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

• Market Cap: ¥15.64B
• Dividend Yield: N/A
• Average Volume (3M): 64.64K
• Price to Earnings (P/E): 90.4
• Beta (1Y): 0.71
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 223
• Sector: Technology
• Sector Strength: 91
• Industry: Financial - Credit Services
• EPS (TTM): 2.70
• Shares Outstanding: 16,696,800
• 10 Day Avg. Volume: 41,230
• 30 Day Avg. Volume: 64,636
• PEG Ratio: 0.81
• Price to Book (P/B): 2.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.81
• 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: 56 Neutral
• Price Target: ―

Netstars Co., Ltd. shows strong financial fundamentals in terms of cash flow and debt management. However, significant challenges in profitability and a bearish technical outlook weigh heavily on the stock. Additionally, a high P/E ratio without earnings support results in an unattractive valuation. Overall, while the company is financially stable, its stock performance is hindered by poor profitability and negative market momentum.

NETSTARS Co.,Ltd. Business Overview & Revenue Model

Company Description

NETSTARS Co., Ltd. is a leading fintech company based in Japan that specializes in providing payment solutions and financial technology services. The company operates in the digital payment sector, offering a range of services including QR code payment platforms, mobile payment systems, and other related financial technology solutions tailored to meet the needs of businesses and consumers.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.90B	3.72B	2.99B	1.96B
Gross Profit	2.98B	2.62B	1.86B	1.03B
EBITDA	138.29M	-113.00M	-449.80M	-925.84M
Net Income	-37.62M	-347.69M	-572.53M	-1.02B
Balance Sheet
Total Assets	35.74B	28.36B	21.58B	18.51B
Cash, Cash Equivalents and Short-Term Investments	33.88B	26.52B	19.75B	16.89B
Total Debt	0.00	0.00	0.00	0.00
Total Liabilities	28.63B	21.29B	15.12B	11.50B
Stockholders Equity	7.11B	7.07B	6.46B	7.01B
Cash Flow
Free Cash Flow	7.51B	5.83B	2.81B	6.77B
Operating Cash Flow	7.51B	6.01B	3.22B	7.06B
Investing Cash Flow	-200.56M	-187.02M	-377.98M	-642.60M
Financing Cash Flow	9.92M	933.50M	-600.00K	4.32B

NETSTARS Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 923.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 923 is below the 20-day moving average (MA) of 927.30, above the 50-day MA of 884.60, and above the 200-day MA of 884.62, indicating a neutral trend. The MACD of 2.19 indicates Positive momentum. The RSI at 50.76 is Neutral, neither overbought nor oversold. The STOCH value of 22.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5590.

NETSTARS Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4689	79 Outperform	¥3.85T	26.91		1.25%	5.67%	38.70%
Sector *	68 Neutral	¥232.71B	14.90	7.50%	2.60%	9.27%	5.76%
3769	66 Neutral	¥646.33B	31.96	20.05%	1.46%	14.07%	29.02%
3928	64 Neutral	¥2.15B	11.00		―	0.08%	43.63%
5590	56 Neutral	¥15.64B	90.37		―	―	―
3994	56 Neutral	€288.52B	―	-18.26%	―	20.96%	-6.20%

NETSTARS Co.,Ltd. Corporate Events

NETSTARS Co., Ltd. Reports 2024 Financial Results with Positive Sales Growth

NETSTARS Co., Ltd. reported its consolidated financial results for the year ended December 31, 2024, showing a slight increase in net sales by 4.9% compared to the previous year. Despite an improvement in net sales, the company still faced challenges with operating and ordinary profits, which remained negative. The company’s financial position saw an increase in total assets, but the equity ratio decreased slightly. The forecast for 2025 indicates a significant improvement in net sales and profitability, suggesting a potential positive shift in the company’s financial health and market positioning.