NSW Inc. (9739) AI Stock Analysis

NSW Inc.

(TSE/TYO:9739)

Select Model

Rating:73Outperform

Price Target:JPY 3,006.00▲(17.28% Upside)

Action:reiterated

Date:08/06/26

The score is driven primarily by strong financial quality (debt-free balance sheet and solid profitability) and attractive valuation (low P/E with a ~5% dividend yield). These positives are tempered by weaker near-term technical momentum and a fundamentals profile that is steady rather than growing, with some margin softening and historically uneven cash flow.

Positive Factors

Debt-free balance sheetA debt-free balance sheet reduces refinancing exposure and interest obligations while preserving flexibility for investment, dividends, or resilience during weaker demand. Growing equity and the absence of leverage also provide a durable foundation for maintaining operations and funding future initiatives.

Negative Factors

Limited revenue growthRoughly flat revenue limits operating leverage and reduces the opportunity for earnings to compound rapidly through organic expansion. Unless demand accelerates, NSW may have fewer avenues to spread fixed costs, increase cash generation, or materially improve returns over the next several quarters.

NSW Inc. (9739) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 38.71B
Dividend Yield: 5.58%
Average Volume (3M): 31.56K
Price to Earnings (P/E): 10.5
Beta (1Y): 0.70
Revenue Growth: 4.84%
EPS Growth: 2.11%
Country: Japan
Employees: 2,536
Sector: General
Sector Strength: 55
Industry: Information Technology Services

NSW Inc. Business Overview & Revenue Model

Company Description

Nippon Systemware Co., Ltd., also known as NSW Inc., is a Japanese technology firm that offers a wide array of solutions, spanning business systems, professional services, embedded software development, and device engineering. The company organizes i...

NSW Inc. Financial Statement Overview

Summary

Overall fundamentals are stable: profitability remains solid (TTM gross margin ~20%, operating margin ~10%) and the balance sheet is a major strength with zero debt and healthy ROE (~10%). Offsetting this, revenue is roughly flat and margins have softened versus 2024–2025, while cash flow has been choppy despite decent TTM free-cash-flow conversion (~83% of net income).

Income Statement

72Positive

Balance Sheet

90Very Positive

Cash Flow

64Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	52.94B	52.43B	50.03B	50.30B	46.19B	43.45B
Gross Profit	10.83B	10.76B	10.88B	10.31B	9.84B	9.19B
EBITDA	5.75B	5.77B	6.61B	6.33B	5.83B	5.48B
Net Income	3.68B	3.71B	3.66B	4.29B	4.09B	3.47B
Balance Sheet
Total Assets	47.76B	49.29B	47.18B	44.18B	40.74B	36.85B
Cash, Cash Equivalents and Short-Term Investments	16.77B	19.65B	19.67B	18.81B	15.35B	15.18B
Total Debt	0	0	0	0	0	0
Total Liabilities	10.55B	11.40B	11.77B	11.00B	10.86B	10.33B
Stockholders Equity	37.21B	37.89B	35.41B	33.17B	29.88B	26.52B
Cash Flow
Free Cash Flow	3.79B	2.42B	3.46B	4.76B	1.55B	3.49B
Operating Cash Flow	4.15B	2.79B	3.85B	5.05B	2.00B	3.73B
Investing Cash Flow	-4.59B	-1.62B	6.41B	-8.70B	-1.01B	-344.00M
Financing Cash Flow	-1.76B	-1.29B	-1.41B	-894.00M	-818.00M	-607.00M

NSW Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price2563.00

Price Trends

50DMA2649.42Negative

100DMA2564.13Positive

200DMA2471.19Positive

Market Momentum

MACD-5.97Positive

RSI44.98Neutral

STOCH24.95Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9739, the sentiment is Negative. The current price of 2563.00 is below the 20-day moving average (MA) of 2656.90, below the 50-day MA of 2649.42, and above the 200-day MA of 2471.19, indicating a neutral trend. The MACD of -5.97 indicates Positive momentum. The RSI at 44.98 is Neutral, neither overbought nor oversold. The STOCH value of 24.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9739.

NSW Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:9739 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3916	86Outperform	JPY 32.56B	14.90	―	3.54%	5.74%	-3.58%
JP:4725	73Outperform	JPY 33.35B	9.33	10.39%	5.06%	3.46%	6.90%
JP:9739	73Outperform	JPY 38.71B	10.52	―	5.58%	4.84%	2.11%
JP:9658	67Neutral	JPY 45.79B	16.10	―	3.53%	6.10%	-1.37%
JP:5574	66Neutral	JPY 22.68B	20.73	―	―	27.68%	126.99%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:2158	50Neutral	JPY 28.61B	47.02	―	―	27.44%	131.69%

* General Sector Average

Performance Comparison

JP:9739 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9739	NSW Inc.	2598.00	252.95	10.79%
JP:4725	CAC Holdings Corporation	1975.00	-52.01	-2.57%
JP:2158	FRONTEO, Inc.	726.00	-180.00	-19.87%
JP:3916	Digital Information Technologies Corp.	1059.00	-135.68	-11.36%
JP:5574	ABEJA,Inc.	2220.00	-653.00	-22.73%
JP:9658	Business Brain Showaota Inc.	1314.00	331.71	33.77%

NSW Inc. Corporate Events

Tada Corporation to Become Dominant Shareholder in NSW Inc. After Major Stake Transfer

Aug 31, 2026

NSW Inc. has announced a planned change in its major shareholders following the transfer of 2,022,240 shares, representing 13.58% of voting rights, from major shareholder Shoji Tada to Tada Corporation. This accumulation of shares, deemed an act equi...

NSW Inc. Posts Higher Sales but Softer Profits, Keeps Dividend and Outlook Steady

Aug 3, 2026

NSW Inc. reported consolidated net sales of ¥11.95 billion for the three months ended June 30, 2026, up 4.4% year on year, while operating profit slipped 1.6% to ¥850 million and profit attributable to owners of parent fell 4.5% to ¥57...

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 06, 2026

NSW Inc. AI Stock Analysis