SystemSoft Corporation (7527) AI Stock Analysis

• Market Cap: ¥6.19B
• Dividend Yield: N/A
• Average Volume (3M): 993.31K
• 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: 87
• Industry: Software - Application
• EPS (TTM): -2.51
• Shares Outstanding: 84,834,140
• 10 Day Avg. Volume: 990,650
• 30 Day Avg. Volume: 993,306
• PEG Ratio: 0.26
• Price to Book (P/B): 1.29
• 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: 48 Neutral
• Price Target: ¥66.00 ▼(-9.59%Downside)

SystemSoft Corporation is facing significant financial and operational challenges, particularly in profitability and cash flow generation. The technical indicators provide mixed signals, reflecting some short-term stability. However, the negative P/E ratio highlights valuation concerns. The company's strong equity base offers some financial stability, but the lack of cash flow is a critical issue impacting its overall stock score.

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 position and low debt levels. However, it is facing significant profitability and cash flow issues, with declining revenue, negative net profit margin, and zero operating cash flow, indicating operational challenges.

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
EBITDA	-212.67M	-1.13B	390.69M	596.95M	854.29M	-410.92M
Net Income	-1.35B	-1.53B	93.59M	201.02M	483.31M	-656.01M
Balance Sheet
Total Assets	5.02B	5.26B	6.74B	7.22B	7.47B	5.00B
Cash, Cash Equivalents and Short-Term Investments	3.37B	3.47B	1.76B	1.95B	2.08B	2.01B
Total Debt	60.00M	230.00M	460.00M	670.00M	680.00M	580.00M
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: Negative

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 70.10, above the 50-day MA of 68.14, and above the 200-day MA of 64.31, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 60.78 is Neutral, neither overbought nor oversold. The STOCH value of 80.95 is Negative, 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	¥5.64B	13.07		1.61%	49.23%	21.56%
3841	77 Outperform	¥5.19B	24.15		2.99%	14.90%	-1.40%
4491	69 Neutral	¥5.40B	13.56		1.89%	7.19%	-2.13%
4492	68 Neutral	¥5.10B	12.01		4.52%	13.66%	0.93%
Sector *	63 Neutral	$34.07B	6.13	-11.73%	1.80%	5.33%	-18.31%
7527	48 Neutral	¥6.19B	―		―	-40.06%	-1380.69%
2321	47 Neutral	¥6.03B	―		―	-3.01%	95.93%