Nomura Research Institute (4307) AI Stock Analysis

• Market Cap: $3.28T
• Dividend Yield: 1.1%
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): 35.3
• Beta (1Y): 0.54
• Revenue Growth: 3.84%
• EPS Growth: 19.26%
• Country: JP
• Employees: 16,708
• Sector: Technology
• Sector Strength: 82
• Industry: Information Technology Services
• EPS (TTM): 38.42
• Shares Outstanding: 581,241,500
• 10 Day Avg. Volume: 1,562,230
• 30 Day Avg. Volume: 1,424,560
• PEG Ratio: 8.90
• Price to Book (P/B): 7.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.55
• 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: $5,633.88
• Price Target Upside: -2.34% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 75 Outperform
• Price Target: ―

Nomura Research Institute shows strong financial performance with solid revenue growth, efficient cost management, and robust cash flow. Technical analysis indicates a positive market momentum, although the stock may be nearing overbought levels. Valuation suggests a premium pricing, reflecting expectations of continued growth. These factors contribute to a strong overall stock score.

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

Nomura Research Institute generates revenue primarily through its consulting services, IT solutions, and systems integration projects. The company earns money by providing strategic management consulting services to businesses and government agencies, helping them optimize operations and develop growth strategies. Additionally, NRI offers financial technology solutions that cater to the needs of financial institutions, such as asset management and brokerage firms, which are crucial in the highly competitive financial sector. Another significant revenue stream comes from systems integration, where NRI designs, develops, and maintains customized IT systems for clients across various industries. The company's earnings are further bolstered by strategic partnerships with leading technology firms and a strong client base in Japan and other Asian markets.

Nomura Research Institute Financial Statement Overview

Summary

Nomura Research Institute demonstrates strong financial health with solid revenue growth, efficient cost management, and healthy profit margins. The balance sheet reflects a stable leverage position with a strong equity base, though attention to liabilities is warranted. Cash flow generation is robust, providing flexibility for operations and growth.

Income Statement

Nomura Research Institute has demonstrated strong revenue growth, evident from a consistent increase in total revenue over the years with a 3.84% growth in the latest year. The Gross Profit Margin is healthy at 35.98%, and the Net Profit Margin has improved to 12.26%, indicating efficient cost management. The EBIT and EBITDA margins at 17.16% and 24.58%, respectively, also reflect robust operational efficiency. Overall, the income statement shows a positive trajectory in profitability and revenue growth, suggesting good financial health.

Balance Sheet

The balance sheet of Nomura Research Institute shows a moderate Debt-to-Equity Ratio of 0.62, indicating a stable leverage position. The Return on Equity is impressive at 21.61%, suggesting effective use of equity to generate profits. The Equity Ratio stands at 46.75%, reflecting a strong equity base relative to total assets. Despite these strengths, a relatively high amount of total liabilities suggests potential leverage risks if not managed carefully. Overall, the balance sheet is solid with a strong equity position and good returns.

Cash Flow

The company's cash flow is robust, with Free Cash Flow growing significantly by 33.60%, showcasing strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 1.39, indicating good cash flow relative to net income, while the Free Cash Flow to Net Income Ratio is 1.32, further reinforcing cash efficiency. These metrics highlight the company's ability to generate cash and meet its operational and investment needs efficiently. Overall, the cash flow statement reflects strong cash generation and management practices.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
764.81B	736.56B	692.16B	611.63B	550.34B
	Gross Profit
275.30B	261.01B	239.83B	216.07B	185.80B
	EBIT
131.22B	120.41B	111.83B	106.22B	80.75B
	EBITDA
187.97B	171.26B	154.67B	144.60B	123.82B
	Net Income Common Stockholders
93.76B	79.64B	76.31B	71.44B	52.87B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
168.60B	173.94B	143.46B	129.63B	163.03B
	Total Assets
928.50B	922.77B	838.22B	789.65B	656.54B
	Total Debt
271.02B	298.54B	237.74B	250.42B	165.59B
	Net Debt
102.43B	124.60B	108.49B	134.81B	12.41B
	Total Liabilities
490.54B	519.75B	435.82B	447.17B	323.33B
	Stockholders Equity
434.04B	399.53B	399.01B	339.36B	330.50B
Cash Flow		Free Cash Flow
123.54B	92.48B	64.20B	55.16B	55.56B
	Operating Cash Flow
130.20B	142.28B	118.90B	98.14B	84.59B
	Investing Cash Flow
-47.59B	-53.42B	-61.19B	-130.55B	-20.52B
	Financing Cash Flow
-87.31B	-47.58B	-44.92B	-8.00B	-13.18B

Nomura Research Institute Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5769.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 5769 is below the 20-day moving average (MA) of 5798.95, above the 50-day MA of 5493.10, and above the 200-day MA of 5020.33, indicating a neutral trend. The MACD of 42.42 indicates Positive momentum. The RSI at 55.27 is Neutral, neither overbought nor oversold. The STOCH value of 55.79 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4307	75 Outperform	$3.28T	35.27	22.20%	1.10%	3.84%	19.26%
Sector *	62 Neutral	$11.90B	10.64	-7.50%	2.90%	7.41%	-8.19%
FJTSF		$44.05B	28.59	11.70%	0.77%	―	―
NIPNF		$36.58B	30.56	8.97%	0.68%	―	―
NTTDF		$38.59B	37.24	7.94%	0.67%	―	―
3626	74 Outperform	¥1.08T	21.53		1.52%	4.13%	5.65%
9719	74 Outperform	¥1.33T	29.62		1.67%	24.10%	11.27%

Nomura Research Institute Corporate Events

Nomura Research Institute to Amend Articles for Governance Transition

Nomura Research Institute, Ltd. has announced its decision to amend its Articles of Incorporation to transition from a ‘Company with an Audit & Supervisory Board’ to a ‘Company with an Audit & Supervisory Committee.’ This change, set to be approved at the upcoming Ordinary General Meeting of Shareholders in June 2025, aims to streamline corporate governance by establishing new provisions for the committee and delegating decision-making powers to board members. This strategic move is expected to enhance operational efficiency and strengthen oversight, potentially impacting stakeholders by improving transparency and accountability within the company.

The most recent analyst rating on (JP:4307) stock is a Buy with a Yen6000.00 price target. To see the full list of analyst forecasts on Nomura Research Institute stock, see the JP:4307 Stock Forecast page.

Nomura Research Institute Announces Increased Dividend Payout

Nomura Research Institute announced a dividend payment from retained earnings, with a year-end dividend of ¥34 per share for the fiscal year ending March 31, 2025, reflecting an increase from the previous year. This decision aligns with NRI’s policy to provide stable dividends while aiming to improve capital efficiency and shareholder returns, with plans to increase the consolidated dividend payout ratio to 40% by March 2026.

The most recent analyst rating on (JP:4307) stock is a Buy with a Yen6000.00 price target. To see the full list of analyst forecasts on Nomura Research Institute stock, see the JP:4307 Stock Forecast page.

Nomura Research Institute Reports Strong Fiscal Year 2025 Results

Nomura Research Institute reported a strong financial performance for the fiscal year ended March 31, 2025, with notable increases in revenue and profit. The company achieved a 3.8% increase in revenue and a 17.7% rise in profit attributable to owners, reflecting robust operational efficiency and strategic growth. The company also announced an increase in dividends, indicating confidence in its financial stability and commitment to shareholder returns.