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Sysmex Corporation (JP:6869)
:6869
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Sysmex (6869) AI Stock Analysis

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JP:6869

Sysmex

(OTC:6869)

Rating:67Neutral
Price Target:
¥2,215.00
▲(16.73% Upside)
Sysmex's strong financial performance is a key strength, supported by robust revenue growth and a stable balance sheet. However, technical analysis indicates bearish momentum, and valuation metrics suggest the stock may be overvalued. The earnings call presents a mixed outlook with notable challenges but also potential recovery drivers. Overall, the stock score reflects a cautious optimism with significant room for improvement.

Sysmex (6869) vs. iShares MSCI Japan ETF (EWJ)

Sysmex Business Overview & Revenue Model

Company DescriptionSysmex Corporation, headquartered in Kobe, Japan, is a global leader in the development, manufacturing, and distribution of diagnostic testing systems and reagents. The company primarily operates in the healthcare and medical equipment sectors, providing innovative solutions for hematology, urinalysis, hemostasis, immunochemistry, and clinical chemistry. Sysmex’s core products include automated analyzers, reagents, and software, which are utilized by hospitals, laboratories, and healthcare facilities worldwide to improve patient care through accurate diagnostic results.
How the Company Makes MoneySysmex generates revenue primarily through the sale of its diagnostic testing systems and related reagents. The company’s business model is built on the continuous supply of consumables such as reagents and test kits, which are used alongside their diagnostic equipment, ensuring a steady stream of recurring revenue. Additionally, Sysmex offers maintenance services and software solutions, which further contribute to its earnings. The company benefits from strategic partnerships with healthcare providers and institutions, leveraging these relationships to expand its market presence and secure long-term contracts. Sysmex’s global distribution network and strong focus on research and development enable it to introduce new and advanced diagnostic solutions, maintaining its competitive edge and driving revenue growth.

Sysmex Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Negative
The earnings call presented several notable challenges, including a significant revenue decline due to a system transition in Japan and the impact of China's medical cost control policies. However, there were positive developments such as the launch of new products and progress in Alzheimer's testing. Despite these positive aspects, the lowlights indicating declines in revenue and profit suggest a cautious outlook.
Q1-2026 Updates
Positive Updates
Strong Revenue Growth in Japan for Coagulation Segment
Revenue increased by JPY1.79 billion, or 112.3% YoY, indicating strong double-digit growth in Japan for the Coagulation segment.
Positive Developments in Alzheimer's Testing
Progress was made with the amyloid-beta testing reagent, which meets the Alzheimer’s Association's guidelines with over 90% sensitivity and specificity.
Successful Launch of New Products in the U.S.
The XR and CN series received U.S. regulatory approval and are expected to drive growth in the largest market.
Growth in Hematology and Urinalysis in North America
Hematology and urinalysis have grown significantly in North America, contributing to a 102.9% increase YoY on a local currency basis for the Americas overall.
Negative Updates
Significant Revenue Decline Due to Core System Transition
A transition to a new core system in Japan led to a JPY3.3 billion decrease in revenue and a JPY3 billion decrease in operating profit.
Impact of China's Medical Cost Control Policies
Revenue in China declined 5% YoY due to intensified government cost control policies, with a projected 5–10% downside risk.
Unanticipated Inventory Valuation Adjustment
A JPY1.7 billion cost of sales adjustment was made due to reassessment of overseas inventory valuation, impacting operating profit.
Overall Revenue and Profit Decline
Total revenue was approximately JPY105.7 billion, or 94.4% compared to the same period last year, and operating profit decreased to JPY10.62 billion, or 63.5% of the figure in the same period last year.
Company Guidance
In the recent call, Sysmex provided guidance on their Q1 FY2026 financial results, highlighting a significant decline in revenue and operating profit year-over-year due to special one-time factors. Revenue fell by JPY3.3 billion, and operating profit dropped by JPY4.8 billion, primarily due to the transition to a new core system, which led to restricted order intake and a JPY1.7 billion cost of sales adjustment from overseas inventory valuation. While Japan's revenue decreased by approximately 80% YoY due to this transition, other regions like the Americas, EMEA, and AP showed local currency revenue growth. The stronger yen further impacted the results. Notably, Hematology revenue saw a slight decline YoY, while Japan experienced a significant increase of 118.9% when excluding currency effects. Despite these challenges, the company remains optimistic about recovery in H2, driven by its new product launches in the U.S., expansion in its medical robotics business, and growth in the IVD domain. The company also adjusted its H1 forecast, expecting a revenue decrease of JPY12.5 billion to JPY240 billion and an operating profit decrease of JPY8.5 billion to JPY36 billion. They are committed to achieving their full-year targets through strategic initiatives and portfolio expansion.

Sysmex Financial Statement Overview

Summary
Sysmex exhibits strong financial performance across all key areas. The company has demonstrated robust revenue and profit growth, efficient operational management, and strong cash generation. The balance sheet reflects a stable financial position with low leverage and high equity. These factors collectively indicate a well-managed company with a sustainable financial trajectory in the medical instruments and supplies industry.
Income Statement
89
Very Positive
Sysmex has demonstrated strong revenue growth over the past five years, with a notable increase of 10.2% from the previous year. The company maintains a healthy gross profit margin of approximately 53.5% and a consistent net profit margin of 10.5%. The EBIT margin stands at 17.6%, reflecting efficient operational management. EBITDA margin is solid at 24.3%, indicating robust operational cash generation. Overall, the income statement reflects strong profitability and growth trends.
Balance Sheet
85
Very Positive
Sysmex's balance sheet is characterized by a strong equity position, with an equity ratio of 69.7%, highlighting financial stability. The debt-to-equity ratio is manageable at 0.14, indicating low leverage risk. Return on equity (ROE) is a solid 11.6%, demonstrating effective use of shareholder funds. Overall, the balance sheet reflects a stable financial structure with low leverage and strong equity.
Cash Flow
91
Very Positive
Cash flow analysis reveals a remarkable 330.4% growth in free cash flow, indicative of significant cash generation improvements. The operating cash flow to net income ratio is 1.64, and the free cash flow to net income ratio is 1.10, reflecting efficient conversion of income to cash. Overall, the cash flow statement shows strong liquidity and cash management, supporting the company's financial health.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue508.64B461.51B410.50B363.78B305.07B
Gross Profit271.98B242.50B216.08B190.59B154.30B
EBITDA123.85B115.67B104.95B96.12B75.53B
Net Income53.67B49.64B45.78B44.09B31.90B
Balance Sheet
Total Assets665.27B618.92B531.07B483.71B427.48B
Cash, Cash Equivalents and Short-Term Investments89.57B76.61B70.33B75.25B67.57B
Total Debt64.73B55.34B22.59B22.28B21.96B
Total Liabilities200.73B186.02B142.72B134.65B118.81B
Stockholders Equity463.78B432.05B387.67B348.30B307.90B
Cash Flow
Free Cash Flow59.02B13.71B26.33B26.70B33.02B
Operating Cash Flow88.25B63.91B68.83B58.74B58.81B
Investing Cash Flow-52.49B-54.97B-51.75B-35.05B-31.13B
Financing Cash Flow-24.32B-9.01B-24.23B-20.54B-20.25B

Sysmex Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1897.50
Price Trends
50DMA
2339.91
Negative
100DMA
2447.88
Negative
200DMA
2677.81
Negative
Market Momentum
MACD
-138.36
Positive
RSI
19.44
Positive
STOCH
3.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6869, the sentiment is Negative. The current price of 1897.5 is below the 20-day moving average (MA) of 2133.75, below the 50-day MA of 2339.91, and below the 200-day MA of 2677.81, indicating a bearish trend. The MACD of -138.36 indicates Positive momentum. The RSI at 19.44 is Positive, neither overbought nor oversold. The STOCH value of 3.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6869.

Sysmex Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$1.19T25.5210.48%1.58%5.09%-9.10%
51
Neutral
$7.83B-0.18-40.10%2.29%21.46%-2.03%
$26.48B28.989.17%0.90%
$4.75B60.118.67%0.85%
$44.76B31.7421.19%0.83%
€1.43B40.012.49%
$13.17B18.1414.88%1.11%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6869
Sysmex
1,897.50
-822.41
-30.24%
TRUMF
Terumo
19.60
1.68
9.37%
AHICF
Asahi Intecc Co
18.85
0.65
3.57%
HOCPF
HOYA
130.30
-11.85
-8.34%
DE:5FA
Nipro
8.70
1.24
16.62%
OCPNF
Olympus
11.86
-6.28
-34.62%

Sysmex Corporate Events

Sysmex Revises Financial Forecast Amid Weaker Performance in Japan and China
Aug 6, 2025

Sysmex Corporation has revised its financial forecast for the six months ending September 30, 2025, due to weaker-than-expected performance in Japan and China. The company anticipates lower net sales, operating profit, and profit before tax compared to previous forecasts, but expects a recovery in sales in the second half of the fiscal year.

The most recent analyst rating on (JP:6869) stock is a Buy with a Yen3500.00 price target. To see the full list of analyst forecasts on Sysmex stock, see the JP:6869 Stock Forecast page.

Sysmex Reports Decline in Quarterly Earnings but Projects Annual Growth
Aug 6, 2025

Sysmex Corporation reported a decline in its financial performance for the first three months of the fiscal year ending March 31, 2026, with significant decreases in net sales, operating profit, and profit before tax compared to the same period last year. Despite these declines, Sysmex has revised its financial forecast for the full year, projecting an increase in net sales and profits, and announced a commemorative dividend in celebration of its 30th anniversary of listing, indicating a strategic focus on long-term growth and shareholder value.

The most recent analyst rating on (JP:6869) stock is a Buy with a Yen3500.00 price target. To see the full list of analyst forecasts on Sysmex stock, see the JP:6869 Stock Forecast page.

Sysmex Introduces Performance-Linked Stock Compensation Plan
May 14, 2025

Sysmex Corporation has announced the introduction of a performance-linked stock compensation plan for its Managing Board members and Executive Officers, excluding certain directors and nonresidents of Japan. This plan aims to align the interests of the board members with shareholders by linking their compensation to the company’s performance and stock value, thereby encouraging them to contribute to the company’s long-term growth. The plan will replace the current officer shareholding association system and stock options, pending approval at the upcoming Shareholders’ Meeting. The new compensation structure will include fixed compensation, performance-linked compensation, and stock-based compensation, with oversight from a Compensation Committee to ensure independence and accountability.

The most recent analyst rating on (JP:6869) stock is a Buy with a Yen3500.00 price target. To see the full list of analyst forecasts on Sysmex stock, see the JP:6869 Stock Forecast page.

Sysmex Adjusts Deferred Tax Assets in Non-Consolidated Results
May 14, 2025

Sysmex Corporation has announced a reversal of deferred tax assets in its non-consolidated financial results for the fiscal year ending March 31, 2025. This adjustment, amounting to ¥10,983 million, reflects a reassessment of the recoverability of these assets considering the future business environment. Importantly, this reversal does not impact the company’s consolidated financial results, which adhere to International Financial Reporting Standards (IFRS), thus maintaining stability in its overall financial positioning.

The most recent analyst rating on (JP:6869) stock is a Buy with a Yen3500.00 price target. To see the full list of analyst forecasts on Sysmex stock, see the JP:6869 Stock Forecast page.

Sysmex Reports Minor Forecast Deviations and Declares Year-End Dividend
May 14, 2025

Sysmex Corporation announced a slight deviation from its financial forecast for the fiscal year ending March 31, 2025, with actual results showing a minor shortfall in net sales and profits due to weaker performance in certain regions despite strong sales in the Americas and Japan. The company also declared a year-end dividend of ¥17 per share, resulting in a total annual dividend of ¥32 per share, reflecting a consolidated payout ratio of 37.4%, aligning with its policy of stable shareholder returns.

The most recent analyst rating on (JP:6869) stock is a Buy with a Yen3500.00 price target. To see the full list of analyst forecasts on Sysmex stock, see the JP:6869 Stock Forecast page.

Sysmex Reports Strong Financial Growth and Announces Stock Split
May 14, 2025

Sysmex Corporation reported a strong financial performance for the fiscal year ending March 31, 2025, with a notable increase in net sales and operating profit compared to the previous year. The company also announced a three-for-one stock split and adjusted its dividend payouts accordingly. These financial results reflect Sysmex’s robust market positioning and strategic growth initiatives, which are likely to have positive implications for stakeholders and reinforce its competitive stance in the healthcare diagnostics sector.

The most recent analyst rating on (JP:6869) stock is a Buy with a Yen3500.00 price target. To see the full list of analyst forecasts on Sysmex stock, see the JP:6869 Stock Forecast page.

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 08, 2025