Nakano Corporation (1827) AI Stock Analysis

• Market Cap: ¥31.03B
• Dividend Yield: 2.44%
• Average Volume (3M): 60.52K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.90
• Revenue Growth: >-0.01%
• EPS Growth: -11.62%
• Country: JP
• Employees: 1,331
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 5.49
• Shares Outstanding: 34,498,096
• 10 Day Avg. Volume: 74,590
• 30 Day Avg. Volume: 60,516
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥806.00
• Price Target Upside: -10.74% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥806.00 ▼(-10.74% Downside)

Nakano Corporation's overall stock score is bolstered by strong financial fundamentals and attractive valuation metrics. The primary strengths are its robust equity position and profitable growth. Despite these strengths, cash flow challenges and operational efficiency need attention. Technical analysis suggests a neutral market position, with valuation metrics indicating potential for value appreciation.

Nakano Corporation Business Overview & Revenue Model

Company Description

Nakano Corporation, established in 1949 and headquartered in Japan, operates primarily in the construction and engineering sectors. The company is involved in the development, design, and construction of various infrastructure projects including residential, commercial, and industrial buildings. Nakano Corporation is known for its expertise in civil engineering and construction management services, offering a comprehensive range of solutions from project planning to execution.

How the Company Makes Money

Nakano Corporation generates revenue through its diversified construction and engineering services. The company earns income primarily by undertaking large-scale construction contracts, where it is responsible for the design, construction, and management of infrastructure projects. Key revenue streams include project contracts for residential buildings, commercial facilities, and industrial structures. Nakano Corporation also engages in civil engineering projects such as roads, bridges, and other public infrastructure. The company may form partnerships or joint ventures with other firms to leverage specialized skills or share risks, thereby enhancing project capabilities and financial returns. Strategic factors such as technological innovation, client relationships, and efficient project management contribute significantly to the company's earnings.

Nakano Corporation Financial Statement Overview

Summary

Nakano Corporation shows a strong financial foundation with robust equity and profitable growth, highlighted by stable revenue and improved profit margins. However, cash flow challenges and fluctuating operational margins suggest a need for better liquidity and operational efficiency.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	110.54B	110.54B	107.42B	114.46B	96.47B	116.05B
Gross Profit	10.77B	10.77B	9.95B	8.94B	4.99B	7.34B
EBITDA	4.43B	4.43B	4.27B	3.42B	-313.00M	2.05B
Net Income	2.90B	2.90B	2.65B	1.91B	-1.59B	335.00M
Balance Sheet
Total Assets	80.67B	80.67B	80.62B	79.67B	82.19B	84.47B
Cash, Cash Equivalents and Short-Term Investments	20.96B	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	36.21B	36.21B	38.46B	41.84B	46.62B	47.15B
Stockholders Equity	42.84B	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: 903.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 903 is above the 20-day moving average (MA) of 823.25, above the 50-day MA of 785.84, and above the 200-day MA of 733.25, indicating a bullish trend. The MACD of 33.93 indicates Negative momentum. The RSI at 74.88 is Negative, neither overbought nor oversold. The STOCH value of 92.33 is Negative, 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
1780	80 Outperform	¥27.63B	9.19	―	2.02%	3.21%	4.85%
1810	79 Outperform	¥44.77B	12.38	5.39%	4.02%	2.54%	206.27%
1827	73 Outperform	¥31.03B	12.25	―	2.44%	>-0.01%	-11.62%
1828	73 Outperform	¥25.76B	9.65	10.38%	3.61%	-5.11%	30.22%
1811	72 Outperform	¥46.41B	9.82	3.62%	1.85%	5.57%	506.81%
1866	69 Neutral	¥27.50B	2.25	7.25%	2.28%	2.38%	-22.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%