<div id="readability-page-1"><div><p>NSW (TSE:9739) has wrapped up FY 2026 with fourth quarter revenue of ¥14.7b and basic EPS of ¥85.57, set against trailing 12 month revenue of ¥52.4b and EPS of ¥248.94. Over recent periods the company has seen quarterly revenue range from ¥11.4b in Q1 2026 to ¥14.7b in Q4 2026, with basic EPS moving between ¥40.61 and ¥85.57. This gives investors a clearer view of how top line and per share earnings have tracked into the latest results. With trailing net margins at 7.1% and earnings growth running at 1.3% over the past year versus a 3.8% five year pace, the results put the focus firmly on how sustainably NSW can protect profitability from here.</p> <p>See our full analysis for NSW.</p><p>With the headline numbers in place, the next step is to see how this earnings profile lines up with the prevailing narratives around NSW and where the data supports or challenges those views.</p> <p>Curious how numbers become stories that shape markets? Explore Community Narratives</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/87e97cbb-3529-4f0c-94b0-39ee59c0b645/chart/revenue-and-expenses-breakdown/query-ZGF0ZT0yMDI2LTA1LTEy?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/87e97cbb-3529-4f0c-94b0-39ee59c0b645/chart/revenue-and-expenses-breakdown/query-ZGF0ZT0yMDI2LTA1LTEy"/><figcaption>TSE:9739 Revenue &amp; Expenses Breakdown as at May 2026</figcaption></figure> <h2>TTM earnings slow to 1.3% growth</h2> <ul> <li>Over the last 12 months, earnings grew 1.3% compared with a 3.8% per year pace over five years, while trailing revenue sat at ¥52,431 million and net income at ¥3,709 million, which is a slower clip than the longer term trend in the data.</li> <li>What stands out for a more bullish take is that this slower 1.3% growth rate sits alongside quarterly EPS that moved from ¥40.61 in Q1 2026 to ¥85.57 in Q4 2026, which     <ul> <li>supports the idea that NSW continues to generate profit across the year but also highlights that the latest 12 month result has not kept pace with the 3.8% five year growth rate often cited as a strength.</li> <li>raises a simple question for a bullish view about whether the recent earnings pattern, including Q3 2026 EPS of ¥51.55 and Q2 2026 EPS of ¥71.21, points to a more moderate growth phase than the multi year average suggests.</li> </ul> </li> </ul><p> On top of these slower 12 month earnings, it helps to see how the longer term story fits with valuation, dividends and profit quality before leaning too hard in either direction for NSW's outlook for you as a shareholder. <strong>📊 Read the what the Community is saying about NSW.</strong></p><h2>Margins hold around 7.1% level</h2> <ul> <li>Trailing net profit margin is 7.1%, only slightly below 7.3% a year earlier, alongside FY 2026 quarterly net income that ranged from ¥605 million in Q1 to ¥1,275 million in Q4, which shows profitability remaining in a tight band in the provided figures.</li> <li>Critics highlight that any decline in margin can be a warning sign, yet here the move from 7.3% to 7.1% sits next to quarterly revenue that ranged between ¥11,446 million and ¥14,717 million in FY 2026, which     <ul> <li>shows that even with changes in quarterly scale, the company kept margins clustered around the same level in the trailing data rather than seeing a sharp squeeze in the numbers given.</li> <li>means a more bearish read on profitability has to grapple with the fact that the change in margin is described as a slight shift rather than a large reset, based on the 7.3% to 7.1% comparison.</li> </ul> </li> </ul> <h2>P/E discount and 3.38% yield</h2> <ul> <li>NSW trades on a trailing P/E of 10.1x against a JP Software industry average of 17.1x and a peer average of 20.8x, with a DCF fair value of ¥4,035.70 versus a current share price of ¥2,517 and a trailing dividend yield of 3.38%, which together point to a lower multiple and a cash return from dividends in the same set of figures.</li> <li>What is striking for investors who see a bullish angle is how this combination of a 10.1x P/E, a 3.38% yield and a DCF fair value above the current share price stands next to only 1.3% earnings growth and a 7.1% margin, which     <ul> <li>supports the idea that valuation and income are doing a lot of the work in the thesis, since the stock is priced below both industry and peer P/E levels while still producing that 3.38% yield over the trailing 12 months.</li> <li>at the same time gives a check on bullish enthusiasm because the modest earnings growth rate and small step down in margin from 7.3% to 7.1% remind you that the case here rests on accepting steadier rather than rapid profit expansion at the current price.</li> </ul> </li> </ul><p> Bulls point to those lower multiples, the DCF fair value and the 3.38% yield as reasons the stock still appeals even with slower recent growth, so if you want to see how that case is built across different scenarios, it is worth going through the full bull and bear breakdown for NSW. <strong>🐂 NSW Bull Case</strong></p><h2>Next Steps</h2> <p>Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on NSW's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.</p> <p>With that mix of cautious and optimistic signals in mind, it makes sense to review the figures yourself and decide how they stack up against your expectations, then pressure test your thinking against the company's 3 key rewards.</p> <h2>See What Else Is Out There</h2> <p>NSW's slower 1.3% earnings growth, slight margin slip to 7.1% and reliance on valuation and yield signal steadier rather than fast improving performance.</p> <p>If you want ideas where earnings momentum might align better with your expectations, it is worth checking out 11 high quality undervalued stocks to compare other potential opportunities side by side.</p> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data         and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your         financial situation. We aim to bring you long-term focused analysis driven by fundamental data.         Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.         Simply Wall St has no position in any stocks mentioned.</em></p><div><h3>Valuation is complex, but we're here to simplify it.</h3><p>Discover if NSW might be undervalued or overvalued with our detailed analysis, featuring <strong>fair value estimates, potential risks, dividends, insider trades, and its financial condition.</strong></p><p>Access Free Analysis</p></div></div></div>

9739

<p>NSW (TSE:9739) reported FY 2026 Q4 revenue of ¥14.7b and basic EPS of ¥85.57, with trailing revenue of ¥52.4b and EPS of ¥248.94. Earnings growth slowed to 1.3% over the past year, down from a 3.8% five-year average. The trailing net margin is 7.1%, slightly down from 7.3% a year earlier. NSW trades at a trailing P/E of 10.1x, below industry averages, with a DCF fair value of ¥4,035.70 compared to a current share price of ¥2,517 and a dividend yield of 3.38%.</p>

NSW (TSE:9739) Slower 1.3% Earnings Growth Tests Bullish Undervaluation Narrative