NOVA SYSTEM CO.,LTD. (5257) AI Stock Analysis

• Market Cap: ¥4.14B
• Dividend Yield: N/A
• Average Volume (3M): 2.29K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.70
• Revenue Growth: 15.53%
• EPS Growth: 2.74%
• Country: JP
• Employees: 470
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 52.18
• Shares Outstanding: 1,402,500
• 10 Day Avg. Volume: 2,930
• 30 Day Avg. Volume: 2,286
• PEG Ratio: 0.39
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 75 Outperform
• Price Target: ¥3,128.00 ▲(9.03%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. Business Overview & Revenue Model

Company Description

NOVA SYSTEM CO.,LTD. (5257) is a technology-driven company specializing in providing innovative IT solutions and services. The company operates in the software development and information technology sectors, focusing on delivering customized software products, IT consulting, and system integration services. NOVA SYSTEM CO.,LTD. aims to enhance business efficiency and performance for its clients across various industries through its comprehensive range of technology solutions.

How the Company Makes Money

NOVA SYSTEM CO.,LTD. generates revenue primarily through the development and sale of customized software solutions and IT consulting services. The company offers system integration services that help clients streamline their operations and improve productivity. Key revenue streams include project-based contracts for software development, long-term service agreements for IT consulting, and system maintenance contracts. The company may also engage in strategic partnerships with other technology providers to expand its service offerings and reach a broader client base, contributing to its overall earnings.

NOVA SYSTEM CO.,LTD. Financial Statement Overview

Summary

NOVA SYSTEM CO., LTD. exhibits strong financial health with significant revenue growth and improved profitability. The company maintains a solid balance sheet with low leverage and high equity, while its cash flow situation has improved considerably. This positions the company well for future growth and operational stability, with minimal financial risk.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.46B	5.42B	4.63B	4.17B	4.08B
Gross Profit	1.42B	1.33B	1.03B	759.21M	854.79M
EBITDA	591.00M	550.57M	370.10M	145.30M	249.14M
Net Income	394.00M	342.24M	212.56M	72.21M	137.56M
Balance Sheet
Total Assets	3.73B	3.38B	2.79B	2.58B	2.77B
Cash, Cash Equivalents and Short-Term Investments	758.00M	898.69M	633.55M	937.23M	988.95M
Total Debt	628.00M	894.07M	902.65M	930.47M	1.39B
Total Liabilities	1.50B	1.59B	1.62B	1.63B	1.98B
Stockholders Equity	2.23B	1.80B	1.16B	944.96M	787.70M
Cash Flow
Free Cash Flow	234.73M	-66.20M	-310.49M	156.90M	72.30M
Operating Cash Flow	253.24M	145.01M	80.14M	174.69M	126.61M
Investing Cash Flow	158.88M	-223.71M	-299.11M	161.36M	88.74M
Financing Cash Flow	-265.84M	308.13M	-27.82M	-455.80M	-9.21M

NOVA SYSTEM CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2869.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2869 is above the 20-day moving average (MA) of 2809.60, above the 50-day MA of 2772.04, and above the 200-day MA of 2619.18, indicating a bullish trend. The MACD of 52.49 indicates Negative momentum. The RSI at 65.38 is Neutral, neither overbought nor oversold. The STOCH value of 84.34 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5257	75 Outperform	¥4.14B	11.22		―	15.53%	2.74%
4173	75 Outperform	¥3.87B	38.37		―	1.71%	-53.67%
5596	69 Neutral	¥3.84B	11.87		―	―	―
4167	67 Neutral	¥3.61B	27.32		―	10.24%	280.31%
Sector *	63 Neutral	$33.61B	6.06	-11.53%	1.82%	5.53%	-18.79%
4069	59 Neutral	¥4.31B	181.48		―	-6.27%	-109.58%
2345	39 Underperform	¥3.65B	―		―	―	―