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NIPPON RIETEC CO., LTD. (JP:1938)
:1938
Japanese Market

NIPPON RIETEC CO., LTD. (1938) Price & Analysis

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1938 Stock Chart & Stats

¥2275.00
¥12.00(0.91%)
At close: 4:00 PM EST
¥2275.00
¥12.00(0.91%)

Bulls Say, Bears Say

Bulls Say
Revenue GrowthNippon Rietec’s ~17% revenue expansion year-over-year reflects durable demand for contracted engineering and construction services, particularly in rail and telecom infrastructure. Sustained top-line growth suggests consistent project wins and scaling of recurring maintenance work, supporting longer-term reinvestment capacity and a broader contract footprint that can underpin multi-quarter organic growth.
Profitability And MarginsHealthy 2025 margins (net 6.9%, EBITDA 11.7%) indicate durable operational efficiency in fixed- and unit-price contracting. Sustained margin levels provide a cushion against project cost volatility, allow reinvestment in tools and workforce, and support stable operating cash flows across infrastructure cycles—helpful for project bidding competitiveness and long-term margin sustainability.
Balance Sheet StrengthExtremely low leverage and a high equity ratio give Nippon Rietec strong financial flexibility to pursue large multi-site projects and absorb execution delays without refinancing stress. This conservative capital structure lowers solvency risk, supports counter-cyclical investments or working-capital needs, and underpins resilience across medium-term infrastructure spending cycles.
Bears Say
Cash Conversion EfficiencyOperating cash flow of only ~0.43x net income and relatively low FCF-to-net income point to cash conversion challenges despite FCF growth. In project-based construction, weak cash conversion can create timing squeezes on payables and receivables, constrain the ability to fund new contract mobilization from internal cash, and increase dependence on external financing for working capital even with low headline leverage.
Modest Return On Equity / Asset UtilizationA 7.4% ROE and explicit note that asset utilization could improve suggest the company is not fully extracting returns from capital deployed. Persistently modest ROE limits internal funding for growth and divestment flexibility, and indicates potential inefficiencies in equipment, workforce deployment, or project mix that can cap long-term shareholder value creation.
Exposure To Infrastructure Investment CyclesRevenue and earnings depend materially on public and private infrastructure spending and winning large multi-site contracts. This structural exposure creates demand cyclicality and backlog visibility risk; prolonged slowdowns or intensified competition for awarded projects can reduce revenue predictability and pressure margins over several quarters.

NIPPON RIETEC CO., LTD. News

1938 FAQ

What was NIPPON RIETEC CO., LTD.’s price range in the past 12 months?
NIPPON RIETEC CO., LTD. lowest stock price was ¥1262.00 and its highest was ¥3245.00 in the past 12 months.
    What is NIPPON RIETEC CO., LTD.’s market cap?
    NIPPON RIETEC CO., LTD.’s market cap is ¥67.00B.
      When is NIPPON RIETEC CO., LTD.’s upcoming earnings report date?
      NIPPON RIETEC CO., LTD.’s upcoming earnings report date is May 19, 2026 which is in 66 days.
        How were NIPPON RIETEC CO., LTD.’s earnings last quarter?
        NIPPON RIETEC CO., LTD. released its earnings results on Feb 12, 2026. The company reported ¥60.38 earnings per share for the quarter, beating the consensus estimate of N/A by ¥60.38.
          Is NIPPON RIETEC CO., LTD. overvalued?
          According to Wall Street analysts NIPPON RIETEC CO., LTD.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium
            Does NIPPON RIETEC CO., LTD. pay dividends?
            NIPPON RIETEC CO., LTD. pays a Annually dividend of ¥60 which represents an annual dividend yield of 2.61%. See more information on NIPPON RIETEC CO., LTD. dividends here
              What is NIPPON RIETEC CO., LTD.’s EPS estimate?
              NIPPON RIETEC CO., LTD.’s EPS estimate for its next earnings report is not yet available.
              How many shares outstanding does NIPPON RIETEC CO., LTD. have?
              NIPPON RIETEC CO., LTD. has 25,617,716 shares outstanding.
                What happened to NIPPON RIETEC CO., LTD.’s price movement after its last earnings report?
                NIPPON RIETEC CO., LTD. reported an EPS of ¥60.38 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 1.437%.
                  Which hedge fund is a major shareholder of NIPPON RIETEC CO., LTD.?
                  Currently, no hedge funds are holding shares in JP:1938
                  What is the TipRanks Smart Score and how is it calculated?
                  Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                    Company Description

                    NIPPON RIETEC CO., LTD.

                    Nippon Rietec Co.,Ltd. engages in the railway electrical equipment construction business in Japan. The company's railway electrical equipment includes signal, power generation and transformation, optical communication cable, and transmission line equipment, as well as information and communication systems and new transportation systems. It also provides road construction equipment, including traffic signals, road information control systems, road signs, and landscape signs. In addition, the company offers indoor/outdoor electric facility, optical communication cable equipment, and solar power generation systems; and transmission lines for equipment sector. Nippon Rietec Co.,Ltd. was incorporated in 1945 and is headquartered in Tokyo, Japan.

                    NIPPON RIETEC CO., LTD. (1938) Earnings & Revenues

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