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

• Market Cap: ¥16.30B
• Dividend Yield: 0.99%
• Average Volume (3M): 1.46K
• Price to Earnings (P/E): 7.7
• 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): 152.98
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥5,079.00 ▲(28.26% Upside)

The score is supported primarily by improving financial performance (higher margins and ROE, and a strong TTM free-cash-flow rebound) and an inexpensive valuation (low P/E). These positives are tempered by mixed near-term technicals and financial-risk watch items, including rising leverage and uneven cash conversion.

Positive Factors

Improving profitability and ROE

Sustained improvement in ROE indicates better capital efficiency and stronger return generation from core operations. This durability supports reinvestment in services and client delivery, improves ability to fund growth without diluting equity, and enhances resilience to cyclical revenue swings.

Free cash flow rebound

A marked TTM rebound in free cash flow and near coverage of reported profits shows improving cash conversion capacity. Durable FCF supports ongoing service delivery, modest dividends or buybacks, and reduces reliance on external financing for working capital or strategic investments.

Recurring services and diversified revenue mix

A business model blending project-based system integration with recurring maintenance, managed services and licensing creates a steadier revenue base and higher customer lifetime value. This structural mix mitigates project timing risk and supports long-term margin and cash predictability.

Negative Factors

Rising leverage

An increasing debt/equity ratio reduces financial flexibility if revenue or margins weaken. Higher leverage raises interest and refinancing exposure, constrains free cash deployment for capex or acquisitions, and heightens downside risk during slower demand periods.

Volatile cash conversion

Inconsistent conversion of profit to cash, driven by working-capital swings, undermines predictability of funding for operations and investments. This volatility can force short-term financing needs, weaken investment planning, and reduce the reliability of reported earnings as a cash proxy.

Margin and mix pressure

Declining recent gross margins and historical volatility signal structural pressure from cost increases or less favorable project/product mix. Sustained margin erosion would compress operating cash flow and returns, making it harder to finance growth or defend pricing long term.

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

Solid operating trend in TTM with revenue up 7.6%, improving net/operating margins, and stronger ROE (~14.9%). Offsets include rising leverage (debt/equity ~0.50, trending up), lower recent gross margin versus prior years, and volatile cash conversion despite a sharp TTM free-cash-flow rebound.

Income Statement

Profitability and growth are solid in TTM (Trailing-Twelve-Months): revenue rose 7.6% and net margin improved to ~8.0% (vs ~7.0% in FY2025), with operating margin also higher (~11.6%). Over the last several years, revenue has generally expanded (despite a dip in FY2022) and earnings have stepped up meaningfully from FY2024 to FY2025/TTM. The main offset is some margin volatility—gross margin was stronger in FY2023–FY2024 and is lower more recently—suggesting cost pressure or mix changes.

Balance Sheet

Leverage looks manageable: debt is about half of equity in TTM (Trailing-Twelve-Months) (~0.50), though it has trended up from earlier years as debt increased alongside equity growth. Returns on shareholders’ capital have strengthened (ROE ~14.9% TTM vs ~11.5% FY2025 and ~7.7% FY2024), which is a positive signal for capital efficiency. Risk-wise, the rising debt load reduces balance-sheet flexibility if profitability softens.

Cash Flow

Cash generation improved sharply: free cash flow is positive and up strongly in TTM (Trailing-Twelve-Months) (+65.3%), rebounding from a large cash outflow in FY2024. Free cash flow covers most of reported profits in TTM (~0.86x), indicating decent earnings quality. However, cash flow still does not consistently cover operating profit well (operating cash flow is ~0.63x of operating profit in TTM and was very weak in FY2024), pointing to working-capital swings and some year-to-year volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	26.21B	22.49B	18.17B	17.23B	15.50B	16.64B
Gross Profit	6.24B	5.35B	4.96B	4.92B	4.10B	3.95B
EBITDA	4.39B	3.63B	2.17B	2.63B	2.08B	1.90B
Net Income	2.11B	1.57B	944.89M	1.21B	965.27M	821.77M
Balance Sheet
Total Assets	24.73B	24.74B	21.84B	18.82B	16.47B	16.69B
Cash, Cash Equivalents and Short-Term Investments	4.07B	4.29B	3.70B	4.71B	3.92B	4.77B
Total Debt	7.39B	6.48B	5.34B	3.85B	3.62B	4.17B
Total Liabilities	9.85B	11.11B	9.55B	7.76B	6.25B	7.14B
Stockholders Equity	14.88B	13.63B	12.29B	11.06B	10.22B	9.56B
Cash Flow
Free Cash Flow	2.83B	1.67B	-2.55B	257.02M	-736.84M	991.67M
Operating Cash Flow	3.31B	2.21B	737.41M	2.20B	874.92M	1.59B
Investing Cash Flow	-783.77M	-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: Positive
• RSI: Neutral
• STOCH: Positive

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 4668.25, below the 50-day MA of 4586.40, and above the 200-day MA of 3792.12, indicating a neutral trend. The MACD of 52.80 indicates Positive momentum. The RSI at 50.70 is Neutral, neither overbought nor oversold. The STOCH value of 12.86 is Positive, 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	¥12.86B	15.06	―	2.45%	9.77%	93.99%
4495	78 Outperform	¥13.51B	20.49	―	1.16%	23.67%	24.95%
9698	76 Outperform	¥10.05B	12.27	―	4.24%	2.08%	25.42%
9691	73 Outperform	¥16.30B	7.74	―	0.99%	33.30%	163.81%
3800	71 Outperform	¥14.19B	19.16	―	3.62%	0.85%	12.73%
4762	63 Neutral	¥12.71B	12.64	―	3.16%	0.11%	20.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%