NS Solutions (2327) AI Stock Analysis

• Market Cap: ¥724.11B
• Dividend Yield: 1.78%
• Average Volume (3M): 398.57K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 0.42
• Revenue Growth: 8.91%
• EPS Growth: 11.59%
• Country: JP
• Employees: 7,826
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): 36.34
• Shares Outstanding: 183,002,000
• 10 Day Avg. Volume: 376,790
• 30 Day Avg. Volume: 398,573
• PEG Ratio: -3.49
• Price to Book (P/B): 2.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.27
• 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: ¥3,329.95
• Price Target Upside: -15.85% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: ¥4,350.00 ▲(9.93%Upside)

NS Solutions' strong financial performance is the primary driver of its high stock score, with robust revenue and profitability metrics and a stable balance sheet. Technical analysis supports further growth potential, with bullish momentum and neutral RSI levels. The relatively high P/E ratio suggests overvaluation, but the dividend yield adds a positive dimension to the stock's valuation. Earnings call and corporate events are not factored into the score due to the lack of new data.

NS Solutions Business Overview & Revenue Model

Company Description

NS Solutions Corporation, listed under the ticker 2327, is a leading Japanese IT services provider. The company specializes in offering integrated solutions that encompass consulting, systems integration, and IT infrastructure management. NS Solutions serves a diverse range of sectors, including manufacturing, finance, telecommunications, and public services, delivering advanced technology solutions tailored to meet the specific needs of its clients.

How the Company Makes Money

NS Solutions generates revenue primarily through its comprehensive suite of IT services. The company's key revenue streams include systems integration, where they design and implement customized IT systems for clients, and IT infrastructure management, providing ongoing support and optimization of clients' IT environments. Additionally, NS Solutions offers consulting services to help businesses strategize and implement digital transformation initiatives. The company frequently forms strategic partnerships with technology vendors and leverages cutting-edge technologies to enhance its service offerings, contributing significantly to its earnings.

NS Solutions Financial Statement Overview

Summary

NS Solutions presents a strong financial position with impressive growth and profitability metrics. The income statement shows robust revenue and profit growth, while the balance sheet is characterized by low leverage and high equity. Cash flows are strong, with efficient cash generation and conversion. Overall, the company is well-positioned with a solid financial foundation and growth trajectory in the information technology services industry.

Income Statement

NS Solutions has shown a consistent revenue growth with a strong increase of 8.9% from 2024 to 2025. The gross profit margin stands at 24.2%, indicating efficient cost management. The net profit margin is solid at 8.0%, reflecting good profitability. The EBIT and EBITDA margins are 12.0% and 15.3% respectively, underscoring robust operating performance. Overall, the company exhibits healthy revenue growth and profitability metrics.

Balance Sheet

The company's balance sheet is strong, with a debt-to-equity ratio of 0.11, indicating low leverage. The return on equity is commendable at 10.4%, showcasing effective utilization of equity. The equity ratio is 62.0%, reflecting a solid capital structure with significant equity backing. Overall, the balance sheet stability is marked by low risk and high financial health.

Cash Flow

NS Solutions demonstrates a healthy free cash flow growth rate of 46.3%, and the operating cash flow to net income ratio is 1.38, indicating efficient cash generation. The free cash flow to net income ratio is 1.25, highlighting strong cash conversion. The cash flow statement reflects good cash generation capabilities and effective capital management.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
338.30B	310.63B	291.69B	270.33B	251.99B
	Gross Profit
81.71B	71.60B	65.94B	60.32B	51.95B
	EBIT
40.64B	35.21B	31.74B	29.82B	24.55B
	EBITDA
51.68B	47.68B	45.76B	41.90B	31.16B
	Net Income Common Stockholders
27.05B	24.24B	22.00B	20.52B	16.98B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
192.93B	103.97B	103.79B	7.87B	6.25B
	Total Assets
421.30B	374.64B	319.91B	296.79B	272.22B
	Total Debt
29.22B	34.79B	25.03B	4.95B	2.26B
	Net Debt
-163.71B	-68.63B	-76.29B	-913.00M	-2.99B
	Total Liabilities
151.49B	129.85B	112.11B	93.36B	86.09B
	Stockholders Equity
261.17B	236.83B	200.52B	196.69B	179.82B
Cash Flow		Free Cash Flow
33.69B	23.03B	21.63B	26.98B	13.90B
	Operating Cash Flow
37.21B	26.15B	26.03B	32.31B	17.54B
	Investing Cash Flow
70.25B	-8.57B	-5.63B	-8.54B	10.41B
	Financing Cash Flow
-18.80B	-15.08B	-14.94B	-6.84B	-7.39B

NS Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3957.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2327, the sentiment is Positive. The current price of 3957 is above the 20-day moving average (MA) of 3865.85, above the 50-day MA of 3730.06, and above the 200-day MA of 3831.86, indicating a bullish trend. The MACD of 63.85 indicates Negative momentum. The RSI at 60.35 is Neutral, neither overbought nor oversold. The STOCH value of 87.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2327.

NS Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2327	77 Outperform	¥724.11B	26.77	10.73%	1.78%	8.91%	11.59%
8056	76 Outperform	¥534.35B	21.41		1.88%	9.15%	8.60%
3923	76 Outperform	¥415.98B	51.64		0.20%	27.33%	91.27%
3626	74 Outperform	¥1.06T	21.21		1.53%	4.13%	5.65%
9719	74 Outperform	¥1.35T	30.08		1.64%	24.10%	11.27%
Sector *	62 Neutral	$11.72B	10.43	-7.10%	2.91%	7.41%	-7.94%

NS Solutions Corporate Events

NS Solutions Confirms Compliance with TSE Prime Market Criteria

NS Solutions Corporation has confirmed that its common shares meet the listing maintenance criteria for the Tokyo Stock Exchange Prime Market as of March 31, 2025. This compliance is due to the classification of shares held by the 3D WH Opportunity Master OFC as Tradable Shares, which ensures that the company’s Tradable Share ratio exceeds 35%, maintaining its status on the Prime Market.

NS Solutions Reports Significant Profit Increase Due to Strategic Share Sale

NS Solutions Corporation reported a significant increase in its non-consolidated financial results for the fiscal year ended March 31, 2025, compared to the previous year. The company’s profit surged by 188.8%, primarily due to extraordinary income from the sale of shares in Recruit Holdings Co., Ltd., which highlights a strategic financial maneuver that positively impacted its fiscal performance.

NS Solutions Reports Strong Financial Growth for Fiscal Year 2025

NS Solutions Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a notable increase in revenue and profit compared to the previous year. The company’s revenue rose by 8.9%, while operating profit and profit before tax increased by 10.0% and 10.3%, respectively. Despite a slight decrease in total comprehensive income, the company demonstrated strong financial performance with a significant rise in cash flows from operating and investing activities. The results indicate a positive trajectory for NS Solutions, enhancing its market position and potentially benefiting stakeholders.

NS Solutions Increases Year-End Dividend Forecast for FY 2025

NS Solutions Corporation has revised its year-end dividend forecast for the fiscal year ending March 31, 2025, increasing the year-end dividend by 1.0 yen per share to 37.5 yen, resulting in an annual dividend of 74.0 yen per share. This decision aligns with the company’s policy to maintain a 50% consolidated dividend payout ratio, reflecting its commitment to returning profits to shareholders while securing funds for future growth and risk management.

NS Solutions Acquires INFOCOM to Accelerate Growth and Expand IT Services

NS Solutions Corporation has announced its decision to acquire INFOCOM CORPORATION, making it a subsidiary. This strategic move is part of NS Solutions’ efforts to enhance its capabilities in process-based manufacturing and expand its asset-driven business targeting mid-sized companies. By integrating INFOCOM, NS Solutions expects to leverage combined strengths to accelerate growth, particularly in the healthcare sector and other domains, while working towards its ‘NSSOL 2030 Vision.’

NS Solutions Announces Major Shareholder Change

NS Solutions Corporation announced a significant change in its major shareholders, with 3D WH Opportunity Holdings acquiring 10.10% of the company’s shares, making it the second-largest shareholder. This change could impact the company’s market dynamics as these shares may qualify as Tradeable Shares under Tokyo Stock Exchange regulations, pending coordination. The company is working with the TSE to confirm this status and will update stakeholders accordingly.