Nakano Corporation (1827) AI Stock Analysis

• Market Cap: ¥49.46B
• Dividend Yield: 1.96%
• Average Volume (3M): 58.36K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.92
• 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: ¥1,604.00 ▲(33.00% 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 equity provide financial stability, lowering refinancing and solvency risk. This durable balance-sheet strength supports access to credit, cushions project execution risks, and enables selective investments or acquisitions over the next several quarters.

Revenue Growth and Improving Margins

Consistent revenue growth paired with expanding gross and net margins signals better cost management and stronger pricing or mix. These trends support sustainable profitability and resilience in competitive bidding, improving long-term earnings quality over the coming 2–6 months.

Capex Discipline Improving Cash Prospects

Reduced capital spending lowers cash burn and improves free cash flow potential if revenue and margins hold. Sustained capex discipline can strengthen liquidity and reduce reliance on external funding, supporting operational flexibility and strategic initiatives.

Negative Factors

Negative Operating and Free Cash Flow

Persistent negative operating and free cash flows constrain the company's ability to self-fund working capital, capex, dividends, or debt reduction. Over months this increases reliance on external financing and limits strategic flexibility, raising funding and execution risk.

Margin Volatility (EBIT/EBITDA)

Volatile underlying margins reduce earnings predictability and may reflect project execution or cost control issues. Sustained margin swings can erode competitive position, complicate bidding strategy, and pressure profitability during slower demand periods.

Earnings Contraction

Negative EPS growth indicates recent contraction in reported earnings, weakening internal funding capacity and investor confidence. Over the medium term this can limit reinvestment, slow deleveraging, and necessitate external capital if profitability recovery stalls.

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

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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	10.50B	9.71B	8.74B	4.81B	7.14B
EBITDA	3.68B	3.98B	3.82B	3.34B	-383.00M	2.08B
Net Income	2.53B	2.90B	2.65B	1.92B	-1.59B	369.00M
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	952.00M	1.17B	1.15B	1.18B	6.59B
Total Liabilities	35.84B	36.21B	38.45B	41.83B	46.61B	47.15B
Stockholders Equity	42.56B	42.84B	40.66B	36.56B	34.43B	35.89B
Cash Flow
Free Cash Flow	0.00	-4.64B	-2.39B	1.85B	9.92B	-4.92B
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: Positive
• RSI: Neutral
• STOCH: Positive

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 1548.05, below the 50-day MA of 1392.22, and above the 200-day MA of 1002.71, indicating a neutral trend. The MACD of 11.64 indicates Positive momentum. The RSI at 44.53 is Neutral, neither overbought nor oversold. The STOCH value of 17.99 is Positive, 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	¥51.18B	6.41	―	3.97%	2.85%	317.62%
1929	75 Outperform	¥52.51B	7.30	―	3.78%	11.81%	52.35%
1827	73 Outperform	¥49.46B	7.92	―	1.96%	2.55%	-14.37%
1866	67 Neutral	¥32.43B	9.10	―	2.04%	-3.21%	-45.14%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1822	63 Neutral	¥72.53B	7.46	―	3.84%	-8.79%	―
1811	60 Neutral	¥60.66B	19.35	―	1.57%	11.01%	231.83%