Risk factor
Very poor trading liquidity
Profitability factor
Undervalued vs peers
About
Nippon Information Development Co., Ltd. is a global technology company, active in Japan and abroad, specializing in embedded and control systems, as well as financial and general business solutions. The company develops mobile applications for Android and iOS platforms, alongside preinstalled software. Its expertise extends to smart home devices and the Internet of Things (IoT), providing technologies for cloud-integrated televisions and gaming consoles. Furthermore, it delivers comprehensive cloud services, including support for platforms like Azure and AWS. Nippon Information Development also specializes in a broad spectrum of embedded technologies. This includes developing Electronic Control Units (ECUs) for vehicle infrastructure and advanced automated driving systems. They create medical system technologies for manufacturing therapeutic and diagnostic equipment, as well as for building hospital information systems. Their work in social infrastructure focuses on public wireless systems for critical areas like airports, trains, and fire/disaster prevention. Additionally, they contribute various technologies to factory and plant control systems, alongside expertise in real-time operating systems, image processing, communication protocols, drivers, and middleware. Within the financial sector, the company develops robust systems for insurance (covering individual, group, non-life, and mutual aid policies) and comprehensive credit systems that manage applications, screening, approvals, and sales processes. They also provide solutions for the securities industry. Beyond these core areas, its offerings encompass payroll and benefit systems for government entities, web-based itinerary validation platforms, and logistics management systems. The firm also delivers essential IT infrastructure services, including system construction and installation support, network and server design/implementation, server virtualization, and cloud migration assistance. Moreover, Nippon Information Development specializes in ongoing IT support, offering system and network operations maintenance, remote monitoring, and enhancements to IT operational design. Their security operational management services ensure robust protection. The company further extends its capabilities through business process outsourcing (BPO), data entry, and image entry services. Established in 1967, Nippon Information Development Co., Ltd. maintains its headquarters in Tokyo, Japan.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBITD.