Nomura System Corporation Co., Ltd. (3940) AI Stock Analysis

• Market Cap: ¥7.05B
• Dividend Yield: 2.15%
• Average Volume (3M): 321.24K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.55
• Revenue Growth: 8.71%
• EPS Growth: 4.70%
• Country: JP
• Employees: 133
• Sector: Technology
• Sector Strength: 85
• Industry: Information Technology Services
• EPS (TTM): 1.12
• Shares Outstanding: 46,692,000
• 10 Day Avg. Volume: 247,930
• 30 Day Avg. Volume: 321,243
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ―

Nomura System Corporation shows strong financial performance with solid growth and stability, supported by a robust balance sheet and effective cash management. However, technical indicators point to a bearish trend, and the stock's valuation is reasonable with a moderate dividend yield. These factors combine to offer a moderately positive outlook for the stock.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a strong demand for the company's IT solutions and services, suggesting an expanding market presence and effective business strategies.

Balance Sheet Health

A robust balance sheet with no debt and a high equity ratio provides financial stability and flexibility for future investments and growth opportunities.

Cash Generation

Strong cash generation and effective cash management enhance liquidity, enabling the company to fund operations, invest in growth, and return value to shareholders.

Negative Factors

Stock Performance

The bearish trend in stock performance could reflect market concerns or uncertainties, potentially affecting investor sentiment and the company's ability to raise capital through equity markets.

Market Sentiment

Negative technical indicators may signal weak market sentiment, which could impact the company's stock price and investor confidence in the near to medium term.

Stock Volatility

A relatively low beta indicates less volatility compared to the market, which might limit potential upside in bullish market conditions, affecting investor returns.

Nomura System Corporation Co., Ltd. Business Overview & Revenue Model

Company Description

Nomura System Corporation Co., Ltd. (3940) is a Japan-based company primarily engaged in the information technology sector. The company specializes in providing comprehensive IT solutions, including software development, system integration, and IT consulting services. Nomura System Corporation serves a diverse range of industries by delivering customized technological solutions that enhance operational efficiency and business performance.

How the Company Makes Money

Nomura System Corporation Co., Ltd. generates revenue through multiple streams primarily centered around its expertise in IT services. The company earns income by developing and selling proprietary software products tailored to specific client needs. Additionally, it provides system integration services, which involve designing and implementing complex IT systems for businesses. Consulting services also form a significant part of its revenue model, helping clients optimize their IT infrastructure and processes. The company may also partner with other technology firms to broaden its service offerings, thereby increasing its market reach and revenue potential.

Nomura System Corporation Co., Ltd. Financial Statement Overview

Summary

Nomura System Corporation exhibits strong financial health across all verticals. The income statement shows consistent revenue growth and solid profit margins, while the balance sheet is robust with no debt and a high equity ratio. Cash flow metrics highlight effective cash management and strong liquidity. The company is well-positioned financially with minimal risk and substantial growth potential.

Income Statement

Nomura System Corporation has demonstrated strong revenue growth, with a 11.17% increase from last year. The company maintains healthy profit margins, with a net profit margin of 11.18% and a gross profit margin of 26.57%. The EBIT margin is robust at 15.70%, and EBITDA margin is 16.03%, indicating efficient operations and profitability. Overall, the income statement reflects a solid performance with consistent growth and stable profitability.

Balance Sheet

The balance sheet is marked by a strong equity position, with a debt-to-equity ratio of 0, demonstrating no leverage risk. The equity ratio stands at 87.83%, indicating a high proportion of equity to total assets, which underscores financial stability. Return on Equity (ROE) is healthy at 11.27%, showcasing effective utilization of equity to generate profits. Overall, the balance sheet is strong, with low risk and high stability.

Cash Flow

Operating cash flow increased to 420 million, and free cash flow grew by 18.47% from the previous year, reflecting strong cash generation. The operating cash flow to net income ratio is 1.15, indicating effective conversion of earnings into cash. The free cash flow to net income ratio is also robust at 1.13, showing efficient cash management. Overall, the cash flow statement indicates solid cash generation and healthy liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.45B	3.28B	2.95B	2.70B	2.79B	2.54B
Gross Profit	957.09M	862.36M	782.12M	666.87M	742.30M	639.47M
EBITDA	599.54M	525.57M	471.28M	362.86M	480.48M	375.21M
Net Income	417.22M	366.05M	359.61M	255.71M	349.32M	269.47M
Balance Sheet
Total Assets	3.52B	3.70B	3.45B	3.14B	2.96B	2.68B
Cash, Cash Equivalents and Short-Term Investments	2.50B	2.85B	2.67B	2.07B	1.85B	1.85B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	395.52M	450.35M	403.60M	307.15M	313.49M	287.54M
Stockholders Equity	3.13B	3.25B	3.04B	2.84B	2.65B	2.40B
Cash Flow
Free Cash Flow	0.00	412.15M	348.53M	409.22M	147.98M	206.27M
Operating Cash Flow	0.00	420.12M	349.79M	445.84M	159.65M	206.82M
Investing Cash Flow	0.00	-8.89M	456.74M	-77.36M	-8.97M	-549.00K
Financing Cash Flow	0.00	-222.96M	-209.46M	-147.70M	-150.01M	-118.80M

Nomura System Corporation Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 151.00
• 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:3940, the sentiment is Positive. The current price of 151 is above the 20-day moving average (MA) of 145.10, above the 50-day MA of 140.74, and above the 200-day MA of 127.17, indicating a bullish trend. The MACD of 3.08 indicates Negative momentum. The RSI at 64.18 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3940.

Nomura System Corporation Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4752	83 Outperform	¥7.07B	9.20		3.46%	5.59%	16.69%
3988	75 Outperform	¥6.43B	14.75		1.12%	12.89%	-8.37%
3940	72 Outperform	¥7.05B	17.49		2.15%	8.71%	4.70%
2488	69 Neutral	¥8.51B	14.35		2.69%	14.39%	22.26%
3625	66 Neutral	¥5.00B	10.02		1.10%	32.20%	221.55%
Sector *	61 Neutral	$36.58B	11.16	-10.43%	1.86%	8.71%	-7.09%
4398	57 Neutral	¥5.75B	39.64		1.19%	-5.47%	-68.65%