Nippon RAD Inc. (4736) AI Stock Analysis

• Market Cap: ¥4.41B
• Dividend Yield: 1.2%
• Average Volume (3M): 34.63K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.14
• Revenue Growth: 9.32%
• EPS Growth: 25.59%
• Country: JP
• Employees: 270
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): 50.16
• Shares Outstanding: 5,355,390
• 10 Day Avg. Volume: 55,700
• 30 Day Avg. Volume: 34,630
• PEG Ratio: 0.22
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -69.09
• 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: 82 Outperform
• Price Target: ¥997.00 ▲(19.40%Upside)

Nippon RAD Inc. receives a strong overall score, driven primarily by its solid financial performance and robust technical indicators. The valuation is attractive, with a low P/E ratio suggesting potential upside. Despite challenges in cash flow management, the company's strong equity position and operational efficiency contribute positively. Technical indicators show bullish momentum, although caution is advised due to the RSI nearing overbought levels.

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
	EBIT
318.25M	266.51M	86.85M	56.98M	-124.41M
	EBITDA
456.84M	373.73M	206.04M	122.97M	-130.51M
	Net Income Common Stockholders
417.17M	327.92M	140.68M	19.11M	-178.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.18B	2.25B	2.49B	2.68B	2.92B
	Total Assets
4.94B	4.30B	4.11B	4.03B	4.04B
	Total Debt
2.13M	3.04M	123.93M	244.81M	360.00M
	Net Debt
-2.18B	-2.25B	-2.36B	-2.43B	-2.56B
	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: Positive
• Last Price: 835.00
• 50DMA: Positive
• 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 835 is above the 20-day moving average (MA) of 761.70, above the 50-day MA of 722.26, and above the 200-day MA of 689.80, indicating a bullish trend. The MACD of 31.52 indicates Negative momentum. The RSI at 61.83 is Neutral, neither overbought nor oversold. The STOCH value of 74.54 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
4736	82 Outperform	¥4.41B	10.56		1.20%	9.32%	25.59%
5250	73 Outperform	¥4.03B	26.67		1.85%	―	―
4416	71 Outperform	¥4.25B	319.28		―	-2.43%	-78.05%
4450	69 Neutral	¥3.98B	11.54		1.64%	17.68%	-31.19%
3682	63 Neutral	¥4.09B	18.57		4.07%	9.26%	1.71%
Sector *	62 Neutral	$11.81B	10.34	-7.44%	2.91%	7.41%	-7.93%
4068	54 Neutral	¥3.82B	26.80		―	30.73%	―