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

• Market Cap: ¥40.83B
• Dividend Yield: 3.63%
• Average Volume (3M): 105.50K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.79
• Revenue Growth: 9.63%
• EPS Growth: 11.40%
• Country: JP
• Employees: 2,154
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 30.37
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥1,239.00 ▲(3.94% 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

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, positioning the company for sustained expansion.

Cash Flow Management

Strong cash flow growth enhances financial flexibility, enabling the company to invest in growth opportunities and manage obligations efficiently.

Profitability

Improved profit margins reflect effective cost control and pricing strategies, contributing to long-term profitability and competitive positioning.

Negative Factors

Debt Levels

Rising debt levels, if unchecked, can strain financial resources, potentially impacting future investment capacity and financial stability.

Leverage Concerns

While current leverage is low, any significant increase in debt could alter this balance, necessitating careful management to maintain financial health.

Debt Monitoring

Monitoring debt levels is crucial to prevent potential financial strain, ensuring the company maintains its strong financial position over time.

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: Negative
• Last Price: 1192.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 1192 is below the 20-day moving average (MA) of 1212.55, below the 50-day MA of 1223.84, and above the 200-day MA of 1121.49, indicating a neutral trend. The MACD of -16.34 indicates Positive momentum. The RSI at 43.79 is Neutral, neither overbought nor oversold. The STOCH value of 39.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥40.83B	11.59	―	3.63%	9.63%	11.40%
2304	76 Outperform	¥4.82B	8.12	―	4.83%	10.60%	36.65%
9791	74 Outperform	¥9.91B	7.96	―	2.43%	-6.09%	24.42%
4771	73 Outperform	¥35.56B	17.53	―	1.70%	23.94%	47.11%
6044	71 Outperform	¥12.86B	13.95	―	1.11%	18.17%	191.50%
2498	67 Neutral	¥36.90B	9.63	―	3.93%	10.53%	49.49%
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 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.

Nippon Air Conditioning Services Reports Strong Semi-Annual Financial Results

Nippon Air Conditioning Services Co., Ltd. reported a strong financial performance for the six months ended September 30, 2025, with significant year-on-year growth in net sales, operating profit, and profit attributable to owners of the parent. The company achieved a 9.2% increase in net sales and a notable 34.1% rise in profit attributable to owners, reflecting its robust operational strategies and market positioning. The equity-to-asset ratio improved to 60.3%, indicating a solid financial standing. The company also announced a forecast for the fiscal year ending March 31, 2026, with expectations of continued growth, albeit at a slower pace, highlighting its stable outlook.