SystemSoft Corporation (7527) AI Stock Analysis

• Market Cap: ¥6.02B
• Dividend Yield: N/A
• Average Volume (3M): 836.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: -40.06%
• EPS Growth: -1380.69%
• Country: JP
• Employees: 66
• Sector: Technology
• Sector Strength: 79
• Industry: Software - Application
• EPS (TTM): -2.51
• Shares Outstanding: 84,834,140
• 10 Day Avg. Volume: 964,550
• 30 Day Avg. Volume: 836,480
• PEG Ratio: -0.67
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 68.05
• 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: 54 Neutral
• Price Target: ¥72.00 ▼(-1.37%Downside)

SystemSoft Corporation's overall stock score is driven primarily by its technical analysis and financial performance. While the stock shows bullish momentum, significant challenges remain in financial performance and valuation, notably due to declining revenues, negative profitability, and a lack of cash flow. The absence of earnings call and corporate events data leaves these points as the main focus.

SystemSoft Corporation Business Overview & Revenue Model

Company Description

SystemSoft Corporation (7527) is a Japanese company primarily engaged in the development and distribution of software products. The company operates in the technology sector, focusing on creating a wide range of software solutions, including system software and application software. SystemSoft Corporation is known for its innovative approach to software development, catering to both individual consumers and businesses.

How the Company Makes Money

SystemSoft Corporation generates revenue primarily through the sale of its software products and solutions. Key revenue streams include licensing fees from their proprietary software, subscription services, and maintenance and support contracts. The company may also engage in strategic partnerships with other technology firms to expand its market reach and enhance product offerings. Additionally, SystemSoft Corporation may earn income from consulting services provided to businesses seeking to implement or optimize their software solutions.

SystemSoft Corporation Financial Statement Overview

Summary

SystemSoft Corporation shows financial stability with a strong equity base, but faces challenges with declining revenue, profitability, and cash flow generation. While the low debt levels provide some cushion, negative net profit margin and zero cash flow from operations are significant concerns.

Income Statement

The company's income statement shows declining revenue and profitability. Revenue decreased significantly in the TTM period compared to the previous year, with a negative net profit margin and EBIT margin, indicating operational challenges. The gross profit margin is moderate, but the company is currently facing negative growth and profitability issues.

Balance Sheet

SystemSoft Corporation has a strong equity position with a high equity ratio, suggesting financial stability. However, the company has a negative net income affecting the return on equity. The debt-to-equity ratio is low, which indicates low financial leverage and reduced financial risk.

Cash Flow

The cash flow statement reflects challenges with zero operating and free cash flow in the TTM period, indicating potential liquidity issues. Although previous periods show positive cash flows, the current lack of cash generation from operations is concerning.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
2.08B	2.31B	3.39B	4.70B	4.92B	2.86B
	Gross Profit
443.03M	525.00M	984.57M	1.34B	1.30B	339.13M
	EBIT
-401.67M	-415.31M	155.15M	382.74M	377.79M	-251.02M
	EBITDA
-212.67M	-1.13B	390.69M	596.95M	854.29M	-410.92M
	Net Income Common Stockholders
-1.35B	-1.53B	93.59M	201.02M	483.31M	-656.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.37B	3.47B	1.76B	1.95B	2.08B	2.01B
	Total Assets
5.02B	5.26B	6.74B	7.22B	7.47B	5.00B
	Total Debt
60.00M	230.00M	460.00M	670.00M	680.00M	580.00M
	Net Debt
-3.31B	-3.24B	-1.30B	-1.28B	-1.40B	-1.21B
	Total Liabilities
575.00M	892.91M	959.83M	1.36B	1.63B	1.03B
	Stockholders Equity
4.44B	4.36B	5.77B	5.86B	5.83B	3.96B
Cash Flow		Free Cash Flow
0.00	592.73M	235.80M	121.98M	103.17M	-86.18M
	Operating Cash Flow
0.00	610.43M	253.69M	168.50M	115.42M	-47.15M
	Investing Cash Flow
0.00	277.96M	-61.07M	-195.73M	-200.32M	-128.85M
	Financing Cash Flow
0.00	820.00M	-379.61M	-104.24M	228.97M	133.65M

SystemSoft Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.00
• 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:7527, the sentiment is Positive. The current price of 73 is above the 20-day moving average (MA) of 67.70, above the 50-day MA of 67.32, and above the 200-day MA of 64.06, indicating a bullish trend. The MACD of 1.21 indicates Negative momentum. The RSI at 56.33 is Neutral, neither overbought nor oversold. The STOCH value of 71.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7527.

SystemSoft Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3933	81 Outperform	¥5.97B	13.84		1.52%	49.23%	21.64%
3841	77 Outperform	¥6.09B	28.33		2.55%	14.90%	-1.40%
4491	69 Neutral	¥5.12B	12.87		1.99%	7.19%	-2.13%
4492	68 Neutral	¥5.11B	12.03		4.51%	13.66%	1.12%
Sector *	62 Neutral	$11.80B	10.10	-7.47%	2.99%	7.37%	-8.16%
7527	54 Neutral	¥6.02B	―		―	-40.06%	-1380.69%
2321	47 Neutral	¥5.66B	―		―	-3.01%	95.93%