NSW Inc. (9739) AI Stock Analysis

• Market Cap: ¥37.96B
• Dividend Yield: 3.38%
• Average Volume (3M): 11.38K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.82
• Revenue Growth: -0.10%
• EPS Growth: -19.50%
• Country: JP
• Employees: 2,428
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 71.22
• Shares Outstanding: 14,900,000
• 10 Day Avg. Volume: 11,500
• 30 Day Avg. Volume: 11,383
• PEG Ratio: -0.82
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 12.74
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥2,863.00 ▲(10.12% Upside)

The score is driven primarily by strong financial resilience (debt-free balance sheet and solid profitability) and attractive valuation (low P/E and a ~3.37% dividend yield). Offsetting factors include weaker recent cash flow momentum/cash conversion and only mixed technicals with the price still below longer-term moving averages.

Positive Factors

Balance Sheet Strength

A debt-free balance sheet provides NSW Inc. with strong financial flexibility and low financial risk, ensuring stability and resilience against economic fluctuations.

Revenue Rebound

The significant revenue rebound indicates robust market demand and effective business strategies, supporting long-term growth prospects for NSW Inc.

Dividend Stability

Maintaining a stable dividend forecast demonstrates NSW Inc.'s commitment to shareholder returns and suggests confidence in its financial health and future cash flows.

Negative Factors

Cash Flow Weakness

Weaker cash flow conversion indicates potential working-capital challenges, which could impact NSW Inc.'s ability to fund operations and investments efficiently.

Net Margin Pressure

Decreasing net margins suggest rising cost pressures or pricing challenges, which could affect NSW Inc.'s profitability and competitive positioning over time.

Decline in Operating Profit

A decline in operating profit reflects potential inefficiencies or market challenges, which may hinder NSW Inc.'s ability to sustain its current growth trajectory.

NSW Inc. Business Overview & Revenue Model

Company Description

How the Company Makes Money

NSW Inc. Financial Statement Overview

Summary

NSW Inc. maintains a strong financial position with consistent revenue growth and solid profitability margins. The balance sheet is exceptionally strong with no debt, reflecting financial stability. However, a decline in free cash flow growth is a concern, although cash flows are generally healthy.

Income Statement

NSW Inc. showcases strong financial performance with consistent revenue growth, achieving a 6.36% increase in revenue for TTM. The company maintains a robust gross profit margin of 20.1% and a net profit margin of 8.52%, indicating efficient cost management and profitability. Both EBIT and EBITDA margins are healthy, at 11.77% and 12.69%, respectively, reflecting solid operational efficiency.

Balance Sheet

The balance sheet of NSW Inc. is exceptionally strong, with no debt, resulting in a debt-to-equity ratio of 0. This indicates financial stability and low-risk exposure. The return on equity stands at 12.62%, demonstrating effective use of shareholder funds. The equity ratio of 77.54% highlights a high reliance on equity financing, contributing to its robust financial health.

Cash Flow

NSW Inc. displays a moderate cash flow position with a free cash flow to net income ratio of 0.71, indicating good cash generation relative to profits. However, the free cash flow growth rate is negative compared to the previous year, showing a decline of 32.79%. The operating cash flow to net income ratio is 0.78, suggesting efficient conversion of income to cash, but could improve.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.67B	50.03B	50.30B	46.19B	43.45B	39.28B
Gross Profit	10.69B	10.51B	10.01B	9.40B	8.68B	7.58B
EBITDA	6.30B	5.92B	6.33B	5.83B	5.48B	4.46B
Net Income	3.42B	3.66B	4.29B	4.09B	3.47B	2.77B
Balance Sheet
Total Assets	47.32B	47.15B	44.14B	40.66B	36.81B	32.66B
Cash, Cash Equivalents and Short-Term Investments	18.46B	19.67B	18.81B	15.35B	15.18B	12.38B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	10.92B	11.73B	10.96B	10.78B	10.30B	9.04B
Stockholders Equity	36.40B	35.41B	33.17B	29.88B	26.52B	23.62B
Cash Flow
Free Cash Flow	3.35B	3.46B	4.65B	1.55B	3.47B	1.63B
Operating Cash Flow	3.78B	3.85B	5.05B	2.00B	3.73B	2.00B
Investing Cash Flow	-2.71B	6.41B	-8.70B	-1.01B	-344.00M	-583.00M
Financing Cash Flow	-1.27B	-1.41B	-894.00M	-818.00M	-607.00M	-520.00M

NSW Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2600.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9739, the sentiment is Positive. The current price of 2600 is above the 20-day moving average (MA) of 2538.70, above the 50-day MA of 2508.20, and below the 200-day MA of 2609.88, indicating a neutral trend. The MACD of 12.50 indicates Positive momentum. The RSI at 54.58 is Neutral, neither overbought nor oversold. The STOCH value of 34.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9739.

NSW Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4743	81 Outperform	¥45.10B	16.32	―	3.28%	-3.21%	8.89%
9739	76 Outperform	¥37.96B	11.09	―	3.38%	-0.10%	-19.50%
4709	72 Outperform	¥34.26B	13.89	―	3.40%	12.64%	30.73%
3916	72 Outperform	¥41.11B	17.64	―	2.45%	19.04%	30.67%
9742	66 Neutral	¥39.65B	31.73	―	2.77%	-2.93%	-30.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

NSW Inc. Corporate Events

NSW Inc. Reports Mixed Financial Results for First Half of 2025

NSW Inc. reported its consolidated financial results for the six months ended September 30, 2025, showing a slight increase in net sales by 2.7% to ¥24,854 million, but a decline in operating profit by 14.4% to ¥2,360 million. The company maintained its dividend forecast, reflecting stability in shareholder returns despite the decrease in profits, and its equity-to-asset ratio improved to 76.9%, indicating a strong financial position.