Nakano Corporation (1827) AI Stock Analysis

• Market Cap: ¥57.94B
• Dividend Yield: 1.96%
• Average Volume (3M): 58.36K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.89
• Revenue Growth: 2.55%
• EPS Growth: -14.37%
• Country: JP
• Employees: 1,331
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 38.08
• Shares Outstanding: 34,498,096
• 10 Day Avg. Volume: 43,570
• 30 Day Avg. Volume: 58,363
• PEG Ratio: 0.93
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -5.70
• 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: 73 Outperform
• Price Target: ¥1,880.00 ▲(55.89% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by solid financial stability (strong equity position and low debt) and strong technical momentum, offset by ongoing cash flow weakness and only average valuation support (moderate P/E and low dividend yield).

Positive Factors

Strong balance sheet

Low leverage and rising shareholders' equity provide durable financial resilience for a construction firm. This reduces refinancing and interest risks, supports bonding capacity for large projects, and gives management flexibility to invest, withstand downturns, and pursue strategic opportunities over the next several quarters.

Stable revenue growth and improving margins

Consistent top-line growth with better gross and net margins indicates the company is improving pricing or cost control on projects. For an engineering & construction business, sustained margin enhancement improves ability to generate operating profits, supports reinvestment, and reduces vulnerability to input-cost swings over the medium term.

Capex discipline

Active reduction of capital expenditures shows management is prioritizing cash conversion and liquidity. For a firm with recent negative cash flow, disciplined capex can stabilize free cash flow, improve short-to-medium-term liquidity, and preserve optionality to fund high-return projects or reduce reliance on external financing.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flow is a structural concern for construction companies where working capital and progress-billing matter. It constrains the firm's ability to self-fund projects, raises dependence on external financing or equity, and limits capacity to convert improved accounting profits into durable liquidity.

Volatile EBIT/EBITDA margins

Material variation in EBIT/EBITDA margins signals uneven project execution or margin pressure from competitive bidding. Over the medium term this increases earnings unpredictability, complicates cash forecasts, and can erode returns on new contracts if operational controls and project management aren't consistently strengthened.

Earnings per share contraction

Negative EPS growth reflects recent earnings pressure despite revenue gains. If EPS declines persist, retained earnings and internal funding capacity may be limited, reducing flexibility for dividends, buybacks, or reinvestment, and making the company more sensitive to margin shocks and cyclical downturns.

Nakano Corporation Business Overview & Revenue Model

Company Description

Nakano Corporation engages in the construction and real estate business in Japan, Singapore, Malaysia, Indonesia, Thailand, Vietnam, and internationally. The company plans, designs, and constructs educational, office, residential, commercial, industrial, renovation, and public work and civil engineering projects, as well as transport, warehousing, distribution, welfare, leisure, religious, and healthcare facilities. It also offers development assistance, as well as land and building based consulting services; and engages in solar power generation and insurance agency business, as well as technical support projects located in the Far East, Russia, and the Middle East. Further, the company leases office buildings, commercial facilities, and residual units. Nakano Corporation was founded in 1933 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nakano Corporation generates revenue through the sale of its reinforced concrete products, which are utilized in various construction projects. The company earns money by supplying these materials to contractors, construction firms, and government agencies involved in infrastructure development. Key revenue streams include direct sales of concrete products, contracts for large-scale construction projects, and potential partnerships with other construction companies to provide specialized materials and services. Additionally, the company may benefit from long-term contracts that provide a steady revenue stream, as well as government initiatives aimed at infrastructure improvements that can increase demand for its products.

Nakano Corporation Financial Statement Overview

Summary

Strong balance sheet (low leverage, rising equity) and improving margins support stability, but persistent negative operating/free cash flow weighs on overall financial quality.

Income Statement

Nakano Corporation has shown stable revenue growth with a recent increase from 107.4 billion to 110.5 billion yen. Gross and net profit margins have improved, indicating better cost management and profitability. However, fluctuations in EBIT and EBITDA margins highlight the need for operational efficiency improvements.

Balance Sheet

The company maintains a strong equity position with an increasing stockholders' equity and a low debt-to-equity ratio, indicative of financial stability. The equity ratio remains strong, suggesting good asset management. There is a consistent decrease in total debt, which mitigates financial risk.

Cash Flow

Cash flow management remains a challenge, with negative operating and free cash flows in recent years. However, the company has been reducing capital expenditures, and the operating cash flow to net income ratio suggests potential for improvement. The free cash flow to net income ratio needs attention to enhance liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	108.72B	110.54B	107.42B	114.46B	96.47B	116.05B
Gross Profit	10.56B	10.77B	9.95B	8.94B	4.99B	7.27B
EBITDA	3.99B	4.43B	4.27B	3.42B	-313.00M	2.05B
Net Income	2.53B	2.90B	2.65B	1.91B	-1.59B	335.00M
Balance Sheet
Total Assets	80.00B	80.67B	80.62B	79.67B	82.19B	84.47B
Cash, Cash Equivalents and Short-Term Investments	27.63B	20.96B	26.23B	27.90B	27.05B	22.38B
Total Debt	674.00M	674.00M	822.00M	971.00M	1.18B	6.39B
Total Liabilities	35.84B	36.21B	38.46B	41.84B	46.62B	47.15B
Stockholders Equity	42.56B	42.84B	40.66B	36.55B	34.42B	35.70B
Cash Flow
Free Cash Flow	0.00	-4.64B	-2.43B	1.82B	9.87B	-4.94B
Operating Cash Flow	0.00	-4.38B	-2.09B	2.17B	11.52B	-4.54B
Investing Cash Flow	0.00	-398.00M	-28.00M	-256.00M	-2.68B	89.00M
Financing Cash Flow	0.00	-891.00M	-801.00M	-776.00M	-5.74B	4.06B

Nakano Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1206.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1827, the sentiment is Positive. The current price of 1206 is below the 20-day moving average (MA) of 1482.25, below the 50-day MA of 1284.10, and above the 200-day MA of 944.77, indicating a bullish trend. The MACD of 103.76 indicates Negative momentum. The RSI at 78.63 is Negative, neither overbought nor oversold. The STOCH value of 66.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1827.

Nakano Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1810	79 Outperform	¥59.67B	11.75	―	3.97%	2.85%	317.62%
1929	75 Outperform	¥61.12B	15.67	―	3.78%	11.81%	52.35%
1827	73 Outperform	¥57.94B	17.17	―	1.96%	2.55%	-14.37%
1866	67 Neutral	¥38.23B	11.17	―	2.04%	-3.21%	-45.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1822	63 Neutral	¥79.65B	19.06	―	3.84%	-8.79%	―
1811	60 Neutral	¥69.90B	16.41	―	1.57%	11.01%	231.83%