Ryoyu Systems Co., Ltd. (4685) AI Stock Analysis

• Market Cap: ¥48.77B
• Dividend Yield: 2.31%
• Average Volume (3M): 64.86K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 1.12
• Revenue Growth: 17.96%
• EPS Growth: 30.46%
• Country: JP
• Employees: 2,012
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 76.09
• Shares Outstanding: 12,779,712
• 10 Day Avg. Volume: 95,700
• 30 Day Avg. Volume: 64,863
• PEG Ratio: 0.34
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 1.08
• P/FCF Ratio: 16.16
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥3,456.00 ▲(1.20% Upside)

Ryoyu Systems Co., Ltd. scores a 66, driven primarily by its strong financial performance and attractive valuation. However, the current bearish technical indicators suggest caution in the short term. The absence of recent earnings call data and corporate events limits the analysis to these factors.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates robust demand for its IT solutions, enhancing its market position and supporting long-term expansion.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities.

Profitability

Improved profitability margins demonstrate effective cost management and operational efficiency, contributing to sustainable financial performance.

Negative Factors

Operational Efficiency

Limited improvement in EBITDA margins indicates potential challenges in optimizing operations, which could impact future profitability.

Liability Increase

Rising liabilities, although currently manageable, could pose risks to financial health if not addressed, affecting long-term stability.

Cash Flow Volatility

Fluctuations in cash flow ratios may indicate variability in cash generation, potentially impacting the company's ability to fund operations consistently.

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

Company Description

Ryoyu Systems Co., Ltd. (4685) is a Japanese company that specializes in providing high-quality IT solutions and services, primarily focusing on the development of software and systems integration for the manufacturing sector. The company operates within the information technology industry, offering a range of products that include enterprise resource planning (ERP) systems, data management solutions, and customized software applications designed to enhance operational efficiency for its clients.

How the Company Makes Money

Ryoyu Systems generates revenue through multiple streams primarily centered around software sales and systems integration services. Their core revenue model includes licensing fees from software products, service fees for system integration projects, and ongoing maintenance and support contracts. Additionally, the company may earn revenue from consulting services that help clients optimize their IT infrastructure and processes. Significant partnerships with key players in the manufacturing industry and technology providers also contribute to their earnings by enabling collaborative projects that expand their market reach and enhance their service offerings.

Ryoyu Systems Co., Ltd. Financial Statement Overview

Summary

Ryoyu Systems Co., Ltd. shows strong financial performance with consistent revenue and profit growth, a solid balance sheet with low leverage, and improving cash flows. The company is on a positive trajectory with increasing profitability and effective capital management, although there is room for further operational efficiency improvements.

Income Statement

Ryoyu Systems Co., Ltd. demonstrated strong revenue growth of 15.4% from 2024 to 2025, alongside a consistent increase in gross profit margins from 21.1% to 21.6%. The EBIT margin improved as well, indicating efficient cost management. Net profit margin rose to 7.9%, reflecting enhanced profitability. However, EBITDA margins showed only slight improvement, suggesting room for operational efficiency gains.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio, indicating low leverage risks. The equity ratio is robust at 63.4%, reflecting strong asset management. Return on equity increased to 17.7%, showcasing effective use of shareholder funds. However, the slight increase in total liabilities warrants monitoring.

Cash Flow

Free cash flow improved significantly in 2025, with a strong free cash flow to net income ratio of 0.85, indicating healthy cash generation relative to net income. The operating cash flow to net income ratio experienced a dip but remains positive. The positive trend in free cash flow growth rate over the past year enhances financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.49B	42.76B	37.06B	33.14B	30.26B	31.56B
Gross Profit	9.59B	9.23B	7.83B	6.56B	5.95B	5.57B
EBITDA	5.43B	5.20B	3.79B	2.88B	2.65B	2.40B
Net Income	3.56B	3.38B	2.42B	1.83B	1.58B	1.42B
Balance Sheet
Total Assets	26.70B	30.20B	26.83B	23.02B	21.93B	20.05B
Cash, Cash Equivalents and Short-Term Investments	2.04B	10.21B	10.31B	2.63B	1.90B	2.07B
Total Debt	10.00M	14.00M	22.00M	30.00M	41.00M	5.00M
Total Liabilities	6.06B	9.50B	8.67B	7.19B	7.55B	7.01B
Stockholders Equity	19.13B	19.17B	16.75B	14.57B	13.22B	11.97B
Cash Flow
Free Cash Flow	0.00	2.86B	3.42B	-771.00M	2.30B	717.00M
Operating Cash Flow	0.00	3.02B	4.09B	-430.00M	2.45B	806.00M
Investing Cash Flow	0.00	-2.10B	-2.76B	1.25B	-2.32B	-1.22B
Financing Cash Flow	0.00	-939.00M	-899.00M	-526.00M	-420.00M	-381.00M

Ryoyu Systems Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3415.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4685, the sentiment is Neutral. The current price of 3415 is below the 20-day moving average (MA) of 3583.25, below the 50-day MA of 3510.43, and below the 200-day MA of 3420.39, indicating a neutral trend. The MACD of -77.49 indicates Positive momentum. The RSI at 46.81 is Neutral, neither overbought nor oversold. The STOCH value of 30.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4685.

Ryoyu Systems Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8081	78 Outperform	¥44.43B	11.54	―	3.49%	18.42%	51.06%
8070	74 Outperform	¥25.08B	10.60	―	3.84%	-18.88%	42.17%
2676	69 Neutral	¥36.38B	34.06	―	4.13%	9.48%	17.63%
8057	69 Neutral	¥101.58B	10.39	―	2.73%	21.27%	40.28%
8157	68 Neutral	¥52.18B	10.37	―	3.08%	-5.63%	52.73%
4685	66 Neutral	¥48.77B	13.05	―	2.31%	17.96%	30.46%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%