NS Solutions (2327) AI Stock Analysis

• Market Cap: ¥798.22B
• Dividend Yield: 1.78%
• Average Volume (3M): 337.20K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.40
• Revenue Growth: 11.66%
• EPS Growth: -0.21%
• Country: JP
• Employees: 7,826
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 37.69
• Shares Outstanding: 183,002,000
• 10 Day Avg. Volume: 306,130
• 30 Day Avg. Volume: 337,196
• PEG Ratio: 2.24
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 2.07
• P/FCF Ratio: 20.82
• 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: ¥3,029.88
• Price Target Upside: -30.95% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥4,710.00 ▲(7.34% Upside)

NS Solutions' strong financial performance and bullish technical indicators are the primary drivers of its stock score. However, cash flow challenges and a high P/E ratio limit the overall attractiveness. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and effective service offerings, supporting long-term business sustainability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth.

Profit Margins

Robust profit margins reflect efficient cost management and operational effectiveness, supporting long-term profitability.

Negative Factors

Cash Flow Challenges

Negative free cash flow growth indicates potential liquidity issues, which could hinder the company's ability to fund operations and growth.

Net Profit Margin Decline

A declining net profit margin suggests rising costs or pricing pressures, which could impact future profitability if not addressed.

Free Cash Flow to Net Income Ratio

A negative free cash flow to net income ratio highlights cash generation issues, potentially limiting the company's ability to reinvest in growth.

NS Solutions Business Overview & Revenue Model

Company Description

NS Solutions Corporation provides information technology solutions in Japan and internationally. The company offers business and information system consultation services; and plans, designs, develops, implements, operates, and maintains information systems. It also develops, manufactures, and sells software and hardware; and provides outsourcing services using information technology. In addition, the company offers data center and cloud computing services; and ERP, management visualization, system integration and workflow, and production and sales management solutions, as well as IT infrastructure and global expansion support services. It serves manufacturing, retail, distribution, transportation, finance, and telecommunication sectors, as well as government. The company was formerly known as Nippon Steel Information and Communication Systems Inc. and changed its name to NS Solutions Corporation in 2001. NS Solutions Corporation was incorporated in 1980 and is headquartered in Tokyo, Japan. NS Solutions Corporation is a subsidiary of Nippon Steel & Sumitomo Metal Corporation.

How the Company Makes Money

NS Solutions generates revenue primarily through its IT service offerings, which include system integration projects, managed services, and software development. The company earns a significant portion of its income from long-term contracts with corporate clients, providing them with ongoing support and maintenance for their IT systems. Additionally, the company benefits from consulting services that help organizations optimize their IT strategies. Key revenue streams include project-based contracts, recurring subscription fees for managed services, and consulting fees. Partnerships with technology providers and software vendors also enhance its service capabilities, allowing NS Solutions to offer a broader range of integrated solutions, thereby driving additional revenue growth.

NS Solutions Financial Statement Overview

Summary

NS Solutions shows strong revenue growth and profitability with efficient operations and a solid balance sheet. However, cash flow challenges due to capital expenditures need attention for sustained financial health.

Income Statement

NS Solutions demonstrates strong revenue growth with a TTM increase of 1.73%, supported by consistent gross and net profit margins. The gross profit margin is stable at approximately 24.4%, and the net profit margin is healthy at 7.78%. EBIT and EBITDA margins are robust, indicating efficient operational management. Overall, the income statement reflects a positive growth trajectory and profitability.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.11, indicating prudent financial leverage. Return on equity is strong at 10.43%, showcasing effective use of shareholder funds. The equity ratio stands at a healthy level, reflecting financial stability. However, the slight increase in total debt over the periods should be monitored.

Cash Flow

Cash flow analysis reveals challenges with a negative free cash flow growth rate of -108.98% in the TTM, primarily due to significant capital expenditures. The operating cash flow to net income ratio is low at 0.66%, indicating potential cash flow management issues. Despite these challenges, the company has historically maintained positive free cash flow to net income ratios, suggesting underlying cash generation capability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	360.06B	338.30B	310.63B	291.69B	270.33B	251.99B
Gross Profit	89.47B	81.71B	71.60B	65.94B	60.32B	51.95B
EBITDA	51.53B	51.68B	47.68B	44.94B	41.90B	31.93B
Net Income	26.87B	27.05B	24.24B	22.00B	20.52B	16.98B
Balance Sheet
Total Assets	405.32B	421.30B	374.64B	319.91B	325.76B	272.22B
Cash, Cash Equivalents and Short-Term Investments	120.79B	192.93B	103.97B	101.32B	7.87B	6.25B
Total Debt	27.22B	29.22B	34.79B	25.03B	4.95B	2.26B
Total Liabilities	130.38B	151.49B	129.85B	112.11B	121.19B	86.09B
Stockholders Equity	266.03B	261.17B	236.83B	200.52B	197.83B	179.82B
Cash Flow
Free Cash Flow	-2.24B	33.69B	23.03B	21.63B	26.98B	13.90B
Operating Cash Flow	933.00M	37.21B	26.15B	26.03B	32.31B	17.54B
Investing Cash Flow	-58.80B	70.25B	-8.57B	-5.63B	-8.54B	10.41B
Financing Cash Flow	-21.28B	-18.80B	-15.08B	-14.94B	-6.84B	-7.39B

NS Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4388.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 4388 is above the 20-day moving average (MA) of 4025.30, above the 50-day MA of 3802.46, and above the 200-day MA of 3752.33, indicating a bullish trend. The MACD of 163.30 indicates Negative momentum. The RSI at 74.04 is Negative, neither overbought nor oversold. The STOCH value of 91.11 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	74 Outperform	¥798.22B	29.70	10.07%	1.78%	11.66%	-0.21%
3626	73 Outperform	¥1.24T	23.35	―	1.39%	4.95%	9.54%
9749	72 Outperform	―	―	―	―	6.92%	25.38%
3923	71 Outperform	¥362.47B	34.01	―	0.22%	25.00%	62.07%
9719	69 Neutral	¥1.77T	28.86	―	1.48%	42.98%	48.88%
8056	66 Neutral	¥496.28B	17.42	―	2.21%	10.42%	28.75%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

NS Solutions Corporate Events

NS Solutions Reports Revenue Growth Amid Profit Challenges

NS Solutions Corporation reported its consolidated financial results for the six months ending September 30, 2025, showing a 13.9% increase in revenue compared to the previous year. Despite the revenue growth, the profit attributable to owners of the parent decreased by 1.5%, reflecting challenges in maintaining profitability. The company also announced a revision to its financial results forecast for the fiscal year ending March 31, 2026, indicating expected growth in revenue and profits, which suggests a positive outlook for future operations.

NS Solutions Expands Stake in Delivery Consulting Inc.

NS Solutions Corporation has announced its decision to acquire a significant portion of shares in Delivery Consulting Inc., marking a strategic move to strengthen its market position. This acquisition, involving over 11% of voting rights, is considered a substantial act of buying up and is expected to impact the company’s influence in the consulting sector.