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

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Nomura System Corporation Co., Ltd.

(TSE/TYO:3940)

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Rating:73Outperform

Price Target:JPY 136.00▲(7.09% Upside)

Action:reiterated

Date:11/07/26

The overall score of 73 is heavily supported by the company's exceptional, zero-debt financial health and an attractive valuation offering a 2.91% dividend yield. The primary drag on the score is bearish technical momentum, with the stock trading below all major moving averages, though recent oversold signals hint at possible price stabilization.

Positive Factors

Debt-Free Balance SheetA debt-free balance sheet reduces refinancing and interest-burden risk, giving the company greater resilience if demand weakens. Continued growth in equity and total assets also supports financial stability and preserves flexibility to invest, maintain dividends, or pursue opportunities over the next several quarters.

Negative Factors

Recent Revenue ContractionThe return to revenue decline interrupts the prior growth trend and suggests that demand, project timing, or customer activity may be less supportive than before. Without renewed top-line expansion, the company may have less operating leverage and fewer opportunities to compound earnings over the medium term.

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

Market Cap: JPY 5.77B
Dividend Yield: 2.77%
Average Volume (3M): 193.81K
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

Fortress-like financial profile characterized by a zero-debt balance sheet, expanding profit margins, and consistent high-quality earnings, despite a slight moderation in top-line growth and cash flow.

Income Statement

88Very Positive

Balance Sheet

98Very Positive

Cash Flow

79Positive

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 SentimentPositive

Last Price127.00

Price Trends

50DMA130.02Negative

100DMA124.11Positive

200DMA128.08Negative

Market Momentum

MACD-1.16Positive

RSI49.31Neutral

STOCH70.00Neutral

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 127.00 is below the 20-day moving average (MA) of 128.75, below the 50-day MA of 130.02, and below the 200-day MA of 128.08, indicating a bearish trend. The MACD of -1.16 indicates Positive momentum. The RSI at 49.31 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 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

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:5576	84Outperform	JPY 6.91B	10.02	―	3.88%	20.58%	41.21%
JP:4752	83Outperform	JPY 7.13B	8.52	―	4.09%	7.77%	5.97%
JP:4396	81Outperform	JPY 30.88B	14.27	―	2.45%	11.87%	21.49%
JP:4072	81Outperform	JPY 33.64B	12.08	―	3.23%	4.92%	-14.52%
JP:3988	74Outperform	JPY 5.76B	10.54	―	1.47%	11.55%	28.84%
JP:3940	73Outperform	JPY 5.98B	16.08	―	2.77%	-2.56%	-7.81%
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.	127.00	-4.70	-3.57%
JP:3988	SYS Holdings Co. Ltd.	549.00	-14.66	-2.60%
JP:4072	Densan System Holdings Co. Ltd.	3145.00	-477.52	-13.18%
JP:4396	System Support, Inc.	1315.00	-48.60	-3.56%
JP:4752	Showa System Engineering Corporation	1590.00	-1.63	-0.10%
JP:5576	O.B.System Inc.	3015.00	363.16	13.69%

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: Nov 07, 2026

Nomura System Corporation Co., Ltd. AI Stock Analysis