NS Solutions Corp

NS Solutions Corp maintains a strong liquidity position, with a current ratio of 2.74 and cash and equivalents amounting to ¥116.56 billion, which is significantly higher than its short-term liabilities. The company's liquidity FPT (free cash flow to total liabilities) is robust, indicating a solid ability to meet short-term obligations without external financing.

Profitability metrics show a return on equity (ROE) of 2.21% and a return on assets (ROA) of 1.4%, which are below the industry median for IT services firms. This suggests that the company is not generating returns as efficiently as its peers, potentially due to high capital intensity or lower pricing power in its service offerings.

The company's revenue is concentrated in a few key segments, with IT services and consulting forming the bulk of its business. Geographically, the firm is heavily exposed to the Japanese market, with limited diversification into international markets. This concentration increases vulnerability to domestic economic fluctuations and regulatory changes.

Looking ahead, NS Solutions Corp is expected to see moderate revenue growth, with a projected increase of 3.5% in the current fiscal year and 4.2% in the following year. This growth is driven by continued demand for digital transformation services and cloud infrastructure solutions in Japan.

Risk factors include potential dilution from future equity offerings, although the current dilution risk is assessed as low. The company has not issued any new shares recently, and there are no immediate signs of dilution pressure. However, the company's debt-to-equity ratio of 0.14 is low, indicating a conservative capital structure.

Recent filings and transcripts indicate a stable business environment with no major disruptions. The company has not disclosed any significant legal or regulatory issues, and its management has expressed confidence in maintaining current growth trajectories.

Revenue grew 12.7% year-over-year to JPY 381.3 billion in FY2026, demonstrating strong top-line expansion momentum.

Net income CAGR of 10.7% over four years reflects consistent and robust earnings growth trajectory.

Analysts project 8.7% upside to a mean price target of JPY 3,529, suggesting undervaluation relative to consensus.

Cash conversion ratio of 3.24 ranks in the top quartile of the IT Services cohort, highlighting efficiency.

Free cash flow growth slowed to just 3.1% year-over-year, lagging significantly behind revenue and income growth.

Return on assets of 1.4% indicates limited ability to generate profit from total asset base.

Debt-to-equity ratio of 0.14 is higher than the cohort median of 0.12, implying slightly elevated leverage.

Analyst consensus recommendation is 'hold', reflecting limited enthusiasm for near-term price appreciation potential.

Revenue ¥105.94B, +8,1% YoY; Operating income +48,7% YoY.

• ▍Revenue ¥105.94B, +8,1% YoY
• ▍Operating income +48,7% YoY
• ▍Net income +46,1% YoY
• ▍Free cash flow +33,8% YoY
• ▍Net margin 9.2%

Revenue ¥97.02B, +15,9% YoY; Operating income +11,0% YoY.

• ▍Revenue ¥97.02B, +15,9% YoY
• ▍Operating income +11,0% YoY
• ▍Net income +10,9% YoY
• ▍Free cash flow −9,7% YoY
• ▍Net margin 9.4%

Revenue ¥95.69B, +19,9% YoY; Operating income +5,1% YoY.

• ▍Revenue ¥95.69B, +19,9% YoY
• ▍Operating income +5,1% YoY
• ▍Net income +1,3% YoY
• ▍Free cash flow +13,1% YoY
• ▍Net margin 7.2%

Revenue ¥82.68B, +7,6% YoY; Operating income −3,7% YoY.

• ▍Revenue ¥82.68B, +7,6% YoY
• ▍Operating income −3,7% YoY
• ▍Net income −5,0% YoY
• ▍Free cash flow −88,3% YoY
• ▍Net margin 6.2%

Revenue ¥98.01B; Operating income ¥8.91B.

• ▍Revenue ¥98.01B
• ▍Operating income ¥8.91B
• ▍Net margin 6.8%

Revenue ¥83.68B; Operating income ¥11.46B.

• ▍Revenue ¥83.68B
• ▍Operating income ¥11.46B
• ▍Net margin 9.8%

Revenue ¥79.79B; Operating income ¥9.31B.

• ▍Revenue ¥79.79B
• ▍Operating income ¥9.31B
• ▍Net margin 8.5%

Revenue ¥76.83B; Operating income ¥8.81B.

• ▍Revenue ¥76.83B
• ▍Operating income ¥8.81B
• ▍Net margin 7.0%

Revenue ¥381.34B, +12,7% YoY; Operating income +14,9% YoY.

• ▍Revenue ¥381.34B, +12,7% YoY
• ▍Operating income +14,9% YoY
• ▍Net income +14,0% YoY
• ▍Free cash flow +3,1% YoY
• ▍Net margin 8.1%

Revenue ¥338.30B, +8,9% YoY; Operating income +9,5% YoY.

• ▍Revenue ¥338.30B, +8,9% YoY
• ▍Operating income +9,5% YoY
• ▍Net income +11,6% YoY
• ▍Free cash flow −3,9% YoY
• ▍Net margin 8.0%

Revenue ¥310.63B, +6,5% YoY; Operating income +10,7% YoY.

• ▍Revenue ¥310.63B, +6,5% YoY
• ▍Operating income +10,7% YoY
• ▍Net income +10,2% YoY
• ▍Free cash flow +9,5% YoY
• ▍Net margin 7.8%

Revenue ¥291.69B, +7,9% YoY; Operating income +6,2% YoY.

• ▍Revenue ¥291.69B, +7,9% YoY
• ▍Operating income +6,2% YoY
• ▍Net income +7,2% YoY
• ▍Free cash flow +10,0% YoY
• ▍Net margin 7.5%