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Nippon Information Development Co., Ltd. (JP:2349)
:2349
Japanese Market

Nippon Information Development Co., Ltd. (2349) AI Stock Analysis

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JP

Nippon Information Development Co., Ltd.

(2349)

Rating:77Outperform
Price Target:
Nippon Information Development Co., Ltd. scores well due to its solid financial performance, characterized by strong revenue growth, high profitability, and a robust balance sheet with minimal debt. The technical indicators suggest a neutral to slightly bullish trend, although some caution is warranted due to overbought signals. The stock's attractive valuation and modest dividend yield enhance its investment appeal. However, the absence of recent cash flow data introduces a minor uncertainty that investors should monitor.

Nippon Information Development Co., Ltd. (2349) vs. iShares MSCI Japan ETF (EWJ)

Nippon Information Development Co., Ltd. Business Overview & Revenue Model

Company DescriptionNippon Information Development Co., Ltd. (2349) is a Japanese company specializing in information technology services and solutions. The company provides a range of IT services, including software development, system integration, and IT infrastructure management. It serves various sectors such as finance, telecommunications, and manufacturing, delivering tailored IT solutions to meet the unique needs of its clients.
How the Company Makes MoneyNippon Information Development Co., Ltd. generates revenue primarily through the provision of IT services and solutions. The company's key revenue streams include custom software development, where it designs and develops software applications tailored to specific client requirements; system integration services, which involve consolidating and optimizing clients' IT systems to improve efficiency and performance; and IT infrastructure management, where it offers ongoing support and management of clients' IT environments. Additionally, the company may engage in strategic partnerships and collaborations with other technology providers to enhance its service offerings and expand its market reach. These partnerships and a strong client base in diverse industries contribute significantly to its earnings.

Nippon Information Development Co., Ltd. Financial Statement Overview

Summary
Nippon Information Development Co., Ltd. exhibits strong financial health with robust revenue growth, high profitability margins, and a solid balance sheet. The company's low debt levels and high equity ratio indicate financial stability, positioning it well for future expansion. However, the lack of current cash flow information presents a minor area of uncertainty that should be monitored for potential risks or strategic movements in liquidity management.
Income Statement
85
Very Positive
Nippon Information Development Co., Ltd. demonstrates strong financial performance with consistent revenue growth, as evidenced by a revenue growth rate of 8.78% in TTM compared to the previous year. The company maintains healthy profitability metrics with a gross profit margin of 23.52% and a net profit margin of 9.83% in TTM. Strong EBIT and EBITDA margins of 13.16% and 14.34% respectively further underscore operational efficiency. Despite robust growth, slight pressure on net income growth could be a watch point.
Balance Sheet
92
Very Positive
The company showcases a solid balance sheet with a remarkable equity ratio of 76.43% in TTM, indicating strong financial stability and low leverage. The debt-to-equity ratio is exceptionally low at 0.017, reflecting minimal reliance on debt financing. Return on equity is impressive at 11.51%, showcasing effective use of equity capital. Overall, the balance sheet is well-positioned to support future growth with minimal financial risk.
Cash Flow
75
Positive
The cash flow statement reveals mixed results. Although historical free cash flow has been stable, the absence of cash flow data in TTM limits current assessment. Previously, the operating cash flow to net income ratio was healthy, indicating efficient cash generation. However, the lack of recent cash flow data could suggest potential challenges or strategic reinvestments affecting liquidity.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
24.55B22.57B20.45B18.25B17.68B18.02B
Gross Profit
5.77B5.27B4.81B4.38B3.90B4.00B
EBIT
3.23B2.81B2.54B2.23B1.87B1.94B
EBITDA
3.52B3.28B3.31B2.54B2.09B2.05B
Net Income Common Stockholders
2.41B2.11B2.21B1.63B1.36B1.27B
Balance SheetCash, Cash Equivalents and Short-Term Investments
15.88B14.19B13.05B11.85B11.13B8.97B
Total Assets
27.43B26.23B24.02B21.90B20.68B19.26B
Total Debt
360.00M17.02M23.28M16.82M21.30M29.36M
Net Debt
-15.52B-14.17B-13.03B-11.83B-11.11B-8.82B
Total Liabilities
6.47B6.52B6.11B5.80B5.50B5.67B
Stockholders Equity
20.96B19.71B17.91B16.10B15.17B13.59B
Cash FlowFree Cash Flow
0.001.79B2.05B1.58B2.01B838.16M
Operating Cash Flow
0.001.85B2.09B1.65B2.12B1.11B
Investing Cash Flow
0.00-121.89M-1.21B-318.93M354.53M-881.67M
Financing Cash Flow
0.00-582.60M-267.83M-617.69M-258.77M-250.47M

Nippon Information Development Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2365.00
Price Trends
50DMA
2370.45
Negative
100DMA
2374.97
Negative
200DMA
2382.98
Negative
Market Momentum
MACD
-6.67
Positive
RSI
50.76
Neutral
STOCH
35.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2349, the sentiment is Positive. The current price of 2365 is above the 20-day moving average (MA) of 2363.20, below the 50-day MA of 2370.45, and below the 200-day MA of 2382.98, indicating a neutral trend. The MACD of -6.67 indicates Positive momentum. The RSI at 50.76 is Neutral, neither overbought nor oversold. The STOCH value of 35.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2349.

Nippon Information Development Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥34.69B15.31
2.98%11.00%33.93%
77
Outperform
¥26.27B10.92
1.18%11.94%14.10%
74
Outperform
¥1.31T29.10
1.69%24.10%11.27%
72
Outperform
$637.47B33.2013.64%0.43%6.92%25.38%
71
Outperform
¥1.11T19.7516.17%2.58%15.49%18.42%
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2349
Nippon Information Development Co., Ltd.
2,365.00
81.64
3.58%
JP:4709
ID Holdings Corporation
2,228.00
826.96
59.02%
JP:9719
SCSK Corporation
4,252.00
1,243.42
41.33%
JP:9749
Fuji Soft Incorporated
9,800.00
3,249.26
49.60%
JP:4768
Otsuka
2,945.50
93.49
3.28%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.