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

• Market Cap: ¥250.71B
• Dividend Yield: 2.52%
• Average Volume (3M): 134.85K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.37
• Revenue Growth: 7.09%
• EPS Growth: 11.95%
• Country: JP
• Employees: 4,380
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): 28.54
• Shares Outstanding: 86,000,000
• 10 Day Avg. Volume: 132,450
• 30 Day Avg. Volume: 134,846
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥3,931.00
• Price Target Upside: 13.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥3,931.00 ▲(13.68% Upside)

NSD Co., Ltd. achieves a strong overall stock score driven primarily by its robust financial performance, characterized by strong revenue and profit growth, a stable balance sheet, and healthy cash flow generation. The valuation is fair, with a reasonable P/E ratio and a moderate dividend yield. Technical analysis indicates a neutral to slightly bearish trend, which slightly tempers the overall score.

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 primarily through its software development and system integration services. The company develops custom software solutions tailored to the specific needs of its clients, charging for the development, implementation, and maintenance of these systems. Additionally, NSD provides IT consulting services, advising clients on optimizing their IT infrastructure and processes, for which it earns consulting fees. The company may also engage in long-term contracts with clients for ongoing IT support and managed services, providing a steady stream of income. Partnerships with technology vendors and strategic collaborations with other firms in the IT sector may also contribute to its revenue, although specific partnership details are not available.

NSD Co., Ltd. Financial Statement Overview

Summary

NSD Co., Ltd. demonstrates strong financial performance with robust revenue growth, healthy profit margins, a strong balance sheet characterized by low debt and high equity, and impressive cash flow metrics. These factors indicate solid financial health and operational efficiency.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	107.79B	101.26B	77.98B	71.19B	66.18B
Gross Profit	25.41B	24.96B	17.55B	15.84B	14.04B
EBITDA	19.73B	17.97B	15.60B	12.35B	10.16B
Net Income	11.79B	10.26B	10.22B	7.82B	6.37B
Balance Sheet
Total Assets	90.48B	86.41B	68.16B	63.27B	59.46B
Cash, Cash Equivalents and Short-Term Investments	30.36B	29.42B	38.37B	31.82B	30.09B
Total Debt	1.86B	3.22B	200.95M	281.12M	225.96M
Total Liabilities	22.23B	22.37B	12.70B	11.43B	10.28B
Stockholders Equity	67.42B	62.37B	54.71B	51.19B	48.61B
Cash Flow
Free Cash Flow	11.71B	11.64B	9.74B	6.85B	7.60B
Operating Cash Flow	12.30B	12.19B	10.07B	7.24B	8.16B
Investing Cash Flow	904.00M	-17.85B	6.02B	-377.12M	-658.56M
Financing Cash Flow	-10.27B	-5.77B	-7.57B	-6.15B	-3.63B

NSD Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3458.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 3458 is below the 20-day moving average (MA) of 3520.05, below the 50-day MA of 3522.80, and above the 200-day MA of 3373.20, indicating a neutral trend. The MACD of -1.51 indicates Positive momentum. The RSI at 43.49 is Neutral, neither overbought nor oversold. The STOCH value of 31.77 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	73 Outperform	¥250.71B	22.31		2.52%	7.09%	11.95%
Sector *	61 Neutral	$36.28B	7.09	-7.27%	1.97%	7.76%	-8.56%
47D	―	€2.10B	―	-18.26%	―	―	―
7CZ	―	€2.51B	48.34	23.55%	―	―	―
4776	72 Outperform	¥180.53B	34.36		0.76%	22.97%	107.52%
4443	66 Neutral	¥239.75B	568.54		―	27.52%	-56.02%
4478	47 Neutral	¥206.58B	149.06		―	30.83%	―

NSD Co., Ltd. Corporate Events

NSD Co., Ltd. Reports Strong Sales Growth in July 2025

NSD Co., Ltd. reported preliminary and unaudited net sales for July 2025, showing a year-over-year increase of 8.9% with sales reaching 9,498 million yen. The cumulative total net sales from April to July 2025 also rose by 8.2% compared to the previous year, indicating strong operational performance and positive growth momentum.

NSD Co., Ltd. Reports Strong Q1 Financial Performance with Positive Outlook

NSD Co., Ltd. reported a positive financial performance for the first quarter of the fiscal year ending March 31, 2026, with an 8% increase in net sales and a 7.9% rise in operating income compared to the previous year. The company maintains a strong equity ratio of 75.3% and has forecasted continued growth in sales and income for the fiscal year, indicating a stable financial outlook and potential positive implications for stakeholders.

NSD Co., Ltd. Completes Treasury Stock Disposal for Compensation

NSD Co., Ltd. has completed the payment procedures for the disposal of treasury stock as restricted stock compensation, following a resolution by the Board of Directors on June 25, 2025. This disposal involved 39,339 shares of the company’s common stock at a price of 3,580 yen per share, amounting to a total of 140,833,620 yen. The shares were allocated to four directors, 22 executive officers, and directors of three subsidiaries, reflecting the company’s strategy to incentivize its leadership and align their interests with corporate performance.

NSD Co., Ltd. Announces Treasury Stock Disposal for Executive Compensation

NSD Co., Ltd. announced the disposal of 39,339 shares of treasury stock as restricted stock compensation, aimed at incentivizing directors and executive officers to enhance corporate value. This move is part of a broader strategy to align the interests of the company’s leadership with those of its shareholders, and includes expanding the eligibility of the compensation plan to directors of subsidiaries, reflecting the growing importance of subsidiary performance in the company’s overall financial results.