tiprankstipranks
Nippon Information Development Co., Ltd. (JP:2349)
:2349
Japanese Market
Want to see JP:2349 full AI Analyst Report?

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

0 Followers

Top Page

JP:2349

Nippon Information Development Co., Ltd.

(2349)

Select Model
Select Model
Select Model
Outperform 75 (OpenAI - 5.2)
Rating:75Outperform
Price Target:
¥2,606.00
▲(14.50% Upside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by strong financial quality (notably the debt-free balance sheet and steady growth), partially offset by weak technical momentum (below key moving averages and negative MACD). Reasonable valuation (low P/E with a modest yield) provides additional support.
Positive Factors
Debt-free conservative balance sheet
An effectively debt-free balance sheet provides durable financial flexibility and downside protection. It reduces interest burden and insolvency risk, enabling the company to fund organic growth, absorb cyclical revenue shocks, and allocate cash to dividends or strategic investments without needing external debt.
Negative Factors
Margin compression since 2023 peak
Drifting EBIT and EBITDA margins erode operating leverage and reduce the cushion for reinvestment or distribution. If structural cost pressures or pricing competition persist, lower margins can constrain retained earnings and slow improvements in return metrics over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free conservative balance sheet
An effectively debt-free balance sheet provides durable financial flexibility and downside protection. It reduces interest burden and insolvency risk, enabling the company to fund organic growth, absorb cyclical revenue shocks, and allocate cash to dividends or strategic investments without needing external debt.
Read all positive factors

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

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 ap...
How the Company Makes Money
The company primarily makes money by providing IT services to clients, with revenue generated from fees for system/software development work and ongoing support/maintenance arrangements. A major component of this type of business model is typicall...

Nippon Information Development Co., Ltd. Financial Statement Overview

Summary
Strong overall fundamentals supported by steady revenue growth and resilient profitability, an exceptionally conservative balance sheet with effectively no debt, and generally solid free cash flow tracking net income. Main risks are mild margin softening since the 2023 peak and uneven operating cash flow conversion/FCF growth volatility.
Income Statement
84
Very Positive
Balance Sheet
95
Very Positive
Cash Flow
79
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue25.38B26.43B24.97B22.57B20.45B18.25B
Gross Profit5.76B6.30B5.68B5.27B4.81B4.38B
EBITDA3.23B3.53B3.24B2.96B2.67B2.34B
Net Income2.34B2.50B2.37B2.11B2.21B1.63B
Balance Sheet
Total Assets28.59B30.72B28.56B26.62B24.31B22.27B
Cash, Cash Equivalents and Short-Term Investments17.00B18.12B16.20B14.19B13.05B11.85B
Total Debt360.54M0.0010.13M17.02M23.28M16.82M
Total Liabilities6.89B6.45B7.03B6.91B6.40B6.17B
Stockholders Equity21.70B24.28B21.53B19.71B17.91B16.10B
Cash Flow
Free Cash Flow0.002.33B2.57B1.83B2.06B1.62B
Operating Cash Flow0.002.51B2.77B1.85B2.09B1.65B
Investing Cash Flow0.00-376.46M-506.84M-121.89M-1.21B-318.93M
Financing Cash Flow0.00-308.66M-302.26M-582.60M-267.83M-617.69M

Nippon Information Development Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2276.00
Price Trends
50DMA
2387.51
Negative
100DMA
2360.61
Negative
200DMA
2327.83
Negative
Market Momentum
MACD
-21.60
Positive
RSI
46.16
Neutral
STOCH
30.83
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 2276 is below the 20-day moving average (MA) of 2355.65, below the 50-day MA of 2387.51, and below the 200-day MA of 2327.83, indicating a bearish trend. The MACD of -21.60 indicates Positive momentum. The RSI at 46.16 is Neutral, neither overbought nor oversold. The STOCH value of 30.83 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥29.78B10.774.36%7.11%20.03%
75
Outperform
¥25.80B10.521.21%5.85%5.71%
74
Outperform
¥26.57B11.872.45%8.50%2.04%
71
Outperform
¥21.43B10.821.70%15.21%12.50%
69
Neutral
¥31.97B8.542.22%12.35%56.74%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
44
Neutral
¥20.54B-6.8620.62%36.84%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2349
Nippon Information Development Co., Ltd.
2,323.00
-10.83
-0.46%
JP:3393
Startia Holdings,Inc.
3,005.00
470.82
18.58%
JP:3916
Digital Information Technologies Corp.
864.00
-376.78
-30.37%
JP:4072
Densan System Holdings Co. Ltd.
2,960.00
510.35
20.83%
JP:4396
System Support, Inc.
1,031.00
-175.34
-14.53%
JP:4813
Access Co., Ltd.
520.00
-303.00
-36.82%
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: May 16, 2026