D.I.System Co.,Ltd. (4421) AI Stock Analysis

• Market Cap: ¥2.89B
• Dividend Yield: 2.86%
• Average Volume (3M): 4.73K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.30
• Revenue Growth: 5.74%
• EPS Growth: 5.97%
• Country: JP
• Employees: 735
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 27.32
• Shares Outstanding: 3,059,000
• 10 Day Avg. Volume: 2,840
• 30 Day Avg. Volume: 4,726
• PEG Ratio: 1.77
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 13.92
• 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: 72 Outperform
• Price Target: ¥1,073.00 ▲(12.12% Upside)

D.I.System Co.,Ltd. scores well due to its strong financial performance and attractive valuation. The company's robust revenue growth and profitability margins are significant strengths. However, technical analysis indicates potential short-term weakness, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and competitive positioning.

Profitability Margins

Robust profitability margins reflect efficient operations and cost management, enhancing the company's ability to reinvest in growth and innovation.

Balance Sheet Health

A healthy balance sheet with low leverage and strong ROE provides financial stability and flexibility, enabling strategic investments and resilience against economic fluctuations.

Negative Factors

Cash Flow Volatility

Volatility in cash flow can hinder the company's ability to fund operations and growth initiatives, potentially impacting long-term financial health and strategic execution.

Cash Generation

While operating cash flow is positive, the ratio indicates a need for improved cash conversion efficiency to ensure sustainable funding for business operations and growth.

Free Cash Flow

Lack of free cash flow generation limits the company's ability to invest in new projects and return capital to shareholders, posing a risk to long-term growth prospects.

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

Company Description

D.I.System Co., Ltd. (4421) is a technology-driven company specializing in the development and provision of innovative software solutions and systems integration services. Operating primarily within the information technology sector, the company focuses on delivering advanced data management and automation tools to enhance operational efficiency for businesses across various industries. Core products include enterprise resource planning (ERP) systems, cloud-based services, and custom software development tailored to meet specific client needs.

How the Company Makes Money

D.I.System Co., Ltd. generates revenue through multiple streams, including direct sales of its software products, licensing agreements, and subscription-based models for its cloud services. The company also earns income from consulting services related to system integration and implementation of its solutions, which often includes ongoing support and maintenance contracts. Significant partnerships with other technology firms and industry players enhance its market reach and contribute to its earnings by enabling collaborative projects and bundled service offerings.

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

Summary

D.I.System Co.,Ltd. demonstrates strong financial performance with impressive revenue growth and robust profitability margins. The balance sheet is stable with low leverage and strong ROE. However, cash flow volatility presents a potential risk.

Income Statement

D.I.System Co.,Ltd. has shown impressive revenue growth, with a 31.12% increase from 2022 to 2023 and a 10.67% increase from 2021 to 2022. The company maintains a strong gross profit margin of 19.72% for the TTM period and a net profit margin of 3.44%. EBIT and EBITDA margins are robust at 4.91% and 5.57% respectively, indicating efficient operations and solid profitability.

Balance Sheet

The company's financial stability is supported by a low debt-to-equity ratio of 0.03 for TTM and a healthy equity ratio of 51.46%. Return on Equity (ROE) is strong at 16.59% for TTM, demonstrating effective use of equity to generate profits. The company has substantial cash reserves relative to its debt, enhancing its financial flexibility.

Cash Flow

D.I.System Co.,Ltd. has experienced volatility in cash flow metrics, with a decline in free cash flow growth in the TTM period due to zero reported free cash flow. However, the company has maintained a positive operating cash flow to net income ratio of 0.72 in 2023, indicating decent cash generation relative to its profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.09B	7.22B	6.83B	6.24B	5.50B	4.66B
Gross Profit	1.42B	1.47B	1.34B	1.33B	1.18B	939.49M
EBITDA	393.62M	428.34M	403.59M	396.77M	331.06M	242.15M
Net Income	234.80M	256.23M	241.78M	240.98M	194.93M	149.23M
Balance Sheet
Total Assets	3.18B	3.11B	2.89B	2.77B	2.46B	2.06B
Cash, Cash Equivalents and Short-Term Investments	1.08B	1.02B	1.07B	1.10B	900.92M	888.42M
Total Debt	8.46M	0.00	58.43M	125.05M	191.67M	0.00
Total Liabilities	1.64B	1.47B	1.45B	1.51B	1.40B	1.00B
Stockholders Equity	1.54B	1.64B	1.44B	1.26B	1.06B	1.02B
Cash Flow
Free Cash Flow	0.00	206.40M	115.50M	314.27M	185.79M	171.71M
Operating Cash Flow	0.00	299.04M	173.77M	323.86M	190.38M	191.55M
Investing Cash Flow	0.00	-217.36M	-74.90M	-10.91M	-69.99M	-19.41M
Financing Cash Flow	0.00	-130.63M	-130.54M	-109.63M	-107.89M	-45.71M

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

• Technical Analysis Sentiment: Positive
• Last Price: 957.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4421, the sentiment is Positive. The current price of 957 is above the 20-day moving average (MA) of 917.05, above the 50-day MA of 944.50, and above the 200-day MA of 927.67, indicating a bullish trend. The MACD of -2.26 indicates Negative momentum. The RSI at 60.55 is Neutral, neither overbought nor oversold. The STOCH value of 90.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4421.

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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7046	74 Outperform	¥2.85B	25.04	―	0.69%	12.15%	-33.34%
2323	73 Outperform	¥6.33B	25.70	―	―	103.49%	620.98%
4421	72 Outperform	¥2.89B	10.72	―	2.86%	5.74%	5.97%
3970	66 Neutral	¥2.50B	-10.91	―	4.29%	15.64%	-268.60%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5618	46 Neutral	¥2.85B	-9.94	―	―	23.63%	64.65%
4427	39 Underperform	¥2.59B	161.36	―	―	-12.77%	―