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NETSTARS Co.,Ltd. (5590) AI Stock Analysis

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JP:5590

NETSTARS Co.,Ltd.

(TSE/TYO:5590)

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Rating:68Neutral
Price Target:JPY 700.00â–²(9.03% Upside)
Action:reiterated
Date:09/24/26

The score is driven primarily by improved 2025 profitability and a very conservative, debt-free balance sheet, tempered by a limited track record of consistent earnings and volatile cash flow with a 2025 free-cash-flow dip. Technicals are moderately supportive (positive MACD, price above key short/intermediate averages) but the stock is still below the 200-day average, while valuation appears moderate with no dividend yield data.

Positive Factors
Revenue and Profitability RecoveryThe 2025 recovery shows stronger commercial momentum and restored profitability after several weaker years. If revenue growth and positive operating earnings persist, NETSTARS can improve internal funding capacity and establish a more durable earnings base over the next several quarters.
Negative Factors
Inconsistent ProfitabilityThe recent earnings rebound has not yet demonstrated a long operating history of consistent profitability. Earlier losses indicate that results can weaken materially, so the company must sustain revenue growth and operating discipline before the improved earnings profile can be viewed as firmly established.

NETSTARS Co.,Ltd. (5590) vs. iShares MSCI Japan ETF (EWJ)

-60%-40%-20%0%20%40%JP:5590-48.23%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 10.88B
Dividend Yield
―
Average Volume (3M)
93.50K
Price to Earnings (P/E)
19.2
Beta (1Y)
0.44
Revenue Growth
17.38%
EPS Growth
82.03%
Country
Japan
Employees
221
Sector
Technology
Sector Strength
61
Industry
Software - Infrastructure

NETSTARS Co.,Ltd. Business Overview & Revenue Model

Company Description

NETSTARS Co.,Ltd. specializes in the QR code payment industry within Japan. The company provides StarPay, a comprehensive multi-cashless payment platform designed for integrated management and application of various payment services. Its offerings al...

NETSTARS Co.,Ltd. Financial Statement Overview

Summary

Fundamentals improved meaningfully in 2025: revenue growth accelerated to 10.3% and profitability rebounded (net margin ~10.1%, EBIT margin ~6.1%) on very strong gross margins (~76%). The balance sheet is a major strength with zero debt and rising equity. Offsetting this, profitability was negative for multiple prior years and free cash flow declined in 2025 with noted volatility, reducing confidence in sustainability.

Income Statement

70Positive

Balance Sheet

82Very Positive

Cash Flow

63Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue5.10B4.79B3.90B3.72B2.99B1.96B
Gross Profit3.87B3.67B2.98B2.62B1.86B1.03B
EBITDA614.25M538.48M138.29M-136.78M-435.81M-925.84M
Net Income560.99M485.02M-37.62M-347.69M-572.53M-1.02B
Balance Sheet
Total Assets39.78B38.35B35.74B28.36B21.58B18.51B
Cash, Cash Equivalents and Short-Term Investments37.43B36.21B33.88B26.52B19.75B16.89B
Total Debt000000
Total Liabilities31.86B30.72B28.63B21.29B15.12B11.50B
Stockholders Equity7.92B7.63B7.11B7.07B6.46B7.01B
Cash Flow
Free Cash Flow02.36B7.51B5.83B2.81B6.77B
Operating Cash Flow02.38B7.51B6.01B3.22B7.06B
Investing Cash Flow0-111.55M-200.56M-187.02M-377.98M-642.60M
Financing Cash Flow066.00M9.92M933.50M-600.00K4.32B

NETSTARS Co.,Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price642.00

Price Trends

50DMA701.46Negative
100DMA690.91Negative
200DMA758.84Negative

Market Momentum

MACD-17.46Positive
RSI34.50Neutral
STOCH28.77Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5590, the sentiment is Negative. The current price of 642.00 is below the 20-day moving average (MA) of 687.00, below the 50-day MA of 701.46, and below the 200-day MA of 758.84, indicating a bearish trend. The MACD of -17.46 indicates Positive momentum. The RSI at 34.50 is Neutral, neither overbought nor oversold. The STOCH value of 28.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5590.

NETSTARS Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

JP:5590 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7191JP:719180OutperformJPY 25.89B14.07―4.02%18.19%16.32%
JP:8771JP:877179OutperformJPY 78.29B21.25―4.99%5.01%8.58%
JP:7199JP:719970OutperformJPY 91.45B13.36―2.60%20.74%40.62%
JP:5590JP:559068NeutralJPY 10.88B19.22――17.38%82.03%
JP:7383JP:738362NeutralJPY 35.50B19.06――7.25%8.41%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:5258JP:525844NeutralJPY 10.89B25.83――15.95%―

* Technology Sector Average

Performance Comparison

-40%-20%0%20%JP:5590JP:5258JP:7191JP:7199JP:7383JP:8771Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:5590 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5590NETSTARS Co.,Ltd.642.00-598.00-48.23%
JP:5258Transaction Media Networks Inc.367.00-31.00-7.79%
JP:7191Entrust Inc.1157.00145.2114.35%
JP:7199Premium Group Co., Ltd.2273.00356.9918.63%
JP:7383Net Protections Holdings, Inc.356.00-447.00-55.67%
JP:8771eGuarantee, Inc.1727.00210.0013.84%

NETSTARS Co.,Ltd. Corporate Events

NETSTARS Delivers Profit Surge on Cost Controls Despite GPV Forecast Miss

Aug 26, 2026

NETSTARS Co., Ltd. reported strong financial performance for the second quarter of fiscal 2026, with operating profit reaching 154 million yen and ordinary profit 243 million yen, roughly 2.6 times and 1.6 times their prior-year levels. Profit at all...

NETSTARS Delivers Strong Interim Profits and Projects Robust Full-Year Growth

Aug 19, 2026

NETSTARS Co., Ltd. reported strong results for the six months ended June 30, 2026, with net sales rising 14.3% year on year to ¥2.47 billion and operating profit surging 161.6% to ¥154 million. Ordinary profit climbed 61.0% to ¥243 mil...

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: Sep 24, 2026