NIPPON RIETEC CO., LTD. (1938) AI Stock Analysis

• Market Cap: ¥59.73B
• Dividend Yield: 2.61%
• Average Volume (3M): 38.85K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.74
• Revenue Growth: 10.18%
• EPS Growth: 38.26%
• Country: JP
• Employees: 1,551
• Sector: Industrials
• Sector Strength: 72
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 41.68
• Shares Outstanding: 25,617,716
• 10 Day Avg. Volume: 41,980
• 30 Day Avg. Volume: 38,853
• PEG Ratio: 0.11
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 119.09
• 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: 81 Outperform
• Price Target: ¥2,464.00 ▲(8.31% Upside)

NIPPON RIETEC CO., LTD. receives a strong overall score due to its robust financial performance, positive technical indicators, and attractive valuation. The company's solid financial foundation and upward price momentum are key strengths, while the reasonable P/E ratio and dividend yield enhance its investment appeal. The absence of earnings call data and corporate events does not detract from the positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Financial Stability

A strong balance sheet with low leverage reduces financial risk and enhances the company's ability to invest in growth opportunities.

Profit Margins

Robust profit margins reflect efficient cost management and operational effectiveness, contributing to sustainable profitability.

Negative Factors

Cash Flow Efficiency

Inefficiencies in cash generation could limit the company's ability to reinvest in operations or manage unexpected expenses effectively.

Asset Utilization

Improving asset utilization is crucial for maximizing returns on investments and enhancing overall operational efficiency.

Cash Flow Management

While cash flow management is improving, further optimization is needed to ensure strong liquidity and financial flexibility in the long term.

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

Company Description

Nippon Rietec Co.,Ltd. engages in the railway electrical equipment construction business in Japan. The company's railway electrical equipment includes signal, power generation and transformation, optical communication cable, and transmission line equipment, as well as information and communication systems and new transportation systems. It also provides road construction equipment, including traffic signals, road information control systems, road signs, and landscape signs. In addition, the company offers indoor/outdoor electric facility, optical communication cable equipment, and solar power generation systems; and transmission lines for equipment sector. Nippon Rietec Co.,Ltd. was incorporated in 1945 and is headquartered in Tokyo, Japan.

How the Company Makes Money

NIPPON RIETEC generates revenue through multiple streams, primarily by selling its industrial machinery and equipment to various sectors, including automotive, electronics, and healthcare. The company earns money through direct sales of its products, as well as through long-term contracts for maintenance and support services. Additionally, NIPPON RIETEC may engage in partnerships with other manufacturers and technology firms to co-develop new solutions, which can lead to shared revenue opportunities. The company's focus on innovation and high-quality products allows it to maintain competitive pricing and secure contracts with large corporations, contributing significantly to its earnings.

NIPPON RIETEC CO., LTD. Financial Statement Overview

Summary

NIPPON RIETEC CO., LTD. displays strong financial health with consistent revenue and profit growth. The company's low leverage and high equity ratio highlight financial stability. While cash flow management is improving, there is potential for further optimization. Overall, the company is well-positioned for future growth with a solid financial foundation.

Income Statement

The company demonstrates strong financial performance with consistent revenue growth. The revenue has increased by approximately 17% from 2024 to 2025, indicating solid growth. Gross profit margin and net profit margin are strong at 15.8% and 6.9% respectively for 2025, showcasing efficient cost management and profitability. EBIT and EBITDA margins of 7.6% and 11.7% respectively indicate robust operational performance.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.03, reflecting low leverage and financial risk. The equity ratio is high at 67.4%, suggesting a strong capital structure. Return on equity is reasonable at 7.4%, indicating effective use of equity. Overall, the financial position is solid, but the company could benefit from improved asset utilization.

Cash Flow

The cash flow position shows some stability but with room for improvement. Operating cash flow to net income ratio is 0.43, indicating good cash conversion. Free cash flow has grown by 72% from 2024 to 2025, showing enhanced cash management. However, the free cash flow to net income ratio is relatively low, suggesting potential inefficiencies in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.59B	68.67B	58.54B	53.75B	53.23B	55.20B
Gross Profit	11.14B	10.84B	8.79B	7.70B	7.71B	8.84B
EBITDA	7.68B	8.05B	5.39B	4.51B	4.85B	5.83B
Net Income	4.94B	4.73B	2.77B	2.14B	2.40B	3.28B
Balance Sheet
Total Assets	89.74B	94.63B	87.32B	82.85B	79.86B	80.62B
Cash, Cash Equivalents and Short-Term Investments	7.77B	8.31B	8.91B	7.85B	7.84B	6.76B
Total Debt	3.55B	1.76B	2.13B	1.79B	1.49B	1.32B
Total Liabilities	27.64B	30.90B	27.54B	26.07B	24.35B	25.98B
Stockholders Equity	62.10B	63.73B	59.78B	56.78B	55.50B	54.64B
Cash Flow
Free Cash Flow	0.00	309.04M	1.80B	1.25B	1.76B	1.50B
Operating Cash Flow	0.00	2.04B	3.86B	2.17B	2.63B	3.07B
Investing Cash Flow	0.00	-1.19B	-1.85B	-830.85M	-455.04M	-1.52B
Financing Cash Flow	0.00	-1.44B	-960.44M	-1.33B	-1.09B	-2.02B

NIPPON RIETEC CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2275.00
• 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:1938, the sentiment is Positive. The current price of 2275 is above the 20-day moving average (MA) of 2258.35, above the 50-day MA of 2162.22, and above the 200-day MA of 1899.92, indicating a bullish trend. The MACD of 54.16 indicates Negative momentum. The RSI at 67.98 is Neutral, neither overbought nor oversold. The STOCH value of 79.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1938.

NIPPON RIETEC CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1938	81 Outperform	¥59.73B	11.74	―	2.61%	10.18%	38.26%
7715	80 Outperform	¥48.22B	9.07	―	1.94%	-4.17%	-7.07%
7500	75 Outperform	¥43.07B	15.41	―	2.29%	6.81%	12.70%
7723	73 Outperform	¥42.13B	10.77	―	3.21%	7.99%	50.13%
6817	70 Outperform	¥37.59B	18.68	―	4.53%	-2.57%	3.43%
6644	67 Neutral	¥57.37B	15.57	―	2.36%	2.78%	127.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

NIPPON RIETEC CO., LTD. Corporate Events

Nippon Rietec Achieves Record Highs in Financial Performance

Nippon Rietec Co., Ltd. reported record high net sales and operating profit for the six months ending September 30, 2025, driven by robust construction investments and large-scale project orders in its road facility and power transmission line divisions. Despite challenges such as high material costs and rising personnel expenses, the company achieved significant year-on-year growth in net sales and operating profit, supported by strategic initiatives in price negotiations, productivity improvements, and cost reduction.

The most recent analyst rating on (JP:1938) stock is a Buy with a Yen2464.00 price target. To see the full list of analyst forecasts on NIPPON RIETEC CO., LTD. stock, see the JP:1938 Stock Forecast page.

Nippon Rietec Reports Strong Financial Growth in H1 2025

Nippon Rietec Co., Ltd. reported a significant increase in its financial performance for the six months ended September 30, 2025, with net sales rising by 6.1% and operating profit surging by 87.5% compared to the same period last year. The company also announced a forecasted increase in annual dividends, reflecting its strong financial position and commitment to shareholder returns.

The most recent analyst rating on (JP:1938) stock is a Buy with a Yen2464.00 price target. To see the full list of analyst forecasts on NIPPON RIETEC CO., LTD. stock, see the JP:1938 Stock Forecast page.