Ryomo Systems Co., Ltd. (9691) AI Stock Analysis

• Market Cap: ¥16.13B
• Dividend Yield: 0.99%
• Average Volume (3M): 1.46K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.58
• Revenue Growth: 33.30%
• EPS Growth: 163.81%
• Country: JP
• Employees: 1,007
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 156.17
• Shares Outstanding: 3,510,000
• 10 Day Avg. Volume: 1,540
• 30 Day Avg. Volume: 1,460
• PEG Ratio: 0.09
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 5.61
• 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
• EPS Forecast (FY): 63,155.44
• Revenue Forecast (FY): ¥3.39T

• Rating: 66 Neutral
• Price Target: ¥4,682.00 ▲(18.23% Upside)

Ryomo Systems Co., Ltd. receives a score of 66, driven by strong financial performance and attractive valuation. However, bearish technical indicators suggest caution, as the stock shows downward momentum. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term expansion.

Cash Flow Generation

Improved cash generation enhances financial flexibility, allowing for reinvestment in growth initiatives and debt management.

Operational Efficiency

Strong margins reflect efficient operations and cost management, contributing to sustainable profitability and competitive advantage.

Negative Factors

Debt Levels

Rising debt levels could strain financial resources, potentially impacting future cash flow and limiting strategic flexibility.

Cash Flow Coverage

Inadequate cash flow coverage may hinder the company's ability to meet financial obligations and invest in growth opportunities.

Earnings Call Data Absence

Lack of earnings call data limits transparency and investor insight into management's strategic vision and operational performance.

Ryomo Systems Co., Ltd. Business Overview & Revenue Model

Company Description

Ryomo Systems Co., Ltd. (9691) is a technology company based in Japan that specializes in providing innovative solutions in the fields of information technology and software development. The company primarily focuses on developing systems for various industries, including telecommunications, finance, and manufacturing. Ryomo Systems is known for its commitment to enhancing operational efficiency through custom software applications, data management solutions, and IT consulting services.

How the Company Makes Money

Ryomo Systems generates revenue through multiple streams, primarily by offering software development services, system integration, and IT consulting. The company charges clients based on project contracts, hourly rates, and subscription fees for ongoing support and maintenance. Additionally, Ryomo Systems may engage in partnerships with other tech firms to co-develop products or solutions, which can lead to shared revenue opportunities. The company also benefits from long-term contracts with corporate clients, providing a steady flow of income. Furthermore, Ryomo Systems invests in research and development to create proprietary software that can be licensed to other businesses, adding to its revenue base.

Ryomo Systems Co., Ltd. Financial Statement Overview

Summary

Ryomo Systems Co., Ltd. exhibits strong financial health with consistent revenue growth and profitability. The balance sheet reflects a balanced leverage position and effective equity utilization, while cash flow metrics indicate solid cash generation. The company is well-positioned for future growth, though continued focus on enhancing cash flow alignment with net income could further strengthen its financial standing.

Income Statement

Ryomo Systems Co., Ltd. shows strong revenue growth with a TTM increase of 2.69% and consistent profitability, evidenced by a stable gross profit margin of approximately 23.8% and a net profit margin of 6.98%. The EBIT and EBITDA margins are healthy at 10.26% and 16.11%, respectively, indicating efficient cost management and operational effectiveness.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.48, suggesting a balanced approach to leveraging. The return on equity is robust at 12.20%, reflecting effective use of shareholder funds. However, the equity ratio of 56.27% indicates a solid equity base, which supports financial stability.

Cash Flow

Ryomo Systems Co., Ltd. demonstrates strong free cash flow growth of 36.54% TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 0.30 and free cash flow to net income ratio of 0.68 suggest good cash conversion, though there is room for improvement in aligning cash flows with net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.35B	22.49B	18.17B	17.23B	15.50B	16.64B
Gross Profit	5.98B	5.35B	4.96B	4.92B	4.10B	3.95B
EBITDA	4.16B	3.63B	2.17B	2.63B	2.08B	1.90B
Net Income	1.96B	1.57B	944.89M	1.21B	965.27M	821.77M
Balance Sheet
Total Assets	24.32B	24.74B	21.84B	18.82B	16.47B	16.69B
Cash, Cash Equivalents and Short-Term Investments	4.08B	4.29B	3.70B	4.71B	3.92B	4.77B
Total Debt	4.75B	6.48B	5.34B	3.85B	3.62B	4.17B
Total Liabilities	9.94B	11.11B	9.55B	7.76B	6.25B	7.14B
Stockholders Equity	14.38B	13.63B	12.29B	11.06B	10.22B	9.56B
Cash Flow
Free Cash Flow	1.71B	1.67B	-2.55B	257.02M	-736.84M	991.67M
Operating Cash Flow	2.18B	2.21B	737.41M	2.20B	874.92M	1.59B
Investing Cash Flow	-735.54M	-768.35M	-3.42B	-1.03B	-1.73B	-1.16B
Financing Cash Flow	-2.04B	-842.07M	1.66B	605.10M	9.68M	-249.88M

Ryomo Systems Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3960.00
• 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:9691, the sentiment is Positive. The current price of 3960 is below the 20-day moving average (MA) of 4504.50, below the 50-day MA of 4481.70, and above the 200-day MA of 3635.17, indicating a bullish trend. The MACD of 42.47 indicates Negative momentum. The RSI at 58.51 is Neutral, neither overbought nor oversold. The STOCH value of 69.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9691.

Ryomo Systems Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4284	79 Outperform	¥12.60B	14.75	―	2.45%	9.77%	93.99%
4495	78 Outperform	¥14.70B	22.28	―	1.16%	23.67%	24.95%
9698	76 Outperform	¥10.23B	12.48	―	4.24%	2.08%	25.42%
3800	71 Outperform	¥14.14B	19.10	―	3.62%	0.85%	12.73%
9691	66 Neutral	¥16.13B	8.23	―	0.99%	33.30%	163.81%
4762	63 Neutral	¥12.43B	12.45	―	3.16%	0.11%	20.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%