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

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NETSTARS Co.,Ltd.

(TSE/TYO:5590)

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Rating:80Outperform

Price Target:JPY 702.00▲(15.08% Upside)

Action:reiterated

Date:09/24/26

NETSTARS achieves a solid overall score driven primarily by an impressive financial turnaround, a debt-free balance sheet, and robust gross margins. Favorable technical momentum, characterized by trading above short and medium-term moving averages, combined with a reasonable valuation multiple, further supports the stock. Volatile cash flow generation remains the primary secondary risk to monitor.

Positive Factors

2025 earnings turnaroundThe 2025 turnaround shows that NETSTARS can convert renewed revenue growth into positive earnings after several weaker years. If maintained, improved operating performance should strengthen internal funding capacity and provide a more durable base for reinvestment and future expansion.

Negative Factors

Unproven earnings durabilityThe sharp return to profitability is encouraging, but the preceding multiyear loss period shows that earnings have not yet demonstrated consistent durability. A sustained improvement over additional reporting periods is needed before the recent margin recovery can be viewed as a dependable long-term earnings base.

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

Market Cap: JPY 10.34B
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 financial turnaround marked by a transition to positive net income and exceptional financial stability with zero debt. The company boasts high gross margins of 76.6% and over 10% revenue growth, though offset slightly by recent volatility in cash flow generation.

Income Statement

85Very Positive

Balance Sheet

95Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.10B	4.79B	3.90B	3.72B	2.99B	1.96B
Gross Profit	3.87B	3.67B	2.98B	2.62B	1.86B	1.03B
EBITDA	614.25M	538.48M	138.29M	-136.78M	-435.81M	-925.84M
Net Income	560.99M	485.02M	-37.62M	-347.69M	-572.53M	-1.02B
Balance Sheet
Total Assets	39.78B	38.35B	35.74B	28.36B	21.58B	18.51B
Cash, Cash Equivalents and Short-Term Investments	37.43B	36.21B	33.88B	26.52B	19.75B	16.89B
Total Debt	0	0	0	0	0	0
Total Liabilities	31.86B	30.72B	28.63B	21.29B	15.12B	11.50B
Stockholders Equity	7.92B	7.63B	7.11B	7.07B	6.46B	7.01B
Cash Flow
Free Cash Flow	0	2.36B	7.51B	5.83B	2.81B	6.77B
Operating Cash Flow	0	2.38B	7.51B	6.01B	3.22B	7.06B
Investing Cash Flow	0	-111.55M	-200.56M	-187.02M	-377.98M	-642.60M
Financing Cash Flow	0	66.00M	9.92M	933.50M	-600.00K	4.32B

NETSTARS Co.,Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price610.00

Price Trends

50DMA688.02Negative

100DMA683.79Negative

200DMA741.76Negative

Market Momentum

MACD-22.19Positive

RSI37.50Neutral

STOCH59.81Neutral

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 643.10, below the 50-day MA of 688.02, and below the 200-day MA of 741.76, indicating a bearish trend. The MACD of -22.19 indicates Positive momentum. The RSI at 37.50 is Neutral, neither overbought nor oversold. The STOCH value of 59.81 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
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7191	80Outperform	JPY 25.98B	14.12	―	4.01%	18.19%	16.32%
JP:5590	80Outperform	JPY 10.34B	16.33	―	―	12.27%	86.55%
JP:8771	79Outperform	JPY 77.66B	21.08	―	5.03%	3.16%	9.30%
JP:7383	70Outperform	JPY 33.51B	17.99	―	―	7.25%	8.41%
JP:7199	66Neutral	JPY 82.00B	11.66	―	2.89%	21.46%	48.86%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:5258	50Neutral	JPY 10.48B	24.84	―	―	16.53%	―

* Technology Sector Average

Performance Comparison

JP:5590 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:5590	NETSTARS Co.,Ltd.	610.00	-423.00	-40.95%
JP:5258	Transaction Media Networks Inc.	353.00	-162.00	-31.46%
JP:7191	Entrust Inc.	1161.00	170.36	17.20%
JP:7199	Premium Group Co., Ltd.	2038.00	355.56	21.13%
JP:7383	Net Protections Holdings, Inc.	336.00	-295.00	-46.75%
JP:8771	eGuarantee, Inc.	1713.00	53.07	3.20%

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

NETSTARS Co.,Ltd. AI Stock Analysis