Nippon RAD Inc. (JP:4736)
:4736
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Nippon RAD Inc.
(4736)
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Rating:66Neutral
Price Target:
¥631.00
▼(-2.32% Downside)
Action:Reiterated
Date:05/28/26
The score is primarily driven by financial performance: a very conservative, low-debt balance sheet is a major strength, but the latest period’s revenue decline and sharp margin compression raise profitability risk. Technicals are mixed (short-term strength but longer-term downtrend and overbought RSI), and valuation is reasonable but not a clear bargain given the recent earnings step-down.
Positive Factors
Conservative balance sheet
Extremely low leverage and growing equity provide durable financial flexibility. That balance-sheet conservatism lets management fund project delivery, absorb contract timing shocks, and pursue selective investments or hires without relying on external debt, supporting resilience over months.
Negative Factors
Recent revenue decline
Latest multi-month/annual revenue contraction (around -4% to -5%) signals weakening client demand or project timing. For a contract-driven IT services firm, falling revenue reduces operating leverage and utilization, making profit recovery harder and exposing margins over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Extremely low leverage and growing equity provide durable financial flexibility. That balance-sheet conservatism lets management fund project delivery, absorb contract timing shocks, and pursue selective investments or hires without relying on external debt, supporting resilience over months.
Read all positive factors
Nippon RAD Inc. (4736) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.33B
Dividend Yield1.54%
Average Volume (3M)11.22K
Price to Earnings (P/E)20.2
Beta (1Y)0.93
Revenue Growth-5.15%
EPS Growth-60.51%
CountryJP
Employees270
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)31.22
Shares Outstanding5,355,390
10 Day Avg. Volume14,110
30 Day Avg. Volume11,223
Financial Highlights & Ratios
PEG Ratio-0.30
Price to Book (P/B)0.85
Price to Sales (P/S)0.72
P/FCF Ratio20.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nippon RAD Inc. Business Overview & Revenue Model
Company Description
Nippon RAD Inc. engages in enterprise solution and IoT integration businesses in Japan. It provides package software; housing, hosting, and rental servers; application service through the Internet; and cloud services, as well as develops business ...
How the Company Makes Money
Nippon RAD primarily generates revenue by delivering IT services on a contract basis. Key revenue streams generally include (1) commissioned software and system development projects where customers pay for design, build, testing, and deployment wo...
Nippon RAD Inc. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
86
Very Positive
Cash Flow
55
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.13B | 4.36B | 3.98B | 3.56B | 3.31B |
| Gross Profit | 906.19M | 1.10B | 933.33M | 696.99M | 607.25M |
| EBITDA | 262.72M | 390.34M | 317.99M | 133.09M | 87.32M |
| Net Income | 164.94M | 417.17M | 327.92M | 140.68M | 19.11M |
Balance Sheet | |||||
| Total Assets | 4.95B | 4.99B | 4.32B | 4.11B | 4.03B |
| Cash, Cash Equivalents and Short-Term Investments | 1.96B | 2.18B | 2.25B | 2.49B | 2.68B |
| Total Debt | 22.19M | 2.13M | 3.04M | 123.93M | 244.81M |
| Total Liabilities | 1.42B | 1.60B | 1.39B | 1.49B | 1.49B |
| Stockholders Equity | 3.53B | 3.39B | 2.93B | 2.62B | 2.54B |
Cash Flow | |||||
| Free Cash Flow | 146.80M | -56.63M | 362.49M | -13.67M | 188.47M |
| Operating Cash Flow | 164.57M | 139.30M | 375.68M | 1.99M | 194.13M |
| Investing Cash Flow | -329.22M | -183.49M | -436.82M | -3.41M | -292.52M |
| Financing Cash Flow | -57.42M | -26.01M | -172.72M | -186.21M | -146.90M |
Nippon RAD Inc. Technical Analysis
Positive
646.00
Price Trends
567.41
Positive
594.16
Positive
641.25
Negative
Market Momentum
9.93
Negative
63.86
Neutral
52.91
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 646 is above the 20-day moving average (MA) of 570.30, above the 50-day MA of 567.41, and above the 200-day MA of 641.25, indicating a neutral trend. The MACD of 9.93 indicates Negative momentum. The RSI at 63.86 is Neutral, neither overbought nor oversold. The STOCH value of 52.91 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥2.74B | 12.25 | ― | 2.86% | 7.29% | -10.63% | |
69 Neutral | ¥1.88B | 23.39 | ― | ― | 20.34% | 503.40% | |
66 Neutral | ¥3.33B | 20.18 | ― | 1.54% | -5.15% | -60.51% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | ¥5.08B | 36.39 | ― | 1.61% | 2.87% | -46.82% | |
61 Neutral | ¥3.33B | 27.50 | ― | ― | 2.38% | -15.87% | |
60 Neutral | ¥3.41B | 81.23 | ― | 4.95% | -9.71% | -88.93% |
* Technology Sector Average
JP:4736
Nippon RAD Inc.
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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.