Nakabohtec Corrosion Protecting Co., Ltd. (1787) AI Stock Analysis

• Market Cap: ¥15.87B
• Dividend Yield: 4.93%
• Average Volume (3M): 503.00
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.35
• Revenue Growth: 3.19%
• EPS Growth: 1.83%
• Country: JP
• Employees: 265
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 155.97
• Shares Outstanding: 2,602,500
• 10 Day Avg. Volume: 600
• 30 Day Avg. Volume: 503
• PEG Ratio: 0.46
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 21.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥7,406.00 ▲(44.65% Upside)
• Action: Upgraded Date: 12/30/25
• Date: Action: Upgraded 12/30/25

The score is driven primarily by strong financial quality—especially a debt-free balance sheet and improving margins—supported by an attractive valuation (P/E ~14.8 and ~4.9% dividend yield). Technicals are positive with the stock above key moving averages, though momentum indicators are getting somewhat stretched, and cash-flow conversion volatility remains a key risk.

Positive Factors

Debt-free balance sheet

A debt-free balance sheet with rising equity provides durable financial resilience: it lowers refinancing and interest-rate risk, preserves flexibility to fund maintenance or opportunistic capex, and supports steady dividend capacity and capital allocation without dependence on external debt.

Improving margins

Sustained margin improvement signals strengthening pricing power and operational efficiency in corrosion-protection services. Higher margins support consistent profitability across project cycles, enabling reinvestment, cushioning against cost inflation, and making recurring service revenues more valuable long-term.

Positive free cash flow

Consistent positive free cash flow enables self-funding of maintenance, selective growth projects and shareholder returns. Over the medium term this supports capital discipline, reduces reliance on external financing and allows investment in service capabilities that strengthen recurring revenue streams.

Negative Factors

Volatile cash conversion

Erratic conversion of accounting profits into operating cash reflects working-capital timing and project billing cycles. This variability can strain liquidity in troughs, complicate reliable funding of capex or dividends, and increases operational risk despite a strong balance sheet.

Uneven revenue growth

Irregular top-line trends suggest exposure to project timing and cyclical client spending. Persistent variability limits visibility for capacity planning and margin sustainability, making it harder to scale operations predictably or to secure long-term contracts that smooth revenue.

Limited growth leverage

While conservative financing reduces risk, zero leverage can constrain the company's ability to quickly scale for large capital-intensive projects or accelerate market share gains. Reliance on internal funding may slow response to structural opportunities versus competitors using moderate debt.

Nakabohtec Corrosion Protecting Co., Ltd. Business Overview & Revenue Model

Company Description

Nakabohtec Corrosion Protecting Co.,Ltd. provides survey, analysis, design, engineering, work supervision, and material supply services for protecting metallic structures from corrosion in Japan. It offers cathodic protection work, painting corrosion protection, coating anti-corrosion work, electrolytic iron ion, antifouling, and corrosive environment survey; and construction services, including civil engineering works, electrical works, scaffolding works, steel structure works, pavement works, dredging works, waterproofing works, and water supply facility works. The company was formerly known as Nakagawa corrosion Industrial Co., Ltd. and changed its name to Nakabohtec Corrosion Protecting Co.,Ltd. in 1991. Nakabohtec Corrosion Protecting Co.,Ltd. was incorporated in 1951 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nakabohtec Corrosion Protecting generates revenue primarily by providing corrosion-protection work and associated engineering services for customers that own or operate metal structures and facilities. Key revenue streams generally include (1) fees from corrosion-protection construction/installation projects (e.g., implementing corrosion-control measures on structures and equipment), (2) service income from inspection, diagnosis, monitoring, maintenance, and repair related to corrosion prevention and lifecycle asset management, and (3) sales of corrosion-protection materials, components, or systems used in projects and ongoing maintenance. The company’s earnings are influenced by the volume and size of customer projects, recurring maintenance/service needs, and demand tied to infrastructure upkeep and industrial facility operations. Specific breakdowns by segment, named major customers/partnerships, or contract structures are not available here and are therefore null.

Nakabohtec Corrosion Protecting Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals led by an excellent, debt-free balance sheet (equity rising to ~¥8.7B and assets to ~¥12.1B in 2025) and improving profitability (net margin ~7.1% in 2025 vs ~4.2% in 2020). The main offset is uneven cash conversion (operating cash flow coverage of net income notably low in 2025 at ~0.28) and some year-to-year revenue variability.

Income Statement

Profitability is solid and improving: annual revenue rose to ~¥14.7B in 2025 (up from ~¥11.0B in 2020), while margins also strengthened (gross margin ~25.7% and net margin ~7.1% in 2025 vs ~22.9% and ~4.2% in 2020). Earnings appear resilient through the period, though top-line growth has been somewhat uneven year-to-year (including a small decline in 2024), which slightly tempers the quality of the growth profile.

Balance Sheet

Balance sheet strength is a key positive: the company reports zero debt across all periods provided, with equity steadily increasing (to ~¥8.7B in 2025) and assets also trending up (to ~¥12.1B in 2025). Returns on equity are healthy for the industry context (roughly ~10–12% in most years), supporting the view that the company is profitable without relying on leverage; the main drawback is that growth is not being amplified by prudent borrowing, which may limit upside in very strong demand cycles.

Cash Flow

Cash generation is positive overall but choppy. Free cash flow is generally positive (e.g., ~¥571M in 2025 and ~¥1.15B in 2024), yet operating cash flow coverage of net income is inconsistent and notably low in 2025 (~0.28) versus stronger conversion in 2024 (~0.61). The 2021 period also shows a clear cash flow dip (slightly negative operating cash flow and negative free cash flow), indicating working-capital or timing volatility that reduces confidence versus the otherwise steady earnings trend.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.78B	14.73B	13.78B	14.16B	12.91B	13.01B
Gross Profit	3.82B	3.93B	3.50B	3.53B	3.20B	3.41B
EBITDA	1.55B	1.58B	1.30B	1.40B	1.16B	1.36B
Net Income	1.03B	1.05B	834.90M	899.25M	763.79M	901.47M
Balance Sheet
Total Assets	10.20B	12.25B	11.44B	11.49B	10.93B	11.32B
Cash, Cash Equivalents and Short-Term Investments	4.64B	3.92B	3.93B	3.42B	3.33B	3.02B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	2.43B	3.52B	3.14B	3.48B	3.29B	3.86B
Stockholders Equity	7.77B	8.73B	8.30B	8.01B	7.64B	7.45B
Cash Flow
Free Cash Flow	0.00	570.91M	1.16B	641.15M	1.23B	-106.20M
Operating Cash Flow	0.00	692.50M	1.23B	822.74M	1.33B	-7.17M
Investing Cash Flow	0.00	-114.20M	-89.36M	-185.32M	-224.24M	-122.57M
Financing Cash Flow	0.00	-590.64M	-628.15M	-544.42M	-800.57M	-627.04M

Nakabohtec Corrosion Protecting Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5120.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1787, the sentiment is Positive. The current price of 5120 is below the 20-day moving average (MA) of 6300.50, below the 50-day MA of 6011.00, and below the 200-day MA of 5504.35, indicating a bullish trend. The MACD of 147.57 indicates Negative momentum. The RSI at 59.88 is Neutral, neither overbought nor oversold. The STOCH value of 65.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1787.

Nakabohtec Corrosion Protecting Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1787	80 Outperform	¥15.87B	8.89	―	4.93%	3.19%	1.83%
6497	80 Outperform	¥10.35B	8.32	―	2.92%	5.71%	169.04%
5644	72 Outperform	¥15.72B	4.33	―	2.87%	2.38%	-5.80%
5994	69 Neutral	¥6.70B	-102.51	―	1.06%	6.41%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5852	54 Neutral	¥21.07B	3.53	―	4.33%	5.12%	―
6433	51 Neutral	¥10.37B	-20.41	―	0.11%	-10.82%	-69.03%