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EM Systems Co Ltd (JP:4820)
:4820
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EM Systems Co (4820) AI Stock Analysis

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JP:4820

EM Systems Co

(4820)

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Neutral 65 (OpenAI - Gpt-5.6Sol)
Rating:65Neutral
Price Target:
¥648.00
▼(-7.82% Downside)
Action:Reiterated
Date:06/02/26
The score is primarily supported by strong financial quality (high margins and a very conservative balance sheet), but is held back by very weak technicals (price below all major moving averages with negative MACD) and less-consistent cash flow in 2025 versus 2024. A high dividend yield helps offset the otherwise mixed valuation (P/E ~23.5).
Positive Factors
Strong Profitability
Healthy gross and net margins indicate an economically attractive operating model. Sustained profitability provides internal funding for product investment and resilience, although future margins must be monitored after the 2025 compression.
Negative Factors
Cash Flow Volatility
The sharp year-over-year decline shows that accounting earnings do not consistently convert into cash. Continued volatility could constrain reinvestment, dividends, or acquisitions and makes the company more dependent on operating execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability
Healthy gross and net margins indicate an economically attractive operating model. Sustained profitability provides internal funding for product investment and resilience, although future margins must be monitored after the 2025 compression.
Read all positive factors

EM Systems Co (4820) vs. iShares MSCI Japan ETF (EWJ)

EM Systems Co Business Overview & Revenue Model

Company Description
EM Systems Co., Ltd. is a Japanese company that specializes in providing a comprehensive suite of IT solutions designed for pharmacies, medical clinics, and social welfare/care facilities. Its product portfolio for pharmacies encompasses systems f...

EM Systems Co Financial Statement Overview

Summary
Fundamentals are strong overall: solid profitability (2024 gross margin ~55%, net margin ~9.8%) and a very conservative balance sheet with low leverage (debt-to-equity ~0.07 in 2024) and healthy ROE (~11.8%). The main offset is cash flow volatility—2025 operating cash flow and free cash flow pulled back notably versus 2024—and some profit compression in 2025 versus 2024.
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
63
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue21.98B23.66B24.84B20.36B16.92B14.44B
Gross Profit9.99B11.47B13.17B9.62B8.11B6.93B
EBITDA3.61B4.97B6.03B3.79B3.37B2.85B
Net Income1.47B2.45B2.43B1.96B1.89B1.83B
Balance Sheet
Total Assets26.31B27.51B31.67B29.39B26.39B24.85B
Cash, Cash Equivalents and Short-Term Investments7.13B7.85B11.88B9.44B8.88B8.29B
Total Debt726.00M584.00M1.44B2.57B109.00M5.00M
Total Liabilities7.13B7.07B11.04B8.82B6.89B6.02B
Stockholders Equity19.13B20.39B20.59B20.52B19.48B18.78B
Cash Flow
Free Cash Flow0.001.07B5.36B1.41B2.41B1.60B
Operating Cash Flow0.002.01B5.76B1.58B2.47B1.71B
Investing Cash Flow0.00-2.22B194.00M-2.04B-577.00M-499.00M
Financing Cash Flow0.00-3.84B-3.57B993.00M-1.32B-738.00M

EM Systems Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥1.19T25.9012.38%1.16%15.76%13.53%
71
Outperform
¥225.79B32.380.43%18.89%11.66%
65
Neutral
¥40.04B27.6115.71%5.28%-15.59%-50.32%
59
Neutral
¥88.52B44.696.35%24.03%34.50%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
43
Neutral
¥2.15B-4.1114.84%30.67%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4820
EM Systems Co
603.00
-130.75
-17.82%
JP:2413
M3
1,778.50
-392.57
-18.08%
JP:4480
Medley
2,687.00
203.00
8.17%
JP:4438
Welby Inc.
257.00
-81.00
-23.96%
JP:4483
JMDC Inc.
3,430.00
-727.77
-17.50%

EM Systems Co Corporate Events

EM Systems’ First-Half Profit Slumps as Revenue Falls and Dividend Cut
Aug 10, 2026
EM Systems reported a sharp downturn for the first half of the fiscal year ending December 31, 2026, with revenue falling 14.1% year on year to ¥10.43 billion and operating profit dropping 55.7% to ¥922 million. Profit attributable to ow...
EM Systems outlines structure of FY2026 second-quarter results and strategy
Aug 10, 2026
EM Systems Co. released an outline of its results of operations for the second quarter of the fiscal year ending December 2026. The document indicates that the company is providing an overview of business results, segment performance, ongoing init...
EM Systems Raises Interim Earnings Outlook on Strong Software Demand
Jul 21, 2026
EM Systems has upwardly revised its consolidated earnings forecast for the second quarter of the fiscal year ending December 31, 2026, citing stronger-than-expected income despite only a modest increase in net sales. Net sales are now projected at...
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: Jun 02, 2026