System Integrator Corp. (3826) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

YMIRLlink, Inc.

System Location Co., Ltd.

Datasection, Inc.

WITZ Corp.

moi Corp.

System Integrator Corp.

Excite Holdings Co., Ltd.

Nihon Enterprise Co., Ltd.

Kushim, Inc. (Japan)

Aplix Corp.

Vector Holdings, Inc.

Why is System Integrator Corp. ?

High Management Efficiency with a high ROE of 15.82%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 4.06% and Operating profit at 4.56% over the last 5 years

The company declared negative results in Feb'26 after flat results in Nov'25

INTEREST(9M) At JPY 0.1 MM has Grown at inf%
PRE-TAX PROFIT(Q) At JPY 115.15 MM has Fallen at -56.92%
ROCE(HY) Lowest at 10.7%

With ROE of 15.94%, it has a attractive valuation with a 1.17 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 8.59%, its profits have fallen by -18.8%

Underperformed the market in the last 1 year

The stock has generated a return of 8.59% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.12%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to System Integrator Corp. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is System Integrator Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

System Integrator Corp.

8.59%

0.57

27.01%

Japan Nikkei 225

88.41%

3.12

27.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.06%

EBIT Growth (5y)

4.56%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.82

Sales to Capital Employed (avg)

1.30

Tax Ratio

34.70%

Dividend Payout Ratio

30.96%

Pledged Shares

Institutional Holding

ROCE (avg)

54.90%

ROE (avg)

15.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.17

EV to EBIT

3.50

EV to EBITDA

2.74

EV to Capital Employed

1.64

EV to Sales

0.35

PEG Ratio

Dividend Yield

ROCE (Latest)

46.82%

ROE (Latest)

15.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -11.04% (YoY

CASH AND EQV(HY)

Highest at JPY 6,435.52 MM

DIVIDEND PER SHARE(HY)

Highest at JPY 4.15

-20What is not working for the Company

INTEREST(9M)

At JPY 0.1 MM has Grown at inf%

PRE-TAX PROFIT(Q)

At JPY 115.15 MM has Fallen at -56.92%

ROCE(HY)

Lowest at 10.7%

INTEREST COVERAGE RATIO(Q)

Lowest at 367,773.91

DEBT-EQUITY RATIO (HY)

Highest at -72.03 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 116.49 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.15 times

NET PROFIT(Q)

At JPY 116.93 MM has Fallen at -32.25%

Here's what is working for System Integrator Corp.

Cash and Eqv

Highest at JPY 6,435.52 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at JPY 4.15

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -11.04% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for System Integrator Corp.

Interest

At JPY 0.1 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 115.15 MM has Fallen at -56.92%

over average net sales of the previous four periods of JPY 267.29 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest Coverage Ratio

Lowest at 367,773.91

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At JPY 116.93 MM has Fallen at -32.25%

over average net sales of the previous four periods of JPY 172.59 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

Debt-Equity Ratio

Highest at -72.03 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 116.49 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.15 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio