Want to see JP:3940 full AI Analyst Report?
Top Page
Nomura System Corporation Co., Ltd.
(3940)
Select Model
Select Model
Rating:78Outperform
Price Target:
¥133.00
▲(0.00% Upside)
Action:Reiterated
Date:02/18/26
The score is driven primarily by strong financial quality—especially the debt-free balance sheet and solid margins—partly tempered by the 2025 revenue decline and uneven cash conversion. Technicals are modestly supportive (price above key moving averages, positive MACD), and valuation is reasonable with a mid-teens P/E and a moderate dividend yield.
Positive Factors
Debt-free balance sheet
Having no reported debt materially reduces refinancing and leverage risk, increasing financial resilience. Over the next 2–6 months this debt-free position supports steady capital allocation (dividends, targeted reinvestment), cushions cyclicality in projects, and preserves strategic optionality.
Negative Factors
2025 revenue decline
A year-over-year revenue decline signals demand softness or project timing risk in the core systems-integration business. If this trend persists it can limit scale benefits, challenge fixed-cost absorption, and put pressure on growth-oriented investments and client win rates over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
Having no reported debt materially reduces refinancing and leverage risk, increasing financial resilience. Over the next 2–6 months this debt-free position supports steady capital allocation (dividends, targeted reinvestment), cushions cyclicality in projects, and preserves strategic optionality.
Read all positive factors
Nomura System Corporation Co., Ltd. (3940) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.32B
Dividend Yield2.43%
Average Volume (3M)135.64K
Price to Earnings (P/E)15.9
Beta (1Y)0.58
Revenue Growth-6.94%
EPS Growth-18.87%
CountryJP
Employees133
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)7.35
Shares Outstanding46,692,000
10 Day Avg. Volume101,320
30 Day Avg. Volume135,643
Financial Highlights & Ratios
PEG Ratio1.31
Price to Book (P/B)1.70
Price to Sales (P/S)1.80
P/FCF Ratio16.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nomura System Corporation Co., Ltd. Business Overview & Revenue Model
Company Description
Nomura System Corporation Co, Ltd. is a Japanese firm specializing in IT consulting, primarily serving large enterprises across the country. Their extensive service portfolio encompasses: Comprehensive SAP Solutions: Including consulting, implemen...
How the Company Makes Money
null...
Nomura System Corporation Co., Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.21B | 3.32B | 3.28B | 2.95B | 2.70B | 2.79B |
| Gross Profit | 839.92M | 945.23M | 862.36M | 782.12M | 666.87M | 742.30M |
| EBITDA | 503.61M | 596.49M | 525.57M | 471.28M | 362.86M | 480.48M |
| Net Income | 335.63M | 403.66M | 366.05M | 359.61M | 255.71M | 349.32M |
Balance Sheet | ||||||
| Total Assets | 3.67B | 3.98B | 3.70B | 3.45B | 3.15B | 2.96B |
| Cash, Cash Equivalents and Short-Term Investments | 2.28B | 2.70B | 2.85B | 2.67B | 2.07B | 1.85B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 351.09M | 451.51M | 454.41M | 403.60M | 311.87M | 313.51M |
| Stockholders Equity | 3.32B | 3.53B | 3.25B | 3.04B | 2.84B | 2.65B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 360.10M | 412.15M | 348.53M | 409.22M | 147.98M |
| Operating Cash Flow | 0.00 | 371.99M | 420.12M | 349.79M | 445.84M | 159.65M |
| Investing Cash Flow | 0.00 | -250.19M | -8.89M | 456.74M | -77.36M | -8.97M |
| Financing Cash Flow | 0.00 | -275.92M | -222.96M | -209.46M | -147.70M | -150.01M |
Nomura System Corporation Co., Ltd. Technical Analysis
Neutral
133.00
Price Trends
119.14
Negative
127.87
Negative
130.16
Negative
Market Momentum
-1.16
Negative
55.26
Neutral
77.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3940, the sentiment is Neutral. The current price of 133 is above the 20-day moving average (MA) of 113.05, above the 50-day MA of 119.14, and above the 200-day MA of 130.16, indicating a neutral trend. The MACD of -1.16 indicates Negative momentum. The RSI at 55.26 is Neutral, neither overbought nor oversold. The STOCH value of 77.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3940.
Nomura System Corporation Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥6.79B | 11.02 | ― | 3.13% | 12.64% | 22.76% | |
78 Outperform | ¥5.32B | 15.92 | ― | 2.43% | -6.94% | -18.87% | |
71 Outperform | ¥21.82B | 12.71 | ― | 1.70% | 15.21% | 12.50% | |
69 Neutral | ¥31.45B | 10.58 | ― | 2.22% | 12.35% | 56.74% | |
69 Neutral | ¥6.86B | 8.43 | ― | 3.37% | 4.97% | 8.75% | |
68 Neutral | ¥5.64B | 11.96 | ― | 1.23% | 14.08% | 6.64% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:3940
Nomura System Corporation Co., Ltd.
117.00
-23.48
-16.71%
JP:3988
SYS Holdings Co. Ltd.
526.00
-32.14
-5.76%
JP:4072
Densan System Holdings Co. Ltd.
2,931.00
410.73
16.30%
JP:4396
System Support, Inc.
1,060.00
-200.39
-15.90%
JP:4752
Showa System Engineering Corporation
1,513.00
101.97
7.23%
JP:5576
O.B.System Inc.
2,857.00
17.05
0.60%
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.