Alpha Systems Inc. (4719) AI Stock Analysis

• Market Cap: ¥50.75B
• Dividend Yield: 3.04%
• Average Volume (3M): 7.35K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.71
• Revenue Growth: 6.48%
• EPS Growth: 8.22%
• Country: JP
• Employees: 2,895
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 58.61
• Shares Outstanding: 14,052,400
• 10 Day Avg. Volume: 6,320
• 30 Day Avg. Volume: 7,346
• PEG Ratio: 2.60
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 32.65
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ―

Alpha Systems Inc. is fundamentally strong with consistent financial performance and no debt, which enhances its stability. While technical indicators show mixed signals, valuation metrics are appealing, providing a balanced investment case.

Alpha Systems Inc. Business Overview & Revenue Model

Company Description

Alpha Systems Inc. (4719) is a technology company specializing in the development and implementation of software solutions and IT services. The company operates primarily in the information technology sector, offering a range of products and services that cater to both enterprise and consumer markets. Its core offerings include custom software development, IT consulting, and systems integration services, designed to enhance operational efficiencies and drive digital transformation for its clients.

How the Company Makes Money

Alpha Systems Inc. generates revenue through a multi-faceted business model. The company's primary revenue streams include fees from software development projects, where clients are charged based on project scope and complexity. Additionally, the firm earns recurring income from IT consulting services, which include strategic advisory and implementation support, often structured as long-term contracts. Systems integration services also contribute significantly to revenue, as the company provides end-to-end solutions that integrate various IT systems and processes. Partnerships with leading technology vendors enhance its product offerings and open additional revenue channels through joint projects and co-branded solutions.

Alpha Systems Inc. Financial Statement Overview

Summary

Alpha Systems Inc. demonstrates strong financial performance with consistent revenue growth, robust profitability, and a debt-free balance sheet. The absence of detailed cash flow data slightly impacts the assessment but overall stability is evident.

Income Statement

Alpha Systems Inc. has shown consistent revenue growth with a 4.8% increase from 2023 to 2024 TTM. The company maintains strong profitability with a gross profit margin of 23.9% and a net profit margin of 8.6% in the TTM period. EBIT and EBITDA margins are healthy at 12.2% and 12.8% respectively, indicating efficient operations.

Balance Sheet

The company's balance sheet is robust with zero debt, resulting in a debt-to-equity ratio of 0. The equity ratio stands at 84.2%, reflecting a strong equity base. Return on Equity is impressive at 7.5% for the TTM period, demonstrating effective use of shareholder funds.

Cash Flow

Free cash flow has been stable, although specific growth rates for the TTM are not available due to missing data. The lack of operating cash flow data for the TTM period prevents a clear analysis of cash flow efficiency against net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	39.18B	38.48B	36.38B	35.55B	33.87B	31.32B
Gross Profit	9.19B	8.88B	8.49B	8.47B	8.18B	7.41B
EBITDA	5.00B	4.78B	4.58B	4.44B	4.32B	3.62B
Net Income	3.38B	3.21B	3.05B	2.92B	2.79B	2.28B
Balance Sheet
Total Assets	49.98B	52.02B	50.81B	48.17B	46.82B	44.31B
Cash, Cash Equivalents and Short-Term Investments	23.71B	24.30B	27.13B	24.04B	24.20B	21.53B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	6.72B	8.54B	8.95B	8.39B	8.70B	8.12B
Stockholders Equity	43.26B	43.47B	41.86B	39.78B	38.12B	36.19B
Cash Flow
Free Cash Flow	0.00	1.40B	4.59B	2.91B	2.77B	2.13B
Operating Cash Flow	0.00	1.57B	4.71B	2.95B	2.93B	2.24B
Investing Cash Flow	0.00	-3.09B	-1.14B	-1.34B	-57.84M	342.11M
Financing Cash Flow	0.00	-1.61B	-983.76M	-1.26B	-703.42M	-983.52M

Alpha Systems Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3730.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4719, the sentiment is Negative. The current price of 3730 is above the 20-day moving average (MA) of 3713.50, below the 50-day MA of 3730.69, and above the 200-day MA of 3431.95, indicating a neutral trend. The MACD of -11.42 indicates Positive momentum. The RSI at 42.78 is Neutral, neither overbought nor oversold. The STOCH value of 9.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4719.

Alpha Systems Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3836	―	¥55.82B	15.75	―	1.58%	15.59%	22.71%
4828	―	¥75.74B	19.41	32.57%	2.15%	9.79%	42.15%
4719	―	¥50.75B	15.03	8.36%	3.04%	6.48%	8.22%
9928	―	¥48.92B	10.61	―	3.16%	4.32%	-6.09%
4323	―	¥54.93B	21.15	―	1.64%	12.01%	16.50%
3673	―	¥63.09B	82.95	―	0.61%	18.44%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%