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

• Market Cap: ¥26.27B
• Dividend Yield: 1.18%
• Average Volume (3M): 900.00
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.20
• Revenue Growth: 11.94%
• EPS Growth: 14.10%
• Country: JP
• Employees: 1,602
• Sector: Technology
• Sector Strength: 82
• Industry: Information Technology Services
• EPS (TTM): 54.71
• Shares Outstanding: 13,109,490
• 10 Day Avg. Volume: 940
• 30 Day Avg. Volume: 900
• PEG Ratio: 2.42
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 77 Outperform
• 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. 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 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

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

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

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
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
24.55B	22.57B	20.45B	18.25B	17.68B	18.02B
	Gross Profit
5.77B	5.27B	4.81B	4.38B	3.90B	4.00B
	EBIT
3.23B	2.81B	2.54B	2.23B	1.87B	1.94B
	EBITDA
3.52B	3.28B	3.31B	2.54B	2.09B	2.05B
	Net Income Common Stockholders
2.41B	2.11B	2.21B	1.63B	1.36B	1.27B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.88B	14.19B	13.05B	11.85B	11.13B	8.97B
	Total Assets
27.43B	26.23B	24.02B	21.90B	20.68B	19.26B
	Total Debt
360.00M	17.02M	23.28M	16.82M	21.30M	29.36M
	Net Debt
-15.52B	-14.17B	-13.03B	-11.83B	-11.11B	-8.82B
	Total Liabilities
6.47B	6.52B	6.11B	5.80B	5.50B	5.67B
	Stockholders Equity
20.96B	19.71B	17.91B	16.10B	15.17B	13.59B
Cash Flow		Free Cash Flow
0.00	1.79B	2.05B	1.58B	2.01B	838.16M
	Operating Cash Flow
0.00	1.85B	2.09B	1.65B	2.12B	1.11B
	Investing Cash Flow
0.00	-121.89M	-1.21B	-318.93M	354.53M	-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 Price: 2365.00
• 50DMA: Negative
• 100DMA: Negative
• 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:2349, the sentiment is Positive. The current price of 2365 is above the 20-day moving average (MA) of 2362.40, below the 50-day MA of 2370.78, and below the 200-day MA of 2384.04, indicating a neutral trend. The MACD of -3.31 indicates Negative momentum. The RSI at 50.76 is Neutral, neither overbought nor oversold. The STOCH value of 70.73 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2359	81 Outperform	¥26.59B	11.95		2.95%	2.50%	-1.48%
2349	77 Outperform	¥26.27B	10.92		1.18%	11.94%	14.10%
4396	76 Outperform	¥25.60B	16.65		1.91%	20.75%	31.02%
4072	75 Outperform	¥28.07B	14.71		2.31%	4.18%	-6.71%
3655	73 Outperform	¥28.92B	23.66		0.60%	10.35%	98.15%
2158	65 Neutral	¥23.85B	43.82		―	-17.30%	―
Sector *	62 Neutral	$11.90B	10.64	-7.50%	2.90%	7.41%	-8.19%