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

• Market Cap: ¥200.79B
• Dividend Yield: 2.49%
• Average Volume (3M): 262.75K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.37
• Revenue Growth: 9.10%
• EPS Growth: 14.67%
• Country: JP
• Employees: 4,380
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥3,143.00 ▼(-9.27% Downside)
• Action: Reiterated Date: 11/12/25
• Date: Action: Reiterated 11/12/25

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

Recurring revenue & service model

NSD’s business model combines project-based system integration with recurring operation and maintenance contracts. That mix provides durable revenue streams, higher client stickiness, and predictable service margins, supporting cash generation and long-term client relationships.

Strong free cash flow

Consistent free cash flow and strong operating cash conversion give NSD financial flexibility to fund growth, R&D, dividends or M&A without relying heavily on external financing. This underpins durable capital allocation and resilience through cycles.

Conservative balance sheet

A low leverage profile and sizeable equity/cash buffers reduce refinancing and solvency risk, enabling strategic investments and pricing discipline. The strong balance sheet increases resilience to project volatility and supports multi-year client commitments.

Negative Factors

Moderate revenue growth

Mid-single-digit top-line growth suggests NSD operates in a more mature market with limited expansion runway versus higher-growth software peers. Sustaining faster growth may require new services, geographies, or M&A to materially change long-term earnings trajectory.

Project revenue lumpiness

Heavy reliance on client-specific system integration projects creates uneven revenue timing and margin variability. Even with recurring support, large bespoke contracts and long sales cycles can produce lumpy quarterly results and complicate capacity and resource planning.

Limited forward disclosure

Lack of published guidance and recent corporate event disclosures reduces visibility into management’s near-term strategic priorities and capital allocation. For investors and counterparties this makes assessing execution risk and planning assumptions harder over the coming months.

NSD Co., Ltd. Business Overview & Revenue Model

Company Description

NSD Co., Ltd., a systems integrator, provides IT solutions in Japan. The company offers system analysis and design services; develops software programs; and administers facilities management, as well as sells packaged software and solutions. It also provides integrated solutions, such as system design, development, operation, and maintenance services; and system solutions. In addition, the company offers various IT infrastructure services, including planning and procurement services comprising consulting and IT infrastructure sales support services; design, development, and installation services, such as cloud, platform, network, storage, virtualization infrastructure, and security infrastructure design and development support services, as well as application development support services; and operation and maintenance services, such as system operation management and maintenance, system operation, lifecycle management, and helpdesk services. Further, it provides all-purpose software and duty-specific software products, as well as software development services. The company serves financing and insurance, commerce, telecommunication, construction, public, manufacturing, transportation, and service sectors. NSD Co., Ltd. was founded in 1969 and is headquartered in Tokyo, Japan.

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. demonstrates strong financial performance with robust revenue growth, healthy profit margins, a stable balance sheet with low leverage, and impressive cash flow metrics. The company's financial health is supported by effective cost management, strategic investments, and a strong equity position.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• Last Price: 3464.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9759, the sentiment is Negative. The current price of 3464 is above the 20-day moving average (MA) of 2944.05, above the 50-day MA of 3227.16, and above the 200-day MA of 3400.27, indicating a bearish trend. The MACD of -135.24 indicates Positive momentum. The RSI at 28.59 is Positive, neither overbought nor oversold. The STOCH value of 31.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥200.79B	16.62	―	2.49%	9.10%	14.67%
4776	71 Outperform	¥97.58B	13.89	―	1.02%	26.47%	142.77%
3697	68 Neutral	¥175.48B	19.74	24.24%	―	17.35%	74.71%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4443	61 Neutral	¥143.92B	69.61	―	―	27.65%	96.11%
4478	55 Neutral	¥117.43B	132.36	―	―	31.57%	―
3994	49 Neutral	¥166.20B	105.33	-19.16%	―	19.57%	-16.67%

NSD Co., Ltd. Corporate Events

NSD Nears Limit on ¥2 Billion Share Buyback Program

NSD Co., Ltd. has completed a share repurchase program authorized under Article 459 of the Companies Act, buying back 94,200 shares of its common stock on the Tokyo Stock Exchange between February 1 and February 16, 2026, for a total of 294,639,500 yen. This latest tranche brings cumulative repurchases under the October 31, 2025 board resolution to 579,600 shares for 1,999,811,500 yen, nearly reaching the 2 billion yen ceiling and signaling an active capital policy aimed at enhancing shareholder value and optimizing its capital structure.

The repurchase program, initially authorized for up to 650,000 shares and a maximum of 2 billion yen through February 28, 2026, is now effectively complete in monetary terms, with only a small portion of the share volume limit unused. The near-full execution of the buyback underscores management’s commitment to returning capital to shareholders and may support earnings per share and share price stability, affecting investor perceptions of NSD’s financial discipline and confidence in its business outlook.

The most recent analyst rating on (JP:9759) stock is a Buy with a Yen3197.00 price target. To see the full list of analyst forecasts on NSD Co., Ltd. stock, see the JP:9759 Stock Forecast page.

NSD Posts 7.5% January Sales Rise, Cumulative Revenue Up 9.1%

NSD Co., Ltd. reported preliminary, unaudited consolidated net sales of ¥9,770 million for January 2026, representing a 7.5% year-on-year increase compared with the same month a year earlier. The company also disclosed that cumulative consolidated net sales from April 2025 through January 2026 reached ¥96,620 million, up 9.1% year-on-year, indicating steady growth in its ongoing fiscal period and suggesting resilient demand for its IT services.

Management noted that these monthly net sales figures are released shortly after each month, with the exception of quarter-end and year-end closing months in June, September, December, and March. The sustained double-digit growth in cumulative sales compared with the prior year may strengthen NSD’s positioning in the Japanese IT services market and provides investors and other stakeholders with an early indicator of the company’s operating momentum ahead of formal quarterly and annual earnings announcements.

The most recent analyst rating on (JP:9759) stock is a Buy with a Yen3506.00 price target. To see the full list of analyst forecasts on NSD Co., Ltd. stock, see the JP:9759 Stock Forecast page.

NSD Advances Share Buyback Program, Repurchasing 98,300 Shares in January

NSD Co., Ltd. has continued executing its authorized share repurchase program, buying back 98,300 shares of its common stock on the Tokyo Stock Exchange during January 2026 for a total of 339,360,600 yen. This activity forms part of a broader board-approved plan, effective from November 1, 2025 to February 28, 2026, that allows for repurchases of up to 650,000 shares or 2 billion yen; cumulatively, the company has now acquired 485,400 shares for 1,705,172,000 yen, signaling an ongoing effort to enhance shareholder returns and optimize its capital structure.

The most recent analyst rating on (JP:9759) stock is a Buy with a Yen4014.00 price target. To see the full list of analyst forecasts on NSD Co., Ltd. stock, see the JP:9759 Stock Forecast page.

NSD to Merge IT Subsidiaries to Streamline Group Operations

NSD Co., Ltd. has approved an absorption-type merger of its consolidated subsidiaries ART Holdings Co., Ltd. and AGM Co., Ltd. into ART Technology Co., Ltd., with ART Technology to remain as the surviving entity. The transaction, scheduled to take effect on April 1, 2026 following shareholder approvals in February, is aimed at consolidating management resources and improving operational efficiency within the NSD group; shares of ART Technology will be newly allotted to NSD in exchange for its holdings in ART Holdings, and the company expects the impact on its consolidated financial results to be immaterial, underscoring that the move is primarily a structural streamlining rather than a major earnings driver.

The most recent analyst rating on (JP:9759) stock is a Buy with a Yen4014.00 price target. To see the full list of analyst forecasts on NSD Co., Ltd. stock, see the JP:9759 Stock Forecast page.

NSD Appoints Hidetaka Kikawada as New Representative Director Ahead of Next Medium-Term Plan

NSD Co., Ltd. has announced a change in its top management structure, appointing Director and Senior Managing Executive Officer Hidetaka Kikawada as Representative Director, effective April 1, 2026, alongside current President & CEO Yoshikazu Imajo. The move is intended to strengthen the company’s business execution framework ahead of the next Medium-term Management Plan starting in April 2026, supporting sustainable growth and enhanced corporate value. Kikawada brings extensive experience in advanced technology, innovation strategy, and digital transformation businesses within the NSD Group, indicating a continued strategic emphasis on high-value technology services, consulting, and enterprise solutions, which may reinforce NSD’s competitive positioning and execution capabilities in Japan’s IT services market.

The most recent analyst rating on (JP:9759) stock is a Buy with a Yen4014.00 price target. To see the full list of analyst forecasts on NSD Co., Ltd. stock, see the JP:9759 Stock Forecast page.

NSD Raises Dividend Forecast for Fiscal 2025, Strengthening Shareholder Returns

NSD Co., Ltd. has revised upward its forecast for the year-end dividend for the fiscal year ending March 31, 2026, raising the planned payout from 92 yen to 94 yen per share, compared with 87 yen in the previous fiscal year. The increase reflects the company’s upgraded earnings forecast and its shareholder return policy, which targets a consolidated payout ratio of at least 50% and a total return ratio of at least 70%; based on the new forecast, NSD now expects a payout ratio of 56.5% and a total return ratio of 71.9%, underscoring its commitment to enhancing shareholder returns alongside profit growth.

The most recent analyst rating on (JP:9759) stock is a Buy with a Yen4014.00 price target. To see the full list of analyst forecasts on NSD Co., Ltd. stock, see the JP:9759 Stock Forecast page.

NSD Raises Full-Year Earnings Forecast on Strong Third-Quarter Performance

NSD Co., Ltd. has revised upward its consolidated earnings forecast for the fiscal year ending March 31, 2026, reflecting stronger-than-expected performance in the third quarter amid a favorable business environment. The company now projects net sales of ¥117.2 billion, operating income of ¥18.4 billion, ordinary income of ¥18.6 billion, and net income attributable to owners of the parent of ¥12.7 billion, representing modest increases of 1.5%–3.4% over its previous outlook and marking growth over fiscal 2025 results, signaling continued operational momentum and improved profitability for stakeholders.

The most recent analyst rating on (JP:9759) stock is a Buy with a Yen4014.00 price target. To see the full list of analyst forecasts on NSD Co., Ltd. stock, see the JP:9759 Stock Forecast page.

NSD Lifts Full-Year Outlook on Solid Nine-Month Earnings and Higher Dividend Plan

NSD Co., Ltd. reported solid growth for the nine months ended 31 December 2025, with net sales rising 9.2% year on year to ¥86.8 billion and net income attributable to owners of the parent up 11.7% to ¥9.0 billion, driven by higher operating income and improved profitability. The company’s financial position remained robust, with total assets of about ¥90.7 billion, an equity ratio of 75.5% and net assets slightly higher than at the previous fiscal year-end, signaling continued balance sheet strength and capacity to return value to shareholders through dividends. Reflecting its earnings momentum, NSD revised its full-year forecast, now expecting fiscal 2025/26 net sales of ¥117.2 billion and net income of ¥12.7 billion, alongside a planned increase in the annual dividend to ¥94 per share, moves that underscore management’s confidence in sustained demand for its IT services and are likely to be welcomed by investors focused on growth and shareholder returns.

The most recent analyst rating on (JP:9759) stock is a Buy with a Yen4014.00 price target. To see the full list of analyst forecasts on NSD Co., Ltd. stock, see the JP:9759 Stock Forecast page.

NSD Advances Share Buyback Program, Repurchasing 186,400 Shares in December

NSD Co., Ltd. reported the progress of its ongoing share repurchase program, conducted under its Articles of Incorporation pursuant to the Companies Act of Japan. During the period from December 1 to December 31, 2025, the company bought back 186,400 shares of its common stock on the Tokyo Stock Exchange for a total of ¥658,138,400. This buyback is part of a broader board-authorized program, approved on October 31, 2025, that permits repurchases of up to 650,000 shares or ¥2 billion between November 1, 2025, and February 28, 2026. Cumulatively under this resolution, NSD has repurchased 387,100 shares for approximately ¥1.37 billion, signaling continued capital allocation to shareholder returns and potentially supporting its share price and capital efficiency metrics as the program progresses.

The most recent analyst rating on (JP:9759) stock is a Buy with a Yen3996.00 price target. To see the full list of analyst forecasts on NSD Co., Ltd. stock, see the JP:9759 Stock Forecast page.