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

• Market Cap: ¥43.19B
• Dividend Yield: 3.16%
• Average Volume (3M): 68.13K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.71
• Revenue Growth: 9.42%
• EPS Growth: 7.97%
• Country: JP
• Employees: 2,154
• Sector: Industrials
• Sector Strength: 78
• Industry: Specialty Business Services
• EPS (TTM): 15.30
• Shares Outstanding: 35,784,000
• 10 Day Avg. Volume: 79,180
• 30 Day Avg. Volume: 68,130
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,239.00
• Price Target Upside: -2.21% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: ¥1,239.00 ▼(-2.21% Downside)

Nippon Air Conditioning Services Co., Ltd. is well-positioned with strong financial performance, reflected in stable revenue growth, profitability, and cash flow. The stock demonstrates bullish momentum, though it may be nearing overbought levels, cautioning potential investors. Its valuation metrics, including a favorable P/E ratio and dividend yield, further support its attractiveness in the market.

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

Company Description

Nippon Air Conditioning Services Co., Ltd. (4658) is a Japan-based company specializing in providing comprehensive air conditioning and refrigeration services. The company operates primarily in the sectors of installation, maintenance, and repair of air conditioning systems, catering to both commercial and residential clients. Additionally, it offers energy-saving solutions and consulting services for optimizing HVAC systems to enhance efficiency and sustainability.

How the Company Makes Money

Nippon Air Conditioning Services Co., Ltd. generates revenue through several key streams. The primary source is the installation of air conditioning and refrigeration systems, where the company handles projects from planning to execution. Another significant revenue stream is the maintenance and repair services they offer, providing ongoing support that ensures optimal performance and longevity of HVAC systems. Furthermore, the company benefits from consulting services that focus on energy efficiency, helping clients reduce operational costs while promoting environmental sustainability. Partnerships with manufacturers and suppliers also play a critical role, enabling Nippon Air Conditioning Services to offer a wide range of products and technologies to their clients.

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

Summary

The company exhibits a solid financial foundation with consistent revenue growth, robust profitability, low leverage, and strong cash flow generation. The increase in free cash flow by 118.8% and a low debt-to-equity ratio of 0.14 highlight financial stability. However, the slight increase in debt warrants monitoring.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	64.44B	58.23B	52.89B	49.89B	49.15B
Gross Profit	12.96B	10.97B	9.33B	8.81B	9.12B
EBITDA	4.86B	4.27B	3.23B	3.07B	3.45B
Net Income	3.10B	2.73B	1.94B	2.82B	2.00B
Balance Sheet
Total Assets	48.57B	42.95B	37.56B	35.14B	34.91B
Cash, Cash Equivalents and Short-Term Investments	9.00B	6.99B	6.58B	7.25B	6.69B
Total Debt	3.60B	1.71B	997.00M	853.00M	1.19B
Total Liabilities	22.44B	18.74B	15.86B	14.66B	14.52B
Stockholders Equity	25.93B	24.03B	21.54B	20.33B	20.26B
Cash Flow
Free Cash Flow	1.64B	751.00M	335.00M	1.47B	2.54B
Operating Cash Flow	4.96B	2.42B	921.00M	1.78B	2.73B
Investing Cash Flow	-3.47B	-1.80B	-697.00M	971.00M	-267.00M
Financing Cash Flow	378.00M	-287.00M	-1.02B	-2.37B	-1.81B

Nippon Air Conditioning Services Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1267.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1267 is above the 20-day moving average (MA) of 1179.70, above the 50-day MA of 1130.98, and above the 200-day MA of 1035.04, indicating a bullish trend. The MACD of 38.21 indicates Negative momentum. The RSI at 82.99 is Negative, neither overbought nor oversold. The STOCH value of 82.78 is Negative, 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
2304	81 Outperform	¥4.76B	11.67		3.72%	11.22%	16.11%
4658	79 Outperform	¥43.19B	13.15		3.16%	9.42%	7.97%
4771	73 Outperform	¥38.77B	21.25		1.51%	17.19%	23.23%
2498	72 Outperform	¥33.41B	10.83		3.08%	5.27%	17.18%
6044	69 Neutral	¥11.36B	16.17		1.27%	6.20%	47.03%
9791	66 Neutral	¥8.31B	7.48		2.55%	-7.83%	-13.14%
Sector *	58 Neutral	HK$13.63B	5.51	-2.78%	5.72%	2.29%	-57.50%

Nippon Air Conditioning Services Co., Ltd. Corporate Events

Nippon Air Conditioning Services Reports Strong Q1 Financial Performance

Nippon Air Conditioning Services Co., Ltd. reported a significant increase in its financial performance for the three months ended June 30, 2025, with net sales rising by 9% and operating profit soaring by 48.8% compared to the previous year. This growth reflects the company’s strong operational capabilities and market positioning, potentially benefiting stakeholders through improved profitability and financial stability.

Nippon Air Conditioning Services Announces Disposal of Treasury Shares for Executive Compensation

Nippon Air Conditioning Services Co., Ltd. announced the disposal of 57,400 treasury shares as restricted stock compensation for its directors and executive officers. This move aims to motivate these individuals by aligning their interests with shareholders, enhancing the company’s stock price and corporate value.

Nippon Air Conditioning Services Reports Strong Financial Growth and Increased Dividends

Nippon Air Conditioning Services Co., Ltd. reported a significant year-on-year increase in its financial performance for the fiscal year ended March 31, 2025, with net sales rising by 10.7% and operating profit increasing by 15.5%. The company also announced an increase in annual dividends per share, reflecting a strong financial position and commitment to shareholder returns.

Nippon Air Conditioning Services Announces Increased Dividend for 2025

Nippon Air Conditioning Services Co., Ltd. announced a dividend of ¥25.00 per share, an increase from the previous forecast of ¥20.00, with the record date set as March 31, 2025. This decision reflects the company’s commitment to stable profit returns and aligns with its policy of maintaining a consolidated dividend payout ratio of approximately 50%, considering the fiscal year’s earnings.