Showa System Engineering Corporation (4752) AI Stock Analysis

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Showa System Engineering Corporation

(TSE/TYO:4752)

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Rating:83Outperform

Price Target:JPY 1,850.00▲(17.91% Upside)

Action:upgraded

Date:08/17/26

The score is driven primarily by strong financial quality (improving profitability and an exceptionally low-debt balance sheet) and very favorable valuation (low P/E with a high dividend yield). Technicals are supportive with price above key moving averages, though momentum indicators are somewhat stretched, tempering the overall result.

Positive Factors

Exceptionally Low LeverageAn exceptionally low-debt balance sheet reduces financial risk, interest burden, and refinancing exposure. Growing equity also strengthens the capital base, giving the company flexibility to fund operations and withstand project or economic volatility.

Negative Factors

Moderate Growth ProfileThe latest growth rate suggests a mature rather than high-growth business. Slower expansion can limit operating leverage and reduce the pace of earnings growth, making future performance more dependent on project wins, utilization, and contract quality.

Showa System Engineering Corporation (4752) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 6.79B
Dividend Yield: 4.15%
Average Volume (3M): 1,403
Price to Earnings (P/E): 8.4
Beta (1Y): 0.23
Revenue Growth: 7.77%
EPS Growth: 5.97%
Country: Japan
Employees: 489
Sector: General
Sector Strength: 55
Industry: Information Technology Services

Showa System Engineering Corporation Business Overview & Revenue Model

Company Description

Showa System Engineering Corporation offers comprehensive services for information systems, spanning their development, ongoing management, and expert consulting. The firm also specializes in integrating diverse technological platforms and delivering...

How the Company Makes Money

The company primarily makes money by providing IT services on a contracted basis, where revenue is recognized from delivering systems engineering labor and project deliverables for clients. Key revenue streams are generally expected to include (1) pr...

Showa System Engineering Corporation Financial Statement Overview

Summary

Strong overall fundamentals: steady multi-year revenue and profit expansion with improving operating and net margins. Balance sheet is exceptionally low leverage with consistently growing equity and healthy ROE. Main drawback is uneven free cash flow (notably a sharp drop in 2025) and only moderate latest-year growth.

Income Statement

82Very Positive

Balance Sheet

93Very Positive

Cash Flow

74Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	8.93B	8.73B	8.32B	7.96B	7.09B	6.46B
Gross Profit	1.64B	1.57B	1.46B	1.40B	1.23B	1.08B
EBITDA	1.10B	1.05B	986.25M	949.44M	793.01M	635.45M
Net Income	797.79M	768.81M	714.13M	660.50M	526.83M	420.06M
Balance Sheet
Total Assets	8.91B	9.37B	8.77B	8.39B	7.73B	7.27B
Cash, Cash Equivalents and Short-Term Investments	6.08B	6.38B	5.78B	5.78B	5.26B	5.00B
Total Debt	10.00M	10.00M	10.00M	10.00M	10.00M	10.00M
Total Liabilities	3.03B	3.47B	3.43B	3.45B	3.32B	3.26B
Stockholders Equity	5.87B	5.90B	5.34B	4.93B	4.41B	4.01B
Cash Flow
Free Cash Flow	0	788.48M	282.16M	766.51M	394.99M	592.09M
Operating Cash Flow	0	797.57M	624.91M	769.50M	475.30M	602.86M
Investing Cash Flow	0	-263.32M	-340.67M	-7.63M	-72.53M	-33.44M
Financing Cash Flow	0	-235.29M	-288.14M	-239.20M	-139.49M	-165.28M

Showa System Engineering Corporation Technical Analysis

Technical Analysis SentimentNegative

Last Price1569.00

Price Trends

50DMA1587.98Negative

100DMA1556.97Positive

200DMA1554.64Positive

Market Momentum

MACD-2.23Positive

RSI42.74Neutral

STOCH45.06Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4752, the sentiment is Negative. The current price of 1569.00 is below the 20-day moving average (MA) of 1588.70, below the 50-day MA of 1587.98, and above the 200-day MA of 1554.64, indicating a neutral trend. The MACD of -2.23 indicates Positive momentum. The RSI at 42.74 is Neutral, neither overbought nor oversold. The STOCH value of 45.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4752.

Showa System Engineering Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:4752 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4752	83Outperform	JPY 7.04B	8.44	―	4.15%	7.77%	5.97%
JP:3940	76Outperform	JPY 5.88B	15.83	―	2.84%	-2.56%	-7.81%
JP:2335	75Outperform	JPY 14.97B	9.68	―	4.76%	0.10%	20.74%
JP:3988	74Outperform	JPY 5.91B	10.63	―	1.47%	11.55%	28.84%
JP:3839	64Neutral	JPY 5.10B	85.83	―	1.61%	1.74%	-72.72%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:5255	48Neutral	JPY 4.27B	-31.89	―	―	-1.67%	98.41%

* General Sector Average

Performance Comparison

JP:4752 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4752	Showa System Engineering Corporation	1569.00	4.41	0.28%
JP:2335	Cube System Inc.	1012.00	-20.16	-1.95%
JP:3839	ODK Solutions Company, Ltd.	621.00	19.37	3.22%
JP:3940	Nomura System Corporation Co., Ltd.	126.00	-2.77	-2.15%
JP:3988	SYS Holdings Co. Ltd.	550.00	-1.84	-0.33%
JP:5255	Monstarlab Holdings Inc.	65.00	-94.00	-59.12%

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: Aug 17, 2026

Showa System Engineering Corporation AI Stock Analysis