Nippon RAD Inc. (4736) AI Stock Analysis

• Market Cap: ¥4.11B
• Dividend Yield: 1.29%
• Average Volume (3M): 48.81K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.08
• Revenue Growth: 9.32%
• EPS Growth: 25.46%
• Country: JP
• Employees: 270
• Sector: Technology
• Sector Strength: 92
• Industry: Information Technology Services
• EPS (TTM): 50.16
• Shares Outstanding: 5,355,390
• 10 Day Avg. Volume: 12,830
• 30 Day Avg. Volume: 48,806
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• 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: ¥997.00
• Price Target Upside: 30.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: ¥836.00 ▲(9.14%Upside)

The overall stock score for Nippon RAD Inc. is supported primarily by strong financial performance and attractive valuation. Financial health, characterized by solid revenue growth and a strong balance sheet, is a major strength. The valuation is favorable, with a low P/E ratio and decent dividend yield. However, technical analysis indicates some market caution, which tempers the overall score.

Nippon RAD Inc. Business Overview & Revenue Model

Company Description

Nippon RAD Inc. (4736) is a Japanese-based company primarily engaged in the provision of information technology (IT) services. The company develops and delivers comprehensive IT solutions, including software development, system integration, and network services. It caters to a variety of sectors including finance, manufacturing, and public services, offering customized solutions that enhance operational efficiency and business performance for its clients.

How the Company Makes Money

Nippon RAD Inc. generates revenue through its diverse range of IT services and solutions. Its primary revenue streams include fees from software development projects, where the company designs and implements tailored software applications for clients. System integration services also contribute significantly, involving the integration of various IT systems and software applications into a cohesive whole. Additionally, the company earns income from providing ongoing network services and maintenance, ensuring the smooth operation and management of clients' IT infrastructures. Nippon RAD Inc. may also engage in strategic partnerships with technology providers to enhance its service offerings and reach a broader client base, further contributing to its revenue.

Nippon RAD Inc. Financial Statement Overview

Summary

Nippon RAD Inc. has shown strong financial health with consistent revenue growth and improved profit margins. The company maintains a robust balance sheet with low leverage, but cash flow management needs improvement for sustainable growth.

Income Statement

Nippon RAD Inc. has demonstrated strong income statement performance, with consistent revenue growth over recent years. The gross profit margin and net profit margin have shown improvement, indicating good cost management and profitability. The company also achieved a positive EBIT and EBITDA margin, reflecting operational efficiency enhancements. However, the revenue growth rate has slowed slightly compared to previous years.

Balance Sheet

The balance sheet of Nippon RAD Inc. presents a robust financial position, characterized by a low debt-to-equity ratio, signifying minimal leverage and a strong equity base. The return on equity (ROE) has been increasing, indicating effective use of shareholders' capital. The equity ratio is healthy, suggesting financial stability. However, the company should remain cautious of its relatively high cash and short-term investments, which may imply underutilized assets.

Cash Flow

Nippon RAD Inc. exhibits a mixed cash flow performance. The operating cash flow has been positive but has decreased in the most recent year, raising concerns about potential cash generation challenges. The free cash flow has also shown volatility, impacting the company's ability to reinvest in growth initiatives. The operating cash flow to net income ratio suggests efficient cash conversion, but the declining free cash flow signals a need for better capital expenditure management.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Nippon RAD Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 766.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4736, the sentiment is Positive. The current price of 766 is above the 20-day moving average (MA) of 753.95, below the 50-day MA of 778.64, and above the 200-day MA of 719.53, indicating a neutral trend. The MACD of -6.83 indicates Negative momentum. The RSI at 51.12 is Neutral, neither overbought nor oversold. The STOCH value of 70.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4736.

Nippon RAD Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5250	74 Outperform	¥3.57B	27.06		1.98%	―	―
4736	72 Outperform	¥4.11B	9.83		1.29%	9.32%	25.46%
4450	69 Neutral	¥6.15B	17.09		1.18%	17.68%	-31.19%
3682	63 Neutral	¥4.04B	18.33		3.30%	9.26%	1.71%
Sector *	63 Neutral	$34.94B	5.14	-11.21%	1.86%	5.61%	-19.33%
4068	60 Neutral	¥3.78B	26.48		―	30.73%	―
4416	54 Neutral	¥4.32B	323.63		―	-2.43%	-78.05%