What Kind of Company Is It?
I don’t think many people are familiar with a company called System Information. I actually stumbled upon it by chance while searching for “Net-Net” stocks online. Although its Net-Net ratio wasn’t particularly high, I thought the stock price was undervalued when I found it and that the company’s qualifications were superior to those of its competitors, so I purchased just 100 shares in August 2018.
So, what kind of company is System Information?According to the Shikiho, it is classified in the Information and Communications sector. It has partnered with FRONTEO, a developer of artificial intelligence engines, to expand its AI services. It also sells RPA (robotic process automation) systems developed by the NTT Group and is expanding its business scope by strengthening its consulting services. Therefore, it appears to be a company primarily engaged in building systems for businesses.
System Information’s Strengths
So, I looked into what System Information’s strengths are as a company. The points that caught my attention were project management, specifically the international PMP certification and CMMi Level 5.
(Quoted from System Information’s website)
I won’t go into detail here since I’m not well-versed in IT certifications, but the fact that 153 employees hold international certifications and that the company consistently maintains the highest CMMi Level 5 maturity rating led me to conclude that the company values its employees and is committed to stable workforce development. When I asked a friend who works as a systems engineer about these certifications, they confirmed that they are well-known international credentials, which was reassuring.
Stock Price Trends
Next, let’s look at the stock price trend. The closing price on February 1, 2017, was 527 yen, and the closing price on February 8, 2019, was 1,107 yen. The stock price has roughly doubled over these two years.On October 23, the stock hit a high of 1,845 yen, meaning at one point it had more than tripled in value over the two-year period.
I purchased 100 shares in August 2018 at 739 yen. Although the stock price more than doubled at one point, I couldn’t bring myself to take profits because I thought it might go even higher (^^;). I’m still holding onto them, confident that the price will rise again.(laughs) Actually, before that, I was debating whether to buy Ekitan (3646), but based on the bitter experience of watching the stock price skyrocket while I was still hesitating, I bought System Information right away!
Dividend Yield and Payout Ratio
Here are the dividend yield and payout ratio as of February 10. The dividend is 18 yen per share, and with the current stock price at 1,107 yen, the yield is 1.6%. There’s really no real benefit there… lol
As a shareholder benefit, System Information gives you a 500-yen Quo Card if you hold 100 shares. So, the yield including the dividend comes to 2%. With an EPS of 59.45 yen, the company has plenty of room to pay out dividends and shareholder benefits.
It’s not particularly attractive as an income play, but since I believe this company still has room to grow, I’m investing in it primarily for capital gains. I really hope the price goes up. (；人；) P·L·E·A·S·E
