SYS Holdings Co. Ltd. (3988) AI Stock Analysis

• Market Cap: ¥6.51B
• Dividend Yield: 1.15%
• Average Volume (3M): 10.60K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.52
• Revenue Growth: 13.34%
• EPS Growth: -10.63%
• Country: JP
• Employees: 1,520
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 13.65
• Shares Outstanding: 10,582,939
• 10 Day Avg. Volume: 17,240
• 30 Day Avg. Volume: 10,600
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥606.00
• Price Target Upside: -1.62% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥606.00 ▼(-1.62% Downside)

SYS Holdings Co. Ltd. scores well due to its strong financial performance, characterized by robust revenue growth and efficient cash flow management. The stock's valuation is reasonable, with a fair P/E ratio and a modest dividend yield. While technical indicators are mixed, the overall outlook remains positive, driven primarily by the company's solid financial foundation.

SYS Holdings Co. Ltd. Business Overview & Revenue Model

Company Description

SYS Holdings Co., Ltd., through its subsidiaries, provides information technology services in Japan and internationally. It offers information services for manufacturing companies related to the automobile, heavy industries, machine tool, steel, hauling, and transportation machine sectors; social information infrastructure solutions; and mobile applications for corporations. The company was founded in 1991 and is headquartered in Nagoya, Japan.

How the Company Makes Money

SYS Holdings Co. Ltd. generates revenue primarily through its services in system integration, where it designs and implements comprehensive IT systems for clients. The company also earns from software development projects, creating bespoke software solutions tailored to the specific needs of its clients. Additionally, SYS Holdings provides IT infrastructure services, which include consulting, maintenance, and support services. The company's revenue is further bolstered by partnerships with technology providers and its ability to deliver cutting-edge solutions that meet evolving market demands.

SYS Holdings Co. Ltd. Financial Statement Overview

Summary

SYS Holdings Co. Ltd. displays a robust financial profile with strong revenue growth, efficient operations, and stable cash flow management. The company is well-positioned within the Information Technology Services industry, leveraging its low leverage and high equity ratio to maintain financial stability. Prospective growth is supported by strong profitability and cash flow metrics, suggesting continued success and resilience in the market.

Income Statement

SYS Holdings Co. Ltd. demonstrates strong financial performance with a consistent upward trajectory in revenue, showing a 17.86% growth from 2023 to 2024. Gross Profit Margin stands at 22.49%, and Net Profit Margin at 3.80%, reflecting effective cost management and profitability. EBIT Margin of 5.52% and EBITDA Margin of 7.64% indicate operational efficiency. The company's robust growth and profitability metrics signal a well-managed income statement.

Balance Sheet

The company maintains a solid balance sheet with a Debt-to-Equity Ratio of 0.36, indicating low leverage and financial stability. An Equity Ratio of 50.88% reflects strong asset financing through equity. Return on Equity (ROE) of 14.02% suggests efficient use of equity to generate profits. The balance sheet shows a strong equity base, though further improvement in asset utilization could enhance performance.

Cash Flow

SYS Holdings showcases strong cash flow management with a Free Cash Flow growth of 55.23% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio is 1.53, and the Free Cash Flow to Net Income Ratio is 1.27, indicating good cash conversion and efficient operations. The positive cash flow trends underscore the company's ability to generate and manage cash effectively, supporting future growth and stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.21B	12.40B	10.52B	7.58B	6.30B	5.89B
Gross Profit	3.00B	2.79B	2.38B	1.69B	1.40B	1.33B
EBITDA	986.26M	946.89M	755.14M	536.20M	482.00M	382.88M
Net Income	470.56M	471.62M	370.24M	305.98M	276.55M	221.00M
Balance Sheet
Total Assets	6.70B	6.61B	6.30B	4.30B	3.90B	3.53B
Cash, Cash Equivalents and Short-Term Investments	3.41B	3.54B	3.49B	2.74B	2.46B	2.33B
Total Debt	1.26B	1.22B	1.61B	491.20M	465.00M	540.00M
Total Liabilities	3.16B	3.25B	3.39B	1.75B	1.63B	1.51B
Stockholders Equity	3.54B	3.36B	2.91B	2.55B	2.27B	2.03B
Cash Flow
Free Cash Flow	0.00	601.13M	387.42M	255.24M	325.33M	346.00M
Operating Cash Flow	0.00	721.02M	436.52M	303.61M	366.02M	402.02M
Investing Cash Flow	0.00	-246.02M	-401.58M	33.31M	-114.33M	-97.32M
Financing Cash Flow	0.00	-469.35M	593.33M	-52.15M	-136.26M	222.25M

SYS Holdings Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 616.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3988, the sentiment is Positive. The current price of 616 is above the 20-day moving average (MA) of 608.00, above the 50-day MA of 577.27, and above the 200-day MA of 534.16, indicating a bullish trend. The MACD of 14.20 indicates Positive momentum. The RSI at 54.87 is Neutral, neither overbought nor oversold. The STOCH value of 36.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3988.

SYS Holdings Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3988	75 Outperform	¥6.51B	15.07		1.15%	13.34%	-10.63%
8226	71 Outperform	6.50B	8.83	12.34%	1.40%	31.91%	50.55%
4198	68 Neutral	4.68B	18.03	9.41%	3.84%	7.72%	-24.97%
6888	68 Neutral	5.41B	14.25	11.48%	4.50%	3.08%	-9.66%
5576	64 Neutral	6.84B	14.49	0.00%	2.77%	6.24%	-4.10%
6182	57 Neutral	6.34B	61.30	19.85%	―	-5.89%	-83.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%