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

• Market Cap: ¥15.13B
• Dividend Yield: 0.97%
• Average Volume (3M): 3.37K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.58
• Revenue Growth: 26.73%
• EPS Growth: 127.63%
• Country: JP
• Employees: 1,007
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 62.34
• Shares Outstanding: 3,510,000
• 10 Day Avg. Volume: 4,860
• 30 Day Avg. Volume: 3,370
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥4,555.00
• Price Target Upside: 5.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 82 Outperform
• Price Target: ¥4,555.00 ▲(5.32% Upside)

Ryomo Systems Co., Ltd. demonstrates strong financial performance with consistent revenue growth and profitability, supported by a balanced balance sheet and solid cash flow generation. The technical analysis indicates strong bullish momentum, although the stock is nearing overbought levels. The valuation is attractive with a low P/E ratio, suggesting potential undervaluation. These factors collectively contribute to a high overall stock score.

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

Company Description

Ryomo Systems Co., Ltd. (9691) is a Japanese company specializing in providing comprehensive IT services and solutions. The company operates in several sectors including software development, system integration, and IT infrastructure management. It offers a range of services that include custom software development, consulting, and system maintenance, catering primarily to businesses across various industries seeking technological advancements and efficiencies.

How the Company Makes Money

Ryomo Systems Co., Ltd. generates revenue primarily through its IT service offerings. Its key revenue streams include fees from software development projects, system integration services, and ongoing IT infrastructure management contracts. The company also earns from consulting services, where it provides expert advice on optimizing IT systems and processes for clients. Additionally, Ryomo Systems may have strategic partnerships with other technology firms, which can enhance its service offerings and contribute to its revenue through collaborative projects or co-developed solutions.

Ryomo Systems Co., Ltd. Financial Statement Overview

Summary

Ryomo Systems Co., Ltd. has shown robust financial performance with strong revenue growth and improved profitability margins. The balance sheet indicates stability with a moderate debt-to-equity ratio and a solid equity ratio, although the increase in debt warrants monitoring. Cash flow management has improved significantly, with a positive turnaround in free cash flow, indicating enhanced operational efficiency.

Income Statement

Ryomo Systems Co., Ltd. has demonstrated strong revenue growth, with a notable increase from 18.2 billion JPY in 2024 to 22.5 billion JPY in 2025, reflecting a growth rate of approximately 23.8%. The gross profit margin has improved, standing at about 23.8%. Moreover, the net profit margin has significantly increased to 7.0% in 2025, up from 5.2% in 2024, indicating enhanced profitability. Both EBIT and EBITDA margins have also improved, reflecting efficient cost management. Overall, the company shows a robust financial performance in terms of revenue and profit growth.

Balance Sheet

The balance sheet of Ryomo Systems Co., Ltd. reveals a stable financial position with a debt-to-equity ratio of approximately 0.48 in 2025, which is relatively moderate for the industry. The equity ratio is solid at 55.1%, providing a strong asset backing for equity holders. Return on equity has increased to 11.5% from 7.7% in the previous year, showcasing improved effectiveness in using shareholder funds. While the company maintains solid equity and asset management, the total debt has increased, which could pose potential risk if not managed carefully.

Cash Flow

The cash flow analysis for Ryomo Systems Co., Ltd. indicates a positive turnaround in free cash flow, from negative in 2024 to 1.67 billion JPY in 2025. This improvement signifies better cash management. The operating cash flow to net income ratio is approximately 1.41, reflecting a strong ability to convert net income into cash. However, the free cash flow to net income ratio at around 1.06 is relatively lower, suggesting that while free cash flow has improved, there is room for further enhancement in cash utilization efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.09B	22.49B	18.17B	17.23B	15.50B	16.64B
Gross Profit	5.59B	5.35B	4.96B	4.92B	4.10B	3.95B
EBITDA	3.83B	3.63B	2.17B	2.63B	2.08B	1.90B
Net Income	1.72B	1.57B	944.89M	1.21B	965.27M	821.77M
Balance Sheet
Total Assets	24.47B	24.74B	21.84B	18.82B	16.47B	16.69B
Cash, Cash Equivalents and Short-Term Investments	5.87B	4.29B	3.70B	4.71B	3.92B	4.77B
Total Debt	5.06B	6.48B	5.34B	3.85B	3.62B	4.17B
Total Liabilities	10.70B	11.11B	9.55B	7.76B	6.25B	7.14B
Stockholders Equity	13.77B	13.63B	12.29B	11.06B	10.22B	9.56B
Cash Flow
Free Cash Flow	1.57B	1.67B	-2.55B	257.02M	-736.84M	991.67M
Operating Cash Flow	2.11B	2.21B	737.41M	2.20B	874.92M	1.59B
Investing Cash Flow	-824.17M	-768.35M	-3.42B	-1.03B	-1.73B	-1.16B
Financing Cash Flow	-1.71B	-842.07M	1.66B	605.10M	9.68M	-249.88M

Ryomo Systems Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4325.00
• 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:9691, the sentiment is Positive. The current price of 4325 is above the 20-day moving average (MA) of 3927.00, above the 50-day MA of 3700.00, and above the 200-day MA of 2954.61, indicating a bullish trend. The MACD of 115.63 indicates Negative momentum. The RSI at 69.23 is Neutral, neither overbought nor oversold. The STOCH value of 88.66 is Negative, 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
9691	82 Outperform	¥15.13B	8.81	―	0.97%	26.73%	127.63%
4495	78 Outperform	¥14.29B	24.57	―	1.26%	27.15%	24.58%
4284	76 Outperform	¥11.14B	14.77	7.35%	2.62%	5.50%	57.30%
4762	76 Outperform	¥11.76B	9.63	―	3.16%	-4.12%	60.53%
9698	72 Outperform	¥9.66B	12.45	―	4.29%	2.47%	24.31%
3800	68 Neutral	¥13.90B	19.33	―	3.61%	-1.03%	-3.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%