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Nippon RAD Inc. (JP:4736)
:4736
Japanese Market
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Nippon RAD Inc. (4736) AI Stock Analysis

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JP:4736

Nippon RAD Inc.

(4736)

Rating:72Outperform
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. (4736) vs. iShares MSCI Japan ETF (EWJ)

Nippon RAD Inc. Business Overview & Revenue Model

Company DescriptionNippon 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 MoneyNippon 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
85
Very Positive
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
78
Positive
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
70
Positive
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 Price766.00
Price Trends
50DMA
778.64
Negative
100DMA
750.36
Positive
200DMA
719.53
Positive
Market Momentum
MACD
-6.83
Negative
RSI
51.12
Neutral
STOCH
70.23
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥3.57B27.06
1.98%
72
Outperform
¥4.11B9.83
1.29%9.32%25.46%
69
Neutral
¥6.15B17.09
1.18%17.68%-31.19%
63
Neutral
¥4.04B18.33
3.30%9.26%1.71%
63
Neutral
$34.94B5.14-11.21%1.86%5.61%-19.33%
60
Neutral
¥3.78B26.48
30.73%
54
Neutral
¥4.32B323.63
-2.43%-78.05%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:4736
Nippon RAD Inc.
777.00
66.14
9.30%
JP:3682
Encourage Technologies Co., Ltd.
606.00
6.08
1.01%
JP:4068
Basis Corporation
2,009.00
749.00
59.44%
JP:4416
True Data Inc.
892.00
446.00
100.00%
JP:4450
Power Solutions Ltd.
2,005.00
444.58
28.49%
JP:5250
Prime Strategy Co., Ltd.
999.00
-406.86
-28.94%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2025