Keyware Solutions Inc. (3799) AI Stock Analysis

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Keyware Solutions Inc.

(TSE/TYO:3799)

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Rating:77Outperform

Price Target:JPY 1,261.00▲(27.12% Upside)

Action:upgraded

Date:08/17/26

The score is primarily driven by strong financial stability (zero debt and solid capitalization) and steady revenue growth, offset by volatility in net income and cash-flow conversion. Valuation is a clear positive with a low P/E and a ~3% dividend yield, while technical indicators point to moderate, improving momentum rather than a strong trend.

Positive Factors

Conservative balance sheetZero reported debt and sizable equity materially reduce financial risk and interest burden, giving durable capital allocation flexibility. This balance-sheet strength supports R&D and client project funding, cushions downturns and preserves options for dividends or opportunistic M&A over the medium term.

Negative Factors

Earnings volatility / net income declineProfitability falling while revenue rose suggests margin pressure or rising costs below gross profit. This earnings volatility undermines earnings quality, complicates forecasting and may constrain sustainable investment, dividends or hiring if the trend persists over several quarters.

Keyware Solutions Inc. (3799) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 8.31B
Dividend Yield: 3.73%
Average Volume (3M): 10.68K
Price to Earnings (P/E): 16.1
Beta (1Y): 0.67
Revenue Growth: 1.80%
EPS Growth: -52.48%
Country: Japan
Employees: 1,300
Sector: Technology
Sector Strength: 61
Industry: Information Technology Services

Keyware Solutions Inc. Business Overview & Revenue Model

Company Description

Keyware Solutions Inc., headquartered in Tokyo and founded in 1965 (originally known as Nippon Electronics Development Co., Ltd. until its name change in January 2001), specializes in developing and distributing information systems crucial for Japan'...

Keyware Solutions Inc. Financial Statement Overview

Summary

Financials are solid overall: revenue trends upward from 2023–2026 (¥19.17B to ¥22.72B) and the balance sheet is very conservative with zero debt and sizable equity (~¥8.00B in 2026). The main constraint is earnings and cash-flow consistency—net income fell in 2026 despite higher sales, and operating/free cash flow have been volatile (negative in 2025 before rebounding strongly in 2026).

Income Statement

74Positive

Balance Sheet

88Very Positive

Cash Flow

61Positive

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	22.58B	22.72B	21.10B	20.51B	19.17B	18.63B
Gross Profit	4.58B	4.69B	4.03B	3.84B	3.44B	2.98B
EBITDA	1.25B	1.47B	1.57B	1.30B	818.61M	711.44M
Net Income	688.89M	801.99M	1.03B	729.50M	482.80M	685.89M
Balance Sheet
Total Assets	10.82B	12.01B	10.78B	12.53B	11.15B	10.31B
Cash, Cash Equivalents and Short-Term Investments	4.23B	3.37B	1.86B	1.96B	1.04B	1.10B
Total Debt	0	0	0	0	0	1.59B
Total Liabilities	2.99B	4.01B	3.21B	3.89B	3.35B	4.26B
Stockholders Equity	7.84B	8.00B	7.57B	8.64B	7.81B	6.05B
Cash Flow
Free Cash Flow	0	1.94B	-579.58M	1.09B	638.15M	-202.19M
Operating Cash Flow	0	1.99B	-333.36M	1.18B	653.67M	-193.90M
Investing Cash Flow	0	-77.48M	398.22M	-157.63M	-50.85M	-82.23M
Financing Cash Flow	0	-408.02M	-166.05M	-99.72M	-474.62M	153.49M

Keyware Solutions Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price992.00

Price Trends

50DMA1093.16Negative

100DMA1073.18Negative

200DMA1085.75Negative

Market Momentum

MACD-31.54Positive

RSI35.59Neutral

STOCH16.11Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3799, the sentiment is Negative. The current price of 992.00 is below the 20-day moving average (MA) of 1066.80, below the 50-day MA of 1093.16, and below the 200-day MA of 1085.75, indicating a bearish trend. The MACD of -31.54 indicates Positive momentum. The RSI at 35.59 is Neutral, neither overbought nor oversold. The STOCH value of 16.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3799.

Keyware Solutions Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3799 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4442	81Outperform	JPY 9.53B	20.85	―	0.91%	9.86%	-35.09%
JP:3799	77Outperform	JPY 7.97B	16.07	―	3.73%	1.80%	-52.48%
JP:4356	76Outperform	JPY 8.94B	12.11	―	2.55%	-2.03%	-28.79%
JP:155A	63Neutral	JPY 5.95B	13.59	―	―	38.42%	107.01%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:3657	46Neutral	JPY 11.92B	-4.51	―	4.73%	-10.31%	-194.96%
JP:5255	40Underperform	JPY 4.01B	-29.54	―	―	-1.67%	98.41%

* Technology Sector Average

Performance Comparison

JP:3799 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3799	Keyware Solutions Inc.	992.00	-85.42	-7.93%
JP:155A	Information Strategy and Technology Co.,Ltd.	551.00	-621.00	-52.99%
JP:3657	Pole To Win Holdings.Inc.	338.00	23.67	7.53%
JP:4356	Applied Technology Co., Ltd.	1691.00	-138.89	-7.59%
JP:4442	VALTES HOLDINGS CO. LTD.	441.00	-5.06	-1.13%
JP:5255	Monstarlab Holdings Inc.	62.00	-110.00	-63.95%

Keyware Solutions Inc. Corporate Events

Keyware Solutions Lifts Dividend as Profit Slips but Cash Flow and Assets Strengthen

May 21, 2026

Keyware Solutions reported consolidated sales of ¥22.7 billion for the year ended March 31, 2026, a 7.7% increase, with operating income up 22.8% to ¥1.13 billion but ordinary income down 2.3% and profit attributable to owners of parent falling 22.3%...

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.

Date of analysis: Aug 17, 2026

Keyware Solutions Inc. AI Stock Analysis