Revenue GrowthAn ~85% revenue acceleration in 2025 signals durable demand expansion and successful commercial execution. Sustained top-line momentum provides scale benefits, supports future margin recovery potential, and gives management room to invest in product and sales capacity over the next 2-6 months.

Balance-Sheet StrengthMaterial deleveraging to a debt-to-equity of ~0.27 meaningfully improves financial flexibility and lowers solvency risk. A stronger capital structure supports stable operations, easier access to funding for strategic initiatives, and resilience to cyclical shocks over the medium term.

Operating Cash FlowA rise in operating cash flow to ~401M shows the business can convert sales into cash at a higher rate, underpinning reinvestment capacity and dividend support. While FCF was volatile, stronger OCF improves near-term liquidity and funds working capital or growth investments.

Bears Say

Margin CompressionSignificant compression in gross and net margins weakens earnings quality and limits the company's ability to convert higher revenue into sustainable profit. If margins remain suppressed, long-term return on invested capital and the ability to fund strategic initiatives will be constrained.

Free Cash Flow VolatilityA swing to negative free cash flow and a history of volatile FCF reduce cash-quality confidence. Persistent FCF deficits can force external financing, limit share repurchases/dividends, and constrain organic investment, raising medium-term execution and financing risks.

Declining ROEA sharp drop in ROE signals reduced capital efficiency and weaker profitability on shareholders' equity. Lower ROE can reflect margin pressure or suboptimal asset deployment, and if it persists it undermines long-term shareholder returns and attractiveness for reinvestment.

5257 FAQ

What was NOVA SYSTEM CO.,LTD.’s price range in the past 12 months?

NOVA SYSTEM CO.,LTD. lowest stock price was ¥2264.00 and its highest was ¥3100.00 in the past 12 months.

What is NOVA SYSTEM CO.,LTD.’s market cap?

NOVA SYSTEM CO.,LTD.’s market cap is ¥3.27B.

When is NOVA SYSTEM CO.,LTD.’s upcoming earnings report date?

NOVA SYSTEM CO.,LTD.’s upcoming earnings report date is May 06, 2026 which is in 73 days.

How were NOVA SYSTEM CO.,LTD.’s earnings last quarter?

NOVA SYSTEM CO.,LTD. released its earnings results on Feb 13, 2026. The company reported ¥81.59 earnings per share for the quarter, beating the consensus estimate of N/A by ¥81.59.

Is NOVA SYSTEM CO.,LTD. overvalued?

According to Wall Street analysts NOVA SYSTEM CO.,LTD.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does NOVA SYSTEM CO.,LTD. pay dividends?

NOVA SYSTEM CO.,LTD. pays a Notavailable dividend of ¥105 which represents an annual dividend yield of N/A. See more information on NOVA SYSTEM CO.,LTD. dividends here

What is NOVA SYSTEM CO.,LTD.’s EPS estimate?

NOVA SYSTEM CO.,LTD.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does NOVA SYSTEM CO.,LTD. have?

NOVA SYSTEM CO.,LTD. has 1,402,500 shares outstanding.

What happened to NOVA SYSTEM CO.,LTD.’s price movement after its last earnings report?

NOVA SYSTEM CO.,LTD. reported an EPS of ¥81.59 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -4.797%.

Which hedge fund is a major shareholder of NOVA SYSTEM CO.,LTD.?

Currently, no hedge funds are holding shares in JP:5257

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

NOVA SYSTEM CO.,LTD.

Nova System Co.,Ltd. provides system integration services for financial, insurance, and medical industries. It also develops application software, including self-ordering system and reception system. The company was founded in 1982 and is headquartered in Osaka, Japan.