Nippon Densetsu Kogyo Co., Ltd. (JP:1950)
:1950
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Nippon Densetsu Kogyo Co., Ltd.
(1950)
Select Model
Select Model
Rating:76Outperform
Price Target:
¥5,378.00
▲(62.48% Upside)
Action:ReiteratedDate:03/24/26
The score is driven mainly by solid financial strength (strong profitability trend and a very low-debt balance sheet) but is held back by weak and volatile cash flow in 2025. Technicals are broadly constructive despite near-term pullback signals, and valuation is a meaningful positive with a low P/E and a modest dividend yield.
Positive Factors
Conservative balance sheet
Extremely low leverage provides durable financial flexibility for an infrastructure contractor: it reduces refinancing risk, supports bidding on large public projects, and allows internal funding of capex or strategic investments during downturns without eroding covenant capacity.
Negative Factors
Volatile cash generation
Wide swings from strong operating cash in earlier years to negative OCF/FCF in 2025 point to working-capital and project-timing risks. Unpredictable cash conversion can strain liquidity, hamper reinvestment, and force external funding despite low leverage, reducing strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage provides durable financial flexibility for an infrastructure contractor: it reduces refinancing risk, supports bidding on large public projects, and allows internal funding of capex or strategic investments during downturns without eroding covenant capacity.
Read all positive factors
Nippon Densetsu Kogyo Co., Ltd. (1950) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥320.27B
Dividend Yield2.79%
Average Volume (3M)98.11K
Price to Earnings (P/E)9.5
Beta (1Y)1.01
Revenue Growth10.62%
EPS Growth64.25%
CountryJP
Employees4,744
SectorIndustrials
Sector Strength72
IndustryIndustrial - Infrastructure Operations
Share Statistics
EPS (TTM)N/A
Shares Outstanding61,537,220
10 Day Avg. Volume86,150
30 Day Avg. Volume98,106
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)0.63
Price to Sales (P/S)0.57
P/FCF Ratio-13.58
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥5,400.00Price Target Upside63.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nippon Densetsu Kogyo Co., Ltd. Business Overview & Revenue Model
Company Description
Nippon Densetsu Kogyo Co., Ltd. operates as a railway electronics equipment construction company in Japan. The company engages in the construction of electrical facilities for buildings, such as related to renewable energies and energy-saving buil...
Nippon Densetsu Kogyo Co., Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
88
Very Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 214.15B | 216.92B | 194.03B | 172.10B | 173.57B | 195.69B |
| Gross Profit | 34.33B | 34.31B | 28.51B | 23.92B | 21.66B | 28.86B |
| EBITDA | 25.26B | 24.68B | 19.22B | 14.64B | 12.08B | 19.04B |
| Net Income | 13.83B | 13.19B | 10.04B | 7.17B | 5.22B | 9.55B |
Balance Sheet | ||||||
| Total Assets | 258.08B | 296.39B | 282.60B | 261.37B | 257.70B | 265.66B |
| Cash, Cash Equivalents and Short-Term Investments | 32.47B | 27.17B | 36.21B | 42.34B | 45.29B | 42.76B |
| Total Debt | 5.35B | 5.06B | 1.06B | 863.00M | 1.04B | 1.06B |
| Total Liabilities | 52.44B | 86.73B | 83.48B | 71.14B | 72.51B | 81.29B |
| Stockholders Equity | 191.99B | 195.72B | 185.79B | 177.23B | 172.37B | 171.54B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -9.12B | 3.76B | -93.00M | 6.80B | 13.66B |
| Operating Cash Flow | 0.00 | -4.34B | 7.38B | 13.23B | 9.51B | 19.57B |
| Investing Cash Flow | 0.00 | -5.77B | -4.18B | -12.44B | -6.64B | -9.40B |
| Financing Cash Flow | 0.00 | 169.00M | -7.93B | -2.34B | -2.74B | -2.74B |
Nippon Densetsu Kogyo Co., Ltd. Technical Analysis
Positive
3310.00
Price Trends
4673.14
Positive
3936.38
Positive
3315.45
Positive
Market Momentum
116.01
Negative
60.99
Neutral
86.32
Negative
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 3310 is below the 20-day moving average (MA) of 4938.84, below the 50-day MA of 4673.14, and below the 200-day MA of 3315.45, indicating a bullish trend. The MACD of 116.01 indicates Negative momentum. The RSI at 60.99 is Neutral, neither overbought nor oversold. The STOCH value of 86.32 is Negative, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥183.26B | 11.69 | ― | 2.81% | 8.83% | 49.49% | |
76 Outperform | ¥194.75B | 6.20 | ― | 2.72% | -2.11% | -11.31% | |
76 Outperform | ¥266.19B | 12.19 | 7.43% | 2.78% | 1.31% | 59.20% | |
76 Outperform | ¥320.27B | 9.48 | ― | 2.79% | 10.62% | 64.25% | |
71 Outperform | ¥188.04B | 9.99 | ― | 2.87% | 6.66% | 46.38% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
JP:1950
Nippon Densetsu Kogyo Co., Ltd.
5,170.00
3,187.30
160.76%
JP:1941
CHUDENKO
4,775.00
1,577.58
49.34%
JP:1934
Yurtec Corporation
2,708.00
1,096.24
68.02%
JP:1952
Shin Nippon Air Technologies Co., Ltd.
3,700.00
1,988.97
116.24%
JP:1968
Taihei Dengyo Kaisha, Ltd.
3,040.00
1,565.67
106.20%
Nippon Densetsu Kogyo Co., Ltd. Corporate Events
Nippon Densetsu Kogyo Lifts Profit Outlook and Hikes Dividend on Strong Infrastructure Demand
Jan 30, 2026
Nippon Densetsu Kogyo has sharply revised upward its earnings forecasts for the fiscal year ending March 31, 2026, projecting significantly higher operating and ordinary profit and profit attributable to owners of parent despite slightly lower net...
Nippon Densetsu Kogyo Posts Profit Surge and Lifts Full-Year Forecast, Dividend Outlook
Jan 30, 2026
Nippon Densetsu Kogyo reported strong consolidated results for the nine months to 31 December 2025, with net sales rising 8.2% year on year to ¥135.3 billion and operating profit soaring 166% to ¥9.86 billion. Ordinary profit climbed 128...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.