Nippon RAD Inc. (4736) AI Stock Analysis

• Market Cap: ¥4.03B
• Dividend Yield: 1.34%
• Average Volume (3M): 67.43K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 1.10
• Revenue Growth: 9.32%
• EPS Growth: 25.46%
• Country: JP
• Employees: 270
• Sector: Technology
• Sector Strength: 87
• Industry: Information Technology Services
• EPS (TTM): 50.16
• Shares Outstanding: 5,355,390
• 10 Day Avg. Volume: 120,260
• 30 Day Avg. Volume: 67,433
• PEG Ratio: 0.03
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -60.30
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥858.00 ▲(15.48%Upside)

Nippon RAD Inc. achieves a solid overall stock score, driven primarily by its strong financial performance and attractive valuation. While cash flow management needs improvement, the company's robust balance sheet and low P/E ratio indicate potential for future growth. The technical analysis points to bearish trends, but oversold conditions could present a buying opportunity.

Nippon RAD Inc. Business Overview & Revenue Model

Company Description

Nippon RAD Inc. (4736) is a Japanese company operating in the information technology sector, primarily providing software development, system integration, and IT consulting services. The company's core products and services include custom software solutions, IT infrastructure management, and business process outsourcing for various industries, including finance, manufacturing, and public sectors.

How the Company Makes Money

Nippon RAD Inc. makes money through a combination of service fees for software development and system integration projects, consulting fees, and recurring revenue from IT infrastructure management and support services. The company often engages in long-term contracts with businesses and government agencies, which ensures a steady stream of income. Additionally, Nippon RAD Inc. may form strategic partnerships with other technology firms to enhance its service offerings and enter new markets, further contributing to its revenue streams.

Nippon RAD Inc. Financial Statement Overview

Summary

Nippon RAD Inc. displays strong financial health with consistent revenue and profit growth, efficient operations, and a robust balance sheet. However, cash flow management presents challenges, with decreased operating cash flow and volatile free cash flow indicating a need for better capital expenditure management.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.36B	3.98B	3.56B	3.31B	3.01B
Gross Profit	1.10B	938.61M	701.69M	611.22M	425.04M
EBITDA	456.84M	373.73M	206.04M	122.97M	-130.51M
Net Income	417.17M	327.92M	140.68M	19.11M	-178.02M
Balance Sheet
Total Assets	4.94B	4.30B	4.11B	4.03B	4.04B
Cash, Cash Equivalents and Short-Term Investments	2.18B	2.25B	2.49B	2.68B	2.92B
Total Debt	2.13M	3.04M	123.93M	244.81M	360.00M
Total Liabilities	1.55B	1.37B	1.49B	1.49B	1.50B
Stockholders Equity	3.39B	2.93B	2.62B	2.54B	2.53B
Cash Flow
Free Cash Flow	-56.63M	316.20M	-47.01M	160.63M	-57.06M
Operating Cash Flow	139.30M	375.68M	1.99M	194.13M	26.27M
Investing Cash Flow	-183.49M	-436.82M	-3.41M	-292.52M	-54.88M
Financing Cash Flow	-26.01M	-172.72M	-186.21M	-146.90M	-145.48M

Nippon RAD Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 743.00
• 50DMA: Negative
• 100DMA: Negative
• 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:4736, the sentiment is Negative. The current price of 743 is below the 20-day moving average (MA) of 798.65, below the 50-day MA of 765.90, and above the 200-day MA of 706.85, indicating a neutral trend. The MACD of -9.70 indicates Positive momentum. The RSI at 40.86 is Neutral, neither overbought nor oversold. The STOCH value of 7.29 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4736	75 Outperform	¥4.03B	9.65		1.34%	9.32%	25.46%
5250	74 Outperform	¥4.04B	26.74		1.75%	―	―
4450	69 Neutral	¥4.24B	11.77		1.82%	17.68%	-31.19%
4416	64 Neutral	¥4.42B	331.25		―	-2.43%	-78.05%
Sector *	63 Neutral	$34.07B	6.13	-11.73%	1.80%	5.33%	-18.31%
3682	63 Neutral	¥4.07B	18.48		3.28%	9.26%	1.71%
4068	54 Neutral	¥3.83B	26.82		―	30.73%	―