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Systems Engineering Consultants Co., Ltd.
(3741)
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Rating:79Outperform
Price Target:
¥3,756.00
▲(20.38% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by strong financial performance—high and consistent profitability plus a near debt-free balance sheet—tempered by historically uneven cash-flow conversion. Technicals are supportive with price above key moving averages and positive MACD, though near-overbought stochastic readings add some short-term risk. Valuation is reasonable but not clearly cheap (P/E ~20.4) with a modest dividend yield.
Positive Factors
Consistent profitability
Sustained double-digit net margins and healthy EBIT margins indicate a profitable, scalable operating model. This earnings quality provides resilience and supports internal reinvestment over the next several quarters.
Negative Factors
Volatile cash conversion
Recurring periods of negative cash flow despite profitability indicate working-capital or timing swings. This makes cash conversion less predictable and could temporarily constrain investment, distributions or financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent profitability
Sustained double-digit net margins and healthy EBIT margins indicate a profitable, scalable operating model. This earnings quality provides resilience and supports internal reinvestment over the next several quarters.
Read all positive factors
Systems Engineering Consultants Co., Ltd. (3741) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥31.94B
Dividend Yield1.92%
Average Volume (3M)124.77K
Price to Earnings (P/E)19.5
Beta (1Y)1.14
Revenue Growth12.25%
EPS Growth25.81%
CountryJP
Employees365
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)160.70
Shares Outstanding10,240,000
10 Day Avg. Volume118,140
30 Day Avg. Volume124,770
Financial Highlights & Ratios
PEG Ratio1.59
Price to Book (P/B)2.85
Price to Sales (P/S)2.62
P/FCF Ratio18.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)147.1
Revenue Forecast (FY)¥11.70B
Systems Engineering Consultants Co., Ltd. Business Overview & Revenue Model
Company Description
Systems Engineering Consultants Co.,LTD. (SEC), established in Tokyo, Japan, in 1970, is a dedicated software development firm specializing in real-time solutions for mobile networking, Internet technology, and public infrastructure domains within...
How the Company Makes Money
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Systems Engineering Consultants Co., Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
66
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.69B | 11.22B | 10.30B | 8.53B | 7.49B | 6.56B |
| Gross Profit | 3.55B | 3.33B | 3.07B | 2.55B | 2.24B | 1.97B |
| EBITDA | 2.13B | 1.94B | 1.94B | 1.58B | 1.32B | 1.14B |
| Net Income | 1.64B | 1.51B | 1.34B | 1.11B | 878.83M | 780.30M |
Balance Sheet | ||||||
| Total Assets | 11.99B | 12.44B | 12.04B | 10.11B | 9.39B | 8.60B |
| Cash, Cash Equivalents and Short-Term Investments | 6.11B | 3.32B | 2.23B | 2.97B | 3.08B | 3.23B |
| Total Debt | 279.36M | 36.00M | 46.55M | 36.00M | 36.00M | 36.00M |
| Total Liabilities | 1.93B | 2.12B | 2.71B | 1.71B | 1.79B | 1.51B |
| Stockholders Equity | 10.06B | 10.31B | 9.33B | 8.40B | 7.60B | 7.09B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.60B | -275.22M | 345.47M | 431.18M | 629.42M |
| Operating Cash Flow | 0.00 | 1.70B | -250.49M | 384.07M | 526.79M | 642.95M |
| Investing Cash Flow | 0.00 | -46.88M | -40.97M | -139.18M | -303.57M | 28.72M |
| Financing Cash Flow | 0.00 | -561.12M | -445.43M | -352.99M | -381.51M | -290.70M |
Systems Engineering Consultants Co., Ltd. Technical Analysis
Negative
3120.00
Price Trends
3122.82
Positive
3242.87
Negative
3218.14
Negative
Market Momentum
22.22
Positive
48.98
Neutral
12.22
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3741, the sentiment is Negative. The current price of 3120 is below the 20-day moving average (MA) of 3130.45, below the 50-day MA of 3122.82, and below the 200-day MA of 3218.14, indicating a neutral trend. The MACD of 22.22 indicates Positive momentum. The RSI at 48.98 is Neutral, neither overbought nor oversold. The STOCH value of 12.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3741.
Systems Engineering Consultants Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥31.94B | 19.48 | ― | 1.74% | 12.25% | 25.81% | |
78 Outperform | ¥29.39B | 17.08 | ― | ― | 15.26% | 62.04% | |
74 Outperform | ¥34.96B | 23.77 | ― | 3.62% | 10.59% | 10.16% | |
72 Outperform | ¥16.25B | 16.38 | ― | 0.91% | 21.28% | 73.53% | |
71 Outperform | ¥72.13B | 10.22 | ― | 2.35% | 24.89% | 42.58% | |
63 Neutral | ¥19.11B | -49.54 | ― | ― | 17.69% | -175.52% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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Systems Engineering Consultants Co., Ltd. Corporate Events
Systems Engineering Consultants Posts Strong Q1 Profit Surge and Affirms FY2027 Outlook
Aug 10, 2026
Systems Engineering Consultants Co., Ltd. reported robust results for the three months ended June 30, 2026, with net sales rising 20.5% year on year to ¥2,772 million and operating profit jumping 51.6% to ¥440 million. Ordinary profit cl...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.