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

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JP:5590

NETSTARS Co.,Ltd.

(TSE/TYO:5590)

Select Model
Rating:71Outperform
Price Target:JPY 699.00â–²(14.59% Upside)
Action:upgraded
Date:09/24/26

The company's strong financial turnaround and debt-free balance sheet are the primary drivers of the score. Positive short-term technical momentum provides additional support, though the stock's position below its long-term moving averages and the lack of a dividend yield temper the overall assessment.

Positive Factors
Revenue and Profit RecoveryThe 2025 turnaround shows improving commercial momentum alongside a return to profitability after weaker years. If revenue growth and positive operating earnings persist, NETSTARS should have a stronger foundation for reinvestment and more dependable earnings over the next several quarters.
Negative Factors
Inconsistent ProfitabilityThe recent earnings recovery is encouraging, but multiple years of prior losses demonstrate that profitability has not yet been proven across a full business cycle. This history makes the durability of current margins and earnings power less certain over the medium term.

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

-50%-40%-30%-20%-10%0%10%20%30%JP:5590-39.48%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 10.41B
Dividend Yield
―
Average Volume (3M)
90.62K
Price to Earnings (P/E)
16.3
Beta (1Y)
0.55
Revenue Growth
12.27%
EPS Growth
86.55%
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

Strong revenue growth and a successful turnaround to profitability, supported by a debt-free balance sheet and healthy cash flow generation. The decline in cash flow coverage of liabilities is a minor concern.

Income Statement

78Positive

Balance Sheet

88Very Positive

Cash Flow

70Positive
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 Price610.00

Price Trends

50DMA690.32Negative
100DMA684.61Negative
200DMA743.63Negative

Market Momentum

MACD-22.10Positive
RSI42.99Neutral
STOCH62.33Neutral

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 610.00 is below the 20-day moving average (MA) of 646.50, below the 50-day MA of 690.32, and below the 200-day MA of 743.63, indicating a bearish trend. The MACD of -22.10 indicates Positive momentum. The RSI at 42.99 is Neutral, neither overbought nor oversold. The STOCH value of 62.33 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 25.84B14.12―4.01%18.19%16.32%
JP:8771JP:877179OutperformJPY 77.52B21.08―5.03%3.16%9.30%
JP:7383JP:738372OutperformJPY 33.91B17.99――7.25%8.41%
JP:5590JP:559071OutperformJPY 10.73B16.33――12.27%86.55%
JP:7199JP:719966NeutralJPY 81.80B11.66―2.89%21.46%48.86%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
JP:5258JP:525850NeutralJPY 10.65B24.84――16.53%―

* 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 '26Nov '26
JP:5590 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:5590NETSTARS Co.,Ltd.610.00-423.00-40.95%
JP:5258Transaction Media Networks Inc.353.00-162.00-31.46%
JP:7191Entrust Inc.1161.00170.3617.20%
JP:7199Premium Group Co., Ltd.2038.00355.5621.13%
JP:7383Net Protections Holdings, Inc.336.00-295.00-46.75%
JP:8771eGuarantee, Inc.1713.0053.073.20%

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 million and profit...

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