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Nippon RAD Inc.
(4736)
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Rating:64Neutral
Price Target:
¥636.00
▼(-1.55% Downside)
Action:Reiterated
Date:08/05/26
Overall score is driven primarily by financial performance: a very conservative, low-leverage balance sheet and currently positive cash generation are meaningful positives, but recent revenue softness and a sharp decline in operating and net margins (and ROE) materially reduce the quality of current earnings power. Technical signals are mixed/neutral, and valuation is only moderately supportive with a mid-range P/E and a modest dividend yield.
Positive Factors
Conservative Balance Sheet
Extremely low leverage provides durable financial flexibility: the company can fund working capital, weather client payment cycles, pursue strategic investments or absorb shocks without refinancing risk. This downside protection supports steady operations and long-term stability.
Negative Factors
Recent Revenue Softness
Declining top-line growth undermines operating leverage and the business's ability to scale fixed-cost absorption. If revenue weakness persists it can force margin trade-offs, reduce funds available for strategic investment, and signal demand or contract share loss versus peers.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Extremely low leverage provides durable financial flexibility: the company can fund working capital, weather client payment cycles, pursue strategic investments or absorb shocks without refinancing risk. This downside protection supports steady operations and long-term stability.
Read all positive factors
Nippon RAD Inc. (4736) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.36B
Dividend Yield1.57%
Average Volume (3M)11.22K
Price to Earnings (P/E)20.3
Beta (1Y)0.94
Revenue Growth-5.15%
EPS Growth-60.51%
CountryJP
Employees299
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)23.69
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. operates in Japan, delivering a diverse range of enterprise technology solutions and Internet of Things (IoT) integration services. Its offerings include pre-built software packages, cloud computing, hosting, and rental server serv...
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
54
Neutral
Balance Sheet
86
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.07B | 4.13B | 4.36B | 3.98B | 3.56B | 3.31B |
| Gross Profit | 858.56M | 906.19M | 1.10B | 933.33M | 696.99M | 607.25M |
| EBITDA | 190.61M | 262.72M | 390.34M | 317.99M | 133.09M | 87.32M |
| Net Income | 125.17M | 164.94M | 417.17M | 327.92M | 140.68M | 19.11M |
Balance Sheet | ||||||
| Total Assets | 4.96B | 4.95B | 4.99B | 4.32B | 4.11B | 4.03B |
| Cash, Cash Equivalents and Short-Term Investments | 2.37B | 1.96B | 2.18B | 2.25B | 2.49B | 2.68B |
| Total Debt | 21.00M | 22.19M | 2.13M | 3.04M | 123.93M | 244.81M |
| Total Liabilities | 1.48B | 1.42B | 1.60B | 1.39B | 1.49B | 1.49B |
| Stockholders Equity | 3.49B | 3.53B | 3.39B | 2.93B | 2.62B | 2.54B |
Cash Flow | ||||||
| Free Cash Flow | 189.65M | 146.80M | -56.63M | 362.49M | -13.67M | 188.47M |
| Operating Cash Flow | 204.59M | 164.57M | 139.30M | 375.68M | 1.99M | 194.13M |
| Investing Cash Flow | -325.31M | -329.22M | -183.49M | -436.82M | -3.41M | -292.52M |
| Financing Cash Flow | -57.57M | -57.42M | -26.01M | -172.72M | -186.21M | -146.90M |
Nippon RAD Inc. Technical Analysis
Negative
646.00
Price Trends
592.74
Negative
579.77
Positive
612.26
Negative
Market Momentum
3.43
Negative
48.62
Neutral
26.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4736, the sentiment is Negative. The current price of 646 is above the 20-day moving average (MA) of 594.40, above the 50-day MA of 592.74, and above the 200-day MA of 612.26, indicating a bearish trend. The MACD of 3.43 indicates Negative momentum. The RSI at 48.62 is Neutral, neither overbought nor oversold. The STOCH value of 26.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | ¥2.80B | 12.54 | ― | 2.86% | 7.29% | -10.63% | |
69 Neutral | ¥2.01B | 24.94 | ― | ― | 20.34% | 503.40% | |
64 Neutral | ¥3.36B | 20.34 | ― | 1.54% | -5.15% | -60.51% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | ¥5.29B | 47.99 | ― | 1.61% | 3.07% | -54.25% | |
60 Neutral | ¥3.12B | 25.89 | ― | ― | 2.38% | -15.87% | |
54 Neutral | ¥3.28B | 172.13 | ― | 4.95% | -7.96% | -92.66% |
* 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.