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

• Market Cap: ¥45.00B
• Dividend Yield: 2.97%
• Average Volume (3M): 43.94K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.06
• Revenue Growth: 15.38%
• EPS Growth: 39.87%
• Country: JP
• Employees: 2,012
• Sector: Industrials
• Sector Strength: 85
• Industry: Conglomerates
• EPS (TTM): 182.71
• Shares Outstanding: 6,385,968
• 10 Day Avg. Volume: 53,630
• 30 Day Avg. Volume: 43,936
• PEG Ratio: 0.47
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.71
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥8,002.00 ▲(13.34%Upside)

The overall score reflects strong financial performance and reasonable valuation, supported by bullish technical trends. However, the stock's approach to overbought territory suggests caution. The absence of recent earnings call insights or significant corporate events means these areas do not influence the current score.

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

Company Description

Ryoyu Systems Co., Ltd. is a Japanese company operating in the information technology sector. The company specializes in providing comprehensive IT services and solutions, including system integration, software development, and IT infrastructure management. Ryoyu Systems serves a diverse range of industries, offering tailored solutions to meet the unique needs of each customer, leveraging its expertise in cutting-edge technologies to enhance business processes and drive digital transformation.

How the Company Makes Money

Ryoyu Systems Co., Ltd. generates revenue primarily through its IT services and solutions offerings. The company earns income by delivering system integration services, which involve designing and implementing IT systems that integrate hardware and software components to meet client requirements. Additionally, software development projects contribute significantly to the company's revenue, as Ryoyu Systems develops custom applications and software solutions for clients across various sectors. Another key revenue stream is IT infrastructure management, where the company provides ongoing support and maintenance services, ensuring the optimal performance and security of clients' IT environments. Partnerships with technology providers and vendors also play a crucial role in Ryoyu Systems' operations, enabling the company to offer comprehensive solutions that incorporate the latest technology advancements.

Ryoyu Systems Co., Ltd. Financial Statement Overview

Summary

Ryoyu Systems Co., Ltd. demonstrates strong financial health with significant 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, though 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
39.65B	42.76B	37.06B	33.14B	30.26B	31.56B
	Gross Profit
8.84B	9.23B	7.83B	6.56B	5.95B	5.57B
	EBIT
4.51B	4.82B	3.58B	2.67B	2.33B	2.29B
	EBITDA
4.62B	5.20B	3.79B	2.88B	2.65B	2.40B
	Net Income Common Stockholders
3.09B	3.38B	2.42B	1.83B	1.58B	1.42B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.39B	2.17B	2.20B	2.63B	1.90B	2.07B
	Total Assets
26.75B	30.20B	26.83B	23.02B	21.93B	20.05B
	Total Debt
0.00	14.00M	22.00M	30.00M	41.00M	5.00M
	Net Debt
-1.47B	-2.16B	-2.17B	-1.74B	-1.43B	-1.76B
	Total Liabilities
7.20B	9.50B	8.67B	7.19B	7.55B	7.01B
	Stockholders Equity
18.13B	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: Positive
• Last Price: 7060.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 7060 is above the 20-day moving average (MA) of 6787.50, above the 50-day MA of 6414.80, and above the 200-day MA of 5401.48, indicating a bullish trend. The MACD of 214.13 indicates Negative momentum. The RSI at 64.55 is Neutral, neither overbought nor oversold. The STOCH value of 75.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
8057	76 Outperform	¥90.70B	10.49		2.38%	15.78%	20.79%
8157	76 Outperform	¥44.29B	10.22		3.42%	-21.30%	-13.60%
4685	75 Outperform	¥45.00B	13.30		2.97%	15.38%	39.87%
8070	75 Outperform	¥20.53B	9.25		4.69%	8.75%	―
8081	75 Outperform	¥39.05B	11.15		4.13%	8.08%	14.26%
2676	74 Outperform	¥40.66B	27.64		0.18%	11.39%	-0.31%
Sector *	66 Neutral	$4.49B	12.22	5.40%	3.71%	4.17%	-11.97%