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

• Market Cap: ¥41.45B
• Dividend Yield: 3.6%
• Average Volume (3M): 105.50K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.75
• Revenue Growth: 9.42%
• EPS Growth: 7.97%
• Country: JP
• Employees: 2,154
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 15.30
• 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: ¥1,239.00
• Price Target Upside: 3.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥1,239.00 ▲(3.86% Upside)

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. 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 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

Nippon Air Conditioning Services Co., Ltd. demonstrates strong financial performance with consistent revenue growth, robust profitability, low leverage, and strong cash flow generation. The balance sheet and cash flow statements indicate stability and efficient capital management. 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	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: Neutral
• Last Price: 1193.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4658, the sentiment is Neutral. The current price of 1193 is below the 20-day moving average (MA) of 1250.27, below the 50-day MA of 1247.70, and above the 200-day MA of 1074.92, indicating a neutral trend. The MACD of -15.74 indicates Positive momentum. The RSI at 35.70 is Neutral, neither overbought nor oversold. The STOCH value of 18.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥4.93B	12.10	―	4.61%	9.08%	3.33%
4658	79 Outperform	¥41.45B	12.62	―	3.60%	9.42%	7.97%
4771	73 Outperform	¥39.62B	21.71	―	1.51%	17.19%	23.23%
2498	72 Outperform	¥35.82B	11.32	―	3.70%	9.06%	-5.33%
6044	71 Outperform	¥13.58B	14.73	―	1.06%	18.17%	191.50%
9791	66 Neutral	¥9.58B	8.63	―	2.24%	-7.83%	-13.14%
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 Introduces Shareholder Benefits Program

Nippon Air Conditioning Services Co., Ltd. has announced the introduction of a shareholder benefits program aimed at enhancing the attractiveness and liquidity of its shares. Shareholders holding at least 100 shares as of the end of September each year will receive a QUO Card worth ¥1,000, with the first record date set for September 30, 2025.

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 Completes Treasury Share Disposal for Executive Compensation

Nippon Air Conditioning Services Co., Ltd. has completed the payment procedures for the disposal of 57,400 treasury shares as restricted stock compensation, a move resolved by its Board of Directors on July 17, 2025. This strategic financial decision, involving a total value of ¥62,566,000, is aimed at compensating key company executives and may impact the company’s financial structure and stakeholder interests.

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.