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Nalnet Communications, Inc. (JP:5870)
:5870
Japanese Market
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Nalnet Communications, Inc. (5870) AI Stock Analysis

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JP:5870

Nalnet Communications, Inc.

(5870)

Rating:79Outperform
Price Target:
¥1,181.00
▲(15.78% Upside)
Nalnet Communications, Inc. receives a strong overall score driven by robust financial performance and bullish technical indicators. While the stock is fairly valued, the overbought technical indicators suggest caution. The absence of earnings call data and corporate events means these factors did not influence the score.

Nalnet Communications, Inc. (5870) vs. iShares MSCI Japan ETF (EWJ)

Nalnet Communications, Inc. Business Overview & Revenue Model

Company DescriptionNalnet Communications, Inc. (5870) is a leading provider in the telecommunications sector, specializing in high-speed internet and digital communication solutions. The company offers a diverse range of services, including broadband connectivity, VoIP services, and cloud-based communication platforms, catering to both residential and commercial clients. With a commitment to innovation and customer satisfaction, Nalnet aims to enhance connectivity and streamline communication for its users.
How the Company Makes MoneyNalnet Communications generates revenue primarily through subscription fees for its broadband internet and VoIP services. The company operates on a tiered pricing model, offering various service packages that cater to different user needs, which allows for scalability in revenue generation. Additionally, Nalnet earns income from the sale of hardware and equipment necessary for service installation and maintenance. Strategic partnerships with technology providers and local businesses further enhance its market reach, contributing to its earnings through joint marketing initiatives and bundled service offerings.

Nalnet Communications, Inc. Financial Statement Overview

Summary
Nalnet Communications, Inc. demonstrates robust revenue growth and stable operational performance. The balance sheet reflects moderate leverage and a balanced capital structure, but there is room for improvement in profitability and cash flow management. The company should focus on enhancing net profit margins and free cash flow generation.
Income Statement
82
Very Positive
Nalnet Communications, Inc. has shown strong revenue growth, with a 11.34% increase from 2024 to 2025. The gross profit margin is healthy at 27.81%, and the net profit margin stands at 2.79%. However, the net profit margin has decreased from the previous year, indicating some pressure on profitability. The EBIT and EBITDA margins are stable, reflecting efficient operational management.
Balance Sheet
78
Positive
The company's balance sheet is solid, with a debt-to-equity ratio of 0.50, indicating moderate leverage. The return on equity is 6.95%, which is reasonable but shows a decline from previous years. The equity ratio is 34.57%, suggesting a balanced capital structure. The company has reduced its total debt, improving its financial stability.
Cash Flow
75
Positive
Nalnet Communications has experienced a decline in free cash flow, with a negative growth rate of -47.95%. The operating cash flow to net income ratio is 1.79, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio has decreased, suggesting potential challenges in maintaining free cash flow levels.
BreakdownDec 2025Dec 2024Dec 2023Dec 2022
Income Statement
Total Revenue8.54B7.67B7.03B6.42B
Gross Profit2.38B1.94B2.18B2.10B
EBITDA874.61M942.50M1.11B793.16M
Net Income238.33M305.14M622.15M199.23M
Balance Sheet
Total Assets9.92B9.57B9.60B9.42B
Cash, Cash Equivalents and Short-Term Investments859.48M1.03B602.22M683.14M
Total Debt1.72B2.13B2.45B2.80B
Total Liabilities6.49B6.46B6.69B6.94B
Stockholders Equity3.43B3.27B2.91B2.48B
Cash Flow
Free Cash Flow348.94M670.34M261.89M606.55M
Operating Cash Flow427.58M827.32M374.12M696.99M
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 Price1020.00
Price Trends
50DMA
798.40
Positive
100DMA
708.86
Positive
200DMA
606.84
Positive
Market Momentum
MACD
67.30
Positive
RSI
71.02
Negative
STOCH
56.93
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 1020 is above the 20-day moving average (MA) of 956.10, above the 50-day MA of 798.40, and above the 200-day MA of 606.84, indicating a bullish trend. The MACD of 67.30 indicates Positive momentum. The RSI at 71.02 is Negative, neither overbought nor oversold. The STOCH value of 56.93 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥5.44B19.41
1.47%
74
Outperform
¥4.04B7.31
2.85%-0.58%1.09%
72
Outperform
¥3.90B9.18
1.16%1.35%17.94%
56
Neutral
$13.56B17.9810.03%0.93%7.13%-12.93%
45
Neutral
¥4.02B
1.71%6.32%87.54%
41
Neutral
¥2.36B
-22.38%77.19%
41
Neutral
¥4.08B278.94
6.32%-3428.60%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5870
Nalnet Communications, Inc.
1,018.00
462.43
83.24%
JP:2424
Brass Corp.
692.00
130.41
23.22%
JP:2437
SHINWA WISE HOLDINGS CO. LTD.
364.00
72.00
24.66%
JP:6060
Cocolonet Co., Ltd.
1,052.00
113.78
12.13%
JP:6181
Tameny, Inc.
127.00
6.00
4.96%
JP:7074
Twenty-four seven, Inc.
277.00
61.00
28.24%
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: Aug 26, 2025