Nomura Research Institute (4307) AI Stock Analysis

• Market Cap: $3.14T
• Dividend Yield: 1.14%
• Average Volume (3M): 1.26M
• Price to Earnings (P/E): 33.8
• Beta (1Y): 0.52
• Revenue Growth: 3.84%
• EPS Growth: 19.26%
• Country: JP
• Employees: 16,708
• Sector: Technology
• Sector Strength: 91
• Industry: Information Technology Services
• EPS (TTM): 45.43
• Shares Outstanding: 581,241,500
• 10 Day Avg. Volume: 1,272,820
• 30 Day Avg. Volume: 1,264,806
• PEG Ratio: 8.49
• Price to Book (P/B): 7.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.31
• 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: $5,979.37
• Price Target Upside: 8.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: ¥6,122.00 ▲(10.83%Upside)

Nomura Research Institute exhibits strong financial performance with robust revenue growth and cash flow management. However, technical indicators suggest moderate bearish momentum, and a high P/E ratio raises concerns about valuation. The lack of recent earnings call data leaves out potential insights into future guidance.

Nomura Research Institute Business Overview & Revenue Model

Company Description

Nomura Research Institute, Ltd. (NRI) is a leading think-tank and systems integrator company based in Japan. It operates across various sectors including consulting, financial IT solutions, industrial IT solutions, and IT infrastructure services. NRI offers a wide range of services such as management consulting, systems development, and IT infrastructure management, aiming to provide innovative solutions that enhance the operational efficiency and strategic capabilities of its clients.

How the Company Makes Money

NRI generates revenue primarily through its four main business segments: Consulting, Financial IT Solutions, Industrial IT Solutions, and IT Infrastructure Services. The Consulting segment provides management and systems consulting services, deriving income from advisory fees. The Financial IT Solutions segment offers comprehensive IT services to financial institutions, including system development and maintenance, thereby earning from service contracts and software solutions. The Industrial IT Solutions segment caters to various industries, providing tailored IT services and solutions, generating revenue through project-based contracts and software implementation. Finally, the IT Infrastructure Services segment supports the operation and maintenance of IT systems and infrastructure, earning income through long-term service agreements. NRI's earnings are further bolstered by strategic partnerships with technology providers and continuous investment in developing advanced IT solutions.

Nomura Research Institute Financial Statement Overview

Summary

Nomura Research Institute demonstrates strong financial health with robust revenue growth, efficient cost management, and healthy profit margins. The balance sheet is solid with a stable leverage position and a strong equity base, though liabilities need monitoring. Cash flow generation is robust, ensuring operational flexibility and growth potential.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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
EBITDA	187.97B	171.26B	154.67B	144.60B	123.82B
Net Income	93.76B	79.64B	76.31B	71.44B	52.87B
Balance Sheet
Total Assets	928.50B	922.77B	838.22B	789.65B	656.54B
Cash, Cash Equivalents and Short-Term Investments	168.60B	173.94B	143.46B	129.63B	163.03B
Total Debt	271.02B	298.54B	237.74B	250.42B	165.59B
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: 5524.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 5524 is above the 20-day moving average (MA) of 5472.15, below the 50-day MA of 5664.92, and above the 200-day MA of 5120.26, indicating a neutral trend. The MACD of -74.00 indicates Negative momentum. The RSI at 51.29 is Neutral, neither overbought nor oversold. The STOCH value of 73.12 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
6701	77 Outperform	$5.66T	31.73	8.97%	0.67%	-1.55%	17.21%
4307	74 Outperform	$3.14T	33.77	22.20%	1.14%	3.84%	19.26%
9719	74 Outperform	¥1.37T	30.49		1.62%	24.10%	11.27%
3626	73 Outperform	¥1.08T	21.59		1.51%	4.13%	5.66%
6702	65 Neutral	¥6.05T	27.21	11.70%	0.85%	-5.48%	-10.98%
Sector *	63 Neutral	$34.72B	5.19	-11.20%	1.67%	5.59%	-16.73%
9613	54 Neutral	¥5.56T	39.00	7.94%	0.63%	6.21%	6.41%

Nomura Research Institute Corporate Events

Nomura Research Institute Reports Strong Q1 Growth and Positive Outlook

Nomura Research Institute reported a 4.1% increase in revenue for the quarter ending June 30, 2025, with significant growth in operating profit and profit before tax. The company anticipates continued growth for the fiscal year ending March 31, 2026, with projected revenue and profit increases, reflecting a strong market position and positive outlook for stakeholders.

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 Affirms Independence Amidst Nomura Holdings Affiliation

Nomura Research Institute, Ltd. announced its relationship with Nomura Holdings, Inc., which holds 23% of NRI’s voting rights, establishing NRI as an affiliated company. Despite this affiliation, NRI operates independently without governance influence from Nomura HD, ensuring its business activities and management decisions remain autonomous. The announcement highlights NRI’s commitment to maintaining independence while continuing its collaborative efforts with Nomura HD, impacting stakeholders by reinforcing NRI’s strategic positioning in the market.

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 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.