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

• Market Cap: ¥3.17B
• Dividend Yield: 2.31%
• Average Volume (3M): 3.85K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.24
• Revenue Growth: 5.61%
• EPS Growth: 6.12%
• Country: JP
• Employees: 735
• Sector: Technology
• Sector Strength: 84
• Industry: Information Technology Services
• EPS (TTM): 9.85
• Shares Outstanding: 3,058,000
• 10 Day Avg. Volume: 3,960
• 30 Day Avg. Volume: 3,850
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,030.00
• Price Target Upside: -0.77% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: ¥1,030.00 ▼(-0.77% Downside)

D.I.System Co.,Ltd. exhibits strong financial performance with impressive revenue growth and efficient operations. The valuation metrics suggest it is attractively priced, making it a compelling investment despite some neutral technical signals.

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

Company Description

D.I.System Co., Ltd. (4421) is a technology company primarily engaged in providing IT solutions and services. The company specializes in software development, system integration, and IT infrastructure management, offering a comprehensive range of services tailored to meet the needs of businesses across various sectors.

How the Company Makes Money

D.I.System Co., Ltd. generates revenue through its diverse portfolio of IT services and solutions. The company's primary revenue streams include fees from software development projects, system integration services, and IT infrastructure management. By offering customized solutions and ongoing support, the company secures long-term contracts with businesses seeking to improve and manage their IT operations. Additionally, strategic partnerships with technology vendors and clients play a significant role in enhancing the company's market reach and contributing to its earnings.

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

Summary

D.I.System Co.,Ltd. demonstrates impressive financial performance with strong revenue growth and profitability margins. The balance sheet reflects a stable financial structure with low leverage and strong ROE. Despite some volatility in cash flow, the company maintains a solid liquidity position.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.93B	6.83B	6.24B	5.50B	4.66B	4.28B
Gross Profit	1.37B	1.34B	1.33B	1.18B	939.49M	789.86M
EBITDA	394.23M	403.59M	396.77M	331.06M	242.15M	129.42M
Net Income	237.22M	241.78M	240.98M	194.93M	149.23M	77.86M
Balance Sheet
Total Assets	3.01B	2.89B	2.77B	2.46B	2.06B	1.76B
Cash, Cash Equivalents and Short-Term Investments	904.98M	1.07B	1.10B	900.92M	888.42M	736.47M
Total Debt	25.12M	58.43M	125.05M	191.67M	0.00	9.48M
Total Liabilities	1.49B	1.45B	1.51B	1.40B	1.00B	853.36M
Stockholders Equity	1.51B	1.44B	1.26B	1.06B	1.02B	910.85M
Cash Flow
Free Cash Flow	0.00	115.50M	314.27M	185.79M	171.71M	209.33M
Operating Cash Flow	0.00	173.77M	323.86M	190.38M	191.55M	309.45M
Investing Cash Flow	0.00	-74.90M	-10.91M	-69.99M	-19.41M	-113.71M
Financing Cash Flow	0.00	-130.54M	-109.63M	-107.89M	-45.71M	-88.22M

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

• Technical Analysis Sentiment: Positive
• Last Price: 1038.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 1038 is above the 20-day moving average (MA) of 1001.05, above the 50-day MA of 961.38, and above the 200-day MA of 918.43, indicating a bullish trend. The MACD of 21.84 indicates Negative momentum. The RSI at 71.02 is Negative, neither overbought nor oversold. The STOCH value of 80.62 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
2323	76 Outperform	¥5.06B	27.30		―	91.71%	210.91%
4421	74 Outperform	¥3.17B	12.79		2.31%	5.61%	6.12%
7046	74 Outperform	¥3.29B	28.71		0.60%	9.33%	-41.25%
3970	66 Neutral	¥2.72B	42.65		3.96%	13.99%	-157.48%
Sector *	61 Neutral	$35.56B	8.99	-10.49%	1.86%	8.45%	-8.32%
5618	56 Neutral	¥3.80B	―		―	―	―
4427	39 Underperform	¥3.65B	―		―	-15.21%	-7.31%

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

D.I.System Co., Ltd. Reports Modest Sales Growth Amid Profit Decline

D.I.System Co., Ltd. reported a modest increase in net sales by 2.9% for the six months ending March 31, 2025, compared to the same period the previous year. However, the company experienced a decline in operating profit and ordinary profit by 5.5% and 5.1% respectively. Despite these challenges, the company maintains a stable equity ratio and anticipates a year-end dividend increase, reflecting a cautious yet optimistic outlook for the remainder of the fiscal year.