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NOVA SYSTEM CO.,LTD. (JP:5257)
:5257
Japanese Market
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NOVA SYSTEM CO.,LTD. (5257) AI Stock Analysis

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JP:5257

NOVA SYSTEM CO.,LTD.

(5257)

Rating:75Outperform
Price Target:
¥3,128.00
▲(4.48%Upside)
The overall stock score of 75 reflects strong financial performance driven by significant revenue growth and improved cash flow, alongside reasonable valuation metrics. Technical indicators suggest moderate resistance, which tempers the otherwise positive outlook.

NOVA SYSTEM CO.,LTD. (5257) vs. iShares MSCI Japan ETF (EWJ)

NOVA SYSTEM CO.,LTD. Business Overview & Revenue Model

Company DescriptionNOVA SYSTEM CO.,LTD. (5257) is a technology company that specializes in providing advanced IT solutions and services. The company operates primarily in the software development sector, focusing on creating innovative software products and offering IT consulting services to a diverse range of industries. Its core offerings include custom software development, system integration, and IT infrastructure management.
How the Company Makes MoneyNOVA SYSTEM CO.,LTD. generates revenue through multiple streams primarily centered around its software development and IT services. The company makes money by designing custom software solutions tailored to the specific needs of its clients, which often involves long-term contracts and ongoing support services. Additionally, NOVA SYSTEM CO.,LTD. earns from system integration projects where it helps businesses implement and integrate new technologies into their existing infrastructure. IT consulting services also contribute significantly to the company's earnings, providing strategic advice and technical support. The company may also engage in partnerships with other technology firms to expand its service offerings and access new markets, thus enhancing its revenue potential.

NOVA SYSTEM CO.,LTD. Financial Statement Overview

Summary
NOVA SYSTEM CO., LTD. exhibits strong financial health with significant revenue growth, improved profitability, and a solid balance sheet. The company maintains low leverage and high equity, and its cash flow situation has improved significantly, positioning it well for future growth and operational stability.
Income Statement
85
Very Positive
NOVA SYSTEM CO., LTD. demonstrates strong revenue growth with a 19.14% increase from 2023 to 2024. The gross profit margin is stable at 22.05% for 2024, indicating efficient cost management. Net profit margin improved to 6.10%, reflecting growing profitability. Both EBIT and EBITDA margins are solid at 8.17% and 9.15% respectively, indicating strong operational performance.
Balance Sheet
78
Positive
The company's balance sheet shows a robust equity base with a debt-to-equity ratio of 0.28, reflecting low leverage. With an equity ratio of 59.86%, the company maintains significant financial stability. Return on equity improved to 17.64%, showcasing efficient use of equity to generate profits. Overall, the balance sheet is strong with a focus on equity financing.
Cash Flow
80
Positive
Free cash flow improved significantly from a deficit in 2023 to a positive 236 million yen in 2024, reflecting effective cash management. Operating cash flow to net income ratio is 0.64, indicating good cash conversion from profits. The free cash flow to net income ratio is 0.60, showcasing efficient cash generation relative to profits. Overall, cash flow stability has improved markedly.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.46B5.42B4.63B4.17B4.08B
Gross Profit1.42B1.33B1.03B759.21M854.79M
EBITDA606.70M550.57M370.10M145.30M249.14M
Net Income394.68M342.24M212.56M72.21M137.56M
Balance Sheet
Total Assets3.73B3.38B2.79B2.58B2.77B
Cash, Cash Equivalents and Short-Term Investments758.98M898.69M633.55M937.23M988.95M
Total Debt628.00M894.07M902.65M930.47M1.39B
Total Liabilities1.50B1.59B1.62B1.63B1.98B
Stockholders Equity2.23B1.80B1.16B944.96M787.70M
Cash Flow
Free Cash Flow234.73M-66.20M-310.49M156.90M72.30M
Operating Cash Flow253.24M145.01M80.14M174.69M126.61M
Investing Cash Flow158.88M-223.71M-299.11M161.36M88.74M
Financing Cash Flow-265.84M308.13M-27.82M-455.80M-9.21M

NOVA SYSTEM CO.,LTD. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2994.00
Price Trends
50DMA
2835.70
Positive
100DMA
2845.07
Positive
200DMA
2656.98
Positive
Market Momentum
MACD
41.90
Negative
RSI
58.83
Neutral
STOCH
64.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5257, the sentiment is Positive. The current price of 2994 is above the 20-day moving average (MA) of 2939.20, above the 50-day MA of 2835.70, and above the 200-day MA of 2656.98, indicating a bullish trend. The MACD of 41.90 indicates Negative momentum. The RSI at 58.83 is Neutral, neither overbought nor oversold. The STOCH value of 64.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5257.

NOVA SYSTEM CO.,LTD. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥4.20B11.71
15.53%2.74%
69
Neutral
¥4.11B12.21
67
Neutral
¥3.68B27.98
10.24%280.31%
63
Neutral
$34.55B5.25-11.40%1.91%5.47%-20.39%
62
Neutral
¥4.80B181.48
-6.27%-109.58%
40
Underperform
¥3.65B
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5257
NOVA SYSTEM CO.,LTD.
2,999.00
-136.00
-4.34%
JP:2345
Kushim,Inc.
208.00
-57.00
-21.51%
JP:4069
BlueMeme Inc.
1,382.00
160.00
13.09%
JP:4167
Kokopelli, Inc.
472.00
-40.00
-7.81%
JP:5596
OutlookConsulting Co.,Ltd.
1,298.00
140.00
12.09%
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.Date of analysis: Jun 12, 2025