Nippon Information Development Co Ltd

Nippon Information Development Co Ltd maintains a strong liquidity position, with cash and equivalents amounting to ¥15.21 billion, representing 57.46% of total assets. The company's liquidity FPT (free cash flow to total debt) is robust, supported by a current ratio of 5.55 and a debt-to-equity ratio of 0.02, indicating minimal leverage risk.

Profitability metrics show a return on equity (ROE) of 2.29% and a return on assets (ROA) of 1.71%, both below the industry median for IT Services & Consulting. The company's operating margin is 10.07% (¥564.66 million operating income on ¥5.61 billion revenue), which is in line with the sector average but leaves room for improvement in cost efficiency.

The company's revenue is concentrated in IT services, with no disclosed geographic breakdown in the latest financials. This lack of geographic diversification may expose the company to regional economic fluctuations, though the Japanese domestic market remains stable. No material revenue concentration risks are currently flagged.

Looking ahead, the company is projected to maintain a stable revenue trajectory, with no significant growth or contraction expected in the next fiscal year. The current FY revenue of ¥5.61 billion reflects a consistent performance, though the company's market share remains modest compared to larger IT services providers in the region.

Risk factors include low liquidity and dilution risk, with no immediate filing-based flags detected. The company's low debt load and strong cash position mitigate credit risk, and no dilutive events are currently anticipated. The absence of recent equity issuance or ATM programs supports the low dilution risk assessment.

Recent events include the filing of the latest financial results, which show a net income of ¥453.36 million and a gross profit of ¥1.21 billion. No material changes in business strategy or regulatory exposure were disclosed in the latest filings. Analysts have noted the company's consistent performance, with actual revenue and EPS aligning with expectations.

Revenue grew at a 9.7% CAGR over four years, demonstrating consistent top-line expansion for the IT services firm.

Operating income surged 10.2% year-over-year, indicating strong operational efficiency and cost management capabilities.

Operating margin of 10.1% significantly exceeds the 5.1% cohort median, highlighting superior profitability relative to peers.

Debt-to-equity ratio of 0.02 is well below the 0.12 cohort median, signaling a conservative and stable capital structure.

Free cash flow growth of 7.0% lags behind the 10.2% operating income growth, raising cash conversion concerns.

Net income growth of 5.7% is slower than revenue growth, indicating potential margin compression pressures.

Revenue ¥7.26B, +5,2% YoY; Operating income +59,5% YoY.

• ▍Revenue ¥7.26B, +5,2% YoY
• ▍Operating income +59,5% YoY
• ▍Net income +30,0% YoY
• ▍Net margin 10.7%

Revenue ¥6.39B, +5,3% YoY; Operating income +1,6% YoY.

• ▍Revenue ¥6.39B, +5,3% YoY
• ▍Operating income +1,6% YoY
• ▍Net income +0,7% YoY
• ▍Net margin 10.1%

Revenue ¥6.76B, +5,8% YoY; Operating income −7,1% YoY.

• ▍Revenue ¥6.76B, +5,8% YoY
• ▍Operating income −7,1% YoY
• ▍Net income −2,4% YoY
• ▍Net margin 9.8%

Revenue ¥6.02B, +7,3% YoY; Operating income −1,4% YoY.

• ▍Revenue ¥6.02B, +7,3% YoY
• ▍Operating income −1,4% YoY
• ▍Net income −7,0% YoY
• ▍Net margin 7.0%

Revenue ¥6.90B; Operating income ¥622.3M.

• ▍Revenue ¥6.90B
• ▍Operating income ¥622.3M
• ▍Net margin 8.7%

Revenue ¥6.07B; Operating income ¥867.2M.

• ▍Revenue ¥6.07B
• ▍Operating income ¥867.2M
• ▍Net margin 10.5%

Revenue ¥6.39B; Operating income ¥957.3M.

• ▍Revenue ¥6.39B
• ▍Operating income ¥957.3M
• ▍Net margin 10.6%

Revenue ¥5.61B; Operating income ¥564.7M.

• ▍Revenue ¥5.61B
• ▍Operating income ¥564.7M
• ▍Net margin 8.1%

Revenue ¥26.43B, +5,8% YoY; Operating income +10,2% YoY.

• ▍Revenue ¥26.43B, +5,8% YoY
• ▍Operating income +10,2% YoY
• ▍Net income +5,7% YoY
• ▍Free cash flow +7,0% YoY
• ▍Net margin 9.5%

Revenue ¥24.97B, +10,6% YoY; Operating income +7,2% YoY.

• ▍Revenue ¥24.97B, +10,6% YoY
• ▍Operating income +7,2% YoY
• ▍Net income +12,3% YoY
• ▍Free cash flow +5,0% YoY
• ▍Net margin 9.5%

Revenue ¥22.57B, +10,4% YoY; Operating income +6,5% YoY.

• ▍Revenue ¥22.57B, +10,4% YoY
• ▍Operating income +6,5% YoY
• ▍Net income −4,6% YoY
• ▍Free cash flow −6,3% YoY
• ▍Net margin 9.3%

Revenue ¥20.45B, +12,0% YoY; Operating income +20,8% YoY.

• ▍Revenue ¥20.45B, +12,0% YoY
• ▍Operating income +20,8% YoY
• ▍Net income +35,5% YoY
• ▍Free cash flow +42,5% YoY
• ▍Net margin 10.8%