Nippon Densetsu Kogyo Co., Ltd. (1950) AI Stock Analysis

• Market Cap: ¥177.41B
• Dividend Yield: 3.17%
• Average Volume (3M): 88.61K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.90
• Revenue Growth: 7.90%
• EPS Growth: 35.67%
• Country: JP
• Employees: 4,744
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 10.13
• Shares Outstanding: 61,537,220
• 10 Day Avg. Volume: 93,900
• 30 Day Avg. Volume: 88,610
• PEG Ratio: 0.42
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,713.00
• Price Target Upside: -4.54% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ¥3,182.00 ▲(11.96%Upside)

Nippon Densetsu Kogyo Co., Ltd. scores well due to its solid financial performance and strong technical momentum, indicating a positive market position. However, cash flow challenges and moderate valuation metrics slightly offset the overall attractiveness.

Nippon Densetsu Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Densetsu Kogyo Co., Ltd. (1950) is a Japanese company that specializes in the design, construction, and maintenance of electrical systems. The company operates in various sectors, including infrastructure, transportation, and telecommunications, providing comprehensive electrical solutions and services. Its core offerings include electrical installations for buildings, railway systems, and telecommunications infrastructure.

How the Company Makes Money

Nippon Densetsu Kogyo Co., Ltd. generates revenue primarily through contracts for electrical systems and infrastructure projects. These projects include the installation and maintenance of electrical systems in buildings, railway networks, and telecommunications facilities. The company also engages in partnerships with government agencies and private corporations to undertake large-scale infrastructure projects. Revenue is driven by the demand for electrical installations in urban development, public transportation systems, and technological advancements in telecommunications. Additionally, ongoing maintenance contracts provide a steady income stream, as clients require regular servicing and upgrades to their electrical systems.

Nippon Densetsu Kogyo Co., Ltd. Financial Statement Overview

Summary

Nippon Densetsu Kogyo Co., Ltd. demonstrates solid financial performance with strong revenue growth and profit margins. The balance sheet is robust with low leverage, though cash flow management is an area of concern due to negative free cash flow, indicating liquidity challenges.

Income Statement

Nippon Densetsu Kogyo Co., Ltd. exhibits a strong gross profit margin of 15.82% and a healthy net profit margin of 6.08% in the latest fiscal year. The revenue growth rate was 11.81% over the past year, indicating a positive growth trajectory. EBIT and EBITDA margins are solid at 8.27% and 11.38% respectively, demonstrating effective cost management and operational efficiency, although profitability has slightly decreased compared to prior periods.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.02, highlighting minimal leverage risk. The return on equity (ROE) stands at 6.74%, reflecting moderate profitability on shareholders' investment. The equity ratio is 66.02%, indicating a strong equity base relative to total assets, emphasizing financial stability and low financial risk.

Cash Flow

Despite a negative free cash flow of -9.12 billion JPY indicating operational challenges, the operating cash flow to net income ratio is -0.33, suggesting issues in converting earnings to cash flow. The free cash flow to net income ratio is also negative, underlining cash flow constraints. This reflects potential liquidity challenges that need addressing for sustained growth.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	216.92B	194.03B	172.10B	173.57B	195.69B
Gross Profit	34.31B	28.51B	23.92B	21.66B	28.86B
EBITDA	24.69B	19.22B	13.34B	11.22B	18.03B
Net Income	13.19B	10.04B	7.17B	5.22B	9.55B
Balance Sheet
Total Assets	296.39B	282.60B	261.37B	257.70B	265.66B
Cash, Cash Equivalents and Short-Term Investments	27.17B	36.21B	42.34B	45.29B	42.76B
Total Debt	4.10B	100.00M	100.00M	100.00M	100.00M
Total Liabilities	86.73B	83.48B	71.14B	72.51B	81.30B
Stockholders Equity	195.72B	185.79B	177.23B	172.37B	171.54B
Cash Flow
Free Cash Flow	-9.12B	1.58B	-2.55B	4.54B	12.57B
Operating Cash Flow	-4.34B	7.38B	13.23B	9.51B	19.57B
Investing Cash Flow	-5.77B	-4.18B	-12.44B	-6.64B	-9.40B
Financing Cash Flow	169.00M	-7.93B	-2.34B	-2.74B	-2.74B

Nippon Densetsu Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2842.00
• 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:1950, the sentiment is Positive. The current price of 2842 is above the 20-day moving average (MA) of 2751.30, above the 50-day MA of 2577.88, and above the 200-day MA of 2118.11, indicating a bullish trend. The MACD of 90.53 indicates Negative momentum. The RSI at 72.34 is Negative, neither overbought nor oversold. The STOCH value of 70.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1950.

Nippon Densetsu Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1976	82 Outperform	¥73.75B	9.43		2.63%	4.24%	22.05%
1965	81 Outperform	¥83.46B	12.03		2.53%	14.25%	63.31%
1934	78 Outperform	¥169.56B	14.12		2.74%	8.39%	54.30%
1950	77 Outperform	¥177.41B	12.30		3.17%	7.90%	35.67%
1952	77 Outperform	¥127.23B	12.63		3.10%	7.58%	35.42%
1946	71 Outperform	¥128.27B	11.37		3.77%	6.80%	15.08%
Sector *	61 Neutral	C$6.51B	7.64	2.76%	2.72%	6.06%	-10.89%

Nippon Densetsu Kogyo Co., Ltd. Corporate Events

Nippon Densetsu Kogyo Reports Q1 Financials and Positive Outlook

Nippon Densetsu Kogyo Co., Ltd. reported a decline in net sales by 8.4% for the three months ending June 30, 2025, compared to the same period in 2024. Despite the decrease in sales, the company showed a profit attributable to owners of the parent, indicating a potential for recovery. The financial forecast for the fiscal year ending March 31, 2026, anticipates a 6.2% increase in net sales, suggesting optimism for future growth.

Nippon Densetsu Kogyo Highlights Relationship with East Japan Railway

Nippon Densetsu Kogyo Co., Ltd. announced its relationship with East Japan Railway Company, highlighting that the latter is its largest shareholder with 19.5% voting rights. Despite this significant shareholding, Nippon Densetsu Kogyo maintains a degree of independence, conducting transactions on normal commercial terms. The company benefits from electrical facility construction contracts from East Japan Railway, contributing substantially to its net sales.

Nippon Densetsu Kogyo Announces Key Personnel Changes

Nippon Densetsu Kogyo Co., Ltd. has announced a series of personnel changes, effective June 20, 2025, which include the appointment of new directors and executive officers. These changes are aimed at strengthening the company’s leadership structure and enhancing its operational efficiency, potentially impacting its market positioning and stakeholder relations.

Nippon Densetsu Kogyo Revises Management Plan Amid Industry Growth

Nippon Densetsu Kogyo Co., Ltd. has revised its three-year management plan due to a favorable shift in the construction industry’s order-taking environment, driven by increased public and private-sector investments. The company has achieved record highs in orders, net sales, and profits, and expects to meet its targets for the fiscal year ending March 31, 2026. The revised plan aims to accelerate growth towards becoming a comprehensive infrastructure facilities construction company by fiscal year 2031.