System Support Holdings Inc

System Support Holdings Inc maintains a strong liquidity position, with cash and equivalents amounting to ¥3.92 billion, representing 39.6% of total assets. The company's liquidity FPT (free cash flow to total debt) is robust, supported by a current ratio of 1.81 and a debt-to-equity ratio of 0.31, indicating a conservative capital structure.

Profitability metrics show a return on equity (ROE) of 7.26% and a return on assets (ROA) of 3.51%, which are in line with the industry's preferred metrics of ROE and ROA. The operating margin is 9.2%, and the net profit margin is 6.1%, both of which are consistent with the industry median for IT services firms.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification may expose the company to higher operational and market risks, particularly in the event of regional economic downturns or sector-specific disruptions.

Looking ahead, the company is projected to grow revenue by 19.5% in the current fiscal year and by 12.3% in the next fiscal year. These growth rates are supported by a strong backlog of service contracts and an expanding client base in the IT consulting segment.

Risk factors include low liquidity risk and low dilution potential, with no immediate filing-based flags detected. The company has not issued new shares in the past 12 months, and there are no active shelf registration statements or at-the-market (ATM) programs that could lead to near-term dilution.

Recent events include the filing of the latest annual report, which disclosed a 12.4% increase in revenue year-over-year and a 15.6% increase in operating income. The company also announced a new IT consulting partnership in the healthcare sector, which is expected to contribute to revenue growth in the next fiscal year.

Revenue grew 22.3% year-over-year to JPY 26.9 billion in fiscal 2025, demonstrating strong top-line expansion.

Operating income surged 31.0% to JPY 2.2 billion, indicating significant improvement in core operational profitability.

Net income grew at a 21.2% compound annual growth rate over four years, showing consistent bottom-line growth.

Long-term debt increased to JPY 1.99 billion in fiscal 2025, rising from JPY 1.06 billion the prior year.

Debt-to-equity ratio of 0.31 is well above the IT Services cohort median of 0.12, indicating higher leverage.

Return on assets of 3.5% indicates relatively low efficiency in generating profit from total asset base.

Revenue ¥8.03B, +16,3% YoY; Operating income +29,5% YoY.

• ▍Revenue ¥8.03B, +16,3% YoY
• ▍Operating income +29,5% YoY
• ▍Net income +20,8% YoY
• ▍Net margin 8.2%

Revenue ¥7.52B, +22,1% YoY; Operating income +31,3% YoY.

• ▍Revenue ¥7.52B, +22,1% YoY
• ▍Operating income +31,3% YoY
• ▍Net income +42,7% YoY
• ▍Net margin 4.7%

Revenue ¥6.76B, +18,9% YoY; Operating income +9,3% YoY.

• ▍Revenue ¥6.76B, +18,9% YoY
• ▍Operating income +9,3% YoY
• ▍Net income −25,6% YoY
• ▍Net margin 2.9%

Revenue ¥7.12B, +24,7% YoY; Operating income +36,7% YoY.

• ▍Revenue ¥7.12B, +24,7% YoY
• ▍Operating income +36,7% YoY
• ▍Net income +35,3% YoY
• ▍Net margin 6.6%

Revenue ¥6.91B; Operating income ¥778.9M.

• ▍Revenue ¥6.91B
• ▍Operating income ¥778.9M
• ▍Net margin 7.9%

Revenue ¥6.15B; Operating income ¥436.0M.

• ▍Revenue ¥6.15B
• ▍Operating income ¥436.0M
• ▍Net margin 4.0%

Revenue ¥5.68B; Operating income ¥259.8M.

• ▍Revenue ¥5.68B
• ▍Operating income ¥259.8M
• ▍Net margin 4.6%

Revenue ¥5.71B; Operating income ¥526.6M.

• ▍Revenue ¥5.71B
• ▍Operating income ¥526.6M
• ▍Net margin 6.1%

Revenue ¥26.94B, +22,3% YoY; Operating income +31,0% YoY.

• ▍Revenue ¥26.94B, +22,3% YoY
• ▍Operating income +31,0% YoY
• ▍Net income +19,1% YoY
• ▍Free cash flow −0,6% YoY
• ▍Net margin 5.4%

Revenue ¥22.03B, +14,3% YoY; Operating income +19,1% YoY.

• ▍Revenue ¥22.03B, +14,3% YoY
• ▍Operating income +19,1% YoY
• ▍Net income +21,2% YoY
• ▍Free cash flow +22,2% YoY
• ▍Net margin 5.6%

Revenue ¥19.27B, +18,9% YoY; Operating income +20,2% YoY.

• ▍Revenue ¥19.27B, +18,9% YoY
• ▍Operating income +20,2% YoY
• ▍Net income +28,5% YoY
• ▍Free cash flow +42,4% YoY
• ▍Net margin 5.2%

Revenue ¥16.20B, +12,2% YoY; Operating income +30,4% YoY.

• ▍Revenue ¥16.20B, +12,2% YoY
• ▍Operating income +30,4% YoY
• ▍Net income +16,5% YoY
• ▍Free cash flow +1,0% YoY
• ▍Net margin 4.9%