576
O.B.System Inc.
2,953.00
219.13
8.02%

D.I.System Co.,Ltd. Corporate Events

D.I.System Posts Higher Sales but Lower Profits in First Half of FY2026
May 18, 2026
D.I.System reported consolidated net sales of ¥3.60 billion for the six months ended March 31, 2026, a 6.1% year-on-year rise, but saw operating profit fall 25.3% to ¥160 million and profit attributable to owners of parent drop 29.4% to ...
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.Date of analysis: Aug 04, 2026