Nomura Research InstituteLtd (JP:4307)
:4307
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Nomura Research Institute
(4307)
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Rating:59Neutral
Price Target:
¥4,607.00
▼(-5.71% Downside)
Action:ReiteratedDate:04/28/26
The score is driven primarily by solid operating performance and strong, consistent free cash flow, but it is weighed down by the latest year’s sharp deterioration in net profitability/ROE. Technicals are mixed with overbought signals and a price still below longer-term moving averages, while valuation is a significant constraint due to the very high P/E and only a modest dividend yield.
Positive Factors
Strong cash generation
Consistently positive and growing free cash flow that roughly matches net income provides durable internal funding. This cash conversion supports recurring investments in platforms and services, funds dividends or debt reduction, and cushions operational shocks without relying on external financing.
Negative Factors
Sharp net margin and ROE collapse
A dramatic fall in net margin and ROE materially reduces return on invested capital and signals weaker earnings power. Even with solid operating margins, such a collapse indicates that bottom-line performance no longer converts operating success into shareholder returns, raising sustainability concerns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistently positive and growing free cash flow that roughly matches net income provides durable internal funding. This cash conversion supports recurring investments in platforms and services, funds dividends or debt reduction, and cushions operational shocks without relying on external financing.
Read all positive factors
Nomura Research Institute (4307) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.38T
Dividend Yield1.14%
Average Volume (3M)1.18M
Price to Earnings (P/E)―
Beta (1Y)0.39
Revenue Growth6.52%
EPS Growth-83.73%
CountryJP
Employees16,708
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)26.61
Shares Outstanding581,241,500
10 Day Avg. Volume1,327,730
30 Day Avg. Volume1,182,226
Financial Highlights & Ratios
PEG Ratio-1.94
Price to Book (P/B)5.72
Price to Sales (P/S)3.05
P/FCF Ratio17.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥5,550.00Price Target Upside13.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)211.31
Revenue Forecast (FY)¥850.19B
Nomura Research Institute Business Overview & Revenue Model
Company Description
Nomura Research Institute, Ltd. provides consulting, financial information technology (IT) solution, industrial IT solution, and IT platform services in Japan. Its Consulting segment offers management, operational, and system consulting services f...
How the Company Makes Money
NRI primarily earns revenue by delivering IT and consulting services to corporate and institutional clients. Key revenue streams include: (1) Systems integration and development fees for designing and building IT systems (including project-based w...
Nomura Research Institute Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
74
Positive
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 814.71B | 764.81B | 736.56B | 692.16B | 611.63B |
| Gross Profit | 300.15B | 275.30B | 261.01B | 239.83B | 216.07B |
| EBITDA | 205.78B | 182.74B | 167.09B | 154.67B | 144.60B |
| Net Income | 15.26B | 93.76B | 79.64B | 76.31B | 71.44B |
Balance Sheet | |||||
| Total Assets | 959.79B | 928.50B | 922.77B | 838.22B | 789.65B |
| Cash, Cash Equivalents and Short-Term Investments | 132.62B | 168.60B | 173.94B | 129.26B | 115.61B |
| Total Debt | 236.13B | 271.02B | 298.54B | 237.74B | 250.42B |
| Total Liabilities | 521.79B | 490.54B | 519.75B | 435.81B | 447.17B |
| Stockholders Equity | 433.90B | 434.04B | 399.53B | 399.01B | 339.36B |
Cash Flow | |||||
| Free Cash Flow | 141.80B | 123.54B | 134.79B | 106.84B | 91.31B |
| Operating Cash Flow | 147.64B | 130.20B | 142.28B | 118.90B | 98.14B |
| Investing Cash Flow | -97.05B | -47.59B | -53.98B | -61.19B | -130.55B |
| Financing Cash Flow | -90.78B | -87.31B | -47.02B | -44.92B | -8.00B |
Nomura Research Institute Technical Analysis
Positive
4886.00
Price Trends
4261.92
Positive
5110.59
Negative
5405.31
Negative
Market Momentum
123.84
Negative
68.34
Neutral
84.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4307, the sentiment is Positive. The current price of 4886 is above the 20-day moving average (MA) of 4465.72, above the 50-day MA of 4261.92, and below the 200-day MA of 5405.31, indicating a neutral trend. The MACD of 123.84 indicates Negative momentum. The RSI at 68.34 is Neutral, neither overbought nor oversold. The STOCH value of 84.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4307.
Nomura Research Institute Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥69.98B | 3.15 | ― | 3.28% | 12.54% | 171.52% | |
67 Neutral | ¥394.61B | 12.46 | ― | 2.17% | 7.35% | 17.48% | |
64 Neutral | ¥763.29B | 20.55 | ― | 1.39% | 5.45% | 7.26% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | ¥652.55B | 17.25 | 10.07% | 1.76% | 12.72% | 13.98% | |
59 Neutral | ¥2.38T | -9.13 | 22.48% | 1.14% | 6.52% | -83.73% |
* Technology Sector Average
JP:4307
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Nomura Research Institute Corporate Events
Nomura Research Institute Launches ¥70 Billion Share Buyback to Lift ROE
Apr 24, 2026
Nomura Research Institute has authorized a share repurchase of up to 21 million common shares, or 3.66% of its outstanding stock, with a budget of up to ¥70 billion. The buyback will be executed via market purchases on the Tokyo Stock Exchang...
Nomura Research Institute Sets Aggressive Profitability Goals in New Medium-Term Plan
Apr 24, 2026
Nomura Research Institute has unveiled its NRI Group Medium-term Management Plan for 2026–2028, designed to advance its long-term Vision 2030 of “Envision the value, Empower the change.” The plan sets ambitious consolidated finan...
Nomura Research Institute Lifts Dividend Forecast and Signals Further Payout Increase
Apr 24, 2026
Nomura Research Institute has revised its dividend forecasts for the fiscal year ended March 31, 2026, raising the planned annual dividend from ¥74 to ¥77 per share, with a year-end dividend of ¥42 following an interim payout of ...
Nomura Research Institute Profit Slumps Despite Higher Revenue, Eyes Strong Rebound in 2027
Apr 24, 2026
Nomura Research Institute reported a 6.5% rise in revenue to ¥814.7 billion for the fiscal year ended March 31, 2026, but operating profit plunged 56.8% to ¥58.3 billion and profit attributable to owners of parent fell 83.7% to ¥15....
Nomura Research Institute Slashes Profit Outlook on Major Overseas Impairment Charges
Apr 23, 2026
Nomura Research Institute has sharply cut its consolidated earnings forecast for the fiscal year ending March 2026 after deciding to book ¥96.9 billion in impairment losses on goodwill and other assets at its Australian and North American sub...
Nomura Research Institute to Absorb Subsidiary in Digital Strategy Push
Mar 12, 2026
Nomura Research Institute will absorb its wholly owned subsidiary NRI Social Information System Services in a simplified merger effective May 1, 2026, with NRI as the surviving entity and no share or cash consideration due to the existing 100% own...
Nomura Research Institute Reshapes Top Management With New Representative Director
Mar 12, 2026
Nomura Research Institute has announced a change in its top management, with the board resolving to alter its representative director structure effective April 1, 2026, as part of a new management framework. Long-serving executive Ken Ebato will r...
Nomura Research Institute Posts Double-Digit Profit Growth and Raises Annual Dividend Outlook
Jan 29, 2026
Nomura Research Institute reported solid growth for the nine months ended December 31, 2025, with revenue rising 6.0% year on year to ¥602.3 billion and operating profit climbing 16.0% to ¥118.8 billion, reflecting improved profitability...
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.