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Nomura Research InstituteLtd (JP:4307)
:4307

Nomura Research Institute (4307) AI Stock Analysis

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Nomura Research Institute

(OTC:4307)

Rating:75Outperform
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 (4307) vs. iShares MSCI Japan ETF (EWJ)

Nomura Research Institute Business Overview & Revenue Model

Company DescriptionNomura 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 MoneyNomura 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
85
Very Positive
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
78
Positive
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
82
Very Positive
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 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
764.81B736.56B692.16B611.63B550.34B
Gross Profit
275.30B261.01B239.83B216.07B185.80B
EBIT
131.22B120.41B111.83B106.22B80.75B
EBITDA
187.97B171.26B154.67B144.60B123.82B
Net Income Common Stockholders
93.76B79.64B76.31B71.44B52.87B
Balance SheetCash, Cash Equivalents and Short-Term Investments
168.60B173.94B143.46B129.63B163.03B
Total Assets
928.50B922.77B838.22B789.65B656.54B
Total Debt
271.02B298.54B237.74B250.42B165.59B
Net Debt
102.43B124.60B108.49B134.81B12.41B
Total Liabilities
490.54B519.75B435.82B447.17B323.33B
Stockholders Equity
434.04B399.53B399.01B339.36B330.50B
Cash FlowFree Cash Flow
123.54B92.48B64.20B55.16B55.56B
Operating Cash Flow
130.20B142.28B118.90B98.14B84.59B
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
Neutral
Last Price5735.00
Price Trends
50DMA
5442.69
Positive
100DMA
5214.79
Positive
200DMA
5002.80
Positive
Market Momentum
MACD
49.35
Positive
RSI
48.60
Neutral
STOCH
22.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4307, the sentiment is Neutral. The current price of 5735 is below the 20-day moving average (MA) of 5804.90, above the 50-day MA of 5442.69, and above the 200-day MA of 5002.80, indicating a neutral trend. The MACD of 49.35 indicates Positive momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 22.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4307.

Nomura Research Institute Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$3.23T34.7422.20%1.06%3.84%19.26%
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
$42.78B29.7711.70%0.79%
$36.01B30.568.97%0.70%
$38.55B37.247.94%0.67%
74
Outperform
¥1.07T21.36
1.52%4.13%5.65%
74
Outperform
¥1.31T29.10
1.69%24.10%11.27%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4307
Nomura Research Institute
5,735.00
1,568.18
37.63%
FJTSF
Fujitsu
23.61
8.35
54.72%
NIPNF
NEC
27.47
11.95
77.00%
NTTDF
NTT DATA
24.82
10.31
71.05%
JP:3626
TIS Inc.
4,628.00
1,714.52
58.85%
JP:9719
SCSK Corporation
4,252.00
1,243.42
41.33%

Nomura Research Institute Corporate Events

Nomura Research Institute to Amend Articles for Governance Transition
May 14, 2025

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
May 14, 2025

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
Apr 24, 2025

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.

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.