Nomura System Corporation Co., Ltd. (JP:3940)
:3940
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Nomura System Corporation Co., Ltd.
(3940)
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Rating:78Outperform
Price Target:
¥155.00
▲(16.54% Upside)
Action:ReiteratedDate: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
No reported debt eliminates refinancing and leverage risk, preserving financial flexibility. This durable strength supports investment in services, steady dividends and withstands cyclical IT spending downturns, improving long-term resilience and credit optionality.
Negative Factors
2025 Revenue Decline
A year-over-year revenue contraction signals demand softness or lost project volume. For a project-driven services firm, even a small decline can compress growth runway and reflect client budget variability, challenging multi-period revenue predictability and expansion plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free Balance Sheet
No reported debt eliminates refinancing and leverage risk, preserving financial flexibility. This durable strength supports investment in services, steady dividends and withstands cyclical IT spending downturns, improving long-term resilience and credit optionality.
Read all positive factors
Nomura System Corporation Co., Ltd. (3940) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥6.35B
Dividend Yield2.43%
Average Volume (3M)135.64K
Price to Earnings (P/E)14.5
Beta (1Y)0.58
Revenue Growth2.92%
EPS Growth-0.94%
CountryJP
Employees133
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)2.26
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. provides IT consulting services for large companies in Japan. The company provides SAP consulting, maintenance, and support solutions; RPA/AI consulting; and Web system development consulting services. It also of...
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 nee...
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 | 3.40B | 3.32B | 3.28B | 2.95B | 2.70B | 2.79B |
| Gross Profit | 925.87M | 945.23M | 862.36M | 782.12M | 666.87M | 742.30M |
| EBITDA | 572.90M | 596.49M | 525.57M | 471.28M | 362.86M | 480.48M |
| Net Income | 397.82M | 403.66M | 366.05M | 359.61M | 255.71M | 349.32M |
Balance Sheet | ||||||
| Total Assets | 3.53B | 3.98B | 3.70B | 3.45B | 3.15B | 2.96B |
| Cash, Cash Equivalents and Short-Term Investments | 2.79B | 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 | 349.54M | 451.51M | 454.41M | 403.60M | 311.87M | 313.51M |
| Stockholders Equity | 3.18B | 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
Negative
133.00
Price Trends
137.00
Negative
134.27
Negative
135.04
Negative
Market Momentum
-1.96
Positive
45.61
Neutral
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3940, the sentiment is Negative. The current price of 133 is below the 20-day moving average (MA) of 135.70, below the 50-day MA of 137.00, and below the 200-day MA of 135.04, indicating a bearish trend. The MACD of -1.96 indicates Positive momentum. The RSI at 45.61 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 Negative 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 | ¥7.13B | 10.46 | ― | 3.37% | 5.25% | 23.64% | |
78 Outperform | ¥6.35B | 14.49 | ― | 2.43% | 2.92% | -0.94% | |
72 Outperform | ¥6.13B | 10.09 | ― | 3.13% | 6.08% | 0.53% | |
71 Outperform | ¥23.86B | 11.39 | ― | 1.70% | 22.25% | 31.88% | |
69 Neutral | ¥32.99B | 13.32 | ― | 2.22% | 9.57% | 315.38% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | ¥5.72B | 11.49 | ― | 1.23% | 11.62% | -16.59% |
* Technology Sector Average
JP:3940
Nomura System Corporation Co., Ltd.
136.00
33.57
32.77%
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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.