Want to see JP:3940 full AI Analyst Report?
Top Page
Nomura System Corporation Co., Ltd.
(3940)
Select Model
Select Model
Rating:76Outperform
Price Target:
¥147.00
▲(10.53% Upside)
Action:Reiterated
Date:08/06/26
The score is primarily supported by strong financial performance—especially the debt-free balance sheet and improving operating profitability—while the main offsets are mixed technicals (below longer-term moving averages) and modest business momentum concerns (slight revenue decline in 2025 plus uneven cash conversion). Valuation and dividend yield provide additional support.
Positive Factors
Debt-Free Balance Sheet
The absence of debt removes refinancing and leverage risk, giving Nomura System financial resilience through changing demand conditions. Growing equity and assets also provide a stronger base for continued operations, investment, and shareholder returns.
Negative Factors
Recent Revenue Contraction
The 2025 revenue decline signals demand softness, project timing risk, or limited near-term expansion in the IT services base. If persistent, weaker top-line growth could constrain operating leverage and make margin gains harder to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-Free Balance Sheet
The absence of debt removes refinancing and leverage risk, giving Nomura System financial resilience through changing demand conditions. Growing equity and assets also provide a stronger base for continued operations, investment, and shareholder returns.
Read all positive factors
Nomura System Corporation Co., Ltd. (3940) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥6.02B
Dividend Yield2.73%
Average Volume (3M)135.64K
Price to Earnings (P/E)16.3
Beta (1Y)0.55
Revenue Growth-2.56%
EPS Growth-7.81%
CountryJP
Employees136
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)7.35
Shares Outstanding46,692,000
10 Day Avg. Volume101,320
30 Day Avg. Volume135,643
Financial Highlights & Ratios
PEG Ratio1.31
Price to Book (P/B)1.70
Price to Sales (P/S)1.80
P/FCF Ratio16.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nomura System Corporation Co., Ltd. Business Overview & Revenue Model
Company Description
Nomura System Corporation Co, Ltd. is a Japanese firm specializing in IT consulting, primarily serving large enterprises across the country. Their extensive service portfolio encompasses: Comprehensive SAP Solutions: Including consulting, implemen...
How the Company Makes Money
Nomura System Corporation primarily makes money by providing IT services, including fees from system/software development projects and related services (e.g., implementation and support). Detailed disclosure of its revenue breakdown (e.g., proport...
Nomura System Corporation Co., Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.21B | 3.32B | 3.28B | 2.95B | 2.70B | 2.79B |
| Gross Profit | 839.92M | 945.23M | 862.36M | 782.12M | 666.87M | 742.30M |
| EBITDA | 503.61M | 596.49M | 525.57M | 471.28M | 362.86M | 480.48M |
| Net Income | 335.63M | 403.66M | 366.05M | 359.61M | 255.71M | 349.32M |
Balance Sheet | ||||||
| Total Assets | 3.67B | 3.98B | 3.70B | 3.45B | 3.15B | 2.96B |
| Cash, Cash Equivalents and Short-Term Investments | 2.28B | 2.70B | 2.85B | 2.67B | 2.07B | 1.85B |
| Total Debt | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 351.09M | 451.51M | 454.41M | 403.60M | 311.87M | 313.51M |
| Stockholders Equity | 3.32B | 3.53B | 3.25B | 3.04B | 2.84B | 2.65B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 360.10M | 412.15M | 348.53M | 409.22M | 147.98M |
| Operating Cash Flow | 0.00 | 371.99M | 420.12M | 349.79M | 445.84M | 159.65M |
| Investing Cash Flow | 0.00 | -250.19M | -8.89M | 456.74M | -77.36M | -8.97M |
| Financing Cash Flow | 0.00 | -275.92M | -222.96M | -209.46M | -147.70M | -150.01M |
Nomura System Corporation Co., Ltd. Technical Analysis
Positive
133.00
Price Trends
118.54
Positive
122.46
Positive
128.24
Positive
Market Momentum
3.17
Negative
68.97
Neutral
61.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3940, the sentiment is Positive. The current price of 133 is above the 20-day moving average (MA) of 123.95, above the 50-day MA of 118.54, and above the 200-day MA of 128.24, indicating a bullish trend. The MACD of 3.17 indicates Negative momentum. The RSI at 68.97 is Neutral, neither overbought nor oversold. The STOCH value of 61.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3940.
Nomura System Corporation Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥7.05B | 8.57 | ― | 3.37% | 6.01% | 7.32% | |
82 Outperform | ¥7.01B | 10.71 | ― | 3.13% | 20.34% | 38.42% | |
78 Outperform | ¥32.94B | 10.46 | ― | 3.39% | 11.79% | 55.44% | |
76 Outperform | ¥6.02B | 16.33 | ― | 2.43% | -2.56% | -7.81% | |
73 Outperform | ¥5.95B | 12.50 | ― | 1.23% | 14.08% | 6.64% | |
71 Outperform | ¥27.76B | 14.85 | ― | 2.83% | 15.42% | 27.86% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:3940
Nomura System Corporation Co., Ltd.
130.00
-11.46
-8.10%
JP:3988
SYS Holdings Co. Ltd.
550.00
-31.40
-5.40%
JP:4072
Densan System Holdings Co. Ltd.
3,075.00
-416.76
-11.94%
JP:4396
System Support, Inc.
1,345.00
-81.40
-5.71%
JP:4752
Showa System Engineering Corporation
1,597.00
104.85
7.03%
JP:5576
O.B.System Inc.
2,972.00
241.02
8.83%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.