Nalnet Communications, Inc. (5870) AI Stock Analysis

• Market Cap: ¥4.96B
• Dividend Yield: 1.67%
• Average Volume (3M): 46.39K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 1.08
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 95
• Sector: Services
• Sector Strength: N/A
• Industry: Personal Products & Services
• EPS (TTM): 12.68
• Shares Outstanding: 5,332,100
• 10 Day Avg. Volume: 49,520
• 30 Day Avg. Volume: 46,390
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• 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: ¥1,181.00
• Price Target Upside: 31.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ¥1,181.00 ▲(31.66% 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. Business Overview & Revenue Model

Company Description

Nalnet 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 Money

Nalnet 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

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

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

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.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	8.54B	7.67B	7.03B	6.42B
Gross Profit	2.38B	1.94B	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: Neutral
• Last Price: 897.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5870, the sentiment is Neutral. The current price of 897 is below the 20-day moving average (MA) of 980.55, below the 50-day MA of 947.00, and above the 200-day MA of 666.73, indicating a neutral trend. The MACD of -4.74 indicates Positive momentum. The RSI at 43.09 is Neutral, neither overbought nor oversold. The STOCH value of 15.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5870.

Nalnet Communications, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5870	79 Outperform	¥4.96B	17.07	―	1.67%	―	―
6060	73 Outperform	¥3.95B	7.15	―	2.93%	-0.58%	1.09%
2424	69 Neutral	¥3.70B	8.47	―	1.22%	6.57%	52.89%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
2437	42 Neutral	¥2.95B	―	―	1.71%	-24.31%	56.72%
7074	41 Neutral	¥2.25B	―	―	―	-21.04%	76.41%
6181	41 Neutral	¥3.79B	278.94	―	―	6.32%	-3428.60%