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Nomura Research Institute
(4307)
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Rating:59Neutral
Price Target:
¥5,203.00
▲(6.49% Upside)
Action:Reiterated
Date: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
Cash generation
Consistent operating and free cash flow provides durable internal funding for multi‑year client projects, platform investments, and shareholder returns. Robust cash conversion (FCF roughly matching net income recently) reduces refinancing risk and cushions earnings volatility from one‑offs.
Negative Factors
Sharp decline in net profitability and ROE
The marked fall in net margin and ROE signals materially weaker earnings power relative to invested capital. Even with solid operating margins, such a deterioration reduces distributable profits and may indicate structural or recurring headwinds that constrain long‑term returns to shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent operating and free cash flow provides durable internal funding for multi‑year client projects, platform investments, and shareholder returns. Robust cash conversion (FCF roughly matching net income recently) reduces refinancing risk and cushions earnings volatility from one‑offs.
Read all positive factors
Nomura Research Institute (4307) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.75T
Dividend Yield1.14%
Average Volume (3M)1.18M
Price to Earnings (P/E)187.1
Beta (1Y)0.45
Revenue Growth6.52%
EPS Growth-83.55%
CountryJP
Employees16,857
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)26.61
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)217.39
Revenue Forecast (FY)¥860.53B
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 providing (1) consulting services and (2) IT solutions and IT management services under multi-phase, multi-year client engagements. A major portion of its revenue typically comes from IT-related work: system integratio...
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 | 114.72B | 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
4601.04
Positive
4470.56
Positive
5123.29
Negative
Market Momentum
109.08
Negative
61.05
Neutral
80.96
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 4620.70, above the 50-day MA of 4601.04, and below the 200-day MA of 5123.29, indicating a neutral trend. The MACD of 109.08 indicates Negative momentum. The RSI at 61.05 is Neutral, neither overbought nor oversold. The STOCH value of 80.96 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 | ¥73.86B | 7.32 | ― | 3.28% | 12.54% | 171.52% | |
70 Outperform | ¥778.79B | 16.72 | ― | 1.39% | 4.34% | -4.82% | |
67 Neutral | ¥413.74B | 14.24 | ― | 2.17% | 7.35% | 17.55% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | ¥684.03B | 22.40 | 10.07% | 1.76% | 12.72% | 13.98% | |
59 Neutral | ¥2.75T | 187.11 | 22.48% | 1.14% | 6.52% | -83.55% |
* Technology Sector Average
JP:4307
Nomura Research Institute
4,979.00
-229.28
-4.40%
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3,775.00
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JP:3636
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229.67
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Nomura Research Institute Corporate Events
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...
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...
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.