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

• Market Cap: ¥25.28B
• Dividend Yield: 1.21%
• Average Volume (3M): 1.35K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.19
• Revenue Growth: 7.21%
• EPS Growth: 0.30%
• Country: JP
• Employees: 1,602
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 60.43
• Shares Outstanding: 13,109,490
• 10 Day Avg. Volume: 1,460
• 30 Day Avg. Volume: 1,350
• PEG Ratio: 0.88
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 10.55
• 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: 72 Outperform
• Price Target: ¥2,553.00 ▲(11.83% Upside)

Nippon Information Development Co., Ltd. demonstrates strong financial performance with consistent growth and a robust balance sheet, which is the most significant factor in its overall score. The stock's valuation is attractive, suggesting potential undervaluation. However, technical analysis indicates a bearish trend, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, positioning the company for sustained expansion.

Balance Sheet Health

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

Cash Generation

Strong cash generation supports operational needs and strategic investments, ensuring long-term financial health and shareholder value.

Negative Factors

Technical Analysis

A bearish technical trend may reflect market skepticism, potentially impacting investor confidence and stock performance in the near term.

Market Sentiment

Weak market momentum can signal investor uncertainty, possibly affecting the company's ability to attract new investors or capital.

Stock Performance

Persistent bearish indicators could hinder stock performance, impacting market perception and potentially affecting future capital raising efforts.

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

Company Description

Nippon Information Development Co., Ltd. operates in embedded and control system solutions, financial and business system solutions, and other businesses in Japan and internationally. It offers mobile solutions, including Android and iOS native applications, and preinstalled applications; a range of technologies for home electronics and IoT, such as cloud-cooperation televisions and game machines; and cloud service solutions, such as Azure and AWS. The company also provides a range of embedded technologies comprising ECU development as vehicle infrastructure and automated driving systems of automobiles; medical system technologies for the production of therapeutic and diagnostic apparatus, as well as for the development of hospital information systems; social infrastructure, which centers on public wireless domains consisting of airports, trains, fire, and disaster prevention; various technologies for factory and plant control systems; and real-time OS, image processing, communication protocol, and various drivers and middleware systems. In addition, it offers contract and customer management systems for individual and group insurances; non-life insurance systems; mutual aid systems; credit systems development for the application, screening, approval, and crediting sales; and securities systems. Further, the company provides payroll and benefit systems for civil service; Web-based itinerary information validation systems; and logistics systems, as well as system construction and installation support, network server design/construction, server virtualization environment creation, and cloud migration support services. Additionally, it offers system/network operation maintenance; remote surveillance; IT system operational design improvement; and security operational management services, as well as provides business process outsourcing, data entry, and image entry services. Nippon Information Development Co., Ltd. was incorporated in 1967 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nippon Information Development generates revenue primarily through its IT service offerings, which include software development, system integration, and consulting services. The company charges clients for project-based contracts, ongoing support services, and maintenance agreements. Key revenue streams also include partnerships with technology firms that enhance their service offerings and expand their market reach. Collaborations with major corporations and government agencies contribute to stable earnings, as these entities often require extensive IT solutions. Additionally, the company may engage in training and educational services related to their software products, further diversifying their income sources.

Nippon Information Development Co., Ltd. Financial Statement Overview

Summary

Nippon Information Development Co., Ltd. exhibits strong financial health across all statements. The company shows consistent revenue and profit growth, a robust balance sheet with minimal leverage, and efficient cash flow management. These factors contribute to a stable and promising financial outlook, positioning the company well for future growth and resilience in the Information Technology Services industry.

Income Statement

Nippon Information Development Co., Ltd. has demonstrated consistent revenue growth over the years, with a notable increase of 1.7% in the latest year. The company maintains healthy profit margins, with a gross profit margin of 22.8% and a net profit margin of 9.5%. The EBIT and EBITDA margins are also strong, indicating efficient operations. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

The company's balance sheet is strong, with a very low debt-to-equity ratio of 0.0005, indicating minimal leverage and financial risk. The return on equity is solid at 11.0%, showcasing effective use of shareholder funds. The equity ratio stands at a healthy level, reflecting a stable financial position and strong asset base.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth, with a notable increase in the latest year. The operating cash flow to net income ratio is strong, indicating good cash generation relative to profits. The free cash flow to net income ratio is also healthy, suggesting efficient cash management. Overall, the cash flow statement reflects positive cash generation and management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.38B	24.97B	22.57B	20.45B	18.25B	17.68B
Gross Profit	5.76B	5.68B	5.27B	4.81B	4.38B	3.90B
EBITDA	3.42B	3.50B	3.28B	3.31B	2.54B	2.09B
Net Income	2.34B	2.37B	2.11B	2.21B	1.63B	1.36B
Balance Sheet
Total Assets	28.59B	28.23B	26.23B	24.02B	21.90B	20.68B
Cash, Cash Equivalents and Short-Term Investments	17.00B	16.20B	14.19B	13.05B	11.85B	11.13B
Total Debt	360.54M	10.13M	17.02M	23.28M	16.82M	21.30M
Total Liabilities	6.89B	6.70B	6.52B	6.11B	5.80B	5.50B
Stockholders Equity	21.70B	21.53B	19.71B	17.91B	16.10B	15.17B
Cash Flow
Free Cash Flow	0.00	2.57B	1.79B	2.05B	1.58B	2.01B
Operating Cash Flow	0.00	2.77B	1.85B	2.09B	1.65B	2.12B
Investing Cash Flow	0.00	-506.84M	-121.89M	-1.21B	-318.93M	354.53M
Financing Cash Flow	0.00	-302.26M	-582.60M	-267.83M	-617.69M	-258.77M

Nippon Information Development Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2283.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2349, the sentiment is Negative. The current price of 2283 is below the 20-day moving average (MA) of 2288.30, below the 50-day MA of 2289.78, and below the 200-day MA of 2334.60, indicating a bearish trend. The MACD of -5.76 indicates Positive momentum. The RSI at 46.08 is Neutral, neither overbought nor oversold. The STOCH value of 6.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2349.

Nippon Information Development Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4396	76 Outperform	¥32.13B	20.38	―	1.70%	22.25%	31.88%
2359	74 Outperform	¥29.90B	12.43	―	2.93%	2.11%	5.55%
2349	72 Outperform	¥25.28B	10.72	―	1.21%	7.21%	0.30%
4072	71 Outperform	¥38.49B	11.75	―	2.22%	9.57%	315.38%
3655	70 Outperform	¥58.93B	71.85	―	0.28%	8.64%	-23.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2158	55 Neutral	¥34.90B	126.52	―	―	-10.49%	―