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Ryoyu Systems Co., Ltd. (JP:4685)
:4685
Japanese Market
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Ryoyu Systems Co., Ltd. (4685) AI Stock Analysis

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JP:4685

Ryoyu Systems Co., Ltd.

(4685)

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Outperform 74 (OpenAI - 5.2)
Rating:74Outperform
Price Target:
¥2,948.00
▼(-13.17% Downside)
Action:Reiterated
Date:08/06/26
The score is supported primarily by strong financial quality (low leverage and improved profitability) and favorable valuation (low P/E with a healthy dividend yield). These positives are offset by weak technicals, with the price below key moving averages and bearish momentum indicators.
Positive Factors
Conservative balance sheet
Extremely low leverage and a steadily growing equity base provide durable financial flexibility. Over 2–6 months this supports the company's ability to weather downturns, fund strategic investments or M&A from equity, and maintain credit stability without refinancing risk.
Negative Factors
Top-line inconsistency
A recent YoY revenue decline after prior growth suggests instability in demand or project timing. Persistent top-line variability can pressure long-term margin sustainability and makes forecasting and capacity planning harder for management.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage and a steadily growing equity base provide durable financial flexibility. Over 2–6 months this supports the company's ability to weather downturns, fund strategic investments or M&A from equity, and maintain credit stability without refinancing risk.
Read all positive factors

Ryoyu Systems Co., Ltd. (4685) vs. iShares MSCI Japan ETF (EWJ)

Ryoyu Systems Co., Ltd. Business Overview & Revenue Model

Company Description
Ryoyu Systems Co., Ltd. provides design, development, operation and maintenance of information and communication systems for various industries in Japan. The company offers system development services for production management systems; system main...
How the Company Makes Money
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Ryoyu Systems Co., Ltd. Financial Statement Overview

Summary
Strong overall fundamentals led by a very conservative balance sheet (near-zero leverage and rising equity base). Profitability improved materially over multiple years, but the 2026 revenue decline and historically volatile cash flow (including negative OCF/FCF in 2023) temper the score.
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
70
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue42.93B43.23B42.76B37.06B33.14B30.26B
Gross Profit9.93B9.99B9.23B7.83B6.56B5.95B
EBITDA5.82B5.88B5.20B3.79B2.88B2.65B
Net Income3.76B3.91B3.38B2.42B1.83B1.58B
Balance Sheet
Total Assets30.20B32.23B30.23B26.86B23.03B21.95B
Cash, Cash Equivalents and Short-Term Investments3.42B3.31B2.17B2.20B1.77B1.90B
Total Debt18.00M6.00M14.00M22.00M30.00M41.00M
Total Liabilities6.42B8.27B9.53B8.70B7.21B7.56B
Stockholders Equity22.09B22.23B19.17B16.75B14.57B13.22B
Cash Flow
Free Cash Flow0.003.73B2.86B3.42B-771.00M2.30B
Operating Cash Flow0.003.96B3.02B4.09B-430.00M2.45B
Investing Cash Flow0.00-1.55B-2.10B-2.76B1.25B-2.32B
Financing Cash Flow0.00-1.27B-939.00M-899.00M-526.00M-420.00M

Ryoyu Systems Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3395.00
Price Trends
50DMA
2815.86
Negative
100DMA
2947.76
Negative
200DMA
3217.15
Negative
Market Momentum
MACD
-43.45
Positive
RSI
36.97
Neutral
STOCH
27.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4685, the sentiment is Negative. The current price of 3395 is above the 20-day moving average (MA) of 2838.10, above the 50-day MA of 2815.86, and above the 200-day MA of 3217.15, indicating a bearish trend. The MACD of -43.45 indicates Positive momentum. The RSI at 36.97 is Neutral, neither overbought nor oversold. The STOCH value of 27.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4685.

Ryoyu Systems Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥7.09B5.043.35%6.84%9.89%
74
Outperform
¥36.81B9.782.70%-3.52%5.44%
74
Outperform
¥62.88B11.412.95%8.73%20.36%
72
Outperform
¥110.22B7.762.91%34.02%56.48%
71
Outperform
¥14.08B5.784.00%12.00%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
57
Neutral
¥1.68T11.392.04%7.03%28.86%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4685
Ryoyu Systems Co., Ltd.
2,632.00
-1,255.55
-32.30%
JP:7509
I. A Group Corporation
4,855.00
1,291.77
36.25%
JP:8057
Uchida Yoko Co., Ltd.
2,046.00
-32.00
-1.54%
JP:8157
Tsuzuki Denki Co., Ltd.
4,030.00
956.65
31.13%
JP:9248
People, Dreams & Technologies Group Co., Ltd.
1,565.00
-213.61
-12.01%
JP:9435
Hikari Tsushin, Inc.
39,460.00
-1,419.98
-3.47%
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 06, 2026