Ryomo Systems Co., Ltd. (9691) AI Stock Analysis

Ryomo Systems Co., Ltd.

(TSE/TYO:9691)

Select Model

Rating:72Outperform

Price Target:JPY 5,728.00▲(11.01% Upside)

Action:reiterated

Date:10/31/26

The score is driven primarily by solid financial performance—strong growth, improved margins, and a healthier balance sheet—tempered by cash-flow volatility and only moderate cash conversion. Valuation is a positive contributor due to a low P/E, while technical signals are steady but not strongly supportive of near-term outperformance.

Positive Factors

Revenue GrowthThe sustained increase in revenue across multiple fiscal years indicates continued demand for Ryomo Systems’ integration, implementation, and IT support offerings. Ongoing top-line expansion can broaden its customer base, support operating leverage, and provide a durable platform for further earnings growth.

Negative Factors

Cash Flow VolatilityRecent free cash flow is strong, but the sharp historical swing into negative territory shows that cash generation can be uneven across periods. Such volatility may complicate investment planning and reduce confidence that accounting earnings will consistently become deployable cash.

Ryomo Systems Co., Ltd. (9691) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 18.05B
Dividend Yield: 0.85%
Average Volume (3M): 555
Price to Earnings (P/E): 9.0
Beta (1Y): 0.55
Revenue Growth: 12.65%
EPS Growth: 17.20%
Country: Japan
Employees: 1,066
Sector: General
Sector Strength: 55
Industry: Information Technology Services

Ryomo Systems Co., Ltd. Business Overview & Revenue Model

Company Description

Ryomo Systems Co.,Ltd., established in 1970 and headquartered in Kiryu, Japan, operates as a subsidiary of Mitsuba Corporation. The company offers a broad spectrum of information technology services throughout Japan, primarily focusing on software de...

How the Company Makes Money

Ryomo Systems generates revenue primarily through (1) systems integration and engineering services, and (2) the sale and implementation of IT products used in those solutions. In systems integration, the company earns project-based fees for requireme...

Ryomo Systems Co., Ltd. Financial Statement Overview

Summary

Financials are solid overall: strong multi-year revenue growth and improved profitability (TTM operating margin ~11.8%, net margin ~8.4%) support the score. Balance sheet is sound with moderate and improving leverage (debt-to-equity ~0.37) and stronger ROE (~14.5%). The main constraint is cash-flow consistency—TTM FCF is strong (~¥3.5B) but has been volatile historically (FY2024 negative FCF) and cash conversion is only moderate (TTM OCF ~63% of net income).

Income Statement

78Positive

Balance Sheet

74Positive

Cash Flow

66Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	26.01B	25.74B	22.49B	18.17B	17.23B	15.50B
Gross Profit	6.53B	6.64B	5.35B	4.96B	4.92B	4.10B
EBITDA	4.17B	4.35B	3.63B	2.17B	2.63B	2.08B
Net Income	2.01B	2.16B	1.57B	944.89M	1.21B	965.27M
Balance Sheet
Total Assets	26.76B	27.90B	24.74B	21.84B	18.82B	16.47B
Cash, Cash Equivalents and Short-Term Investments	8.07B	6.81B	4.29B	3.70B	4.71B	3.93B
Total Debt	4.38B	5.99B	6.48B	5.34B	3.85B	3.62B
Total Liabilities	10.34B	11.54B	11.11B	9.55B	7.76B	6.25B
Stockholders Equity	16.43B	16.36B	13.63B	12.29B	11.06B	10.22B
Cash Flow
Free Cash Flow	3.54B	3.74B	1.67B	-2.55B	257.02M	-736.84M
Operating Cash Flow	3.94B	4.15B	2.21B	737.41M	2.20B	874.92M
Investing Cash Flow	-705.69M	-709.46M	-768.35M	-3.42B	-1.03B	-1.73B
Financing Cash Flow	-1.04B	-923.82M	-842.07M	1.66B	605.10M	9.68M

Ryomo Systems Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price5160.00

Price Trends

50DMA5155.60Positive

100DMA5162.00Negative

200DMA4737.25Positive

Market Momentum

MACD1.01Positive

RSI68.01Neutral

STOCH-0.00Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9691, the sentiment is Positive. The current price of 5160.00 is below the 20-day moving average (MA) of 5160.00, above the 50-day MA of 5155.60, and above the 200-day MA of 4737.25, indicating a neutral trend. The MACD of 1.01 indicates Positive momentum. The RSI at 68.01 is Neutral, neither overbought nor oversold. The STOCH value of -0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9691.

Ryomo Systems Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:9691 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:2307	83Outperform	JPY 16.77B	10.00	―	3.38%	10.64%	10.58%
JP:3826	82Outperform	JPY 5.26B	11.55	―	2.73%	13.99%	-36.97%
JP:3648	76Outperform	JPY 17.63B	9.54	―	3.49%	12.33%	13.11%
JP:3853	74Outperform	JPY 16.08B	7.03	―	0.94%	7.11%	146.94%
JP:9691	72Outperform	JPY 18.05B	8.96	―	0.85%	12.65%	17.20%
JP:5033	66Neutral	JPY 7.96B	47.99	―	―	7.04%	-67.36%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:9691 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9691	Ryomo Systems Co., Ltd.	5160.00	821.17	18.93%
JP:2307	Cross Cat Co., Ltd.	1096.00	55.57	5.34%
JP:3648	AGS Corporation	1031.00	-414.54	-28.68%
JP:3826	System Integrator Corp.	477.00	0.38	0.08%
JP:3853	Asteria Corporation	958.00	-510.54	-34.77%
JP:5033	Nulab Inc.	1228.00	465.00	60.94%

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: Oct 30, 2026

Ryomo Systems Co., Ltd. AI Stock Analysis