Systena (TSE:2317) Valuation Check After Nine Month Earnings Highlight Growth In Sales And Net Income

Simply Wall St

Wed, February 11, 2026 at 12:15 PM GMT+9 4 min read

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2317.T

+4.60%

HNHAF

0.00%

HNHPF

+0.50%

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Earnings snapshot and why it matters now

Systena (TSE:2317) is back in focus after reporting nine month earnings to December 31, 2025. The company recorded sales of ¥70,063 million, net income of ¥8,603 million, and basic EPS of ¥24.07 from continuing operations.

See our latest analysis for Systena.

The earnings release comes after a softer period for the shares, with the 30 day share price return of 11.82% and year to date return of 11.65% contrasting with a 1 year total shareholder return of 36.78%. This suggests that earlier momentum has cooled recently.

If this earnings update has you thinking about where else growth in tech and software might emerge, it could be a good moment to check out 33 AI infrastructure stocks as a starting list of potential ideas.

With earnings growing and the share price weaker over the past quarter, the key question now is whether Systena at ¥455 still offers value, or if the market is already pricing in future growth.

Price to earnings of 14.6x: Is it justified?

On a P/E of 14.6x at ¥455, Systena screens as good value compared to both its peers and the wider Japan software industry, based on the available checks.

The P/E ratio compares the current share price to earnings per share, so it effectively shows how much investors are paying for each unit of current earnings. For a software and IT services group like Systena, this is a simple way to see how the market is weighing its earnings profile against other listed tech names.

Here, the company is flagged as good value versus similar peers, where the average P/E is 79.2x, and also against the Japan software industry average of 18.4x. In addition, the estimated fair P/E from the SWS fair ratio work is 20.8x, which is higher than the current 14.6x level. This suggests there may be scope for the multiple to move closer to that fair ratio if the market view changes.

Explore the SWS fair ratio for Systena

Result: Price-to-earnings of 14.6x (UNDERVALUED)

However, the recent 30 day and year to date share price declines, together with broader tech sentiment shifts, could challenge the case for a simple P/E catch up.

Find out about the key risks to this Systena narrative.

Another view, using cash flows instead of earnings

While the P/E suggests Systena looks inexpensive at ¥455, our DCF model arrives at an estimated future cash flow value of ¥661.4, which points to the shares trading around 31.2% below that figure. If earnings and cash flow both hint at value, what might the market be missing?

Story Continues  

Look into how the SWS DCF model arrives at its fair value.

2317 Discounted Cash Flow as at Feb 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Systena for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 22 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Systena Narrative

If you see the numbers differently or would rather trust your own work, you can build a complete view yourself in just a few minutes, starting with Do it your way.

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Systena.

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_ This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

Companies discussed in this article include 2317.T.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

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