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

• Market Cap: ¥25.84B
• Dividend Yield: 1.2%
• Average Volume (3M): 3.00K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.22
• Revenue Growth: 9.56%
• EPS Growth: 7.39%
• Country: JP
• Employees: 1,602
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 38.60
• Shares Outstanding: 13,109,490
• 10 Day Avg. Volume: 2,470
• 30 Day Avg. Volume: 3,003
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,666.00
• Price Target Upside: 14.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥2,666.00 ▲(14.57% Upside)

Nippon Information Development Co., Ltd. demonstrates strong financial performance with robust growth and minimal leverage, contributing significantly to its overall score. The technical analysis indicates a neutral trend, while the valuation suggests the stock is reasonably priced. The absence of earnings call data and corporate events does not impact the score.

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 contracts, which include system integration projects, software development services, and ongoing IT support and consulting. The company charges clients based on project scope and duration for custom software solutions and integration services. Additionally, recurring revenue streams arise from maintenance contracts and managed services, which provide ongoing support for client systems. The company may also engage in strategic partnerships with technology providers to expand its service offerings and reach new markets, further contributing to its revenue growth.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.97B	24.97B	22.57B	20.45B	18.25B	17.68B
Gross Profit	5.68B	5.68B	5.27B	4.81B	4.38B	3.90B
EBITDA	3.50B	3.50B	3.28B	3.31B	2.54B	2.09B
Net Income	2.37B	2.37B	2.11B	2.21B	1.63B	1.36B
Balance Sheet
Total Assets	28.23B	28.23B	26.23B	24.02B	21.90B	20.68B
Cash, Cash Equivalents and Short-Term Investments	16.20B	16.20B	14.19B	13.05B	11.85B	11.13B
Total Debt	10.13M	10.13M	17.02M	23.28M	16.82M	21.30M
Total Liabilities	6.70B	6.70B	6.52B	6.11B	5.80B	5.50B
Stockholders Equity	21.53B	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: 2327.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 2327 is below the 20-day moving average (MA) of 2338.75, below the 50-day MA of 2354.80, and below the 200-day MA of 2380.78, indicating a bearish trend. The MACD of -7.59 indicates Positive momentum. The RSI at 47.96 is Neutral, neither overbought nor oversold. The STOCH value of 73.74 is Neutral, 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
2359	78 Outperform	31.04B	13.69	12.10%	2.53%	1.65%	-2.94%
4072	77 Outperform	38.92B	19.08	8.38%	2.22%	5.55%	18.43%
4396	76 Outperform	34.36B	23.40	24.25%	1.48%	22.28%	19.79%
2349	75 Outperform	¥25.84B	10.89	―	1.20%	9.56%	7.39%
3655	73 Outperform	29.46B	27.00	―	0.59%	11.47%	17.60%
2158	60 Neutral	42.07B	160.20	17.20%	―	-18.95%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%