NIPPON ROAD CO., LTD. (1884) AI Stock Analysis

• Market Cap: ¥107.74B
• Dividend Yield: 2.39%
• Average Volume (3M): 175.63K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.59
• Revenue Growth: 2.35%
• EPS Growth: 25.15%
• Country: JP
• Employees: 2,312
• Sector: Industrials
• Sector Strength: 86
• Industry: Engineering & Construction
• EPS (TTM): 43.40
• Shares Outstanding: 43,946,340
• 10 Day Avg. Volume: 175,190
• 30 Day Avg. Volume: 175,626
• PEG Ratio: 17.06
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.39
• 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

• Rating: 79 Outperform
• Price Target: ¥2,877.00 ▲(14.76%Upside)

NIPPON ROAD CO., LTD. receives a strong overall score of 79, driven primarily by excellent financial performance with robust revenue growth, improved profitability, and solid cash flow management. The technical analysis indicates bullish momentum, though overbought conditions suggest caution. The stock's valuation remains fair with a reasonable P/E ratio and attractive dividend yield, making it appealing for both growth and income-focused investors.

NIPPON ROAD CO., LTD. Business Overview & Revenue Model

Company Description

NIPPON ROAD CO., LTD. is a Japanese company operating primarily in the construction and civil engineering sectors. The company is involved in the development and maintenance of road infrastructure, providing a range of services from road construction and paving to the manufacture and sale of construction materials. With a focus on both public and private sector projects, NIPPON ROAD CO., LTD. plays a significant role in supporting Japan’s transportation infrastructure.

How the Company Makes Money

NIPPON ROAD CO., LTD. generates revenue through multiple streams, primarily through the contracting of construction projects for roads and highways. The company earns money by providing comprehensive construction services, which include planning, designing, and executing road projects. It also derives income from the manufacture and sale of construction materials, such as asphalt and concrete, which are essential for infrastructure development. Additionally, NIPPON ROAD CO., LTD. may engage in partnerships with government bodies and private entities to secure contracts, allowing it to leverage these relationships to maintain a steady flow of projects and revenue.

NIPPON ROAD CO., LTD. Financial Statement Overview

Summary

NIPPON ROAD CO., LTD. has shown considerable improvement across all financial verticals. The income statement reflects strong revenue and profitability growth, the balance sheet remains robust with low leverage and high equity ratios, while the cash flow statement highlights excellent cash generation and management. Despite minor increases in liabilities, the company's financial health is solid and well-positioned for future growth.

Income Statement

NIPPON ROAD CO., LTD. has demonstrated robust revenue growth from 2024 to 2025, with an increase from ¥160.5 billion to ¥164.3 billion. The gross profit margin improved to 12.6% in 2025, indicating efficient cost management. The net profit margin also improved to 3.85%, highlighting enhanced profitability. Additionally, the EBIT and EBITDA margins increased to 6.03% and 8.22%, respectively, showcasing strong operational performance.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.09, suggesting minimal leverage risk. The return on equity (ROE) is healthy at 6.05%, indicating effective use of equity capital. The equity ratio stands at 66.74%, reflecting financial stability and a strong capital base. However, the slight increase in total liabilities requires monitoring.

Cash Flow

The cash flow situation is impressive, with a significant increase in free cash flow from a negative ¥5.6 billion in 2024 to a positive ¥12.1 billion in 2025. The operating cash flow to net income ratio is strong at 2.39, indicating efficient cash generation relative to profits. The free cash flow to net income ratio further emphasizes strong cash flow management, standing at 1.92.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	163.03B	164.29B	160.52B	155.35B	156.38B	157.79B
Gross Profit	20.29B	20.75B	18.27B	15.06B	16.97B	19.30B
EBITDA	12.26B	13.50B	11.47B	9.16B	12.15B	14.81B
Net Income	5.89B	6.33B	5.05B	5.70B	5.67B	7.60B
Balance Sheet
Total Assets	153.10B	156.74B	149.93B	151.85B	152.19B	152.92B
Cash, Cash Equivalents and Short-Term Investments	37.66B	42.28B	33.60B	38.16B	30.16B	36.69B
Total Debt	9.95B	9.70B	9.70B	6.70B	8.20B	9.70B
Total Liabilities	50.97B	51.98B	49.71B	54.94B	57.19B	60.69B
Stockholders Equity	101.95B	104.58B	100.05B	96.76B	94.87B	92.10B
Cash Flow
Free Cash Flow	0.00	12.15B	-5.62B	7.65B	-1.76B	3.01B
Operating Cash Flow	0.00	15.12B	92.00M	10.92B	2.36B	8.15B
Investing Cash Flow	0.00	-3.90B	-5.20B	307.00M	-5.14B	-4.90B
Financing Cash Flow	0.00	-2.64B	536.00M	-3.35B	-3.79B	-1.58B

NIPPON ROAD CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2507.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1884, the sentiment is Neutral. The current price of 2507 is below the 20-day moving average (MA) of 2512.75, above the 50-day MA of 2391.64, and above the 200-day MA of 1895.39, indicating a neutral trend. The MACD of 26.13 indicates Positive momentum. The RSI at 72.11 is Negative, neither overbought nor oversold. The STOCH value of 24.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1884.

NIPPON ROAD CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1884	79 Outperform	¥107.74B	17.42		2.39%	2.35%	25.15%
1882	77 Outperform	¥75.95B	17.00		5.93%	7.21%	11.22%
1835	74 Outperform	¥136.15B	11.77		2.53%	12.83%	39.37%
1898	73 Outperform	¥52.04B	13.59		6.22%	12.86%	41.64%
1720	69 Neutral	¥106.36B	16.20		3.74%	2.61%	-9.19%
1879	67 Neutral	¥95.47B	7.45		0.37%	10.43%	-0.74%
Sector *	65 Neutral	$10.81B	15.65	5.50%	1.89%	3.10%	-27.09%

NIPPON ROAD CO., LTD. Corporate Events

Nippon Road Sets Record Date for Key Shareholders’ Meeting

Nippon Road Co., Ltd. has announced the record date for an Extraordinary Shareholders’ Meeting, set for July 11, 2025, to determine eligible voting shareholders. This meeting is crucial following the incomplete tender offer by Shimizu Corporation, the company’s parent, as it seeks to consolidate shares and amend the articles of incorporation to facilitate taking the company private.

Shimizu Corporation Completes Tender Offer for Nippon Road, Leading to Delisting

Shimizu Corporation, the controlling shareholder of The Nippon Road Co., Ltd., has completed a tender offer for the company’s common stock, resulting in the delisting of Nippon Road’s shares from the Tokyo Stock Exchange. This move signifies a strategic consolidation by Shimizu Corporation, potentially affecting the company’s market presence and stakeholders as Nippon Road transitions from a publicly traded entity.

Nippon Road Supports Shimizu’s Tender Offer for Full Acquisition

Nippon Road Co., Ltd. has announced its support for a tender offer by its parent company, Shimizu Corporation, to acquire all of its common shares, aiming to make Nippon Road a wholly-owned subsidiary. This move is expected to lead to the delisting of Nippon Road’s shares, signifying a strategic consolidation within the group that could impact stakeholders by potentially streamlining operations and enhancing group synergies.

Nippon Road Reports Strong Financials Amid Acquisition Plans

Nippon Road Co., Ltd. reported a positive financial performance for the fiscal year ending March 31, 2025, with notable increases in net sales and profits. The company is expected to become a wholly-owned subsidiary of Shimizu Corporation, leading to its delisting from the stock exchange, which may impact its operational independence and shareholder dynamics.

Nippon Road Co., Ltd. Highlights Independence and Synergies with Parent Company

Nippon Road Co., Ltd. announced its relationship with its parent company, Shimizu Corporation, highlighting the benefits of strengthened capital ties, such as enhanced business competitiveness and resource utilization. Despite being a subsidiary, Nippon Road maintains a degree of independence in its operations, with most transactions conducted with entities outside of Shimizu’s influence, ensuring autonomy in management decisions.

NIPPON ROAD CO., LTD. Maintains Stable Dividend Payout

NIPPON ROAD CO., LTD. announced a resolution to distribute dividends of ¥60 per share for the fiscal year ended March 31, 2024, maintaining the same level as the previous year. This decision aligns with the company’s policy to ensure stable dividends and strengthen its financial structure, which is expected to positively impact shareholder satisfaction and company stability.