Alpha Systems Inc. (4719) AI Stock Analysis

• Market Cap: ¥48.86B
• Dividend Yield: 2.87%
• Average Volume (3M): 9.25K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.70
• Revenue Growth: 3.60%
• EPS Growth: 3.26%
• Country: JP
• Employees: 2,895
• Sector: Technology
• Sector Strength: 79
• Industry: Software - Application
• EPS (TTM): 51.67
• Shares Outstanding: 14,052,400
• 10 Day Avg. Volume: 6,410
• 30 Day Avg. Volume: 9,253
• PEG Ratio: 31.35
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 76 Outperform
• Price Target: ―

Alpha Systems Inc. is fundamentally strong with consistent financial performance and no debt, which enhances its stability. While technical indicators show mixed signals, valuation metrics are appealing, providing a balanced investment case.

Alpha Systems Inc. Business Overview & Revenue Model

Company Description

Alpha Systems Inc. develops software for backbone communications systems in Japan. The company develops software for backbone communication systems, such as node systems, mobile network systems, and network management systems. It also develops open systems, including portal sites for online businesses and related work-process systems; online application systems and databases for public works projects; systems for management of production and distribution; and Intranets for corporate information management. In addition, the company develops embedded systems to control electronic devices, including home appliances, office automation equipment, industrial machines, and in-vehicle systems. Further, it provides system integration, system operation and maintenance, and product sales services. Alpha Systems Inc. was founded in 1972 and is headquartered in Kawasaki, Japan.

How the Company Makes Money

Alpha Systems Inc. generates revenue through a multi-faceted business model. The company's primary revenue streams include fees from software development projects, where clients are charged based on project scope and complexity. Additionally, the firm earns recurring income from IT consulting services, which include strategic advisory and implementation support, often structured as long-term contracts. Systems integration services also contribute significantly to revenue, as the company provides end-to-end solutions that integrate various IT systems and processes. Partnerships with leading technology vendors enhance its product offerings and open additional revenue channels through joint projects and co-branded solutions.

Alpha Systems Inc. Financial Statement Overview

Summary

Alpha Systems Inc. demonstrates strong financial performance with consistent revenue growth, robust profitability, and a debt-free balance sheet. The absence of detailed cash flow data slightly impacts the assessment but overall stability is evident.

Income Statement

Alpha Systems Inc. has shown consistent revenue growth with a 4.8% increase from 2023 to 2024 TTM. The company maintains strong profitability with a gross profit margin of 23.9% and a net profit margin of 8.6% in the TTM period. EBIT and EBITDA margins are healthy at 12.2% and 12.8% respectively, indicating efficient operations.

Balance Sheet

The company's balance sheet is robust with zero debt, resulting in a debt-to-equity ratio of 0. The equity ratio stands at 84.2%, reflecting a strong equity base. Return on Equity is impressive at 7.5% for the TTM period, demonstrating effective use of shareholder funds.

Cash Flow

Free cash flow has been stable, although specific growth rates for the TTM are not available due to missing data. The lack of operating cash flow data for the TTM period prevents a clear analysis of cash flow efficiency against net income.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
37.33B	38.48B	36.38B	35.55B	33.87B	31.32B
	Gross Profit
8.92B	8.88B	8.49B	8.47B	8.18B	7.41B
	EBIT
4.54B	4.42B	4.35B	4.21B	4.03B	3.37B
	EBITDA
4.85B	4.78B	4.58B	4.44B	4.32B	3.62B
	Net Income Common Stockholders
3.20B	3.21B	3.05B	2.92B	2.79B	2.28B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.40B	24.30B	27.13B	24.04B	24.20B	21.53B
	Total Assets
47.10B	52.02B	50.81B	48.17B	46.82B	44.31B
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-22.40B	-24.20B	-25.63B	-23.04B	-22.70B	-20.53B
	Total Liabilities
8.08B	8.54B	8.95B	8.39B	8.70B	8.12B
	Stockholders Equity
39.01B	43.47B	41.86B	39.78B	38.12B	36.19B
Cash Flow		Free Cash Flow
0.00	1.40B	4.59B	2.91B	2.77B	2.13B
	Operating Cash Flow
0.00	1.57B	4.71B	2.95B	2.93B	2.24B
	Investing Cash Flow
0.00	-3.09B	-1.14B	-1.34B	-57.84M	342.11M
	Financing Cash Flow
0.00	-1.61B	-983.76M	-1.26B	-703.42M	-983.52M

Alpha Systems Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3405.00
• 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:4719, the sentiment is Positive. The current price of 3405 is above the 20-day moving average (MA) of 3362.50, above the 50-day MA of 3273.72, and above the 200-day MA of 3202.10, indicating a bullish trend. The MACD of 43.94 indicates Negative momentum. The RSI at 53.32 is Neutral, neither overbought nor oversold. The STOCH value of 64.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4719.

Alpha Systems Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4719	76 Outperform	¥48.86B	14.88	7.48%	2.87%	3.60%	3.26%
9719	74 Outperform	¥1.35T	29.96		1.71%	24.10%	11.27%
6702	74 Outperform	$6.35T	28.68	11.70%	0.81%	-5.48%	-11.96%
9749	72 Outperform	$637.47B	33.20	13.64%	0.43%	6.92%	25.38%
4768	71 Outperform	$1.13T	20.11	16.17%	2.49%	15.49%	18.42%
Sector *	62 Neutral	$11.97B	10.08	-7.46%	2.96%	7.37%	-8.22%
9613	54 Neutral	¥5.60T	39.28	7.94%	0.63%	6.21%	6.41%