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

• Market Cap: ¥13.82B
• Dividend Yield: 0.99%
• Average Volume (3M): 1.46K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.62
• 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: ¥4,404.00 ▲(11.21% Upside)
• Action: Upgraded Date: 01/30/26
• Date: Action: Upgraded 01/30/26

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 TTM margin expansion and a ~14.9% ROE indicate improving operating efficiency and capital deployment. Stronger margins and returns provide durable support for reinvestment, shareholder returns, and resilience versus revenue swings over the next several months.

Free cash flow recovery

A sharp rebound in free cash flow improves financial flexibility and reduces reliance on external financing. Higher FCF supports working-capital needs, discretionary investment, and cushions the business against cyclical project timing risks over a multi-month horizon.

Recurring services and solutions model

A system-integration model with recurring maintenance, managed services and licences creates stickier revenue and higher client lifetime value. This durable revenue mix smooths project volatility and supports predictable cash flow and cross-sell opportunities over 2–6 months.

Negative Factors

Rising leverage

An increasing debt/equity ratio reduces balance-sheet flexibility and raises fixed obligations. If revenue or margins soften, higher leverage could force tougher liquidity management or limit strategic spending, creating a persistent downside risk over several months.

Volatile cash conversion

Inconsistent conversion of profits into cash points to working-capital swings from project billing, collections, or timing. This volatility makes cash planning harder, can necessitate short-term financing, and undermines the durability of reported earnings across quarters.

Margin volatility and lower gross margin

Declining and uneven gross margins suggest cost pressure or adverse project mix that can erode operating leverage. Persistent margin variability harms earnings predictability and could offset improvements in operating metrics if not resolved within the coming months.

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

Company Description

Ryomo Systems Co.,Ltd. provides software development and system sales, information processing, product-related sales, and other information services in Japan. It offers administrative, family register information comprehensive, financial accounting, counter support, school lunch, smart city, and collection management solutions; water rate adjustment, public enterprise accounting system, image information management system, as well as toll collection, water supply installation management, and other meter data information creation solution; and educational network construction, school affairs and class support, and library management services. The company also provides customer portals for gas and electricity retailing; customer charge management, and gas business management solutions; and solutions for manufacturing industry, including smart factory, SAP, CATIA V5, and template RAIC solutions. In addition, it offers printing solutions; functional safety solutions; MBD consulting, autonomous driving system verification, commissioned development, check tool, and education training solutions, as well as HILS support solutions; medical solutions, such as medical office, drug management guidance work support, and regional medical collaboration, electronic medical record systems, and other solutions; and solutions for sales and customer management, online shopping, POS data analysis, electronic commerce, and labor scheduling programs in the distribution sector. Further, the company provides cloud service, share box, electronic eco filing system, counter measure service, housing service, network service, data center, facility equipment, managed, printing, and data entry service, and website design service. The company was incorporated in 1970 and is headquartered in Kiryu, Japan. Ryomo Systems Co.,Ltd. operates as a subsidiary of Mitsuba Corporation.

How the Company Makes Money

Ryomo Systems generates revenue primarily by delivering IT solutions and services to clients. Key revenue streams include: (1) system integration and project delivery fees for consulting, requirements definition, system design, development, implementation, and project management; (2) sales of IT products such as hardware and software, typically recognized as product revenue and often bundled with integration work; (3) ongoing maintenance, operation, and support contracts (including system monitoring, help desk, and managed services) that provide recurring service income after initial deployment; and (4) licensing and subscription-related revenue when the company provides packaged software or cloud-based solutions as part of its offerings. Significant earnings drivers typically include the scale and complexity of integration projects, the mix of one-time project revenue versus recurring maintenance/operation contracts, and vendor relationships used to procure and resell third-party hardware/software. null

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• Last Price: 3960.00
• 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:9691, the sentiment is Negative. The current price of 3960 is below the 20-day moving average (MA) of 4327.25, below the 50-day MA of 4519.70, and below the 200-day MA of 4033.66, indicating a bearish trend. The MACD of -140.24 indicates Positive momentum. The RSI at 32.74 is Neutral, neither overbought nor oversold. The STOCH value of 25.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
4495	78 Outperform	¥12.03B	15.39	―	1.16%	23.67%	24.95%
9698	76 Outperform	¥9.88B	14.61	―	4.24%	2.08%	25.42%
9691	73 Outperform	¥13.82B	7.51	―	0.99%	33.30%	163.81%
3800	71 Outperform	¥14.07B	15.52	―	3.62%	0.85%	12.73%
4284	66 Neutral	¥10.72B	12.59	―	2.45%	9.77%	93.99%
4762	63 Neutral	¥12.68B	9.76	―	3.16%	0.11%	20.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%