System Support, Inc. (4396) AI Stock Analysis

• Market Cap: ¥34.21B
• Dividend Yield: 1.44%
• Average Volume (3M): 43.62K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.75
• Revenue Growth: 22.28%
• EPS Growth: 19.79%
• Country: JP
• Employees: 1,484
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 18.71
• Shares Outstanding: 10,400,000
• 10 Day Avg. Volume: 57,390
• 30 Day Avg. Volume: 43,616
• 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: ¥3,312.00
• Price Target Upside: -2.59% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥3,312.00 ▼(-2.59% Downside)

System Support, Inc. demonstrates strong financial performance with consistent revenue growth and solid profitability. The technical analysis indicates a strong upward trend, supported by positive momentum indicators. The valuation is reasonable, with a moderate P/E ratio and a modest dividend yield. These factors collectively contribute to a robust overall stock score.

System Support, Inc. Business Overview & Revenue Model

Company Description

System Support, Inc. (4396) is a technology services company specializing in providing comprehensive IT support solutions to businesses across various sectors, including healthcare, finance, and education. The company offers a range of core services, including managed IT services, cloud computing solutions, cybersecurity consulting, and technical support. With a focus on enhancing operational efficiency and ensuring data security, System Support, Inc. aims to empower organizations to leverage technology effectively.

How the Company Makes Money

System Support, Inc. generates revenue primarily through a subscription-based model for its managed IT services, which includes ongoing support and maintenance for client systems. Additionally, the company earns income from project-based contracts for cloud implementation and cybersecurity assessments. Key revenue streams also include software licensing for proprietary tools and solutions developed in-house. Strategic partnerships with leading technology providers enable System Support, Inc. to offer bundled services, enhancing its market presence and revenue potential. Furthermore, the company benefits from long-term client relationships that foster repeat business and referrals, contributing significantly to its overall earnings.

System Support, Inc. Financial Statement Overview

Summary

System Support, Inc. presents a strong financial profile with consistent revenue growth, solid profitability, and efficient cash flow management. The company's balance sheet is stable, with moderate leverage and strong equity returns. While the increase in debt requires attention, the overall financial health is robust, positioning the company well for future growth in the Information Technology Services industry.

Income Statement

System Support, Inc. has demonstrated consistent revenue growth with a 4.15% increase in the most recent year. The company maintains strong profitability metrics, with a gross profit margin of approximately 27.9% and a net profit margin of 5.41%. EBIT and EBITDA margins are also healthy, indicating efficient operational management. Overall, the income statement reflects robust growth and profitability, positioning the company well within the industry.

Balance Sheet

The balance sheet shows a solid equity base with a debt-to-equity ratio of 0.33, indicating moderate leverage. The return on equity is strong at 24.22%, showcasing effective utilization of shareholder funds. The equity ratio stands at 44.11%, reflecting a stable financial structure. While the company has managed its debt well, the increase in total debt over the past year warrants monitoring.

Cash Flow

System Support, Inc. exhibits strong cash flow performance with significant free cash flow growth. The operating cash flow to net income ratio is 1.63, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is robust at 1.45, highlighting the company's ability to convert earnings into cash. The cash flow statement reflects a healthy liquidity position, supporting future growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.87B	26.94B	22.03B	19.27B	16.20B	14.43B
Gross Profit	7.23B	7.50B	6.09B	5.23B	4.34B	3.74B
EBITDA	2.52B	2.54B	2.01B	1.66B	1.38B	1.12B
Net Income	1.52B	1.46B	1.22B	1.01B	785.69M	674.50M
Balance Sheet
Total Assets	12.99B	13.63B	9.93B	8.87B	7.82B	6.66B
Cash, Cash Equivalents and Short-Term Investments	4.91B	5.84B	4.25B	3.57B	3.25B	2.70B
Total Debt	2.59B	1.98B	1.06B	1.21B	1.21B	1.00B
Total Liabilities	7.18B	7.62B	4.87B	4.75B	4.39B	3.67B
Stockholders Equity	5.82B	6.01B	5.06B	4.12B	3.42B	2.99B
Cash Flow
Free Cash Flow	0.00	2.11B	1.32B	901.40M	913.58M	488.16M
Operating Cash Flow	0.00	2.38B	1.47B	1.07B	1.01B	709.23M
Investing Cash Flow	0.00	-792.60M	-419.54M	-324.49M	-274.70M	-276.55M
Financing Cash Flow	0.00	-4.83M	-513.24M	-462.04M	-240.62M	-165.71M

System Support, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3400.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4396, the sentiment is Positive. The current price of 3400 is above the 20-day moving average (MA) of 3041.80, above the 50-day MA of 2865.24, and above the 200-day MA of 2285.44, indicating a bullish trend. The MACD of 131.80 indicates Negative momentum. The RSI at 81.31 is Negative, neither overbought nor oversold. The STOCH value of 93.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4396.

System Support, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2359	78 Outperform	¥30.08B	13.44	12.10%	2.81%	1.65%	-2.94%
4396	76 Outperform	¥34.21B	24.04	―	1.44%	22.28%	19.79%
3393	74 Outperform	¥26.07B	13.83	25.81%	4.64%	13.54%	15.43%
2349	73 Outperform	¥25.80B	10.99	11.00%	1.21%	9.56%	7.39%
3655	73 Outperform	¥28.81B	27.74	―	0.61%	11.47%	17.60%
3788	66 Neutral	¥24.36B	32.53	9.03%	1.72%	5.38%	-8.86%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

System Support, Inc. Corporate Events

System Support Holdings Inc. Completes Acquisition of Echo System Co., Ltd.

System Support Holdings Inc. has completed the acquisition of Echo System Co., Ltd., a company specializing in contracted software development and sales of packaged software and applications. This acquisition is expected to have a minimal immediate impact on the company’s financial results for the current fiscal year, but it is anticipated to enhance the corporate value and contribute positively to the group’s consolidated results in the medium to long term.

System Support Holdings Inc. Acquires Echo System Co., Ltd. to Expand Cloud Integration Business

System Support Holdings Inc. announced its decision to acquire Echo System Co., Ltd., a systems integrator with a strong presence in western Japan. This acquisition aligns with System Support’s Medium-Term Management Plan to expand its cloud integration business and enhance its service offerings by leveraging Echo System’s technical expertise and customer base.