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Nomura Research Institute
(4307)
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Rating:55Neutral
Price Target:
¥4,803.00
▼(-2.67% Downside)
Action:Reiterated
Date:08/01/26
The score is primarily supported by solid financial quality—steady revenue growth and strong cash flow generation—despite a meaningful recent profitability/ROE decline. Offsetting this, technicals are weak with the price trading below key moving averages, and valuation is a major headwind given the very high P/E alongside compressed margins.
Positive Factors
Free cash flow conversion
High and consistent free cash flow, with FCF near reported net income, is a durable strength. It funds capex, platform investment, dividends and debt reduction without relying on volatile earnings, supporting multi-year contracts and funding strategic initiatives even if margins remain under pressure.
Negative Factors
Sharp profitability deterioration
A material fall in net and operating margins, and ROE compression from prior double-digit levels, signal weakened earnings power. Persistently lower profitability can limit reinvestment, make it harder to maintain pricing or invest in product and talent, and reduces shareholder returns over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow conversion
High and consistent free cash flow, with FCF near reported net income, is a durable strength. It funds capex, platform investment, dividends and debt reduction without relying on volatile earnings, supporting multi-year contracts and funding strategic initiatives even if margins remain under pressure.
Read all positive factors
Nomura Research Institute (4307) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.57T
Dividend Yield1.64%
Average Volume (3M)1.18M
Price to Earnings (P/E)143.7
Beta (1Y)0.45
Revenue Growth7.37%
EPS Growth-80.70%
CountryJP
Employees16,894
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)32.60
Shares Outstanding561,197,400
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)217.92
Revenue Forecast (FY)¥861.85B
Nomura Research Institute Business Overview & Revenue Model
Company Description
Nomura Research Institute, Ltd. provides consulting, financial information technology (IT) solutions, industrial IT solutions, and IT platform services in Japan and internationally. Its Consulting segment offers management, organizational reform, ...
How the Company Makes Money
NRI primarily makes money by delivering consulting-led IT and operations services under contract, with revenue largely tied to (1) project-based fees and (2) recurring service fees. Project-based revenue is generated from management/strategy consu...
Nomura Research Institute Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
67
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 829.39B | 814.71B | 764.81B | 736.56B | 692.16B | 611.63B |
| Gross Profit | 307.29B | 300.15B | 275.30B | 261.01B | 239.83B | 216.07B |
| EBITDA | 116.71B | 114.72B | 182.74B | 167.09B | 154.67B | 144.60B |
| Net Income | 18.47B | 15.26B | 93.76B | 79.64B | 76.31B | 71.44B |
Balance Sheet | ||||||
| Total Assets | 906.39B | 959.79B | 928.50B | 922.77B | 838.22B | 789.65B |
| Cash, Cash Equivalents and Short-Term Investments | 235.21B | 132.62B | 168.60B | 173.94B | 129.26B | 115.61B |
| Total Debt | 234.59B | 236.13B | 271.02B | 298.54B | 237.74B | 250.42B |
| Total Liabilities | 529.19B | 521.79B | 490.54B | 519.75B | 435.81B | 447.17B |
| Stockholders Equity | 373.43B | 433.90B | 434.04B | 399.53B | 399.01B | 339.36B |
Cash Flow | ||||||
| Free Cash Flow | 151.92B | 141.80B | 123.54B | 134.79B | 106.84B | 91.31B |
| Operating Cash Flow | 160.20B | 147.64B | 130.20B | 142.28B | 118.90B | 98.14B |
| Investing Cash Flow | -42.86B | -97.05B | -47.59B | -53.98B | -61.19B | -130.55B |
| Financing Cash Flow | -167.16B | -90.78B | -87.31B | -47.02B | -44.92B | -8.00B |
Nomura Research Institute Technical Analysis
Negative
4935.00
Price Trends
4814.18
Negative
4646.74
Negative
5061.30
Negative
Market Momentum
5.39
Positive
40.43
Neutral
7.89
Positive
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 4935 is below the 20-day moving average (MA) of 5017.35, above the 50-day MA of 4814.18, and below the 200-day MA of 5061.30, indicating a bearish trend. The MACD of 5.39 indicates Positive momentum. The RSI at 40.43 is Neutral, neither overbought nor oversold. The STOCH value of 7.89 is Positive, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥437.27B | 15.18 | ― | 2.17% | 7.35% | 17.55% | |
71 Outperform | ¥716.42B | 23.16 | 11.50% | 2.24% | 13.99% | 15.49% | |
71 Outperform | ¥76.15B | 9.15 | ― | 3.28% | 9.71% | 61.00% | |
70 Outperform | ¥848.85B | 17.31 | ― | 2.29% | 4.90% | -2.39% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | ¥2.57T | 143.74 | 3.29% | 1.56% | 7.37% | -80.70% |
* Technology Sector Average
JP:4307
Nomura Research Institute
4,570.00
-1,559.47
-25.44%
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3,662.00
238.08
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-184.16
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4,736.00
-1,594.56
-25.19%
Nomura Research Institute Corporate Events
Nomura Research Institute Posts Strong Q1 FY2026 Results and Hikes Dividend Outlook
Jul 30, 2026
Nomura Research Institute reported solid growth for the three months ended June 30, 2026, with revenue rising 7.5% year on year to ¥210.5 billion and profit attributable to owners of parent increasing 12.4% to ¥29.2 billion. Despite a sl...
Nomura Research Institute Affirms Independence Despite Nomura Holdings’ 23.1% Stake
Jun 22, 2026
Nomura Research Institute disclosed that Nomura Holdings holds 23.1% of its voting rights, making NRI an affiliated company, but emphasized that it operates under an independent governance framework without business constraints from Nomura Holding...
Nomura Research Institute Revives Trust-Type Employee Shareholding Incentive Plan
Jun 19, 2026
Nomura Research Institute will reintroduce its trust-type Employee Shareholding Incentive Plan, known as E-Ship, to align employees’ interests with the company’s medium- to long-term growth and its NRI Group Vision 2030. The plan targe...
Nomura Research Institute to Cancel Over 20 Million Treasury Shares, Tightening Share Base
Jun 11, 2026
Nomura Research Institute’s board has approved the cancellation of 20,044,102 shares of its common stock, representing 3.45% of its issued shares prior to cancellation, under Article 178 of Japan’s Companies Act. The move, scheduled fo...
Nomura Research Institute Completes ¥70 Billion Share Buyback Program
Jun 2, 2026
Nomura Research Institute has completed a board-approved share buyback, acquiring 878,400 of its own common shares on June 1 via market purchases on the Tokyo Stock Exchange for approximately ¥4.68 billion. This transaction brings the total e...
Nomura Research Institute Accelerates ¥70 Billion Share Buyback Program
Jun 1, 2026
Nomura Research Institute has reported progress on its share buyback program, acquiring 13,828,700 common shares on the Tokyo Stock Exchange between May 15 and May 31, 2026, for a total of ¥65.32 billion. The purchases were executed as market...
Nomura Research Institute Raises Full-Year Dividend on Strong Domestic Performance
May 12, 2026
Nomura Research Institute’s board has approved a year-end dividend of ¥42 per share for shareholders of record as of March 31, 2026, funded from retained earnings and payable on May 29, 2026. This represents an increase from the prior y...
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.