Nova System Co (TSE:5257) EBIT: 円355 Mil (TTM As of Dec. 2025)


TSE:5257 Nova System Co Ltd TSE:5257
84 GF Score
Price 円2,461.00
GF Value 円3,144.07
Valuation Modestly Undervalued
! 2 Warning Signs
View Full Analysis

What is Nova System Co EBIT?

Nova System Co TSE:5257 -1.56% 84 EBIT is 円355 Mil as of Dec. 2025. GuruFocus rates TSE:5257 with a GF Score™ of 84/100 and a GF Value™ of 円3,144.07 (Modestly Undervalued). The stock has 2 warning signs investors should review.

Nova System Co's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2025 was 円247 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2025 was 円355 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Nova System Co's annualized ROC % for the quarter that ended in Dec. 2025 was 10.33%. Nova System Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 23.03%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Nova System Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 10.49%.

Nova System Co  (TSE:5257) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Nova System Co's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=473.71 * ( 1 - 32.38% )/( (3166.135 + 3032.888)/ 2 )
=320.322702/3099.5115
=10.33 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4033.955 - 275.86 - ( 591.96 - max(0, 1031.293 - 1977.272+591.96))
=3166.135

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4087.674 - 321.92 - ( 732.866 - max(0, 1042.954 - 1994.664+732.866))
=3032.888

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Nova System Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=493.388/( ( (1364.101 + max(779.25, 0)) + (1559.432 + max(582.303, 0)) )/ 2 )
=493.388/( ( 2143.351 + 2141.735 )/ 2 )
=493.388/2142.543
=23.03 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1325.45 + 12.624 + 47.238) - (275.86 + 0 + 330.202)
=779.25

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1198.613 + 21.071 + 28.65) - (321.92 + 0 + 344.111)
=582.303

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Nova System Co's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2025 )
=354.984/3385.450
=10.49 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Nova System Co EBIT Related Terms

Nova System Co EBIT Historical Data

* Premium members only.

The historical data trend for Nova System Co's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Nova System Co EBIT Chart

Nova System Co Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial 119.99 341.71 492.13 543.62 354.98

Nova System Co Semi-Annual Data
Dec20 Dec21 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
EBIT Get a 7-Day Free Trial Premium Member Only 262.35 216.75 326.87 108.29 246.69

TSE:5257 vs CRM, SHOP, UBER: EBIT Comparison

For the Software - Application subindustry, Nova System Co's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Nova System Co EV-to-EBIT vs Software Industry

For the Software industry and Technology sector, Nova System Co's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Nova System Co's EV-to-EBIT falls into.


TSE:5257
84GF Score
Nova System Co Ltd TSE:5257
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Nova System Co EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was 円355 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of 円355 Mil mean?
Nova System Co (TSE:5257) has a EBIT of 円355 Mil as of Dec. 2025. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Nova System Co.
Is Nova System Co's EBIT too high?
Nova System Co's current EBIT is 円355 Mil. Overall, Nova System Co has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nova System Co's EBIT compare to CRM and SHOP?
Nova System Co's EBIT of 円355 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Software company?
A good EBIT depends on the Software industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Nova System Co. Nova System Co's current EBIT is 円355 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nova System Co stock overvalued right now?
Based on GuruFocus' analysis, Nova System Co (TSE:5257) is currently considered Modestly Undervalued. The stock's GF Value™ is 円3,144.07, compared to a current price of 円2,461.00 — trading 21.7% below its estimated fair value. The current EBIT is 円355 Mil. Nova System Co's overall GF Score™ is 84/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Nova System Co (TSE:5257), the current EBIT is 円355 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Nova System Co (TSE:5257) Overvalued in 2026?

Based on GuruFocus' analysis, Nova System Co stock appears to be undervalued. The current stock price of 円2,461.00 is trading 21.7% below its estimated GF Value™ of 円3,144.07. GuruFocus considers Nova System Co to be Modestly Undervalued.

Key valuation signals for TSE:5257:

  • EBIT: 円355 Mil
  • GF Value™: 円3,144.07 vs. price of 円2,461.00 (21.7% below fair value)
  • GF Score™: 84/100 with 2 warning signs

No single metric tells the full story. See the TSE:5257 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Nova System Co Business Description

Address 1-3-15 Edobori, Shinishihara Building 9th Floor, Nishi-ku, Osaka, Osaka-shi, JPN, 550-0002
Nova System Co Ltd is involved in the system integration business mainly for the financial and insurance industry, medical care and cloud service business. The Company's business is a single segment of software development business, and the services it provides are system integration and cloud services.
84GF Score

Get the complete analysis for TSE:5257

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円2,461.00
Price
円3,144.07
GF Value