D.I.System Co.,Ltd. (JP:4421)
:4421
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D.I.System Co.,Ltd.
(4421)
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Rating:79Outperform
Price Target:
¥1,116.00
▲(16.61% Upside)
Action:ReiteratedDate:01/14/26
The score is driven primarily by strong financial performance—especially the zero-debt, strengthening balance sheet—alongside stable profitability. Technicals add support with positive momentum and price above key moving averages. Valuation is also favorable with a low P/E and a solid dividend yield, partially offset by slowing revenue growth and uneven cash-flow consistency.
Positive Factors
Conservative balance sheet (zero debt)
Zero net debt and rising equity materially strengthen financial flexibility and lower solvency risk. This conservatism supports capital allocation for R&D, M&A or dividends during downturns, and with mid‑teens ROE the company retains capacity to deploy capital efficiently over the medium term.
Negative Factors
Sharply slowing revenue growth
A notable deceleration in topline growth reduces long‑term earnings momentum and increases pressure to extract margin or find new market channels. For a technology services firm, slowing sales may reflect market saturation or competition, limiting upside from current product portfolios.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet (zero debt)
Zero net debt and rising equity materially strengthen financial flexibility and lower solvency risk. This conservatism supports capital allocation for R&D, M&A or dividends during downturns, and with mid‑teens ROE the company retains capacity to deploy capital efficiently over the medium term.
Read all positive factors
D.I.System Co.,Ltd. (4421) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.79B
Dividend Yield2.86%
Average Volume (3M)4.73K
Price to Earnings (P/E)22.7
Beta (1Y)0.30
Revenue Growth6.62%
EPS Growth-5.02%
CountryJP
Employees735
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)88.11
Shares Outstanding3,059,000
10 Day Avg. Volume2,840
30 Day Avg. Volume4,726
Financial Highlights & Ratios
PEG Ratio1.88
Price to Book (P/B)1.76
Price to Sales (P/S)0.40
P/FCF Ratio13.92
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)N/A
Revenue Forecast (FY)N/A
D.I.System Co.,Ltd. Business Overview & Revenue Model
Company Description
D. I. System Co., Ltd. engages in the system integration, education, and security solutions businesses in Japan and internationally. It offers system development, network and platform construction, Microsoft, enhanced security, sales/service outso...
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 re...
D.I.System Co.,Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
70
Positive
| Breakdown | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.22B | 6.83B | 6.24B | 5.50B | 4.66B |
| Gross Profit | 1.47B | 1.34B | 1.33B | 1.18B | 939.49M |
| EBITDA | 425.24M | 403.48M | 396.76M | 331.05M | 239.07M |
| Net Income | 256.23M | 241.78M | 240.98M | 194.93M | 149.23M |
Balance Sheet | |||||
| Total Assets | 3.11B | 2.89B | 2.77B | 2.46B | 2.06B |
| Cash, Cash Equivalents and Short-Term Investments | 1.02B | 1.07B | 1.10B | 900.92M | 888.42M |
| Total Debt | 0.00 | 58.43M | 125.05M | 191.67M | 0.00 |
| Total Liabilities | 1.47B | 1.45B | 1.51B | 1.40B | 1.00B |
| Stockholders Equity | 1.64B | 1.44B | 1.26B | 1.06B | 1.02B |
Cash Flow | |||||
| Free Cash Flow | 206.40M | 139.97M | 316.84M | 189.46M | 175.21M |
| Operating Cash Flow | 299.04M | 173.77M | 323.86M | 190.38M | 191.55M |
| Investing Cash Flow | -217.36M | -74.90M | -10.91M | -69.99M | -19.41M |
| Financing Cash Flow | -130.63M | -130.54M | -109.63M | -107.89M | -45.71M |
D.I.System Co.,Ltd. Technical Analysis
Negative
957.00
Price Trends
928.68
Negative
935.49
Negative
946.39
Negative
Market Momentum
-2.15
Negative
42.73
Neutral
24.69
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 919.40, above the 50-day MA of 928.68, and above the 200-day MA of 946.39, indicating a bearish trend. The MACD of -2.15 indicates Negative momentum. The RSI at 42.73 is Neutral, neither overbought nor oversold. The STOCH value of 24.69 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥6.52B | 6.58 | ― | 3.13% | 12.64% | 23.13% | |
79 Outperform | ¥2.79B | 22.68 | ― | 2.86% | 6.62% | -5.02% | |
78 Outperform | ¥6.07B | 14.49 | ― | 2.43% | 1.40% | 10.69% | |
71 Outperform | ¥22.26B | 11.39 | ― | 1.70% | 20.32% | 18.86% | |
69 Neutral | ¥30.82B | 14.61 | ― | 2.22% | 11.22% | 55.88% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | ¥5.83B | 11.49 | ― | 1.23% | 12.32% | -14.81% |
* Technology Sector Average
JP:4421
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D.I.System Co.,Ltd. Corporate Events
D.I.System Co., Ltd. Reports Increased Sales and Stronger Financial Position
Nov 20, 2025
D.I.System Co., Ltd. reported a 5.7% increase in net sales for the fiscal year ending September 30, 2025, reaching 7,222 million yen. The company also saw improvements in operating and ordinary profit, with a notable increase in comprehensive inco...
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.