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Nalnet Communications, Inc. (JP:5870)
:5870
Japanese Market
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Nalnet Communications, Inc. (5870) AI Stock Analysis

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JP:5870

Nalnet Communications, Inc.

(5870)

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Outperform 79 (OpenAI - Gpt-5.6Sol)
Rating:79Outperform
Price Target:
¥1,025.00
▼(-9.61% Downside)
Action:Upgraded
Date:08/19/26
The score is supported primarily by improving financial strength (deleveraging and strong free cash flow) and attractive valuation (low P/E with a solid dividend). Technicals are positive overall but somewhat stretched (overbought signals and still below the 200-day average), which modestly tempers the score.
Positive Factors
Steady Revenue Growth
Multi-year revenue growth indicates sustained demand and improving commercial traction. Continued expansion provides a durable foundation for operating leverage and cash generation, although future benefit depends on maintaining growth without further margin deterioration.
Negative Factors
Margin Compression
Profitability has weakened from earlier levels even as revenue expanded, indicating pressure on earnings conversion. Persistently thinner margins could limit operating leverage, reduce earnings resilience, and make future profit growth more dependent on continued revenue expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Growth
Multi-year revenue growth indicates sustained demand and improving commercial traction. Continued expansion provides a durable foundation for operating leverage and cash generation, although future benefit depends on maintaining growth without further margin deterioration.
Read all positive factors

Nalnet Communications, Inc. (5870) vs. iShares MSCI Japan ETF (EWJ)

Nalnet Communications, Inc. Business Overview & Revenue Model

Company Description
Nalnet Communications, Inc. specializes in the oversight and upkeep of vehicles, extending its services to a diverse clientele. This includes automotive enterprises, such as car leasing agencies, alongside individual consumers. The company further...

Nalnet Communications, Inc. Financial Statement Overview

Summary
Solid fundamentals driven by steady revenue growth and strong, consistently positive free cash flow (notably a strong rebound in 2026). Balance sheet leverage has improved meaningfully with lower debt and higher equity. The main constraint is profitability volatility and margin compression versus 2023, which reduces earnings stability.
Income Statement
74
Positive
Balance Sheet
72
Positive
Cash Flow
79
Positive
BreakdownMar 2026Mar 2026Mar 2025Mar 2024Mar 2022
Income Statement
Total Revenue9.93B8.54B7.67B7.03B6.42B
Gross Profit2.90B2.00B1.94B1.82B1.80B
EBITDA1.27B874.61M942.49M1.11B793.16M
Net Income501.87M238.33M305.14M622.15M199.23M
Balance Sheet
Total Assets10.00B10.08B9.73B9.73B9.53B
Cash, Cash Equivalents and Short-Term Investments1.03B859.48M1.03B602.22M683.14M
Total Debt1.21B1.72B2.13B2.45B2.80B
Total Liabilities6.14B6.65B6.46B6.81B7.05B
Stockholders Equity3.85B3.43B3.27B2.91B2.48B
Cash Flow
Free Cash Flow836.97M337.12M813.23M365.57M695.03M
Operating Cash Flow838.87M427.58M827.32M374.12M696.99M
Investing Cash Flow-84.41M-91.12M-138.20M-112.82M-96.86M
Financing Cash Flow-588.76M-503.92M-264.41M-342.22M-311.20M

Nalnet Communications, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1134.00
Price Trends
50DMA
807.74
Positive
100DMA
855.15
Positive
200DMA
941.74
Negative
Market Momentum
MACD
33.26
Negative
RSI
61.06
Neutral
STOCH
53.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5870, the sentiment is Positive. The current price of 1134 is above the 20-day moving average (MA) of 863.15, above the 50-day MA of 807.74, and above the 200-day MA of 941.74, indicating a neutral trend. The MACD of 33.26 indicates Negative momentum. The RSI at 61.06 is Neutral, neither overbought nor oversold. The STOCH value of 53.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5870.

Nalnet Communications, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥4.82B8.581.32%13.54%100.53%
69
Neutral
¥2.44B13.462.09%15.32%4.50%
63
Neutral
¥56.51B-1,140.00494.17%5.16%
59
Neutral
¥17.61B21.612.53%6.31%-22.50%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
49
Neutral
¥10.59B38.385.06%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5870
Nalnet Communications, Inc.
904.00
-70.24
-7.21%
JP:4331
Take and Give. Needs Co., Ltd.
735.00
-63.55
-7.96%
JP:6571
QB Net Holdings Co., Ltd.
1,303.00
23.54
1.84%
JP:6574
Convano Inc.
114.00
-172.53
-60.21%
JP:7042
ACCESS GROUP HOLDINGS CO., LTD.
694.00
147.70
27.04%
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: Aug 19, 2026