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System Research Co., Ltd.
(3771)
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Rating:82Outperform
Price Target:
¥2,238.00
▲(10.30% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by strong financial performance (steady growth, improving margins, and very low leverage). Technicals add support with a clear uptrend, though momentum is getting close to overbought. Valuation is also favorable with a modest P/E and a strong dividend yield, partially offset by inconsistent cash conversion and prior free-cash-flow volatility.
Positive Factors
Consistent Revenue and Profit Growth
Sustained revenue expansion alongside improving operating and net margins indicates durable customer demand and strengthening execution. The steady gross-margin profile also suggests the company can grow without materially sacrificing profitability.
Negative Factors
Weak and Volatile Cash Conversion
Cash conversion below operating profit suggests working-capital timing or collection pressures can separate accounting earnings from available cash. Recurring conversion weakness and prior free-cash-flow volatility may constrain funding predictability despite positive reported cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Revenue and Profit Growth
Sustained revenue expansion alongside improving operating and net margins indicates durable customer demand and strengthening execution. The steady gross-margin profile also suggests the company can grow without materially sacrificing profitability.
Read all positive factors
System Research Co., Ltd. (3771) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥32.25B
Dividend Yield3.59%
Average Volume (3M)65.13K
Price to Earnings (P/E)12.6
Beta (1Y)0.78
Revenue Growth10.84%
EPS Growth11.95%
CountryJP
Employees1,569
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)154.35
Shares Outstanding16,720,000
10 Day Avg. Volume28,730
30 Day Avg. Volume65,130
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)2.07
Price to Sales (P/S)0.96
P/FCF Ratio16.55
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)N/A
Revenue Forecast (FY)N/A
System Research Co., Ltd. Business Overview & Revenue Model
Company Description
System Research Co.,Ltd. provides software development services in Japan. The company designs, develops, implements, operates, maintains, and improves corporate information systems for the car, logistics, distribution, communication and control, a...
How the Company Makes Money
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System Research Co., Ltd. Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.57B | 29.08B | 25.93B | 23.32B | 21.56B | 18.41B |
| Gross Profit | 6.85B | 6.76B | 6.03B | 5.36B | 4.82B | 4.12B |
| EBITDA | 3.70B | 3.74B | 3.20B | 2.88B | 2.66B | 2.20B |
| Net Income | 2.56B | 2.61B | 2.19B | 1.97B | 1.60B | 1.49B |
Balance Sheet | ||||||
| Total Assets | 17.39B | 19.46B | 17.53B | 16.15B | 14.18B | 12.88B |
| Cash, Cash Equivalents and Short-Term Investments | 7.45B | 8.43B | 8.20B | 8.33B | 7.37B | 6.35B |
| Total Debt | 918.85M | 956.94M | 1.30B | 1.44B | 1.40B | 1.40B |
| Total Liabilities | 4.67B | 5.97B | 5.70B | 5.63B | 5.05B | 4.75B |
| Stockholders Equity | 12.69B | 13.46B | 11.81B | 10.51B | 9.12B | 8.12B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.68B | 971.47M | 1.59B | 1.59B | 1.28B |
| Operating Cash Flow | 0.00 | 2.50B | 2.06B | 2.46B | 1.80B | 1.29B |
| Investing Cash Flow | 0.00 | -942.32M | -1.14B | -926.71M | -273.30M | -254.65M |
| Financing Cash Flow | 0.00 | -1.33B | -1.04B | -546.50M | -501.65M | -526.75M |
System Research Co., Ltd. Technical Analysis
Positive
2029.00
Price Trends
1826.52
Positive
1777.29
Positive
1808.04
Positive
Market Momentum
38.24
Negative
58.83
Neutral
70.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3771, the sentiment is Positive. The current price of 2029 is above the 20-day moving average (MA) of 1872.70, above the 50-day MA of 1826.52, and above the 200-day MA of 1808.04, indicating a bullish trend. The MACD of 38.24 indicates Negative momentum. The RSI at 58.83 is Neutral, neither overbought nor oversold. The STOCH value of 70.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3771.
System Research Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥32.25B | 12.64 | ― | 2.93% | 10.84% | 11.95% | |
82 Outperform | ¥5.50B | 10.27 | ― | 2.28% | 16.86% | -14.98% | |
79 Outperform | ¥30.98B | 15.15 | ― | 4.58% | 8.18% | 35.49% | |
76 Outperform | ¥47.57B | 19.62 | ― | 1.50% | 9.28% | -6.81% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
41 Neutral | ¥5.61B | 170.97 | ― | ― | -0.48% | ― |
* Technology Sector Average
JP:3771
System Research Co., Ltd.
1,951.00
-50.98
-2.55%
JP:3826
System Integrator Corp.
496.00
73.21
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1,916.00
-82.41
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SystemSoft Corporation
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-6.00
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1,673.00
-184.78
-9.95%
System Research Co., Ltd. Corporate Events
System Research Completes Payment for Restricted Share Remuneration Disposal
Aug 7, 2026
System Research has completed payment procedures for the disposal of 25,250 treasury shares used as restricted share remuneration to its management team. The shares, priced at 1,836 yen each for a total of 46,359,000 yen, were allocated to six dir...
System Research Lifts Payout Target and Adopts Progressive Dividend Policy
Jul 28, 2026
System Research Co., Ltd. has revised its dividend policy to raise its target dividend payout ratio from 40% to 50%, underscoring a stronger commitment to shareholder returns while keeping an eye on capital efficiency and financial stability. As p...
System Research Balances Softer Q1 Profits With Higher Dividend and Confident Outlook
Jul 28, 2026
System Research reported consolidated net sales of ¥7.43 billion for the quarter ended June 30, 2026, up 7.0% year on year, but saw operating profit decline 10.1% to ¥540 million and profit attributable to owners of parent fall 11.6% to ...
System Research to Grant Restricted Treasury Shares to Directors and Executives
Jul 10, 2026
System Research Co., Ltd. has resolved to dispose of 25,250 treasury shares of common stock as restricted stock compensation for six directors and six executive officers. The shares, priced at 1,836 yen each for a total of 46,359,000 yen, are part...
System Research Raises Year-End Dividend to 70 Yen per Share
May 27, 2026
System Research Co., Ltd. has resolved to distribute a year-end dividend of 70 yen per share for the fiscal year ended March 31, 2026, matching its latest forecast and up from 60 yen per share in the previous year. The dividend, totaling approxima...
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.