NSD Co., Ltd. (9759) AI Stock Analysis

• Market Cap: ¥251.00B
• Dividend Yield: 2.67%
• Average Volume (3M): 262.75K
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.47
• Revenue Growth: 9.10%
• EPS Growth: 14.67%
• Country: JP
• Employees: 4,380
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 41.68
• Shares Outstanding: 86,000,000
• 10 Day Avg. Volume: 178,240
• 30 Day Avg. Volume: 262,746
• PEG Ratio: 1.43
• Price to Book (P/B): 3.81
• Price to Sales (P/S): 2.38
• P/FCF Ratio: 21.93
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥3,996.00 ▲(11.59% Upside)

NSD Co., Ltd. is well-positioned with strong financial performance and positive technical indicators. While the valuation is moderate, the company's robust financial health and operational efficiency support its growth potential. Investors should monitor technical signals for potential overbought conditions.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, positioning the company for continued expansion.

Cash Flow Generation

Strong cash flow generation enhances operational flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Balance Sheet Health

A low debt-to-equity ratio indicates financial stability and reduces risk, providing a solid foundation for long-term growth.

Negative Factors

Technical Indicators

Bearish technical indicators may reflect market skepticism, potentially impacting investor confidence and stock performance in the near term.

Earnings Call Absence

The absence of earnings call data limits transparency and investor insight into management's strategic direction and financial outlook.

Corporate Events Absence

Lack of recent corporate events may suggest limited strategic initiatives or market engagement, potentially affecting growth momentum.

NSD Co., Ltd. Business Overview & Revenue Model

Company Description

NSD Co., Ltd. (9759) is a Japanese company primarily engaged in the development and provision of software solutions and services targeting various sectors, including IT and telecommunications. The company specializes in advanced system integration, software development, and IT consulting, focusing on enhancing operational efficiency for its clients through innovative technology applications.

How the Company Makes Money

NSD Co., Ltd. generates revenue through multiple streams, primarily by offering software development and system integration services to businesses across different industries. Their revenue model is built on project-based contracts, where clients pay for custom software solutions tailored to their specific needs. Additionally, NSD earns income from ongoing maintenance and support services for the systems they implement. The company also benefits from strategic partnerships with major technology firms, allowing them to leverage co-developed products and expand their service offerings, further enhancing their revenue potential.

NSD Co., Ltd. Financial Statement Overview

Summary

NSD Co., Ltd. presents a robust financial profile with strong revenue and profit growth, a stable balance sheet with low leverage, and healthy cash flow generation. The company is well-positioned to capitalize on growth opportunities within the software application industry, backed by sound financial management and strategic investments.

Income Statement

NSD Co., Ltd. demonstrates strong revenue growth with a consistent upward trajectory in total revenue over the past five years. The gross profit margin remains healthy, reflecting effective cost management. The net profit margin has also improved steadily, indicating enhanced profitability. EBIT and EBITDA margins are robust, showcasing solid operational efficiency. The revenue growth rate from the previous year is commendable, suggesting a positive market reception and expansion capabilities.

Balance Sheet

The balance sheet of NSD Co., Ltd. reflects a strong financial position with a low debt-to-equity ratio, indicating prudent financial management and stability. The company maintains a high equity ratio, signifying substantial shareholder equity compared to total assets. Return on equity has shown improvement, highlighting effective utilization of equity to generate profits. The strong financial health is further supported by significant cash reserves and low levels of debt.

Cash Flow

NSD Co., Ltd. exhibits impressive cash flow metrics with consistent free cash flow generation, reflecting operational efficiency and financial flexibility. The free cash flow growth rate is stable, indicating the company's ability to generate cash beyond its operational needs. The operating cash flow to net income ratio is strong, demonstrating effective conversion of earnings into cash. Additionally, the free cash flow to net income ratio is favorable, underscoring the company's capacity to sustain operations and invest in growth opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	109.81B	107.79B	101.26B	77.98B	71.19B	66.18B
Gross Profit	26.59B	27.53B	24.96B	17.55B	15.84B	14.04B
EBITDA	19.75B	19.73B	17.97B	15.60B	12.35B	10.16B
Net Income	11.89B	11.79B	10.26B	10.22B	7.82B	6.37B
Balance Sheet
Total Assets	83.43B	90.48B	86.41B	68.16B	63.27B	59.46B
Cash, Cash Equivalents and Short-Term Investments	28.62B	30.36B	29.42B	38.37B	31.82B	30.09B
Total Debt	1.51B	1.86B	3.22B	200.95M	281.12M	225.96M
Total Liabilities	19.70B	22.23B	22.37B	12.70B	11.43B	10.28B
Stockholders Equity	62.84B	67.42B	62.37B	54.71B	51.19B	48.61B
Cash Flow
Free Cash Flow	0.00	11.71B	11.64B	9.74B	6.85B	7.60B
Operating Cash Flow	0.00	12.30B	12.19B	10.07B	7.24B	8.16B
Investing Cash Flow	0.00	904.00M	-17.85B	6.02B	-377.12M	-658.56M
Financing Cash Flow	0.00	-10.27B	-5.77B	-7.57B	-6.15B	-3.63B

NSD Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3581.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9759, the sentiment is Positive. The current price of 3581 is above the 20-day moving average (MA) of 3482.10, above the 50-day MA of 3406.42, and above the 200-day MA of 3418.41, indicating a bullish trend. The MACD of 64.43 indicates Negative momentum. The RSI at 63.53 is Neutral, neither overbought nor oversold. The STOCH value of 82.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9759.

NSD Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9759	77 Outperform	¥251.00B	21.61	―	2.67%	9.10%	14.67%
4776	72 Outperform	¥151.17B	23.81	―	0.91%	26.47%	142.77%
3697	66 Neutral	€281.47B	31.03	24.24%	―	17.35%	74.71%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4443	54 Neutral	¥223.10B	203.06	―	―	27.65%	96.11%
4478	51 Neutral	¥199.40B	143.84	―	―	31.57%	―
3994	41 Neutral	€240.21B	-38.85	-19.16%	―	19.57%	-16.67%

NSD Co., Ltd. Corporate Events

NSD Co., Ltd. Announces Share Repurchase Plan

NSD Co., Ltd. has announced a share repurchase plan, approved by its Board of Directors, to buy back up to 650,000 shares, representing 0.85% of its total shares, for a maximum of 2 billion yen. This move aligns with the company’s policy of maintaining a total return ratio of 70% or more and a payout ratio of 50% or more, with the expected ratios for this fiscal year being 72.4% and 56.6%, respectively.

The most recent analyst rating on (JP:9759) stock is a Buy with a Yen3733.00 price target. To see the full list of analyst forecasts on NSD Co., Ltd. stock, see the JP:9759 Stock Forecast page.

NSD Co., Ltd. Increases Dividend Forecast for Fiscal Year 2026

NSD Co., Ltd. has announced a revision to its fiscal year-end dividend forecast for the fiscal year ending March 31, 2026. The company, which operates in the technology sector, has increased its dividend from 89 yen to 92 yen per share, reflecting its commitment to shareholder returns with a total return ratio expected to be 72.4% and a payout ratio of 56.6%. This decision aligns with the company’s policy of maintaining a total return ratio of 70% or more and a payout ratio of 50% or more.

The most recent analyst rating on (JP:9759) stock is a Buy with a Yen3733.00 price target. To see the full list of analyst forecasts on NSD Co., Ltd. stock, see the JP:9759 Stock Forecast page.

NSD Co., Ltd. Revises Financial Forecast Upwards for FY 2026

NSD Co., Ltd. has revised its financial forecast for the fiscal year ending March 31, 2026, due to a favorable business environment in the second quarter. The company anticipates an increase in net sales and profits, with a 2% rise in net sales and a 4.1% increase in operating income, reflecting positive business performance.

The most recent analyst rating on (JP:9759) stock is a Buy with a Yen3733.00 price target. To see the full list of analyst forecasts on NSD Co., Ltd. stock, see the JP:9759 Stock Forecast page.

NSD Co., Ltd. Reports Strong Q2 Financial Performance and Revises Forecasts

NSD Co., Ltd. reported a strong financial performance for the second quarter of the fiscal year ending March 31, 2026, with significant increases in net sales, operating income, and net income attributable to owners of the parent compared to the previous year. The company has revised its financial forecasts and dividend predictions, indicating confidence in continued growth and stability, which is likely to positively impact its stakeholders and market positioning.

The most recent analyst rating on (JP:9759) stock is a Buy with a Yen3733.00 price target. To see the full list of analyst forecasts on NSD Co., Ltd. stock, see the JP:9759 Stock Forecast page.