SystemSoft Corporation (7527) AI Stock Analysis

• Market Cap: ¥5.68B
• Dividend Yield: N/A
• Average Volume (3M): 12.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: -50.54%
• EPS Growth: -4045.93%
• Country: JP
• Employees: 66
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.38
• Shares Outstanding: 84,834,140
• 10 Day Avg. Volume: 5,044,370
• 30 Day Avg. Volume: 12,105,563
• PEG Ratio: <0.01
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 2.31
• P/FCF Ratio: 9.01
• 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: ¥66.00
• Price Target Upside: -1.49% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: ¥66.00 ▼(-1.49% Downside)

SystemSoft Corporation's overall stock score is primarily impacted by its financial performance, which shows stability in equity but significant challenges in profitability and cash flow. Technical analysis indicates mixed signals with some bullish momentum, but valuation metrics are weak due to negative earnings and lack of dividends.

SystemSoft Corporation Business Overview & Revenue Model

Company Description

SystemSoft Corporation provides information technology services in Japan. It offers SaaS solutions for rental, management, and operation of real estate properties; RPA services, such as robot development, operation, and maintenance, as well as in-house production support; and artificial intelligence (AI) development and consulting. The company also provides services ranging from system development consulting, maintenance, and operation, as well as system development services in the areas of customer's business system, information disclosure system, research advanced system, etc. SystemSoft Corporation was founded in 1979 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SystemSoft Corporation generates revenue through multiple streams, primarily from software licensing, subscription services, and consulting fees. The company sells its proprietary software solutions to enterprises on a licensing basis, which provides a significant upfront revenue boost. Additionally, SystemSoft offers subscription-based services for its cloud-based solutions, creating a recurring revenue model that contributes to long-term financial stability. Consulting services, which include systems integration and IT advisory, also represent a key revenue source, as businesses seek expertise in implementing complex software solutions. Furthermore, strategic partnerships with major tech firms enhance its market reach and provide opportunities for collaborative projects, thereby increasing its earning potential.

SystemSoft Corporation Financial Statement Overview

Summary

SystemSoft Corporation shows financial stability with a strong equity base but struggles with profitability and cash flow generation. Declining revenue and profitability margins, along with zero operating and free cash flow, highlight significant 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.39B	2.31B	3.39B	4.70B	4.92B	2.86B
Gross Profit	325.50M	525.00M	984.57M	1.34B	1.30B	339.13M
EBITDA	-397.17M	-1.13B	390.69M	596.95M	854.29M	-410.92M
Net Income	-1.55B	-1.53B	93.59M	201.02M	483.31M	-656.01M
Balance Sheet
Total Assets	4.95B	5.26B	6.74B	7.22B	7.47B	5.00B
Cash, Cash Equivalents and Short-Term Investments	3.19B	3.47B	1.76B	1.95B	2.08B	2.01B
Total Debt	10.00M	230.00M	460.00M	670.00M	680.00M	580.00M
Total Liabilities	448.72M	892.91M	959.83M	1.36B	1.63B	1.03B
Stockholders Equity	4.49B	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: Negative
• Last Price: 67.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 67 is below the 20-day moving average (MA) of 74.20, above the 50-day MA of 66.88, and below the 200-day MA of 67.22, indicating a neutral trend. The MACD of 1.04 indicates Positive momentum. The RSI at 45.91 is Neutral, neither overbought nor oversold. The STOCH value of 20.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7527.

SystemSoft Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3841	77 Outperform	¥5.19B	24.76	―	2.99%	2.53%	-32.88%
3933	75 Outperform	¥4.82B	12.05	―	1.83%	70.44%	55.95%
4492	73 Outperform	¥5.47B	14.03	―	3.71%	11.30%	-21.37%
4491	69 Neutral	¥5.20B	12.93	―	1.96%	6.83%	17.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
7527	48 Neutral	¥5.68B	―	―	―	-50.54%	-4045.93%
2321	47 Neutral	¥9.77B	―	―	―	-1.68%	85.30%