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

• Market Cap: ¥30.29B
• Dividend Yield: 2.18%
• Average Volume (3M): 100.44K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.86
• Revenue Growth: 9.56%
• EPS Growth: 30.03%
• Country: JP
• Employees: 606
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 17,889,930
• 10 Day Avg. Volume: 77,240
• 30 Day Avg. Volume: 100,443
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: ¥1,916.00 ▲(15.42% Upside)

The score is driven primarily by strong financial quality (improving margins and growth, debt-free balance sheet, strong ROE), supported by bullish technicals (price above key moving averages and positive MACD). Valuation is the main constraint, with a mid-range P/E only partly offset by a ~2.14% dividend yield, and cash-flow volatility vs. earnings is the key fundamental watch item.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates robust demand for its IT services, suggesting a solid market position and potential for continued expansion.

Balance Sheet Strength

A debt-free balance sheet enhances financial stability, reduces risk, and provides flexibility for strategic investments or weathering economic downturns.

Profitability Improvement

Rising margins reflect operational efficiency and pricing power, which can lead to sustained earnings growth and shareholder value creation.

Negative Factors

Cash Flow Volatility

Inconsistent cash flow relative to earnings may indicate working capital issues or timing mismatches, potentially impacting liquidity and investment capacity.

Moderate Margins

While improving, moderate margins suggest limited pricing power or cost pressures, which could constrain profitability in competitive markets.

Equity Decline

A decline in equity might indicate challenges in retaining earnings or increased liabilities, potentially affecting financial health and investor confidence.

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

Strong fundamentals overall: improving profitability (gross and operating margin expansion, net margin ~7.8% in FY2025) and re-accelerating revenue growth (~13.7% in FY2025). Balance sheet is a major strength with essentially no debt and solid ROE (~17.1%). The main offset is cash-flow quality/consistency—operating cash flow coverage vs. net income is uneven and notably low in FY2025 (~0.46), with choppy free-cash-flow growth.

Income Statement

Profitability is solid and improving: gross margin rose from ~24.7% (FY2020) to ~27.8% (FY2025) and operating margin expanded from ~9.3% to ~11.5%, while net margin improved to ~7.8%. Growth also strengthened, with revenue up ~9.6% (FY2024) and ~13.7% (FY2025) after a weaker patch earlier (notably FY2022 decline). The main watch-out is that margin levels remain moderate for a services business, and results have shown some historical variability in growth.

Balance Sheet

Balance sheet is exceptionally conservative with essentially no debt (debt-to-equity at 0.0 in FY2022–FY2025), reducing refinancing and interest-rate risk. Equity base is sizable relative to assets and shareholder returns are strong (return on equity ~17.1% in FY2025, improving from ~13.4% in FY2024). A mild negative is that equity dipped slightly in FY2025 versus FY2024, but overall leverage and solvency remain clear strengths.

Cash Flow

Free cash flow is consistently positive and generally tracks earnings well (free cash flow around ~0.87x of net income in FY2025). However, operating cash flow has been uneven versus net income (coverage below 1.0 in most years and ~0.46 in FY2025), and free cash flow growth has been choppy (declines in FY2023 and FY2024). This points to working-capital or timing volatility that investors should monitor despite healthy absolute cash generation.

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: 1660.00
• 50DMA: Positive
• 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 1660 is below the 20-day moving average (MA) of 1679.40, above the 50-day MA of 1629.26, and above the 200-day MA of 1345.97, indicating a bullish trend. The MACD of 33.71 indicates Negative momentum. The RSI at 56.60 is Neutral, neither overbought nor oversold. The STOCH value of 64.81 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
3837	81 Outperform	¥30.29B	23.31	―	2.18%	9.56%	30.03%
2185	79 Outperform	¥23.78B	10.88	―	3.06%	-6.49%	4.98%
9799	77 Outperform	¥20.72B	15.87	―	2.43%	5.57%	12.08%
9709	76 Outperform	¥26.09B	9.55	―	3.93%	11.90%	69.40%
3676	73 Outperform	¥19.90B	21.93	―	2.36%	-2.68%	-12.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6572	56 Neutral	¥15.14B	17.50	―	1.75%	13.47%	296.94%