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

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JP:2349

Nippon Information Development Co., Ltd.

(2349)

Rating:78Outperform
Price Target:
¥2,704.00
▲(14.67% Upside)
Nippon Information Development Co., Ltd. demonstrates strong financial performance, with consistent growth and a robust balance sheet. The technical analysis indicates a neutral trend, while the valuation suggests the stock is reasonably priced. These factors collectively contribute to a solid overall stock score, reflecting a stable investment opportunity in the Information Technology Services industry.

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 prominent Japanese company specializing in IT services and solutions. Operating primarily in the information technology sector, the company offers a diverse range of services including system integration, software development, and IT consulting. Nippon Information Development focuses on delivering innovative technology solutions to various industries, enhancing operational efficiencies and enabling digital transformation for its clients.
How the Company Makes MoneyNippon 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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue24.97B24.97B22.57B20.45B18.25B17.68B
Gross Profit5.68B5.68B5.27B4.81B4.38B3.90B
EBITDA3.50B3.50B3.28B3.31B2.54B2.09B
Net Income2.37B2.37B2.11B2.21B1.63B1.36B
Balance Sheet
Total Assets28.23B28.23B26.23B24.02B21.90B20.68B
Cash, Cash Equivalents and Short-Term Investments16.20B16.20B14.19B13.05B11.85B11.13B
Total Debt10.13M10.13M17.02M23.28M16.82M21.30M
Total Liabilities6.70B6.70B6.52B6.11B5.80B5.50B
Stockholders Equity21.53B21.53B19.71B17.91B16.10B15.17B
Cash Flow
Free Cash Flow0.002.57B1.79B2.05B1.58B2.01B
Operating Cash Flow0.002.77B1.85B2.09B1.65B2.12B
Investing Cash Flow0.00-506.84M-121.89M-1.21B-318.93M354.53M
Financing Cash Flow0.00-302.26M-582.60M-267.83M-617.69M-258.77M

Nippon Information Development Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2358.00
Price Trends
50DMA
2357.26
Positive
100DMA
2352.15
Positive
200DMA
2388.57
Negative
Market Momentum
MACD
-2.58
Negative
RSI
51.99
Neutral
STOCH
61.48
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 2358 is above the 20-day moving average (MA) of 2337.75, above the 50-day MA of 2357.26, and below the 200-day MA of 2388.57, indicating a neutral trend. The MACD of -2.58 indicates Negative momentum. The RSI at 51.99 is Neutral, neither overbought nor oversold. The STOCH value of 61.48 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥28.64B12.63
2.73%1.65%-2.94%
78
Outperform
¥26.19B11.03
1.19%9.56%7.39%
77
Outperform
¥37.47B18.36
2.32%5.55%18.43%
76
Outperform
¥29.27B19.94
1.73%22.28%19.69%
73
Outperform
¥27.03B24.77
0.64%11.47%17.94%
61
Neutral
$35.55B8.88-11.05%1.87%8.55%-8.14%
60
Neutral
¥35.82B136.37
-18.95%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2349
Nippon Information Development Co., Ltd.
2,358.00
-33.06
-1.38%
JP:2158
FRONTEO, Inc.
910.00
193.00
26.92%
JP:2359
Core Corporation
2,012.00
316.29
18.65%
JP:3655
BrainPad Inc.
1,234.00
388.84
46.01%
JP:4072
Densan System Holdings Co. Ltd.
3,490.00
911.87
35.37%
JP:4396
System Support, Inc.
2,830.00
844.33
42.52%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 05, 2025