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

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SYS Holdings Co. Ltd.

(TSE/TYO:3988)

Select Model

Rating:69Neutral

Price Target:JPY 613.00▲(13.31% Upside)

Action:reiterated

Date:09/15/26

The company's strong balance sheet and rapid revenue growth are the most significant positive factors. However, the score is tempered by declining profitability margins and volatile free cash flow. The stock's reasonable valuation and neutral-to-positive technical trend provide additional support.

Positive Factors

Strong Revenue GrowthSustained revenue expansion indicates that SYS Holdings continues to win and deliver IT-services work across its corporate customer base. Continued growth supports scale, engineer utilization, and reinvestment capacity, helping preserve business momentum over the next several quarters.

Negative Factors

Modest Net MarginsLow-single-digit net margins leave limited room to absorb higher costs, weaker project economics, or changes in customer demand. Even with strong revenue growth, modest profitability can constrain retained earnings and make sustained earnings expansion more dependent on continued volume growth.

SYS Holdings Co. Ltd. (3988) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.72B
Dividend Yield: 1.48%
Average Volume (3M): 5,291
Price to Earnings (P/E): 10.4
Beta (1Y): 0.15
Revenue Growth: 11.55%
EPS Growth: 28.84%
Country: Japan
Employees: 1,685
Sector: General
Sector Strength: 55
Industry: Information Technology Services

SYS Holdings Co. Ltd. Business Overview & Revenue Model

Company Description

SYS Holdings Co., Ltd. engages in the software development and solutions business. It operates through the single segment: Comprehensive Information Services. The Comprehensive Information Services segment provides three solutions such as global manu...

How the Company Makes Money

SYS Holdings primarily earns revenue by providing IT services to corporate customers. Key revenue streams typically include: (1) contract/project-based system development and related IT solution work, where the company charges customers based on proj...

SYS Holdings Co. Ltd. Financial Statement Overview

Summary

Solid revenue growth and a strong, deleveraged balance sheet are offset by compressed net profit margins and inconsistent free cash flow conversion. The overall financial foundation is sound, but profitability trends warrant caution.

Income Statement

72Positive

Balance Sheet

78Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Jul 2026	Jul 2025	Jul 2024	Jul 2023	Jul 2022
Income Statement
Total Revenue	15.45B	15.67B	14.05B	12.40B	10.52B	7.58B
Gross Profit	3.38B	3.46B	3.11B	2.79B	2.38B	1.69B
EBITDA	1.01B	785.36M	935.00M	946.89M	755.14M	536.20M
Net Income	464.21M	548.52M	423.00M	471.62M	370.24M	305.98M
Balance Sheet
Total Assets	8.22B	8.18B	7.91B	6.61B	6.30B	4.37B
Cash, Cash Equivalents and Short-Term Investments	4.44B	4.28B	4.47B	3.54B	3.49B	2.74B
Total Debt	1.65B	1.55B	1.94B	1.22B	1.61B	491.20M
Total Liabilities	4.18B	3.94B	4.16B	3.25B	3.39B	1.82B
Stockholders Equity	4.04B	4.24B	3.75B	3.36B	2.91B	2.55B
Cash Flow
Free Cash Flow	0	309.40M	384.00M	601.13M	387.42M	255.24M
Operating Cash Flow	0	635.76M	564.00M	721.02M	436.52M	303.61M
Investing Cash Flow	0	-422.35M	-330.00M	-246.02M	-401.58M	33.31M
Financing Cash Flow	0	-513.22M	560.00M	-469.35M	593.33M	-52.15M

SYS Holdings Co. Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price541.00

Price Trends

50DMA556.28Negative

100DMA546.99Negative

200DMA541.69Negative

Market Momentum

MACD-3.53Positive

RSI40.86Neutral

STOCH39.31Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3988, the sentiment is Negative. The current price of 541.00 is below the 20-day moving average (MA) of 552.45, below the 50-day MA of 556.28, and below the 200-day MA of 541.69, indicating a bearish trend. The MACD of -3.53 indicates Positive momentum. The RSI at 40.86 is Neutral, neither overbought nor oversold. The STOCH value of 39.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3988.

SYS Holdings Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:3988 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2349	83Outperform	JPY 27.76B	10.52	―	1.16%	5.67%	12.03%
JP:4752	83Outperform	JPY 7.04B	8.46	―	4.15%	7.77%	5.97%
JP:4396	81Outperform	JPY 27.76B	14.49	―	2.40%	11.87%	21.49%
JP:2317	81Outperform	JPY 164.79B	14.77	―	3.69%	6.46%	8.76%
JP:3940	71Outperform	JPY 5.84B	15.70	―	2.84%	2.07%	28.20%
JP:3988	69Neutral	JPY 5.75B	10.42	―	1.48%	11.55%	28.84%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:3988 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3988	SYS Holdings Co. Ltd.	541.00	-23.65	-4.19%
JP:2317	Systena Corporation	461.00	-24.11	-4.97%
JP:2349	Nippon Information Development Co., Ltd.	2500.00	273.92	12.30%
JP:3940	Nomura System Corporation Co., Ltd.	125.00	-4.75	-3.66%
JP:4396	System Support, Inc.	1336.00	-46.58	-3.37%
JP:4752	Showa System Engineering Corporation	1590.00	-18.05	-1.12%

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: Sep 15, 2026

SYS Holdings Co. Ltd. AI Stock Analysis