Nippon Air Conditioning Services Co., Ltd. (4658) AI Stock Analysis

• Market Cap: ¥51.25B
• Dividend Yield: 3.33%
• Average Volume (3M): 105.50K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.82
• Revenue Growth: 9.63%
• EPS Growth: 11.40%
• Country: JP
• Employees: 2,154
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 15.62
• Shares Outstanding: 35,784,000
• 10 Day Avg. Volume: 58,030
• 30 Day Avg. Volume: 105,499
• PEG Ratio: 0.83
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 20.87
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥1,689.00 ▲(30.93% Upside)

Nippon Air Conditioning Services Co., Ltd. demonstrates strong financial health with robust revenue growth and profitability, supported by efficient cash flow management. The technical indicators suggest a strong upward trend, though caution is advised due to potential overbought conditions. The valuation is attractive, with a reasonable P/E ratio and a solid dividend yield, making it a balanced investment opportunity. The absence of earnings call data and corporate events does not impact the overall assessment.

Positive Factors

Recurring revenue model

A large portion of revenue derives from recurring maintenance and inspection contracts, creating stable, predictable cash flows and high customer retention. This recurring-service business reduces revenue volatility, supports long-term planning and makes growth less cyclical across 2–6 months.

Strong cash generation

Very strong free cash flow growth and operating cash conversion indicate durable internal funding for maintenance capex, working capital and potential investments. High cash conversion supports dividend sustainability, reinvestment in service capabilities and financial resilience over time.

Low financial leverage

A low debt-to-equity ratio and solid equity ratio provide financial flexibility to invest in service expansion or weather demand shocks. Moderate ROE shows efficient capital use without risky leverage, supporting strategic options and resilience for multi-month planning horizons.

Negative Factors

Thin net and EBITDA margins

Relatively low net and EBITDA margins limit the firm’s margin buffer against rising labor, parts or energy costs common in facilities services. Margin pressure could compress free cash flow and constrain investment capacity if input costs or competitive pricing pressure persist over several months.

Rising debt trend to monitor

Although current leverage is low, management flagged an increase in total debt. If that trend continues it could reduce flexibility, raise interest expense sensitivity and limit ability to fund capex or M&A, weakening the balance sheet over a 2–6 month horizon if not controlled.

Moderate revenue growth

Revenue growth is mid-single to low-double digits, reflecting steady but not rapid expansion. In a mature facilities-services market, limited organic scalability may cap long-term upside and necessitate either market share gains or acquisitions to materially accelerate growth sustainably.

Nippon Air Conditioning Services Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Air conditioning Services Co., Ltd. provides construction support services in Japan and internationally. It offers maintenance services, including inspection, servicing, repair, and replacement for air conditioning; and facilities management, reform and construction, and facility/environmental diagnosis services, as well as measuring services. The company was incorporated in 1964 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Nippon Air Conditioning Services generates revenue primarily through the sale and installation of air conditioning systems, as well as ongoing maintenance and repair services. Key revenue streams include new system installations for residential and commercial properties, service contracts for regular maintenance, and emergency repair services. The company may also benefit from partnerships with HVAC manufacturers, allowing it to offer a range of products and exclusive deals. Additionally, as energy efficiency becomes increasingly important, Nippon Air Conditioning Services capitalizes on the growing demand for eco-friendly and energy-efficient air conditioning solutions, which can command higher pricing and attract environmentally conscious customers.

Nippon Air Conditioning Services Co., Ltd. Financial Statement Overview

Summary

Nippon Air Conditioning Services Co., Ltd. exhibits a solid financial foundation with consistent revenue growth, robust profitability, low leverage, and strong cash flow generation. The company's balance sheet and cash flow statements indicate stability and efficient capital management. However, the slight increase in debt warrants careful monitoring. Overall, the financial health of the company is strong, positioning it well for future growth.

Income Statement

The company demonstrates strong financial performance with consistent revenue growth, evidenced by a 10.7% increase from 2024 to 2025. The gross profit margin improved to 20.1%, and net profit margin grew to 4.8%, suggesting efficient cost management. EBIT and EBITDA margins are healthy, at 6.5% and 7.5% respectively, indicating sound operational efficiency. Overall, the income statement reflects robust revenue growth and solid profitability.

Balance Sheet

The balance sheet is strong, with a manageable debt-to-equity ratio of 0.14, highlighting low financial leverage. The equity ratio stands at 53.4%, indicating a well-capitalized company with ample shareholder equity. Return on equity is decent at 12.0%, reflecting effective use of equity to generate profits. However, the increase in total debt needs monitoring to ensure it does not escalate.

Cash Flow

The cash flow statement reflects positive trends, with a significant free cash flow growth of 118.8% from 2024 to 2025. Operating cash flow to net income ratio is strong at 1.60, demonstrating efficient cash generation relative to net income. The free cash flow to net income ratio at 0.53 suggests a healthy conversion of profits into free cash. Overall, cash flow management remains a strength, supporting the company's operational and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.58B	64.44B	58.23B	52.89B	49.89B	49.15B
Gross Profit	13.45B	12.96B	10.97B	9.33B	8.81B	9.12B
EBITDA	5.01B	4.86B	4.27B	3.36B	4.64B	3.60B
Net Income	3.26B	3.10B	2.73B	1.94B	2.82B	2.00B
Balance Sheet
Total Assets	45.64B	48.57B	42.95B	37.56B	35.14B	34.91B
Cash, Cash Equivalents and Short-Term Investments	10.64B	9.00B	6.99B	6.58B	7.25B	6.69B
Total Debt	3.60B	3.60B	1.71B	997.00M	853.00M	1.19B
Total Liabilities	19.43B	22.44B	18.74B	15.86B	14.66B	14.52B
Stockholders Equity	26.01B	25.93B	24.03B	21.54B	20.33B	20.26B
Cash Flow
Free Cash Flow	0.00	1.64B	751.00M	335.00M	1.47B	2.54B
Operating Cash Flow	0.00	4.96B	2.42B	921.00M	1.78B	2.73B
Investing Cash Flow	0.00	-3.47B	-1.80B	-697.00M	971.00M	-267.00M
Financing Cash Flow	0.00	378.00M	-287.00M	-1.02B	-2.37B	-1.81B

Nippon Air Conditioning Services Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1290.00
• 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:4658, the sentiment is Positive. The current price of 1290 is below the 20-day moving average (MA) of 1408.55, below the 50-day MA of 1305.34, and above the 200-day MA of 1187.40, indicating a bullish trend. The MACD of 47.78 indicates Positive momentum. The RSI at 61.09 is Neutral, neither overbought nor oversold. The STOCH value of 54.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4658.

Nippon Air Conditioning Services Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4658	79 Outperform	¥51.25B	15.09	―	3.33%	9.63%	11.40%
2498	77 Outperform	¥39.44B	10.27	―	3.79%	10.53%	49.66%
2304	76 Outperform	¥4.97B	8.38	―	4.62%	10.60%	36.51%
9791	74 Outperform	¥10.64B	8.55	―	2.33%	-6.09%	24.42%
6044	71 Outperform	¥10.96B	13.05	―	1.08%	18.17%	191.50%
4771	70 Outperform	¥35.53B	15.36	―	1.72%	23.94%	47.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Nippon Air Conditioning Services Co., Ltd. Corporate Events

Nippon Air Conditioning Services Lifts Full-Year Earnings and Sales Forecasts on Strong Renovation Demand

Nippon Air Conditioning Services has raised its full-year consolidated and non-consolidated forecasts for the fiscal year ending March 31, 2026, projecting higher net sales and profits than previously expected, with consolidated net sales now seen at ¥68.2 billion and profit attributable to owners of parent at ¥3.55 billion. The company cited sustained strong demand for renovation of air conditioning systems to improve plant work environments, as well as explicit and latent customer needs for energy and cost savings, as key drivers of the upward revision, noting that even after implementing an average 5.7% salary increase to enhance human capital, tighter supply-demand conditions and appropriate pricing for high-quality services are expected to support improved profitability, benefiting shareholders and reinforcing its competitive position in the capital investment and building-renovation market.

The most recent analyst rating on (JP:4658) stock is a Buy with a Yen1655.00 price target. To see the full list of analyst forecasts on Nippon Air Conditioning Services Co., Ltd. stock, see the JP:4658 Stock Forecast page.

Nippon Air Conditioning Services Lifts Earnings and Dividend Outlook on Strong Nine-Month Results

Nippon Air Conditioning Services reported steady growth for the nine months ended 31 December 2025, with net sales up 5.7% to ¥46.7 billion and profit attributable to owners of the parent rising 15.0% to ¥2.1 billion, while comprehensive income nearly doubled. Profitability improved across operating and ordinary profit, basic earnings per share increased to ¥61.29, and the equity ratio strengthened to 58.4% as net assets expanded, underscoring a solid financial base. Reflecting this performance, the company revised its full-year forecasts, now projecting FY2025/26 net sales of ¥68.2 billion and a 14.4% increase in full-year profit to ¥3.55 billion, and it also raised its annual dividend forecast to ¥52 per share, signalling confidence in ongoing earnings growth and a stronger shareholder return policy.

The most recent analyst rating on (JP:4658) stock is a Buy with a Yen1655.00 price target. To see the full list of analyst forecasts on Nippon Air Conditioning Services Co., Ltd. stock, see the JP:4658 Stock Forecast page.

Nippon Air Conditioning Services Announces Secondary Offering Details

Nippon Air Conditioning Services Co., Ltd. announced the selling price and other details for a secondary offering of its common stock, resolved by the Board of Directors. The offering includes a selling price of 1,150 yen per share, with a total selling price amounting to 4,096,070,000 yen, and is set for delivery on December 22, 2025. This move is likely to impact the company’s financial structure and market positioning by potentially increasing its capital base.

The most recent analyst rating on (JP:4658) stock is a Buy with a Yen1239.00 price target. To see the full list of analyst forecasts on Nippon Air Conditioning Services Co., Ltd. stock, see the JP:4658 Stock Forecast page.

Nippon Air Conditioning Services Announces Secondary Share Offering

Nippon Air Conditioning Services Co., Ltd. announced a secondary offering of its common stock, involving 3,561,800 shares. The offering will be conducted through purchase and underwriting by underwriters, with shares sold by several banks, including Aichi Bank, MUFG Bank, and others. The pricing will be determined based on market demand and conditions. This move is likely aimed at enhancing liquidity and potentially expanding the shareholder base.

The most recent analyst rating on (JP:4658) stock is a Buy with a Yen1239.00 price target. To see the full list of analyst forecasts on Nippon Air Conditioning Services Co., Ltd. stock, see the JP:4658 Stock Forecast page.