NETSTARS Co.,Ltd. (5590) AI Stock Analysis

• Market Cap: ¥16.61B
• Dividend Yield: N/A
• Average Volume (3M): 118.17K
• Price to Earnings (P/E): 49.5
• Beta (1Y): 0.75
• Revenue Growth: 25.85%
• EPS Growth: N/A
• Country: JP
• Employees: 223
• Sector: Technology
• Sector Strength: 88
• Industry: Financial - Credit Services
• EPS (TTM): 5.51
• Shares Outstanding: 16,772,800
• 10 Day Avg. Volume: 218,840
• 30 Day Avg. Volume: 118,166
• PEG Ratio: 3.78
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 3.26
• P/FCF Ratio: 1.70
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥1,124.00 ▲(7.77% Upside)

The score is driven primarily by strong cash flow and a debt-free balance sheet, alongside a clear improvement in profitability trends. Offsetting this, technical signals are mixed (negative MACD despite decent RSI), and valuation looks demanding with a high P/E and no dividend yield provided.

Positive Factors

Cash Generation

Consistent and strong cash flow provides financial flexibility and capacity for growth investments, supporting long-term stability.

Debt-Free Balance Sheet

A debt-free balance sheet enhances financial resilience, reducing risk and interest burden, and allows for strategic investments.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion.

Negative Factors

Profitability Challenges

Ongoing profitability challenges at the EBIT and net income levels suggest the business has yet to achieve sustainable earnings.

Negative Equity Returns

Negative equity returns indicate that the company is not yet generating sufficient profit relative to its capital base, impacting long-term value.

Volatility in Cash Flow

Volatility in cash flow due to timing effects can lead to unpredictable financial performance, complicating long-term planning.

NETSTARS Co.,Ltd. Business Overview & Revenue Model

Company Description

NETSTARS Co.,Ltd. engages in the QR code payment business in Japan. The company offers StarPay, a multi-cashless payment solution that enables integrated application and management of payment services; StarPay-mini, a development platform for mini-apps; and StarPay Order provides cashless and cash register-free ordering system. It also provides regional point service; StarPay-Digital coupon; payment gateway for overseas financial institutions; and inbound promotion services. The company was incorporated in 2009 and is headquartered in Chuo, Japan.

How the Company Makes Money

NETSTARS Co., Ltd. generates revenue primarily through its payment processing services. The company earns transaction fees from merchants who utilize its QR code and mobile payment platforms to facilitate customer payments. Additionally, NETSTARS may receive income from partnerships with financial institutions and technology providers, allowing them to expand their service offerings and reach. The company's revenue model is significantly bolstered by the increasing adoption of cashless payments in Japan and elsewhere, as businesses seek efficient, secure, and convenient payment solutions.

NETSTARS Co.,Ltd. Financial Statement Overview

Summary

Netstars Co., Ltd. demonstrates strong revenue growth and effective cash flow management, but persistent profitability issues and operational inefficiencies remain. The company's debt-free status and stable equity position are positive indicators of financial stability, yet improvement in profitability is essential for long-term growth.

Income Statement

Netstars Co., Ltd. shows a positive revenue growth trend with a 4.87% increase from the previous year. The gross profit margin is strong at 76.31%, indicating effective cost management. However, the company remains unprofitable with a negative net profit margin of -9.64% and EBIT margin of -2.16%, reflecting ongoing operational inefficiencies that need addressing.

Balance Sheet

The company has no debt, resulting in a favorable debt-to-equity ratio. The equity ratio is solid at 19.88%, showcasing a stable balance sheet. Despite these strengths, the return on equity remains negative at -5.29%, highlighting profitability challenges.

Cash Flow

Netstars Co., Ltd. exhibits a robust cash flow performance with free cash flow growth of 28.78% and a strong operating cash flow to net income ratio of 199.70. The free cash flow to net income ratio is impressive at 199.51, indicating efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.34B	3.90B	3.72B	2.99B	1.96B
Gross Profit	3.35B	2.98B	2.62B	1.86B	1.03B
EBITDA	553.83M	138.29M	-136.78M	-435.81M	-925.84M
Net Income	305.08M	-37.62M	-347.69M	-572.53M	-1.02B
Balance Sheet
Total Assets	38.27B	35.74B	28.36B	21.58B	18.51B
Cash, Cash Equivalents and Short-Term Investments	36.41B	33.88B	26.52B	19.75B	16.89B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	31.07B	28.63B	21.29B	15.12B	11.50B
Stockholders Equity	7.19B	7.11B	7.07B	6.46B	7.01B
Cash Flow
Free Cash Flow	2.62B	7.51B	5.83B	2.81B	6.77B
Operating Cash Flow	2.62B	7.51B	6.01B	3.22B	7.06B
Investing Cash Flow	-58.00M	-200.56M	-187.02M	-377.98M	-642.60M
Financing Cash Flow	0.00	9.92M	933.50M	-600.00K	4.32B

NETSTARS Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1043.00
• 50DMA: Negative
• 100DMA: Negative
• 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:5590, the sentiment is Negative. The current price of 1043 is above the 20-day moving average (MA) of 987.90, above the 50-day MA of 990.64, and above the 200-day MA of 989.86, indicating a neutral trend. The MACD of 7.70 indicates Negative momentum. The RSI at 50.58 is Neutral, neither overbought nor oversold. The STOCH value of 44.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5590.

NETSTARS Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8771	84 Outperform	¥88.07B	24.29	―	2.02%	13.52%	7.75%
7191	81 Outperform	¥26.80B	16.95	―	2.50%	16.70%	22.23%
5590	63 Neutral	¥16.61B	49.55	―	―	25.85%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
5258	61 Neutral	¥14.57B	-26.99	―	―	12.25%	-1134.27%
7383	60 Neutral	¥54.69B	29.48	―	―	13.25%	1251.39%
7183	54 Neutral	¥2.88B	26.01	―	2.04%	12.86%	-63.06%

NETSTARS Co.,Ltd. Corporate Events

NETSTARS Co., Ltd. Reports Strong Financial Turnaround for Nine Months Ending September 2025

NETSTARS Co., Ltd. reported a significant improvement in its financial performance for the nine months ending September 30, 2025, with net sales increasing by 23.6% year-on-year to 3,367 million yen. The company also achieved a turnaround from losses in the previous year to a profit attributable to owners of the parent amounting to 219 million yen, reflecting a positive shift in its operational efficiency and market positioning.