nms Holdings Corp. (2162) AI Stock Analysis

• Market Cap: ¥9.33B
• Dividend Yield: 2.94%
• Average Volume (3M): 49.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: 3.25%
• EPS Growth: -159.15%
• Country: JP
• Employees: 11,855
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -4.59
• Shares Outstanding: 21,611,000
• 10 Day Avg. Volume: 54,380
• 30 Day Avg. Volume: 49,966
• PEG Ratio: -0.82
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 20.02
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ¥459.00 ▲(4.32% Upside)

The overall stock score is primarily influenced by moderate financial performance and bearish technical indicators. The company's high leverage and low operational margins are significant concerns, while the negative P/E ratio further impacts valuation. The attractive dividend yield is a positive aspect but not enough to offset the other challenges.

Positive Factors

Revenue Growth

Steady revenue growth indicates a stable market position and the ability to expand services, which is crucial for long-term business sustainability.

Cash Flow Generation

Improved cash generation capabilities enhance financial flexibility, supporting investment in growth initiatives and resilience against economic fluctuations.

Diversified Revenue Streams

Diversified revenue streams reduce dependency on any single source, providing stability and resilience against sector-specific downturns.

Negative Factors

High Leverage

Significant leverage increases financial risk and may limit the company's ability to invest in growth opportunities or weather economic downturns.

Low Operational Margins

Low operational margins suggest inefficiencies that could hinder profitability and competitiveness, necessitating improvements in cost management.

Low Equity Ratio

A low equity ratio indicates reliance on debt financing, which can increase financial vulnerability and reduce flexibility in capital allocation.

nms Holdings Corp. Business Overview & Revenue Model

Company Description

nms Holdings Corporation engages in human resource, electronics manufacturing services, and power supply businesses in Japan and internationally. It offers worker dispatch services for manufacturing; engineer dispatch service and contract engineering; third-party logistics and technical distribution processing; and substrate repairs and repair customer services. The company also provides electronics manufacturing services, such as substrate mounting, substrate assembling, simple pressing, resin molding, assembly, etc. services, as well as electronic device repair services; designs, manufactures, repairs, maintains, and sells 3D printers; and designs, developments, manufactures, and sells automotive-related equipment and parts. In addition, it designs, develops, manufactures, and sells switching, high-voltage power supplies, magnet rolls, high-voltage transformers, and battery management system related products used in various fields, such as office automation, industrial medicine, home appliances, and industrial equipment. The company was formerly known as Nippon Manufacturing Service Corporation and changed its name to nms Holdings Corporation in April 2017. nms Holdings Corporation was founded in 1985 and is headquartered in Tokyo, Japan.

How the Company Makes Money

NMS Holdings Corp. generates revenue through multiple channels, primarily from its real estate operations, which include rental income from residential and commercial properties, as well as profits from property management and development projects. Additionally, the company earns revenue from its financial services division by charging fees for asset management and investment advisory services to clients. Key revenue streams are bolstered by strategic partnerships with financial institutions and real estate developers, which help enhance its service offerings and expand its market reach. The company also benefits from market trends such as rising property values and increased demand for investment services, contributing to its overall financial performance.

nms Holdings Corp. Financial Statement Overview

Summary

The company shows moderate financial health with steady revenue growth and improving cash flow generation. However, high leverage and low operational margins pose potential risks. The company should focus on enhancing operational efficiency and reducing debt levels to strengthen its financial position.

Income Statement

The company shows a moderate gross profit margin of 12.8% and a net profit margin of 0.8% for the latest year, indicating some profitability but room for improvement. Revenue growth is positive at 3.9% compared to the previous year, suggesting a stable upward trajectory. However, the EBIT margin of 2.2% and EBITDA margin of 4.6% are relatively low, indicating potential challenges in operational efficiency.

Balance Sheet

The debt-to-equity ratio is high at 3.78, indicating significant leverage and potential financial risk. Return on equity stands at 12.0%, showing decent profitability relative to shareholder equity. The equity ratio is 14.5%, suggesting a low proportion of equity financing, which could be a concern for financial stability.

Cash Flow

The company has a positive free cash flow growth rate of 10.6%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 2.17, reflecting strong cash flow relative to net income. The free cash flow to net income ratio is 0.66, suggesting a reasonable conversion of net income to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.34B	75.71B	72.87B	79.03B	63.28B	54.86B
Gross Profit	10.15B	10.01B	9.32B	8.80B	6.72B	6.75B
EBITDA	3.19B	3.51B	3.70B	3.01B	183.59M	1.23B
Net Income	-287.67M	630.63M	737.02M	505.44M	-1.98B	-735.51M
Balance Sheet
Total Assets	34.79B	36.23B	35.98B	38.93B	34.84B	31.51B
Cash, Cash Equivalents and Short-Term Investments	5.05B	3.79B	4.26B	3.06B	5.13B	4.75B
Total Debt	19.05B	19.90B	21.74B	23.19B	21.76B	17.83B
Total Liabilities	30.17B	30.95B	32.63B	36.42B	32.15B	26.80B
Stockholders Equity	4.61B	5.27B	3.33B	2.51B	2.69B	4.69B
Cash Flow
Free Cash Flow	-189.16M	416.54M	3.77B	-1.89B	-2.81B	-96.33M
Operating Cash Flow	81.88M	1.37B	4.77B	-253.63M	-1.55B	943.45M
Investing Cash Flow	-254.02M	-899.69M	-1.05B	-1.61B	-926.16M	-919.13M
Financing Cash Flow	16.42M	-1.25B	-3.09B	-530.23M	2.60B	664.23M

nms Holdings Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 440.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2162, the sentiment is Positive. The current price of 440 is below the 20-day moving average (MA) of 480.40, below the 50-day MA of 461.68, and below the 200-day MA of 491.97, indicating a neutral trend. The MACD of 7.48 indicates Negative momentum. The RSI at 54.76 is Neutral, neither overbought nor oversold. The STOCH value of 65.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2162.

nms Holdings Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7927	74 Outperform	¥15.12B	8.51	―	5.18%	4.04%	12.46%
7713	71 Outperform	¥10.98B	11.38	―	2.77%	3.32%	63.26%
6919	66 Neutral	¥10.78B	32.85	―	5.75%	-0.23%	-32.32%
7908	63 Neutral	¥12.64B	12.25	―	3.17%	0.30%	4.85%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4237	57 Neutral	¥9.12B	43.58	―	2.01%	-25.08%	15.08%
2162	56 Neutral	¥9.33B	-11.96	―	2.94%	3.25%	-159.15%