SystemSoft Corporation (7527) AI Stock Analysis

• Market Cap: ¥5.00B
• Dividend Yield: N/A
• Average Volume (3M): 2.16M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: -50.54%
• EPS Growth: -4045.93%
• Country: JP
• Employees: 66
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): -0.38
• Shares Outstanding: 84,834,140
• 10 Day Avg. Volume: 4,461,579
• 30 Day Avg. Volume: 2,160,923
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥60.00
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 42 Neutral
• Price Target: ¥60.00 ▲(0.00% Upside)

SystemSoft Corporation faces significant challenges, primarily due to its financial performance and valuation concerns. The company's declining revenue and profitability, coupled with liquidity issues, are major risks. Technical indicators also suggest a bearish trend, further impacting the stock's outlook.

SystemSoft Corporation Business Overview & Revenue Model

Company Description

SystemSoft Corporation (7527) is a technology company focused on providing comprehensive IT solutions and services. The company operates in sectors such as software development, IT infrastructure management, and technology consulting. Its core offerings include custom software applications, IT system integration, and cloud-based solutions designed to enhance business operations and drive digital transformation for its clients.

How the Company Makes Money

SystemSoft Corporation generates revenue primarily through the sale of its software products and IT services. The company's key revenue streams include licensing fees from its software solutions, subscription fees for its cloud-based services, and consulting fees for IT strategy and implementation services. Furthermore, SystemSoft benefits from strategic partnerships with other technology providers, which help expand its market reach and enhance its service offerings. These partnerships may also contribute to cross-selling opportunities and bundled solutions, thereby increasing overall sales and customer retention.

SystemSoft Corporation Financial Statement Overview

Summary

SystemSoft Corporation exhibits financial stability with a strong equity base but is struggling with profitability and cash flow generation. The company faces operational challenges, reflected in declining revenue and profitability margins, which are impacting its financial health. The low debt levels provide some cushion, but the lack of cash flow is a significant concern that needs to be addressed to ensure sustainable operations.

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

SystemSoft Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 60.00
• 50DMA: Negative
• 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 60 is below the 20-day moving average (MA) of 68.75, below the 50-day MA of 70.08, and below the 200-day MA of 65.53, indicating a bearish trend. The MACD of -2.81 indicates Positive momentum. The RSI at 32.46 is Neutral, neither overbought nor oversold. The STOCH value of 49.43 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	¥5.24B	24.98		3.01%	2.53%	-32.88%
4492	74 Outperform	¥5.50B	14.12		3.79%	11.30%	-21.37%
3933	72 Outperform	¥5.37B	13.41		1.69%	70.44%	55.95%
4491	69 Neutral	¥5.76B	14.30		1.74%	6.83%	17.32%
Sector *	68 Neutral	¥242.89B	15.23	6.64%	2.42%	9.16%	-0.19%
2321	47 Neutral	¥10.29B	―		―	-1.68%	85.30%
7527	42 Neutral	¥5.00B	―		―	-50.54%	-4045.93%