Nomura Research Institute (4307) AI Stock Analysis

• Market Cap: $3.51T
• Dividend Yield: 1.12%
• Average Volume (3M): 1.18M
• Price to Earnings (P/E): 34.8
• 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): 48.10
• 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: 0.97
• Enterprise Value/Revenue: 4.33
• Enterprise Value/Gross Profit: 11.79
• Enterprise Value/Ebitda: 17.14
• 1Y Price Target: $6,416.45
• Price Target Upside: 3.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥6,899.00 ▲(11.65% Upside)

Nomura Research Institute's overall stock score is driven by strong financial performance and moderate technical indicators. The company's robust profitability and effective leverage management are significant strengths. However, the valuation suggests potential overvaluation, which slightly dampens the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategy, enhancing long-term financial stability.

Profitability Margins

Strong profitability margins reflect efficient cost management and pricing power, supporting sustained earnings and competitive advantage.

Leverage Management

Effective leverage management reduces financial risk and enhances the company's ability to invest in growth opportunities.

Negative Factors

Cash Flow Growth

Declining cash flow growth could limit the company's ability to fund operations and investments, impacting long-term financial health.

Valuation Concerns

High valuation may limit stock price appreciation potential and increase risk if growth expectations are not met.

Cash Conversion

While current cash conversion is good, potential declines could affect liquidity and the ability to reinvest in the business.

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

Nomura Research Institute demonstrates a strong financial position with consistent revenue growth, robust profitability, and efficient cash flow management. The company maintains a healthy balance sheet with manageable leverage and strong equity returns. While the revenue growth rate has slightly decelerated, the company's operational efficiency and cash generation remain commendable, positioning it well for future growth.

Income Statement

Nomura Research Institute shows strong financial performance with consistent revenue growth and robust profit margins. The TTM data indicates a gross profit margin of 36.14% and a net profit margin of 12.63%, reflecting efficient cost management and profitability. The revenue growth rate of 1.002% in the TTM period suggests steady expansion, although slightly lower than previous years. EBIT and EBITDA margins are healthy at 18.29% and 24.61%, respectively, indicating strong operational efficiency.

Balance Sheet

The company's balance sheet is stable with a manageable debt-to-equity ratio of 0.60 in the TTM period, showing a decrease from previous years, which indicates improved leverage management. Return on equity is strong at 22.87%, reflecting effective use of equity to generate profits. The equity ratio stands at 47.89%, suggesting a solid equity base relative to total assets, although there is room for improvement in reducing debt further.

Cash Flow

Cash flow analysis reveals a positive trajectory with a free cash flow growth rate of 14.76% in the TTM period, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 0.66, indicating good cash conversion efficiency. The free cash flow to net income ratio is high at 0.96, suggesting that the company effectively translates its earnings into cash flow, supporting its financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	785.10B	764.81B	736.56B	692.16B	611.63B	550.34B
Gross Profit	288.59B	275.30B	261.01B	239.83B	216.07B	185.80B
EBITDA	198.52B	187.97B	171.26B	159.14B	149.08B	123.82B
Net Income	101.67B	93.76B	79.64B	76.31B	71.44B	52.87B
Balance Sheet
Total Assets	994.51B	928.50B	922.77B	838.22B	789.65B	656.54B
Cash, Cash Equivalents and Short-Term Investments	197.26B	168.60B	173.94B	129.26B	115.61B	153.19B
Total Debt	265.30B	282.04B	298.54B	237.74B	250.42B	165.59B
Total Liabilities	513.38B	490.54B	519.75B	435.82B	447.17B	323.33B
Stockholders Equity	477.38B	434.04B	399.53B	399.01B	339.36B	330.50B
Cash Flow
Free Cash Flow	139.82B	123.54B	92.48B	64.20B	55.16B	55.56B
Operating Cash Flow	145.21B	130.20B	142.28B	118.90B	98.14B	84.59B
Investing Cash Flow	-76.37B	-47.59B	-53.42B	-61.19B	-130.55B	-20.52B
Financing Cash Flow	-64.51B	-87.31B	-47.58B	-44.92B	-8.00B	-13.18B

Nomura Research Institute Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6179.00
• 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 6179 is below the 20-day moving average (MA) of 6214.60, above the 50-day MA of 5994.16, and above the 200-day MA of 5655.80, indicating a neutral trend. The MACD of 23.18 indicates Positive momentum. The RSI at 52.35 is Neutral, neither overbought nor oversold. The STOCH value of 52.98 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	74 Outperform	$3.51T	34.79	22.48%	1.12%	4.50%	16.63%
6702	74 Outperform	¥7.92T	17.20	15.02%	0.67%	-8.58%	83.16%
3626	73 Outperform	¥1.24T	23.31	―	1.39%	4.95%	9.54%
9719	69 Neutral	¥1.77T	28.86	―	1.48%	42.98%	48.88%
6701	62 Neutral	¥7.38T	30.89	11.69%	0.55%	2.68%	56.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
9613	61 Neutral	―	―	―	―	3.73%	11.64%

Nomura Research Institute Corporate Events

Nomura Research Institute Reports Strong Earnings Growth

Nomura Research Institute, Ltd. (NRI) is a leading provider of consulting and IT solutions, operating primarily in the financial and industrial sectors, with a focus on digital transformation and innovation.

Nomura Research Institute Reports Strong Financial Performance for H1 2025

Nomura Research Institute reported a strong financial performance for the six months ending September 30, 2025, with a notable increase in revenue and profit compared to the previous year. The company achieved a 5.4% rise in revenue and a significant 20.1% growth in operating profit, reflecting its robust market positioning and effective operational strategies. This performance underscores the company’s ability to deliver value to its stakeholders and maintain a competitive edge in the industry.

The most recent analyst rating on (JP:4307) stock is a Hold with a Yen6205.00 price target. To see the full list of analyst forecasts on Nomura Research Institute stock, see the JP:4307 Stock Forecast page.