Nalnet Communications, Inc. (5870) AI Stock Analysis

• Market Cap: ¥5.39B
• Dividend Yield: 1.32%
• Average Volume (3M): 46.39K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.91
• Revenue Growth: 18.31%
• EPS Growth: 102.31%
• Country: JP
• Employees: 95
• Sector: Services
• Sector Strength: N/A
• Industry: Personal Products & Services
• EPS (TTM): 18.56
• Shares Outstanding: 5,332,100
• 10 Day Avg. Volume: 49,520
• 30 Day Avg. Volume: 46,390
• PEG Ratio: -0.55
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 6.93
• 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): 81.4
• Revenue Forecast (FY): ¥9.75B

• Rating: 57 Neutral
• Price Target: ¥1,039.00 ▼(-8.38% Downside)
• Action: Downgraded Date: 03/24/26
• Date: Action: Downgraded 03/24/26

The score is held back primarily by weakening profitability (sharp margin compression) and uneven cash generation despite steady revenue growth and a stronger leverage position. Technically, the stock sits below key moving averages, offset slightly by neutral RSI and near-oversold stochastic. Valuation is fair with a modest dividend yield, providing limited support.

Positive Factors

Consistent revenue growth

Steady multi-year revenue growth demonstrates durable market demand and expanding customer adoption. Persistent top-line momentum provides a foundation for scaling operations, funding R&D or marketing, and cushioning profit variability, supporting long-term earnings resilience.

Negative Factors

Sharp margin compression

Material margin declines indicate rising cost pressure or pricing erosion that reduce profitability per unit of revenue. Lower gross and net margins erode return on capital, limit reinvestment capacity, and leave earnings highly sensitive to revenue swings over the medium term.

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 ...

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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 ...

Nalnet Communications, Inc. Financial Statement Overview

Breakdown	Mar 2025	Mar 2025	Mar 2024	Mar 2022
Income Statement
Total Revenue	8.54B	7.67B	7.03B	6.42B
Gross Profit	2.00B	1.94B	1.82B	1.80B
EBITDA	872.30M	945.01M	927.37M	793.16M
Net Income	238.33M	305.14M	622.15M	199.23M
Balance Sheet
Total Assets	10.08B	9.73B	9.73B	9.53B
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	6.65B	6.46B	6.81B	7.05B
Stockholders Equity	3.43B	3.27B	2.91B	2.48B
Cash Flow
Free Cash Flow	415.76M	813.23M	365.57M	695.03M
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: Negative
• Last Price: 1134.00
• 50DMA: Negative
• 100DMA: Negative
• 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:5870, the sentiment is Negative. The current price of 1134 is above the 20-day moving average (MA) of 1082.35, above the 50-day MA of 1056.96, and above the 200-day MA of 954.73, indicating a neutral trend. The MACD of -10.40 indicates Positive momentum. The RSI at 42.19 is Neutral, neither overbought nor oversold. The STOCH value of 29.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5870.

Nalnet Communications, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6574	73 Outperform	¥59.57B	8.41	―	―	101.48%	―
7042	71 Outperform	¥2.40B	107.01	―	2.09%	―	―
4331	69 Neutral	¥10.43B	5.24	―	5.06%	0.36%	81.58%
6571	62 Neutral	¥18.32B	37.68	―	2.53%	4.71%	-0.41%
5870	57 Neutral	¥5.39B	15.27	―	1.32%	18.31%	102.31%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
2196	53 Neutral	¥3.90B	3.91	―	―	-4.35%	-132.57%