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

• Market Cap: ¥43.37B
• Dividend Yield: 2.5%
• Average Volume (3M): 29.80K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.06
• Revenue Growth: 19.82%
• EPS Growth: 38.84%
• Country: JP
• Employees: 2,012
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 97.52
• Shares Outstanding: 6,389,856
• 10 Day Avg. Volume: 26,790
• 30 Day Avg. Volume: 29,800
• 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: ¥7,552.00
• Price Target Upside: 11.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ¥7,552.00 ▲(11.06% Upside)

Ryoyu Systems Co., Ltd. has a strong financial foundation with solid revenue and profit growth, which is the most significant factor in its overall score. However, technical analysis indicates bearish momentum, which negatively impacts the score. The stock's valuation is attractive, with a low P/E ratio and reasonable dividend yield, providing some balance to the technical weaknesses.

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

Company Description

Ryoyu Systems Co., Ltd. (4685) is a Japanese company primarily engaged in the provision of information technology (IT) solutions and services. The company operates in various sectors, offering comprehensive IT support and system integration services. Its core services include software development, IT infrastructure management, network solutions, and consulting services, catering to a diverse range of industries including finance, manufacturing, and public sectors.

How the Company Makes Money

Ryoyu Systems Co., Ltd. generates revenue through a diverse range of IT services and solutions. The company primarily earns its income by providing system integration services, which involves designing and implementing IT infrastructure tailored to the specific needs of its clients. Additionally, it offers software development services, where it creates and customizes software applications for businesses across different industries. Another key revenue stream is IT consulting, where the company advises organizations on optimizing their IT strategies and operations. Furthermore, Ryoyu Systems engages in maintenance and support services, providing ongoing technical assistance and system upgrades. Strategic partnerships with technology providers and a strong client base across various sectors also contribute significantly to the company's earnings.

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's profitability is increasing, and capital management is effective, though there is room for 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	42.76B	42.76B	37.06B	33.14B	30.26B	31.56B
Gross Profit	9.23B	9.23B	7.83B	6.56B	5.95B	5.57B
EBITDA	5.18B	5.20B	3.79B	2.88B	2.65B	2.40B
Net Income	3.38B	3.38B	2.42B	1.83B	1.58B	1.42B
Balance Sheet
Total Assets	30.20B	30.20B	26.83B	23.02B	21.93B	20.05B
Cash, Cash Equivalents and Short-Term Investments	2.17B	2.17B	10.31B	2.63B	1.90B	2.07B
Total Debt	14.00M	14.00M	22.00M	30.00M	41.00M	5.00M
Total Liabilities	9.50B	9.50B	8.67B	7.19B	7.55B	7.01B
Stockholders Equity	19.17B	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: Negative
• Last Price: 6800.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 6800 is below the 20-day moving average (MA) of 7199.50, below the 50-day MA of 7299.00, and above the 200-day MA of 6474.39, indicating a neutral trend. The MACD of -188.90 indicates Positive momentum. The RSI at 32.95 is Neutral, neither overbought nor oversold. The STOCH value of 6.08 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8157	80 Outperform	54.98B	12.05	10.79%	2.72%	-14.87%	-0.65%
8057	76 Outperform	122.86B	12.52	0.00%	2.39%	21.27%	40.29%
8070	76 Outperform	24.81B	10.53	10.32%	3.88%	-13.72%	0.00%
8081	73 Outperform	43.93B	12.23	8.21%	3.30%	16.51%	19.39%
2676	69 Neutral	36.92B	33.97	8.66%	3.93%	8.53%	-30.57%
4685	67 Neutral	¥43.37B	12.24		2.50%	19.82%	38.84%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%