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System Research Co., Ltd. (3771) AI Stock Analysis
System Research Co., Ltd.
(TSE/TYO:3771)
The overall stock score of 88 is heavily driven by the company's pristine balance sheet, consistent double-digit revenue growth, and highly discounted valuation (12.5 P/E and a 3.6% dividend yield). Upward technical momentum further solidifies the bullish outlook, with the stock trading well above all major moving averages. Earnings call and corporate event components were excluded due to a lack of data, focusing the evaluation entirely on its excellent fundamental and technical merits.
System Research Co., Ltd. (3771) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 31.20B
- Dividend Yield
- 3.72%
- Average Volume (3M)
- 79.42K
- Price to Earnings (P/E)
- 12.5
- Beta (1Y)
- 0.81
- Revenue Growth
- 9.34%
- EPS Growth
- 3.51%
- Country
- Japan
- Employees
- 1,569
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Software - Application
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, and...
How the Company Makes Money
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System Research Co., Ltd. Financial Statement Overview
Summary
System Research Co. demonstrates an exceptionally strong financial profile. Top-line revenue and net profit margins have expanded consistently over the last five years. The company maintains a fortress balance sheet with aggressive debt paydown, resulting in a minimal 0.04x debt-to-equity ratio. While cash conversion has slightly softened, operating cash flows remain robust and adequately fund organic growth.
Income Statement
88Very PositiveBalance Sheet
92Very PositiveCash Flow
82Very 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 | 1.68B | 971.47M | 1.59B | 1.59B | 1.28B |
| Operating Cash Flow | 0 | 2.50B | 2.06B | 2.46B | 1.80B | 1.29B |
| Investing Cash Flow | 0 | -942.32M | -1.14B | -926.71M | -273.30M | -254.65M |
| Financing Cash Flow | 0 | -1.33B | -1.04B | -546.50M | -501.65M | -526.75M |
System Research Co., Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3771, the sentiment is Negative. The current price of 1850.00 is below the 20-day moving average (MA) of 1932.65, below the 50-day MA of 1921.56, and above the 200-day MA of 1810.80, indicating a neutral trend. The MACD of 3.90 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 17.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3771.
System Research Co., Ltd. Peers Comparison
Overall Rating
JP:377188Outperform
JP:962982.7Outperform
JP:382682Outperform
JP:432376Outperform
JP:752743Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 88Outperform | JPY 31.45B | 12.46 | ― | 3.72% | 9.34% | 3.51% | |
| 83Outperform | JPY 29.94B | 15.38 | ― | 6.00% | 8.61% | 30.21% | |
| 82Outperform | JPY 5.26B | 11.55 | ― | 2.73% | 13.99% | -36.97% | |
| 76Outperform | JPY 43.23B | 17.86 | ― | 2.81% | 9.28% | -6.81% | |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| 43Neutral | JPY 4.87B | 148.39 | ― | ― | -0.48% | ― |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:3771 | System Research Co., Ltd. | 1881.00 | -48.04 | -2.49% | |
| JP:3826 | System Integrator Corp. | 477.00 | 24.85 | 5.50% | |
| JP:4323 | Japan System Techniques Co., Ltd. | 1744.00 | -336.51 | -16.17% | |
| JP:7527 | SystemSoft Corporation | 46.00 | -24.00 | -34.29% | |
| JP:9629 | PCA Corporation | 1584.00 | -103.60 | -6.14% |
System Research Co., Ltd. Corporate Events
System Research Completes Payment for Restricted Share Remuneration Disposal
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 direct...
System Research Lifts Payout Target and Adopts Progressive Dividend Policy
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 part...
System Research Balances Softer Q1 Profits With Higher Dividend and Confident Outlook
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
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 of...
System Research Raises Year-End Dividend to 70 Yen per Share
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 approximatel...
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.
Date of analysis: Aug 17, 2026