Nomura Research Institute (4307) AI Stock Analysis

• Market Cap: ¥2.48T
• Dividend Yield: 1.14%
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.45
• Revenue Growth: 4.50%
• EPS Growth: 16.63%
• Country: JP
• Employees: 16,708
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 581,241,500
• 10 Day Avg. Volume: 1,327,730
• 30 Day Avg. Volume: 1,182,226
• PEG Ratio: 1.52
• Price to Book (P/B): 6.39
• Price to Sales (P/S): 3.62
• P/FCF Ratio: 22.44
• 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: ¥6,268.89
• Price Target Upside: 43.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥4,535.00 ▲(3.85% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is supported primarily by strong financial performance (healthy margins, high ROE, and solid cash conversion with improving leverage). This is partially offset by weak technical signals, including a sharp downtrend versus major moving averages and negative MACD. Valuation is reasonable with a modest dividend yield, but not compelling enough to overcome the bearish technical setup.

Positive Factors

Strong profitability & margins

Sustained high gross, operating and net margins together with a ~22.9% ROE indicate durable operating leverage and efficient capital deployment. For an IT services and consulting firm, this supports reinvestment in platforms, attracts talent, and underpins long-term cash generation and competitiveness.

Improving leverage & balance-sheet health

A falling debt-to-equity ratio and rising equity enhance financial flexibility over the medium term. Improved leverage reduces refinancing and interest risk, enabling the company to fund strategic investments or absorb shocks without sacrificing operations or client service continuity.

Strong cash generation & recurring revenue

FCF near 96% of net income signals high quality of earnings and consistent cash conversion. Coupled with recurring managed-services and platform fees (stable contract revenue), this supports sustainable investment in products, reliable service delivery and predictable near-term revenue streams.

Negative Factors

Moderating revenue growth

Slower top-line momentum points to a transition from high-growth to more mature growth rates; this can limit the pace at which scale-driven margin gains and market share expansion occur. For a services firm, slower revenue growth makes operational efficiency and client retention more critical.

Absolute debt remains meaningful

Even with better ratios, non-trivial absolute debt exposes the company to interest and refinancing risk during downturns. If operating performance slips, leverage could constrain investment, M&A or dividend policy, reducing strategic optionality over the medium term.

Moderate cash coverage & slight FCF decline

A modest decline in FCF and an operating-cash-coverage metric around 0.54 reduce the company’s cushion for capex, working capital swings or debt servicing. That makes sustained investment or absorbing unexpected client payment issues more challenging.

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 for enterprise and government agencies. This segment is also involved in the research, future projection, and recommendations related to society, economics, business, technology, etc. The company's Financial IT Solutions segment provides system consulting, development, and management solutions, as well as shared online services for the financial institutions, including the securities, insurance, banking, asset management, and other financial sectors. Its Industrial IT Solutions segment offers system consulting, development, and management solutions, as well as shared online services primarily for the distribution, manufacturing, service, and public sectors. The company's IT Platform Services segment engages in the data center operation activities and construction of platforms and networks to the Financial IT and Industrial IT Solutions segments, as well as provides IT platform solutions and information security services to external clients. This segment is also involved in research related to advance IT, etc. The company was founded in 1965 and is headquartered in Tokyo, Japan.

How the Company Makes Money

NRI generates revenue through multiple streams, primarily from consulting services, systems integration, and software development. The consulting services include strategic advisory and management consulting, which are billed on a project basis, while systems integration involves the implementation of IT systems tailored to client needs, generating revenue through service contracts and project fees. Additionally, NRI earns income from licensing proprietary software and providing ongoing support and maintenance services. The company also forms partnerships with technology firms, enhancing its service offerings and market reach, which contributes significantly to its earnings. NRI's strong focus on research and development allows it to stay ahead in technology trends, thereby attracting clients looking for innovative solutions.

Nomura Research Institute Financial Statement Overview

Summary

Strong profitability (gross margin ~36.8%, operating margin ~19.0%, net margin ~13.0%) and high ROE (~22.9%). Leverage is manageable and improving (debt-to-equity ~0.56 TTM). Cash flow quality is good (FCF ~96% of net income), but FCF is slightly down vs. prior year and coverage is only moderate (~0.54).

Income Statement

TTM (Trailing-Twelve-Months) performance shows strong profitability with healthy gross profit (~36.8%) and solid operating and net margins (~19.0% and ~13.0%). Revenue continues to expand (TTM revenue up vs. the latest annual period), and profitability has trended upward over the last several years as scale improved. The main weakness is that growth has moderated from earlier, higher-growth years, suggesting a more mature pace going forward.

Balance Sheet

Leverage looks manageable with debt-to-equity improving in TTM (~0.56) versus the latest annual period (~0.65), alongside rising equity. Returns are strong (TTM return on equity ~22.9%), indicating efficient use of shareholder capital. The key watch-out is that debt remains meaningful in absolute terms, so flexibility could tighten if profitability or cash generation weakens.

Cash Flow

Cash generation is solid: TTM free cash flow is high and closely tracks earnings (free cash flow is ~96% of net income), which supports quality of profits. However, recent momentum is mixed, with TTM free cash flow slightly down versus the prior year and operating cash flow covering only a moderate portion of the company’s obligations in the provided coverage measure (~0.54), implying less cushion than the income statement alone suggests.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	798.90B	764.81B	736.56B	692.16B	611.63B	550.34B
Gross Profit	293.78B	275.30B	261.01B	239.83B	216.07B	185.80B
EBITDA	204.12B	187.97B	171.26B	159.14B	149.08B	123.82B
Net Income	105.17B	93.76B	79.64B	76.31B	71.44B	52.87B
Balance Sheet
Total Assets	948.54B	928.50B	922.77B	838.22B	789.65B	656.54B
Cash, Cash Equivalents and Short-Term Investments	108.66B	168.60B	173.94B	129.26B	115.61B	153.19B
Total Debt	258.35B	282.04B	298.54B	237.74B	250.42B	165.59B
Total Liabilities	442.97B	490.54B	519.75B	435.82B	447.17B	323.33B
Stockholders Equity	501.66B	434.04B	399.53B	399.01B	339.36B	330.50B
Cash Flow
Free Cash Flow	137.90B	123.54B	92.48B	64.20B	55.16B	55.56B
Operating Cash Flow	143.42B	130.20B	142.28B	118.90B	98.14B	84.59B
Investing Cash Flow	-92.50B	-47.59B	-53.42B	-61.19B	-130.55B	-20.52B
Financing Cash Flow	-87.45B	-87.31B	-47.58B	-44.92B	-8.00B	-13.18B

Nomura Research Institute Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4367.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4307, the sentiment is Negative. The current price of 4367 is above the 20-day moving average (MA) of 4158.70, below the 50-day MA of 5278.94, and below the 200-day MA of 5683.85, indicating a neutral trend. The MACD of -431.64 indicates Negative momentum. The RSI at 40.72 is Neutral, neither overbought nor oversold. The STOCH value of 46.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4307.

Nomura Research Institute Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3636	77 Outperform	¥79.63B	9.87	―	3.28%	5.28%	28.90%
3626	70 Outperform	¥723.99B	13.78	―	1.39%	4.95%	9.54%
9719	69 Neutral	¥1.78T	27.11	―	1.48%	42.98%	48.88%
4307	68 Neutral	¥2.48T	23.78	22.48%	1.14%	4.50%	16.63%
8056	67 Neutral	¥434.49B	14.62	―	2.17%	10.42%	28.75%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2327	57 Neutral	¥735.63B	26.49	10.07%	1.76%	11.66%	-0.21%

Nomura Research Institute Corporate Events

Nomura Research Institute Posts Double-Digit Profit Growth and Raises Annual Dividend Outlook

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. Profit attributable to owners of the parent increased 15.9% to ¥83.2 billion, while basic earnings per share reached ¥145.21, supported by a stronger balance sheet as equity attributable to owners of the parent rose to ¥501.7 billion and the equity ratio improved to 52.9%. The company maintained its previously announced guidance for the full fiscal year ending March 31, 2026, projecting revenue of ¥810.0 billion and profit attributable to owners of the parent of ¥104.0 billion, and also affirmed its dividend outlook, targeting a higher annual dividend of ¥74.00 per share compared with ¥63.00 in the prior fiscal year, signaling confidence in earnings growth and shareholder returns.

The most recent analyst rating on (JP:4307) stock is a Buy with a Yen7000.00 price target. To see the full list of analyst forecasts on Nomura Research Institute stock, see the JP:4307 Stock Forecast page.