NSW Inc. (9739) AI Stock Analysis

• Market Cap: ¥36.03B
• Dividend Yield: 3.38%
• Average Volume (3M): 11.38K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.78
• Revenue Growth: -0.10%
• EPS Growth: -19.50%
• Country: JP
• Employees: 2,428
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 51.59
• 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: 72 Outperform
• Price Target: ¥2,742.00 ▲(5.46% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven mainly by strong financial quality (notably a debt-free balance sheet) and reasonable valuation with a solid dividend yield. These positives are tempered by weaker technicals (price below key moving averages and negative MACD) and some recent margin/FCF pressure.

Positive Factors

Debt-free balance sheet

A zero-debt balance sheet materially lowers financial risk and improves resiliency across business cycles. It gives management durable flexibility to fund capex, strategic M&A, or sustain dividends without relying on new borrowing, supporting long-term stability.

Stable, mid-range profitability margins

Consistent gross and mid-single-digit to low-teens operating margins indicate a repeatable service/solution business model with pricing power or cost control. These margins underpin sustainable earnings capacity and make cash generation less cyclical over time.

Positive free cash flow conversion

High FCF conversion relative to net income reflects durable cash-generative operations. Reliable FCF supports shareholder returns, reinvestment, and balance sheet strengthening, and cushions the business against revenue or margin volatility over a multi-quarter horizon.

Negative Factors

Step-down in net margins and ROE

A clear decline in net margin and downward ROE trend erodes return on invested capital and reduces internal funds for growth or dividends. If persistent, weaker profitability limits strategic optionality and may indicate deteriorating pricing, mix, or cost pressures.

Modest to negative revenue growth

Negative recent revenue growth signals constrained top-line momentum. In a services-driven model, underwhelming revenue expansion impairs operating leverage, makes margin recovery harder, and raises execution risk for long-term expansion or market-share gains.

Uneven operating cash flow; recent FCF decline

Volatile operating cash flow and negative recent FCF growth reduce predictability of funding for investments and dividends. Even with positive absolute FCF, a declining trend increases sensitivity to shocks and constrains durable capital allocation planning.

NSW Inc. Business Overview & Revenue Model

Company Description

How the Company Makes Money

NSW Inc. Financial Statement Overview

Summary

Fundamentals are strong overall, led by an exceptionally low-risk balance sheet (zero debt, steadily rising equity) and solid profitability. Offsetting this strength are a recent step-down in net margins/ROE and uneven operating cash flow with negative free cash flow growth in TTM and FY2025.

Income Statement

Profitability is solid and fairly consistent, with gross margin around ~20–21% and EBIT/EBITDA margins generally in the low-teens across the period. However, the trajectory has softened: net margin has stepped down from ~8–9% (FY2023–FY2024) to ~6.8% in TTM (Trailing-Twelve-Months), and revenue growth is modest overall (FY2025 slightly negative, while TTM (Trailing-Twelve-Months) shows a rebound). Net income also eased versus prior-year levels, suggesting some pressure on operating leverage.

Balance Sheet

The balance sheet is a clear strength: the company reports zero debt in every period provided, which significantly reduces financial risk. Equity has grown steadily over time, and returns on equity are healthy (roughly ~9.6% in TTM (Trailing-Twelve-Months) and ~10–14% historically), though the recent return on equity trend is down from peak levels, indicating profitability has cooled versus the expanding equity base.

Cash Flow

Cash generation is positive with free cash flow consistently positive and generally close to net income (free cash flow is ~78–93% of net income across periods; ~89% in TTM (Trailing-Twelve-Months)). The main weakness is variability: operating cash flow has been uneven (including a notably weak year in FY2023), and free cash flow growth is negative in TTM (Trailing-Twelve-Months) and FY2025, pointing to some near-term cash flow pressure despite solid accounting profitability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	51.56B	50.03B	50.30B	46.19B	43.45B	39.28B
Gross Profit	10.57B	10.51B	10.01B	9.40B	8.68B	7.58B
EBITDA	5.78B	5.92B	6.33B	5.83B	5.48B	4.46B
Net Income	3.05B	3.66B	4.29B	4.09B	3.47B	2.77B
Balance Sheet
Total Assets	46.71B	47.15B	44.14B	40.66B	36.81B	32.66B
Cash, Cash Equivalents and Short-Term Investments	18.24B	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	10.15B	11.73B	10.96B	10.78B	10.30B	9.04B
Stockholders Equity	36.56B	35.41B	33.17B	29.88B	26.52B	23.62B
Cash Flow
Free Cash Flow	2.85B	3.46B	4.65B	1.55B	3.47B	1.63B
Operating Cash Flow	3.28B	3.85B	5.05B	2.00B	3.73B	2.00B
Investing Cash Flow	-1.78B	6.41B	-8.70B	-1.01B	-344.00M	-583.00M
Financing Cash Flow	-1.28B	-1.41B	-894.00M	-818.00M	-607.00M	-520.00M

NSW Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2600.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 2600 is above the 20-day moving average (MA) of 2451.70, above the 50-day MA of 2497.10, and above the 200-day MA of 2554.75, indicating a bearish trend. The MACD of -29.27 indicates Positive momentum. The RSI at 34.48 is Neutral, neither overbought nor oversold. The STOCH value of 24.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥44.43B	15.49	―	3.28%	-3.21%	8.89%
4709	72 Outperform	¥30.36B	12.37	―	3.40%	12.64%	30.73%
9739	72 Outperform	¥36.03B	11.81	―	3.38%	-0.10%	-19.50%
3916	72 Outperform	¥32.29B	14.21	―	2.45%	19.04%	30.67%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9742	58 Neutral	¥39.61B	42.28	―	2.77%	-2.93%	-30.16%

NSW Inc. Corporate Events

NSW Inc. Nine-Month Profit Falls Despite Higher Sales, Full-Year Outlook and Dividend Payout Maintained

NSW Inc. reported consolidated net sales of ¥37.7 billion for the nine months ended December 31, 2025, up 4.2% year on year, but operating profit fell 18.2% to ¥3.6 billion and profit attributable to owners dropped 20.1% to ¥2.4 billion, compressing basic earnings per share to ¥163.42. Despite weaker profitability, total assets stood at ¥46.7 billion and equity-to-asset ratio improved to 78.3%, while the company kept its full-year forecast unchanged, projecting modest 1.9% sales growth and lower profits, and reaffirmed an annual dividend of ¥85 per share for the year ending March 31, 2026.

For the full fiscal year ending March 31, 2026, NSW expects net sales of ¥51.0 billion and profit attributable to owners of ¥3.54 billion, representing a 3.3% decline in bottom-line earnings. Dividend guidance signals continued shareholder returns with interim and year-end payouts of ¥40 and ¥45 per share respectively, suggesting management’s confidence in cash generation even as margins come under pressure, which will be closely watched by investors amid the profit slowdown.

The most recent analyst rating on (JP:9739) stock is a Buy with a Yen2892.00 price target. To see the full list of analyst forecasts on NSW Inc. stock, see the JP:9739 Stock Forecast page.