Ad-Sol Nissin Corp. (3837) AI Stock Analysis

• Market Cap: ¥23.39B
• Dividend Yield: 2.3%
• Average Volume (3M): 47.49K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.83
• Revenue Growth: 9.83%
• EPS Growth: 23.34%
• Country: JP
• Employees: 606
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 20.91
• Shares Outstanding: 17,889,930
• 10 Day Avg. Volume: 40,530
• 30 Day Avg. Volume: 47,486
• PEG Ratio: 0.60
• Price to Book (P/B): 2.60
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 20.69
• 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: 67 Neutral
• Price Target: ―

Ad-Sol Nissin Corp. exhibits strong financial health with robust profitability and a solid balance sheet, though cash management issues could pose risks. The technical analysis suggests a bearish trend, limiting short-term upside. Valuation appears reasonable, with an average P/E ratio and a modest dividend yield. These factors combine to give a moderate overall score, highlighting strengths in financial stability while cautioning against technical and cash flow concerns.

Ad-Sol Nissin Corp. Business Overview & Revenue Model

Company Description

Ad-Sol Nissin Corporation develops information and embedded systems for companies in Japan. The company offers various ZigBee products, such as wireless communication standard implementing multi-pop communication; tag solution for managing the location of people and objects; communication checker, which allows checkers to check the communication status between two points; and communication environment evaluation tool, a support tool to evaluate the wireless communication environment and communication performance. It also provides power line communication environment evaluation software that allows communication using existing power lines without the need for new wiring; and ruby technology platform. In addition, the company offers Touch Tag products comprises of starter kits for electric field communication. Further, the company provides hands-free authentication systems for individual authentication from natural behavior that does not require an ID card to be held over a reader; and energy monitoring systems for visualization of energy. Additionally, it provides consulting, maintenance, and information system life cycle services. Ad-Sol Nissin Corporation primarily serves power/gas utilities, rail, roads, and financial services. Ad-Sol Nissin Corporation was founded in 1976 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Ad-Sol Nissin Corp. generates revenue primarily through its IT services, which include software development, system integration, and consulting services. The company partners with clients across various industries to implement customized IT solutions that address specific business challenges. Revenue streams include fees for bespoke software development, consulting fees for strategic IT planning, and ongoing maintenance and support contracts. Additionally, the company may engage in joint ventures or strategic partnerships to expand its service offerings and market reach, contributing to its financial performance.

Ad-Sol Nissin Corp. Financial Statement Overview

Summary

Ad-Sol Nissin Corp. demonstrates strong profitability with robust margins and consistent revenue growth. The balance sheet shows no debt and a high equity ratio, indicating financial stability. However, cash flow metrics reveal potential concerns, with zero operating cash flow for the TTM, suggesting issues in cash management.

Income Statement

Ad-Sol Nissin Corp. demonstrates strong profitability with healthy gross and net profit margins. The gross profit margin for the TTM is approximately 27.9%, while the net profit margin is around 7.4%. Revenue growth is consistent, with a 16.1% increase from 2023 to 2024. The EBIT margin stands at 10.9%, and the EBITDA margin at 11.9%, indicating efficient operations and good earnings quality. The company's consistent revenue growth and solid profitability metrics indicate strong financial health in this vertical.

Balance Sheet

The balance sheet is robust with no debt, resulting in a debt-to-equity ratio of 0. The equity ratio is a strong 77.0%, showcasing financial stability and low leverage risk. Return on equity (ROE) is 14.3%, reflecting effective use of equity to generate profits. The strong equity position and absence of debt highlight the company's conservative financial management, though the relatively modest ROE suggests room for improvement in utilizing equity.

Cash Flow

Cash flow metrics reveal some concerns. The operating cash flow is reported as zero for the TTM, which may indicate cash management challenges. However, historical data shows stable free cash flow generation, with a growth rate of -13.2% from 2023 to 2024 due to fluctuations in operating cash flow. The absence of current free cash flow could be a temporary issue, but it warrants monitoring to ensure future cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.86B	15.46B	14.08B	12.84B	12.25B	13.52B
Gross Profit	4.48B	4.31B	3.81B	3.36B	3.02B	3.33B
EBITDA	1.98B	1.92B	1.58B	1.33B	1.23B	1.44B
Net Income	1.27B	1.21B	979.15M	841.42M	784.94M	898.59M
Balance Sheet
Total Assets	9.83B	9.89B	10.20B	9.34B	8.07B	8.14B
Cash, Cash Equivalents and Short-Term Investments	3.30B	2.89B	3.76B	3.39B	2.81B	1.68B
Total Debt	0.00	0.00	0.00	0.00	0.00	87.50M
Total Liabilities	2.71B	2.81B	2.91B	2.66B	2.10B	2.81B
Stockholders Equity	7.12B	7.07B	7.29B	6.68B	5.97B	5.33B
Cash Flow
Free Cash Flow	0.00	890.13M	772.86M	890.69M	1.61B	164.34M
Operating Cash Flow	0.00	1.03B	804.96M	1.02B	1.78B	187.39M
Investing Cash Flow	0.00	-202.56M	-71.41M	-99.65M	-241.01M	-6.27M
Financing Cash Flow	0.00	-1.70B	-364.96M	-336.13M	-410.06M	-481.83M

Ad-Sol Nissin Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1316.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3837, the sentiment is Positive. The current price of 1316 is above the 20-day moving average (MA) of 1315.20, below the 50-day MA of 1343.90, and above the 200-day MA of 1130.59, indicating a neutral trend. The MACD of -8.08 indicates Negative momentum. The RSI at 50.21 is Neutral, neither overbought nor oversold. The STOCH value of 44.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3837.

Ad-Sol Nissin Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9709	80 Outperform	¥27.93B	12.23	―	3.77%	8.21%	43.69%
2185	78 Outperform	¥21.50B	10.03	―	3.19%	-1.95%	34.62%
9799	74 Outperform	¥16.02B	13.11	―	3.20%	6.50%	5.16%
3676	73 Outperform	¥20.12B	23.51	―	2.24%	-0.09%	1653.62%
3837	67 Neutral	¥23.39B	21.78	―	2.30%	9.83%	23.34%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6572	60 Neutral	¥20.95B	45.67	―	1.64%	13.47%	296.94%