NSW Inc. (9739) AI Stock Analysis

• Market Cap: ¥38.47B
• Dividend Yield: 3.29%
• Average Volume (3M): 13.20K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.89
• Revenue Growth: <0.01%
• EPS Growth: -17.60%
• Country: JP
• Employees: 2,428
• Sector: Technology
• Sector Strength: 81
• Industry: Information Technology Services
• EPS (TTM): 40.61
• Shares Outstanding: 14,900,000
• 10 Day Avg. Volume: 8,810
• 30 Day Avg. Volume: 13,203
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ―

NSW Inc. is financially robust with strong revenue growth and no debt, which significantly boosts its overall score. However, the stock faces technical challenges as it trades below key moving averages, indicating potential downward pressure. The valuation is appealing with a low P/E ratio and a solid dividend yield, providing a cushion against market volatility.

NSW Inc. Business Overview & Revenue Model

Company Description

Nippon Systemware Co., Ltd. provides enterprise, services, embedded, and device solutions in Japan. The company operates in three segments: IT Solutions, Service Solutions, and Product Solutions. It provides IT solutions that support customer operations in manufacturing, retail, logistics, insurance, and banking sectors, as well as government offices and organizations; and delivers equipment, such as PCs and servers. The company also offers digital solutions, such as IoT & AI, and website/EC construction services; and public and private cloud environment construction, housing hosting using its data centers, and comprehensive management services. In addition, it is involved in the embedded development business, which include development of applications, middleware, and drivers for automotive and industrial equipment; and device development business that designs LSIs and boards for image processing and communication. The company was incorporated in 1966 and is headquartered in Tokyo, Japan.

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	50.49B	50.03B	50.30B	46.19B	43.45B	39.28B
Gross Profit	10.56B	10.51B	10.01B	9.40B	8.68B	7.58B
EBITDA	6.56B	5.92B	6.33B	5.83B	5.48B	4.46B
Net Income	3.60B	3.66B	4.29B	4.09B	3.47B	2.77B
Balance Sheet
Total Assets	45.85B	47.15B	44.14B	40.66B	36.81B	32.66B
Cash, Cash Equivalents and Short-Term Investments	18.85B	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	10.51B	11.73B	10.96B	10.78B	10.30B	9.04B
Stockholders Equity	35.34B	35.41B	33.17B	29.88B	26.52B	23.62B
Cash Flow
Free Cash Flow	3.74B	3.46B	4.65B	1.55B	3.47B	1.63B
Operating Cash Flow	4.10B	3.85B	5.05B	2.00B	3.73B	2.00B
Investing Cash Flow	5.38B	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: Negative
• Last Price: 2582.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2582 is below the 20-day moving average (MA) of 2626.50, below the 50-day MA of 2612.76, and below the 200-day MA of 2797.28, indicating a bearish trend. The MACD of -5.04 indicates Positive momentum. The RSI at 43.26 is Neutral, neither overbought nor oversold. The STOCH value of 9.51 is Positive, 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
9739	68 Neutral	¥38.47B	10.67		3.29%	<0.01%	-17.60%
Sector *	61 Neutral	$35.56B	8.62	-10.46%	1.86%	8.47%	-8.26%
CB4	―	€206.23M	9.89	10.08%	―	―	―
4743	80 Outperform	¥37.83B	14.38		3.43%	-5.91%	-1.55%
4709	76 Outperform	¥35.87B	14.79		2.75%	12.33%	48.96%
3916	72 Outperform	¥35.22B	15.67		2.86%	21.47%	30.65%
9742	71 Outperform	¥37.47B	18.59		2.81%	2.06%	83.15%