NCS&A CO.,LTD.
9709・Standard Market・Information & Communication
NCS&A Co., Ltd. (IT services business, single segment)
A single-segment company providing one-stop IT services
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (consolidated, full year) | ¥22,485 million | ¥20,493 million | ↑ |
| Operating income (consolidated, full year) | ¥2,714 million | ¥1,993 million | ↑ |
| Ordinary income (consolidated, full year) | ¥2,870 million | ¥2,109 million | ↑ |
| Profit attributable to owners of parent (consolidated, full year) | ¥2,067 million | ¥2,109 million | ↓ |
| Operating margin | 12.1% | 9.7% | ↑ |
| ROE (return on equity) | 14.7% | 15.9% | ↓ |
| Equity ratio | 64.8% | 66.7% | ↓ |
| Earnings per share (EPS) | ¥132.51 | ¥130.55 | ↑ |
| Book value per share (BPS) | ¥917.57 | ¥879.19 | ↑ |
| Annual dividend per share | ¥58.00 | ¥40.00 | ↑ |
| Dividend payout ratio (consolidated) | 43.8% | 30.6% | ↑ |
| Cash flow from operating activities | ¥2,976 million | ¥2,213 million | ↑ |
| Cash and cash equivalents at period-end | ¥10,999 million | ¥11,138 million | ↓ |
| Next-period forecast - net sales (FY2027, ending March 2027) | ¥20,500 million (down 8.8% YoY) | ¥22,485 million | ↓ |
| Next-period forecast - operating income (FY2027, ending March 2027) | ¥2,620 million (down 3.5% YoY) | ¥2,714 million | ↓ |
Business Details
The NCS&A Group is an IT services specialist that operates three inseparable business activities—system development, services, and sales of system equipment—as a unified business model. It provides one-stop support to clients on management challenges, from system construction through maintenance and operation. Sales are categorized into four segments: "Solutions using in-house products," "System integration," "Equipment/packages," and "Contract development." Three consolidated subsidiaries (Every Co., Ltd., NCS Support & Service Co., Ltd., and En-Ai Software (Shanghai) Co., Ltd.) handle part of the development and service operations.
Recent Overview
Sales and operating income increased substantially, led by in-house solutions, while share buybacks were also actively pursued
In FY2026 (ended March 2026), the company achieved substantial increases in both sales and profit, with net sales of ¥22,485 million (up 9.7% year on year) and operating income of ¥2,714 million (up 36.1% year on year). Solutions using in-house products led the growth at ¥6,835 million (equivalent to an increase of approximately 26.4%), and the operating margin improved to 12.1% (from 9.7% in the prior period). On the other hand, net profit declined slightly to ¥2,067 million (down 2.0% year on year) due to the reversal of a deferred tax asset recognition gain recorded in the prior period. Share buybacks were conducted from August 2025, with ¥1,499 million acquired during the period, expanding treasury stock holdings to ¥2,288 million. The dividend was increased to ¥58 per share (from ¥40 in the prior period), resulting in a dividend payout ratio of 43.8%. For the next period (FY2027, ending March 2027), the company forecasts a decrease in both sales and profit, with net sales of ¥20,500 million (down 8.8%) and operating income of ¥2,620 million (down 3.5%), mainly due to a slowdown in equipment sales caused by memory supply shortages.
Key Products
Growth Drivers
- Full-scale emergence of demand for renewal of core business systems amid the "2025 Digital Cliff" issue
- Increase in the number of concurrent projects through the transition of migration services to a "Migration Center" model
- Growth in the number of local governments adopting the benefits payment system "The Kyufu" through expanded collaboration with alliance partners
- Strengthening of in-house solutions through the release of new products leveraging generative AI technology (new version of ReverseNeo, DocHelper)
- Improved profitability in contract development through concentration of resources in areas of strength
- Continued expansion of IT demand driven by the spread of cloud computing and generative AI, and increased investment in security enhancement
- Creation of new businesses and development into collaborative ventures through the "in-house startup program"
- Expanded room for sustained growth of existing businesses through the launch of post-migration system maintenance services
Risks
- Slowdown in equipment sales due to supply shortages and price increases for servers and PCs, driven by a sharp rise in demand for high-performance memory for AI servers and data centers (expected to continue beyond 2027)
- Risk of declining system integration sales due to a concentration of projects transitioning from the development phase to the maintenance phase
- Increase in selling, general and administrative expenses due to rising personnel costs (average 5% salary increase from June 2025, special cost-of-living allowance paid in October 2025)
- Downward pressure on corporate earnings and real household income due to rising crude oil prices amid Middle East tensions
- Risk of curtailed client IT investment due to volatility in financial and capital markets and geopolitical risks
- Decline in equity ratio (64.8%) and reduced financial flexibility due to aggressive share buybacks (¥1,499 million in the current period)
- The forecast for the next fiscal period falls below the sales target for the final year of the medium-term management plan (FY2024–FY2026)
Last updated: June 12, 2026