NCS&A Co., Ltd. (9709) AI Stock Analysis

• Market Cap: ¥24.43B
• Dividend Yield: 2.7%
• Average Volume (3M): 50.62K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.43
• Revenue Growth: 8.21%
• EPS Growth: 43.69%
• Country: JP
• Employees: 1,190
• Sector: Technology
• Sector Strength: 85
• Industry: Information Technology Services
• EPS (TTM): 26.52
• Shares Outstanding: 18,000,000
• 10 Day Avg. Volume: 36,950
• 30 Day Avg. Volume: 50,620
• 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: ¥1,768.00
• Price Target Upside: 19.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥1,768.00 ▲(19.54% Upside)

NCS&A Co., Ltd. scores highly due to its strong financial performance, characterized by robust growth and profitability, and a solid balance sheet. Technical analysis indicates bullish momentum, though caution is advised due to overbought signals. The stock's valuation is attractive with a low P/E ratio and a decent dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and effective business strategies, supporting long-term sustainability and competitiveness.

Balance Sheet Health

Minimal leverage and a strong equity position enhance financial stability and reduce risk, providing a solid foundation for future growth.

Cash Generation

Strong cash generation relative to profits underscores efficient cash management, enabling reinvestment and strategic initiatives.

Negative Factors

Market Saturation

Lack of recent corporate events or partnerships may indicate challenges in expanding market presence or innovation, potentially limiting growth.

Profit Margin Pressure

While margins are currently healthy, maintaining them in a competitive IT services market may be challenging, impacting future profitability.

Industry Competition

Operating in diverse sectors exposes the company to intense competition, requiring continuous innovation and differentiation to maintain market position.

NCS&A Co., Ltd. Business Overview & Revenue Model

Company Description

NCS&A Co., Ltd. (9709) is a Japanese company primarily engaged in providing information technology solutions. The company specializes in systems integration, software development, and IT infrastructure services. NCS&A caters to a broad range of industries, including finance, manufacturing, and public sectors, offering tailored IT solutions to enhance operational efficiency and productivity.

How the Company Makes Money

NCS&A Co., Ltd. generates revenue through a combination of systems integration, software development, and IT infrastructure services. The company earns money by designing and implementing customized IT solutions for clients across various industries, including finance, manufacturing, and public sectors. Additionally, NCS&A may maintain long-term service contracts for IT support and infrastructure management, contributing to recurring revenue streams. Key partnerships with technology providers and industry-specific expertise also play a crucial role in securing large-scale projects and enhancing the company's market position.

NCS&A Co., Ltd. Financial Statement Overview

Summary

NCS&A Co., Ltd. demonstrates strong financial health with consistent revenue growth, robust profitability margins, and a solid balance sheet with minimal leverage. Effective cash flow management further enhances its financial stability.

Income Statement

NCS&A Co., Ltd. demonstrates strong revenue growth with a 8.38% increase from 2024 to 2025, coupled with improving profit margins. The gross profit margin for 2025 stands at 30.5%, and the net profit margin is 10.29%, indicating efficient cost management and profitability. The EBIT margin of 9.73% and EBITDA margin of 11.58% further showcase the company's operational efficiency. Overall, the company exhibits robust growth and solid profitability metrics.

Balance Sheet

The company's balance sheet is characterized by a very low debt-to-equity ratio of 0.002, reflecting minimal leverage and a strong equity position. With a return on equity of 14.82% in 2025, the company effectively utilizes shareholder funds to generate profits. Additionally, the equity ratio of 66.72% highlights a stable financial structure with a significant portion of assets funded by equity. These factors suggest financial stability and low risk.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow, growing by 85.48% from 2024 to 2025. The operating cash flow to net income ratio of 1.05 indicates strong cash generation relative to profits, and the free cash flow to net income ratio of 1.04 further supports this strength. The company's ability to generate cash exceeds net income, underlining efficient cash management and a solid financial position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.49B	20.49B	18.91B	19.39B	20.46B	19.75B
Gross Profit	6.25B	6.25B	5.64B	5.46B	5.51B	5.11B
EBITDA	2.27B	2.37B	2.37B	1.84B	1.52B	1.23B
Net Income	2.11B	2.11B	1.54B	1.27B	978.42M	789.85M
Balance Sheet
Total Assets	21.32B	21.32B	19.21B	18.59B	17.70B	16.85B
Cash, Cash Equivalents and Short-Term Investments	11.15B	11.15B	9.90B	9.20B	9.36B	8.35B
Total Debt	29.97M	29.97M	60.08M	102.12M	153.93M	214.81M
Total Liabilities	7.09B	7.09B	6.96B	7.96B	7.57B	7.52B
Stockholders Equity	14.23B	14.23B	12.25B	10.63B	10.13B	9.33B
Cash Flow
Free Cash Flow	0.00	2.20B	1.18B	697.70M	1.25B	106.02M
Operating Cash Flow	0.00	2.21B	1.51B	1.17B	1.57B	250.10M
Investing Cash Flow	0.00	-415.29M	-316.29M	-636.51M	-63.03M	-103.80M
Financing Cash Flow	0.00	-507.69M	-504.39M	-693.15M	-403.19M	-1.28B

NCS&A Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1479.00
• 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:9709, the sentiment is Positive. The current price of 1479 is above the 20-day moving average (MA) of 1416.25, above the 50-day MA of 1254.90, and above the 200-day MA of 999.26, indicating a bullish trend. The MACD of 76.82 indicates Positive momentum. The RSI at 65.72 is Neutral, neither overbought nor oversold. The STOCH value of 61.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9709.

NCS&A Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9709	80 Outperform	¥24.43B	10.69		2.70%	8.21%	43.69%
2185	78 Outperform	¥23.11B	10.78		1.37%	-1.95%	34.62%
4396	76 Outperform	¥30.23B	20.59		1.68%	22.28%	19.69%
2349	75 Outperform	¥26.32B	11.09		1.18%	9.56%	7.39%
Sector *	61 Neutral	$36.58B	11.16	-10.43%	1.86%	8.71%	-7.09%
2338	―	¥22.73B	―		―	―	―
3837	67 Neutral	¥23.80B	19.01		2.24%	9.83%	23.34%