NOVA SYSTEM CO.,LTD. (5257) AI Stock Analysis

• Market Cap: ¥3.59B
• Dividend Yield: N/A
• Average Volume (3M): 4.98K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.69
• Revenue Growth: 12.35%
• EPS Growth: -4.38%
• Country: JP
• Employees: 470
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -2.23
• Shares Outstanding: 1,402,500
• 10 Day Avg. Volume: 2,910
• 30 Day Avg. Volume: 4,983
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,863.00
• Price Target Upside: 11.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ¥2,863.00 ▲(11.88% Upside)

NOVA SYSTEM CO., LTD. demonstrates strong financial performance with robust revenue growth and improved profitability, which is the most significant factor driving the score. The technical analysis indicates some bearish momentum, but the valuation suggests the stock is reasonably priced. The absence of earnings call data and corporate events does not impact the overall score.

NOVA SYSTEM CO.,LTD. Business Overview & Revenue Model

Company Description

Nova System Co.,Ltd. provides system integration services for financial, insurance, and medical industries. It also develops application software, including self-ordering system and reception system. The company was founded in 1982 and is headquartered in Osaka, Japan.

How the Company Makes Money

NOVA SYSTEM CO.,LTD. generates revenue through multiple streams primarily centered around its software development and IT services. The company makes money by designing custom software solutions tailored to the specific needs of its clients, which often involves long-term contracts and ongoing support services. Additionally, NOVA SYSTEM CO.,LTD. earns from system integration projects where it helps businesses implement and integrate new technologies into their existing infrastructure. IT consulting services also contribute significantly to the company's earnings, providing strategic advice and technical support. The company may also engage in partnerships with other technology firms to expand its service offerings and access new markets, thus enhancing its revenue potential.

NOVA SYSTEM CO.,LTD. Financial Statement Overview

Summary

NOVA SYSTEM CO., LTD. shows strong financial health. The income statement indicates robust revenue growth and improved profitability with solid margins. The balance sheet is strong with low leverage and high equity, and the cash flow stability has improved significantly, indicating effective cash management.

Income Statement

NOVA SYSTEM CO., LTD. demonstrates strong revenue growth with a 19.14% increase from 2023 to 2024. The gross profit margin is stable at 22.05% for 2024, indicating efficient cost management. Net profit margin improved to 6.10%, reflecting growing profitability. Both EBIT and EBITDA margins are solid at 8.17% and 9.15% respectively, indicating strong operational performance.

Balance Sheet

The company's balance sheet shows a robust equity base with a debt-to-equity ratio of 0.28, reflecting low leverage. With an equity ratio of 59.86%, the company maintains significant financial stability. Return on equity improved to 17.64%, showcasing efficient use of equity to generate profits. Overall, the balance sheet is strong with a focus on equity financing.

Cash Flow

Free cash flow improved significantly from a deficit in 2023 to a positive 236 million yen in 2024, reflecting effective cash management. Operating cash flow to net income ratio is 0.64, indicating good cash conversion from profits. The free cash flow to net income ratio is 0.60, showcasing efficient cash generation relative to profits. Overall, cash flow stability has improved markedly.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.55B	6.46B	5.42B	4.63B	4.17B	4.08B
Gross Profit	1.38B	1.42B	1.33B	1.03B	759.21M	854.79M
EBITDA	550.89M	606.70M	550.57M	370.10M	145.30M	249.14M
Net Income	358.14M	394.68M	342.24M	212.56M	72.21M	137.56M
Balance Sheet
Total Assets	4.04B	3.73B	3.38B	2.79B	2.58B	2.77B
Cash, Cash Equivalents and Short-Term Investments	1.26B	758.98M	898.69M	633.55M	937.23M	988.95M
Total Debt	921.87M	628.00M	894.07M	902.65M	930.47M	1.39B
Total Liabilities	1.73B	1.50B	1.59B	1.62B	1.63B	1.98B
Stockholders Equity	2.31B	2.23B	1.80B	1.16B	944.96M	787.70M
Cash Flow
Free Cash Flow	0.00	234.73M	-66.20M	-310.49M	156.90M	72.30M
Operating Cash Flow	0.00	253.24M	145.01M	80.14M	174.69M	126.61M
Investing Cash Flow	0.00	158.88M	-223.71M	-299.11M	161.36M	88.74M
Financing Cash Flow	0.00	-265.84M	308.13M	-27.82M	-455.80M	-9.21M

NOVA SYSTEM CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2559.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5257, the sentiment is Negative. The current price of 2559 is above the 20-day moving average (MA) of 2545.10, below the 50-day MA of 2627.52, and below the 200-day MA of 2689.84, indicating a neutral trend. The MACD of -4.80 indicates Negative momentum. The RSI at 49.46 is Neutral, neither overbought nor oversold. The STOCH value of 39.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5257.

NOVA SYSTEM CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5257	72 Outperform	¥3.59B	11.24		―	12.35%	-4.38%
5596	69 Neutral	4.21B	11.99	0.00%	―	0.00%	0.00%
4167	69 Neutral	2.94B	52.57	6.61%	―	-3.92%	3.93%
4069	62 Neutral	7.09B	67.86	-0.68%	―	13.47%	30.33%
2345	49 Neutral	4.20B	-1.11	-136.90%	―	0.00%	0.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%