NSD Co., Ltd. (9759) AI Stock Analysis

• Market Cap: ¥234.76B
• Dividend Yield: 2.63%
• Average Volume (3M): 262.75K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.49
• Revenue Growth: 7.09%
• EPS Growth: 11.95%
• Country: JP
• Employees: 4,380
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 28.54
• Shares Outstanding: 86,000,000
• 10 Day Avg. Volume: 178,240
• 30 Day Avg. Volume: 262,746
• PEG Ratio: 1.43
• Price to Book (P/B): 3.81
• Price to Sales (P/S): 2.38
• P/FCF Ratio: 21.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥3,624.00 ▲(9.49% Upside)

NSD Co., Ltd. achieves a solid overall stock score driven by its strong financial performance, characterized by robust revenue and profit growth, and a stable balance sheet. The technical analysis indicates a bearish trend, which slightly offsets the positive financial outlook. Valuation metrics are reasonable, providing moderate income potential.

NSD Co., Ltd. Business Overview & Revenue Model

Company Description

NSD Co., Ltd. (9759) is a Japanese company primarily engaged in the development and provision of software solutions and services targeting various sectors, including IT and telecommunications. The company specializes in advanced system integration, software development, and IT consulting, focusing on enhancing operational efficiency for its clients through innovative technology applications.

How the Company Makes Money

NSD Co., Ltd. generates revenue through multiple streams, primarily by offering software development and system integration services to businesses across different industries. Their revenue model is built on project-based contracts, where clients pay for custom software solutions tailored to their specific needs. Additionally, NSD earns income from ongoing maintenance and support services for the systems they implement. The company also benefits from strategic partnerships with major technology firms, allowing them to leverage co-developed products and expand their service offerings, further enhancing their revenue potential.

NSD Co., Ltd. Financial Statement Overview

Summary

NSD Co., Ltd. demonstrates strong revenue growth with a consistent upward trajectory in total revenue over the past five years. The company maintains a healthy gross profit margin and improved net profit margin, indicating enhanced profitability. The balance sheet reflects a strong financial position with a low debt-to-equity ratio and substantial shareholder equity. Cash flow metrics are impressive, with consistent free cash flow generation and a strong operating cash flow to net income ratio.

Income Statement

NSD Co., Ltd. demonstrates strong revenue growth with a consistent upward trajectory in total revenue over the past five years. The gross profit margin remains healthy, reflecting effective cost management. The net profit margin has also improved steadily, indicating enhanced profitability. EBIT and EBITDA margins are robust, showcasing solid operational efficiency. The revenue growth rate from the previous year is commendable, suggesting a positive market reception and expansion capabilities.

Balance Sheet

The balance sheet of NSD Co., Ltd. reflects a strong financial position with a low debt-to-equity ratio, indicating prudent financial management and stability. The company maintains a high equity ratio, signifying substantial shareholder equity compared to total assets. Return on equity has shown improvement, highlighting effective utilization of equity to generate profits. The strong financial health is further supported by significant cash reserves and low levels of debt.

Cash Flow

NSD Co., Ltd. exhibits impressive cash flow metrics with consistent free cash flow generation, reflecting operational efficiency and financial flexibility. The free cash flow growth rate is stable, indicating the company's ability to generate cash beyond its operational needs. The operating cash flow to net income ratio is strong, demonstrating effective conversion of earnings into cash. Additionally, the free cash flow to net income ratio is favorable, underscoring the company's capacity to sustain operations and invest in growth opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	109.81B	107.79B	101.26B	77.98B	71.19B	66.18B
Gross Profit	26.59B	25.41B	24.96B	17.55B	15.84B	14.04B
EBITDA	19.75B	19.73B	17.97B	15.60B	12.35B	10.16B
Net Income	11.89B	11.79B	10.26B	10.22B	7.82B	6.37B
Balance Sheet
Total Assets	83.43B	90.48B	86.41B	68.16B	63.27B	59.46B
Cash, Cash Equivalents and Short-Term Investments	28.62B	30.36B	29.42B	38.37B	31.82B	30.09B
Total Debt	1.51B	1.86B	3.22B	200.95M	281.12M	225.96M
Total Liabilities	19.70B	22.23B	22.37B	12.70B	11.43B	10.28B
Stockholders Equity	62.84B	67.42B	62.37B	54.71B	51.19B	48.61B
Cash Flow
Free Cash Flow	0.00	11.71B	11.64B	9.74B	6.85B	7.60B
Operating Cash Flow	0.00	12.30B	12.19B	10.07B	7.24B	8.16B
Investing Cash Flow	0.00	904.00M	-17.85B	6.02B	-377.12M	-658.56M
Financing Cash Flow	0.00	-10.27B	-5.77B	-7.57B	-6.15B	-3.63B

NSD Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3310.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9759, the sentiment is Negative. The current price of 3310 is below the 20-day moving average (MA) of 3360.75, below the 50-day MA of 3348.44, and below the 200-day MA of 3385.20, indicating a bearish trend. The MACD of -19.80 indicates Positive momentum. The RSI at 46.92 is Neutral, neither overbought nor oversold. The STOCH value of 69.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9759.

NSD Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4776	72 Outperform	¥145.20B	27.63	―	0.95%	22.97%	107.52%
9759	69 Neutral	¥234.76B	20.89	―	2.63%	7.09%	11.95%
3697	66 Neutral	€302.18B	33.32	24.24%	―	17.35%	74.71%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4443	59 Neutral	¥229.49B	208.94	―	―	27.65%	96.11%
4478	57 Neutral	¥201.94B	145.78	―	―	30.83%	―
3994	41 Neutral	€285.76B	―	-19.16%	―	19.57%	-16.67%

NSD Co., Ltd. Corporate Events

NSD Co., Ltd. Reports Strong Sales Growth in July 2025

NSD Co., Ltd. reported preliminary and unaudited net sales for July 2025, showing a year-over-year increase of 8.9% with sales reaching 9,498 million yen. The cumulative total net sales from April to July 2025 also rose by 8.2% compared to the previous year, indicating strong operational performance and positive growth momentum.

NSD Co., Ltd. Reports Strong Q1 Financial Performance with Positive Outlook

NSD Co., Ltd. reported a positive financial performance for the first quarter of the fiscal year ending March 31, 2026, with an 8% increase in net sales and a 7.9% rise in operating income compared to the previous year. The company maintains a strong equity ratio of 75.3% and has forecasted continued growth in sales and income for the fiscal year, indicating a stable financial outlook and potential positive implications for stakeholders.