Systems Engineering Consultants Co., Ltd. (3741) AI Stock Analysis

• Market Cap: ¥23.49B
• Dividend Yield: 2.22%
• Average Volume (3M): 28.82K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.80
• Revenue Growth: 15.74%
• EPS Growth: 20.41%
• Country: JP
• Employees: 347
• Sector: Technology
• Sector Strength: 77
• Industry: Software - Infrastructure
• EPS (TTM): 82.71
• Shares Outstanding: 5,120,000
• 10 Day Avg. Volume: 18,260
• 30 Day Avg. Volume: 28,823
• PEG Ratio: 4.55
• Price to Book (P/B): 2.60
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Systems Engineering Consultants Co., Ltd. exhibits a strong financial position with excellent growth in revenue and profitability, and a robust balance sheet. However, technical indicators suggest caution due to potential overbought conditions and bearish momentum. Valuation metrics are reasonable, supporting a moderate investment outlook.

Systems Engineering Consultants Co., Ltd. Business Overview & Revenue Model

Company Description

Systems Engineering Consultants Co.,LTD., a software development company, provides real-time software solutions in mobile networking, Internet technology, and public infrastructure fields in Japan. Its mobile networking business develops embedded software for various mobile devices, including smartphones and tablet PCs, mobile terminals, and in-vehicle information terminals. The company's Internet technology business develops embedded software for contactless IC cards and other application technologies, such as IoT-related technologies; and real-time technologies, including augmented reality, virtual reality, mixed reality, XML technologies, and cloud systems. Its public infrastructure business develops application technologies for public infrastructure fields, such as advanced transportation systems, defense-related systems, location information management systems, and systems for use in medical, environmental energy, and government offices. The company's space, robotics, and advanced technologies business offers embedded systems for scientific satellites, planetary probes, and data analysis systems, as well as researches and develops robots; and provides development and consulting services on various uses of robotic systems. Its products also include RTMSafety, a robot middleware; Rtino, an indoor autonomous mobile robot software; and Rtrilo, a computer vision software for robots and other machines. The company was incorporated in 1970 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Systems Engineering Consultants Co., Ltd. generates revenue through a combination of service-based and project-based engagements. The company earns income by delivering specialized engineering consulting services, software development projects, and systems integration solutions to its clients. Revenue streams include fees for consulting services, software licensing, maintenance contracts, and custom IT solutions development. The company may also engage in strategic partnerships and collaborations with technology providers to enhance its service offerings, contributing to its overall revenue generation.

Systems Engineering Consultants Co., Ltd. Financial Statement Overview

Summary

Systems Engineering Consultants Co., Ltd. demonstrates a strong financial position with remarkable growth in revenue and profitability, supported by a robust balance sheet. The company's low leverage and solid equity position reflect sound financial management. However, inconsistencies in cash flow generation highlight the need for improved cash flow consistency.

Income Statement

The income statement of Systems Engineering Consultants Co., Ltd. shows strong revenue growth with a revenue growth rate of 11.86% in the latest TTM period. The gross profit margin is robust at 30.12%, and the net profit margin is impressive at 13.16%. The company also demonstrates good operational efficiency with an EBIT margin of 17.39% and an EBITDA margin of 18.02%. Overall, the financial health is excellent with consistent growth in revenue and profitability.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.01, indicating low financial leverage. The return on equity (ROE) stands at 14.11%, showcasing effective use of equity to generate profits. The equity ratio is high at 85.05%, reflecting financial stability and a solid capital structure. These metrics highlight the company's prudent financial management and low risk.

Cash Flow

The cash flow metrics present a mixed picture. While the free cash flow to net income ratio indicates a positive conversion of earnings to cash, the operating cash flow to net income ratio cannot be assessed for the TTM due to missing data. The historical trend shows some fluctuations in free cash flow growth, but the overall cash flow management remains adequate.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
9.55B	8.53B	7.49B	6.56B	6.53B	6.34B
	Gross Profit
2.88B	2.55B	2.24B	1.97B	1.85B	1.78B
	EBIT
1.66B	1.47B	1.22B	1.06B	1.01B	930.59M
	EBITDA
1.72B	1.58B	1.32B	1.14B	1.08B	1.03B
	Net Income Common Stockholders
1.26B	1.11B	878.83M	780.30M	727.68M	687.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.97B	2.97B	3.08B	3.23B	2.85B	3.37B
	Total Assets
10.11B	10.11B	9.19B	8.43B	7.94B	7.51B
	Total Debt
36.00M	36.00M	36.00M	36.00M	36.00M	36.00M
	Net Debt
-2.93B	-2.93B	-3.04B	-3.20B	-2.82B	-3.33B
	Total Liabilities
1.71B	1.71B	1.58B	1.33B	1.36B	1.26B
	Stockholders Equity
8.40B	8.40B	7.60B	7.09B	6.58B	6.25B
Cash Flow		Free Cash Flow
0.00	345.47M	431.18M	629.42M	-76.76M	824.06M
	Operating Cash Flow
0.00	384.07M	526.79M	642.95M	-52.13M	843.13M
	Investing Cash Flow
0.00	-139.18M	-303.57M	28.72M	-40.65M	73.13M
	Financing Cash Flow
0.00	-352.99M	-381.51M	-290.70M	-423.19M	-244.95M

Systems Engineering Consultants Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4715.00
• 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:3741, the sentiment is Positive. The current price of 4715 is above the 20-day moving average (MA) of 4407.50, above the 50-day MA of 4497.39, and above the 200-day MA of 4316.38, indicating a bullish trend. The MACD of 40.61 indicates Negative momentum. The RSI at 64.08 is Neutral, neither overbought nor oversold. The STOCH value of 71.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3741.

Systems Engineering Consultants Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9692	79 Outperform	¥79.62B	19.45		2.31%	5.81%	-9.55%
9719	74 Outperform	¥1.38T	30.55		1.63%	24.10%	11.27%
3741	74 Outperform	¥23.49B	17.41		2.22%	15.74%	20.41%
9629	66 Neutral	¥34.74B	21.16		4.73%	8.11%	7.91%
Sector *	60 Neutral	$11.60B	10.64	-6.04%	2.94%	7.87%	-11.74%

Systems Engineering Consultants Co., Ltd. Corporate Events

Systems Engineering Consultants Reports Strong Financial Growth

The company reported a significant financial improvement in its quarterly operating results, with notable increases in net sales and profits compared to the previous year. This strong performance indicates a positive trajectory in its market positioning, potentially enhancing stakeholder confidence.