Nalnet Communications, Inc. (5870) AI Stock Analysis

• Market Cap: ¥3.68B
• Dividend Yield: 2.17%
• Average Volume (3M): 18.51K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 1.01
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 95
• Sector: Services
• Sector Strength: N/A
• Industry: Personal Products & Services
• EPS (TTM): 32.49
• Shares Outstanding: 5,332,100
• 10 Day Avg. Volume: 5,120
• 30 Day Avg. Volume: 18,509
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: ¥704.00
• Price Target Upside: 1.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥704.00 ▲(1.44%Upside)

Nalnet Communications receives a solid score of 75, driven by strong technical performance and a fair valuation. Financial performance is stable but hindered by profitability and liquidity concerns. These factors combined suggest a balanced outlook with growth opportunities and risks.

Nalnet Communications, Inc. Business Overview & Revenue Model

Company Description

Nalnet Communications, Inc. engages in management and maintenance of vehicles. It provides its service to automobile-related companies such as auto leasing companies and individual users. It also offers business process outsourcing (BPO) services and sales of vehicles. The company was founded on July 18, 2019 and is headquartered in Kasugai, Japan.

How the Company Makes Money

Nalnet Communications, Inc. Financial Statement Overview

Summary

Nalnet Communications shows strong revenue growth and operational efficiency with stable gross and EBITDA margins. However, challenges in profitability and liquidity are evident due to declining net profit margin and free cash flow.

Income Statement

Nalnet Communications has shown impressive revenue growth, with a 13.8% increase from 2024 to 2025. The gross profit margin remains stable at 27.8%, reflecting effective cost management. However, the net profit margin has decreased to 2.8% in 2025, indicating reduced profitability. Despite this, the EBITDA margin remains strong at 10.2%, highlighting operational efficiency.

Balance Sheet

The company's balance sheet indicates a healthy equity position, with a debt-to-equity ratio of 0.5, suggesting moderate leverage. The return on equity has decreased to 7.0% in 2025, showing reduced profitability for shareholders. The equity ratio of 34.6% underscores a strong capital structure, with adequate shareholder equity supporting the asset base.

Cash Flow

Nalnet Communications exhibits a decline in free cash flow, with a decrease of 48.0% from 2024 to 2025. The operating cash flow to net income ratio of 1.8 indicates strong cash generation relative to net income. However, the free cash flow to net income ratio of 1.5 suggests that cash flows are still robust despite a decline in net income.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	8.54B	7.67B	7.03B	6.42B
Gross Profit	2.38B	2.31B	2.18B	2.10B
EBITDA	874.61M	942.50M	1.11B	793.16M
Net Income	238.33M	305.14M	622.15M	199.23M
Balance Sheet
Total Assets	9.92B	9.57B	9.60B	9.42B
Cash, Cash Equivalents and Short-Term Investments	859.48M	1.03B	602.22M	683.14M
Total Debt	1.72B	2.13B	2.45B	2.80B
Total Liabilities	6.49B	6.46B	6.69B	6.94B
Stockholders Equity	3.43B	3.27B	2.91B	2.48B
Cash Flow
Free Cash Flow	348.94M	670.34M	261.89M	606.55M
Operating Cash Flow	427.58M	827.32M	374.12M	696.99M
Investing Cash Flow	-91.12M	-138.20M	-112.82M	-96.86M
Financing Cash Flow	-503.92M	-264.41M	-342.22M	-311.20M

Nalnet Communications, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 694.00
• 50DMA: Positive
• 100DMA: Positive
• 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:5870, the sentiment is Positive. The current price of 694 is above the 20-day moving average (MA) of 680.20, above the 50-day MA of 657.88, and above the 200-day MA of 558.14, indicating a bullish trend. The MACD of 11.59 indicates Negative momentum. The RSI at 58.91 is Neutral, neither overbought nor oversold. The STOCH value of 79.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5870.

Nalnet Communications, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6060	83 Outperform	¥4.04B	10.27		2.85%	0.82%	-33.69%
5870	75 Outperform	¥3.68B	15.46		2.17%	―	―
2424	74 Outperform	¥3.97B	9.35		1.14%	1.35%	17.94%
Sector *	56 Neutral	HK$2.62B	5.06	-9.32%	6.44%	12.55%	-102.16%
6181	46 Neutral	¥3.45B	278.94		―	5.55%	-24579.42%
2437	45 Neutral	¥3.14B	―		1.71%	-23.47%	-100.94%
7074	41 Neutral	¥2.18B	―		―	-21.39%	51.35%