Nomura System Corporation Co., Ltd. (3940) AI Stock Analysis

Nomura System Corporation Co., Ltd.

(TSE/TYO:3940)

Select Model

Rating:75.5Outperform

Price Target:JPY 147.00▲(16.67% Upside)

Action:reiterated

Date:08/06/26

The stock scores 75.5, reflecting a solid financial foundation with a pristine balance sheet and consistent cash flows, offset by modest revenue growth. Technical indicators show a mixed but slightly positive short-term trend. Valuation is reasonable with an attractive dividend yield. The company's low-risk profile and strong financial health are the primary drivers of the score.

Positive Factors

Debt-free balance sheetThe absence of reported debt removes refinancing and leverage pressure, giving Nomura System greater resilience during weaker demand. A steadily expanding equity and asset base also supports financial flexibility, allowing the company to fund operations and pursue opportunities without relying heavily on creditors.

Negative Factors

Recent revenue contractionThe 2025 revenue decline interrupts the prior growth trend and suggests that demand or project timing is not consistently expanding. Without renewed top-line growth, improving margins may have limited ability to drive sustained earnings growth and could increase dependence on efficiency gains.

Nomura System Corporation Co., Ltd. (3940) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.77B
Dividend Yield: 2.77%
Average Volume (3M): 202.24K
Price to Earnings (P/E): 16.1
Beta (1Y): 0.58
Revenue Growth: -2.56%
EPS Growth: -7.81%
Country: Japan
Employees: 136
Sector: Technology
Sector Strength: 61
Industry: Information Technology Services

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, implementat...

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., proportion...

Nomura System Corporation Co., Ltd. Financial Statement Overview

Summary

Strong balance sheet with zero debt and growing equity, healthy cash flow generation, and improving profitability margins. However, revenue growth has been modest and inconsistent, with a slight decline in the most recent year, tempering the outlook.

Income Statement

70Positive

Balance Sheet

95Very Positive

Cash Flow

80Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.31B	3.32B	3.28B	2.95B	2.70B	2.79B
Gross Profit	885.97M	945.23M	862.36M	782.12M	666.87M	742.30M
EBITDA	536.65M	596.49M	525.57M	471.28M	362.86M	480.48M
Net Income	362.94M	403.66M	366.05M	359.61M	255.71M	349.32M
Balance Sheet
Total Assets	3.80B	3.98B	3.70B	3.45B	3.15B	2.96B
Cash, Cash Equivalents and Short-Term Investments	2.50B	2.70B	2.85B	2.67B	2.07B	1.85B
Total Debt	0	0	0	0	0	0
Total Liabilities	347.00M	451.51M	454.41M	403.60M	311.87M	313.51M
Stockholders Equity	3.45B	3.53B	3.25B	3.04B	2.84B	2.65B
Cash Flow
Free Cash Flow	0	360.10M	412.15M	348.53M	409.22M	147.98M
Operating Cash Flow	0	371.99M	420.12M	349.79M	445.84M	159.65M
Investing Cash Flow	0	-250.19M	-8.89M	456.74M	-77.36M	-8.97M
Financing Cash Flow	0	-275.92M	-222.96M	-209.46M	-147.70M	-150.01M

Nomura System Corporation Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price126.00

Price Trends

50DMA130.40Negative

100DMA123.56Positive

200DMA128.37Negative

Market Momentum

MACD-0.53Positive

RSI43.49Neutral

STOCH21.69Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3940, the sentiment is Negative. The current price of 126.00 is below the 20-day moving average (MA) of 130.35, below the 50-day MA of 130.40, and below the 200-day MA of 128.37, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 43.49 is Neutral, neither overbought nor oversold. The STOCH value of 21.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3940.

Nomura System Corporation Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:3940 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4752	83Outperform	JPY 7.05B	8.55	―	4.14%	7.77%	5.97%
JP:4396	81Outperform	JPY 31.32B	16.64	―	2.12%	15.42%	27.83%
JP:4072	81Outperform	JPY 35.53B	11.20	―	3.04%	11.79%	55.44%
JP:3940	76Outperform	JPY 5.98B	16.08	―	2.77%	-2.56%	-7.81%
JP:3988	74Outperform	JPY 5.80B	10.52	―	1.47%	11.55%	28.84%
JP:5576	64Neutral	JPY 7.12B	10.29	―	3.82%	20.58%	41.21%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

JP:3940 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3940	Nomura System Corporation Co., Ltd.	128.00	-0.77	-0.60%
JP:3988	SYS Holdings Co. Ltd.	546.00	-8.79	-1.59%
JP:4072	Densan System Holdings Co. Ltd.	3290.00	-138.81	-4.05%
JP:4396	System Support, Inc.	1507.00	46.53	3.19%
JP:4752	Showa System Engineering Corporation	1593.00	-68.17	-4.10%
JP:5576	O.B.System Inc.	3010.00	326.48	12.17%

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.

Date of analysis: Aug 06, 2026

Nomura System Corporation Co., Ltd. AI Stock Analysis