Recurring Revenue ModelNalnet's subscription-based broadband and digital voice model creates predictable, recurring revenue that supports multi-year cash flow visibility. This durability aids capital planning for network upgrades, reduces volatility from one-time sales, and enhances customer lifetime value through retention and bundling.

Sustained Top-line GrowthDouble-digit revenue growth reflects persistent demand for Nalnet's connectivity services and successful customer acquisition or ARPU expansion. Sustained revenue expansion enables scale benefits, better absorption of fixed network costs, and provides runway to invest in coverage and service upgrades over the next several quarters.

Moderate Leverage And Improving Balance SheetA 0.50 debt-to-equity ratio and recent debt reduction point to prudent leverage, preserving financial flexibility for capex and expansion. A balanced capital structure lowers refinancing risk and interest burden, supporting steady network investment and strategic initiatives without excessive financial strain.

Bears Say

Thin Net Profit MarginsA low and falling net margin limits retained earnings and resilience to cost shocks. Telecommunications capex and competitive pricing can compress margins further, constraining ability to fund growth internally and reducing tolerance for margin volatility over the medium term unless operating efficiency or pricing power improves.

Sharp Free Cash Flow DeclineA nearly 48% drop in free cash flow signals pressure on cash available for dividends, debt repayment, or network expansion. Even with solid operating cash to net income conversion, shrinking FCF suggests higher capex or working capital needs that could force financing choices and limit strategic flexibility in the medium term.

Low And Falling Return On EquityROE under 7% and trending down indicates modest returns on shareholder capital versus peers. Persistent downward ROE can reflect competitive pressure, inefficient capital allocation, or rising costs, and may constrain long-term shareholder value creation unless profitability or asset efficiency improves.

5870 FAQ

What was Nalnet Communications, Inc.’s price range in the past 12 months?

Nalnet Communications, Inc. lowest stock price was ¥445.00 and its highest was ¥1205.00 in the past 12 months.

What is Nalnet Communications, Inc.’s market cap?

Nalnet Communications, Inc.’s market cap is ¥5.53B.

When is Nalnet Communications, Inc.’s upcoming earnings report date?

Nalnet Communications, Inc.’s upcoming earnings report date is Feb 13, 2026 which is in 9 days.

How were Nalnet Communications, Inc.’s earnings last quarter?

Nalnet Communications, Inc. released its earnings results on Nov 14, 2025. The company reported ¥31.43 earnings per share for the quarter, beating the consensus estimate of N/A by ¥31.43.

Is Nalnet Communications, Inc. overvalued?

According to Wall Street analysts Nalnet Communications, Inc.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Nalnet Communications, Inc. pay dividends?

Nalnet Communications, Inc. pays a Annually dividend of ¥24 which represents an annual dividend yield of 1.32%. See more information on Nalnet Communications, Inc. dividends here

What is Nalnet Communications, Inc.’s EPS estimate?

Nalnet Communications, Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Nalnet Communications, Inc. have?

Nalnet Communications, Inc. has 5,332,100 shares outstanding.

What happened to Nalnet Communications, Inc.’s price movement after its last earnings report?

Nalnet Communications, Inc. reported an EPS of ¥31.43 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.213%.

Which hedge fund is a major shareholder of Nalnet Communications, Inc.?

Currently, no hedge funds are holding shares in JP:5870

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

Nalnet Communications, Inc.

Nalnet Communications, Inc. engages in management and maintenance of vehicles. It provides its service to automobile-related companies such as auto leasing companies and individual users. It also offers business process outsourcing (BPO) services and sales of vehicles. The company was founded on July 18, 2019 and is headquartered in Kasugai, Japan.