Nihon Enterprise Co., Ltd. (4829) AI Stock Analysis

• Market Cap: ¥4.51B
• Dividend Yield: 2.78%
• Average Volume (3M): 177.65K
• Price to Earnings (P/E): 135.8
• Beta (1Y): 0.69
• Revenue Growth: -4.90%
• EPS Growth: -85.89%
• Country: JP
• Employees: 220
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 38,534,900
• 10 Day Avg. Volume: 208,530
• 30 Day Avg. Volume: 177,650
• PEG Ratio: -2.32
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 1.01
• P/FCF Ratio: 28.54
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: ¥119.00 ▲(10.19% Upside)

The score is held back primarily by sharp profitability deterioration and an extremely high P/E, which together create a weak risk/reward profile. A strong, debt-free balance sheet and still-positive (though weakened) cash generation provide some stability, while technical indicators are mostly neutral with a slight bearish tilt.

Positive Factors

Conservative Balance Sheet

Zero financial leverage and a large equity cushion materially reduce refinancing and solvency risk, giving management flexibility to invest in product development or M&A during downturns. This durability supports operational continuity and long-term strategic optionality across cycles.

Stable Gross Margins

A steady ~37% gross margin implies the core mobile/digital content economics remain intact, indicating pricing power or consistent unit economics. That stability provides a foundation to restore profitability once operating costs are addressed or revenue growth resumes.

Positive Free Cash Flow

Ongoing positive free cash flow, even if reduced, supports sustainable funding for operations, dividends, or selective reinvestment without needing external debt. Persistent cash generation enhances resilience and underpins medium-term capital allocation flexibility.

Negative Factors

Severe Profitability Decline

Sharp margin compression signals weakened operating leverage and eroded earnings power, reducing the company's ability to self-fund growth or returns. If structural, this deterioration can depress ROE and limit long-term investor returns until cost structure or revenue mix improves.

Revenue Weakness

Declining top-line trends in a digital content business can indicate slowing user engagement or competitive pressure. Persistent revenue contraction undermines operating leverage and investment economics, making margin recovery harder and constraining long-term growth prospects.

Poor Cash Conversion and Low ROE

Weak cash conversion (OCF roughly a quarter of reported net income) and very low ROE point to ineffective earnings quality and limited shareholder value creation. Over time this restricts reinvestment capacity and makes it harder to justify capital allocation without structural improvement.

Nihon Enterprise Co., Ltd. Business Overview & Revenue Model

Company Description

Nihon Enterprise Co.,Ltd. plans, develops, and operates content for smartphone and other multi devices. It offers Booksmart, an e-book services; ATIS Traffic Info, an app for traffic condition information; Women's Diary, a health care app for women; Flea-ma.jp, a flea market app for high-end goods, fashion items, and appliances; and fisheries products, fruits, and vegetables. The company also provides business support services, such as kitting support, traffic information, sound solution services; and application and system planning, development, and management services for enterprise customers to streamline their business operations. In addition, the company sells used terminals, and glass coatings; and engages in the renewable power generation business. Further, it offers AplosOne, an IP phone service; BizTalk, a messenger app for business chat; Yubisashi Navi, a cloud service for tourism; and e-Manabi, a learning cloud service. Nihon Enterprise Co.,Ltd. was incorporated in 1989 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nihon Enterprise Co., Ltd. generates revenue through a variety of streams. The company earns income from its mobile content services, which include paid applications and digital content accessible via smartphones and other mobile devices. Additionally, Nihon Enterprise provides IT solutions and consulting services to businesses, offering customized software and system integration services that help companies optimize their operations. Another significant revenue stream comes from their e-commerce activities, including online retail platforms. Partnerships with telecommunications companies and other businesses in the tech industry also play a crucial role in expanding their service offerings and customer base, thereby contributing to their earnings.

Nihon Enterprise Co., Ltd. Financial Statement Overview

Summary

Results weakened meaningfully: profitability deteriorated sharply (net margin ~0.5% and EBIT margin ~2.1% in FY2025) alongside a modest revenue decline (~-1.6%). Offsetting this, the balance sheet is very conservative (zero debt, strong equity base), and cash flow remains positive though weaker versus FY2024.

Income Statement

Profitability has deteriorated sharply: net margin fell to ~0.5% in FY2025 from ~4.5% in FY2024, with EBIT margin down to ~2.1% (from ~6.5%). Revenue also declined (~-1.6%) after modest growth in prior years, while gross margin stayed relatively stable (~37%), implying the pressure is coming from operating costs rather than core pricing/unit economics. Strength: the business has maintained consistent gross profitability over time; weakness: earnings power and operating leverage weakened meaningfully in the latest year.

Balance Sheet

Balance sheet is conservative and resilient: FY2025 shows zero debt and a large equity base (equity ~4.74B vs. assets ~5.59B), reducing financial risk. Leverage has been very low even historically, supporting flexibility through weaker profit periods. The main weakness is low shareholder returns in the latest year (ROE ~0.5%), reflecting subdued profitability rather than balance-sheet strain.

Cash Flow

Cash generation is positive but has weakened versus prior years: operating cash flow fell to ~158M in FY2025 from ~272M in FY2024, and cash conversion vs. earnings is modest (operating cash flow is ~0.26x net income in FY2025). A positive is that free cash flow remains positive in FY2025 and matches operating cash flow, and free cash flow is not consistently negative (though FY2022 was notably weak with negative free cash flow). Overall, cash flow is adequate but not consistently strong.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.45B	4.44B	4.70B	4.21B	4.02B	4.35B
Gross Profit	1.64B	1.64B	1.72B	1.69B	1.69B	1.75B
EBITDA	184.42M	204.50M	414.32M	304.26M	284.83M	428.81M
Net Income	24.95M	21.69M	209.27M	103.19M	71.63M	134.52M
Balance Sheet
Total Assets	5.51B	5.59B	5.95B	5.72B	5.66B	6.13B
Cash, Cash Equivalents and Short-Term Investments	3.78B	3.86B	4.42B	4.34B	4.22B	4.74B
Total Debt	0.00	0.00	159.91M	183.40M	206.90M	230.40M
Total Liabilities	684.00M	694.66M	882.98M	791.40M	771.19M	950.69M
Stockholders Equity	4.67B	4.74B	4.92B	4.79B	4.76B	5.06B
Cash Flow
Free Cash Flow	0.00	157.99M	186.06M	217.39M	-83.27M	352.88M
Operating Cash Flow	0.00	157.99M	272.04M	268.68M	11.69M	483.81M
Investing Cash Flow	0.00	-436.04M	-74.92M	-47.97M	-96.56M	-130.75M
Financing Cash Flow	0.00	-286.24M	-108.62M	-108.91M	-435.71M	-330.63M

Nihon Enterprise Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 108.00
• 50DMA: Positive
• 100DMA: Positive
• 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:4829, the sentiment is Positive. The current price of 108 is below the 20-day moving average (MA) of 116.35, below the 50-day MA of 111.32, and below the 200-day MA of 114.55, indicating a bullish trend. The MACD of 2.07 indicates Positive momentum. The RSI at 54.39 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4829.

Nihon Enterprise Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4440	77 Outperform	¥6.49B	12.29	―	1.35%	39.66%	57.28%
3816	71 Outperform	¥4.36B	12.00	7.21%	1.70%	-0.23%	23.25%
3826	70 Outperform	¥5.57B	7.35	―	2.28%	―	―
4060	64 Neutral	¥6.24B	22.07	―	0.57%	21.03%	32.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4829	50 Neutral	¥4.51B	135.76	―	2.78%	-4.90%	-85.89%
3936	48 Neutral	¥5.16B	63.32	―	―	33.73%	―

Nihon Enterprise Co., Ltd. Corporate Events

Nihon Enterprise Returns to Profit on Modest Sales Growth and Maintains Strong Equity Base

Nihon Enterprise reported consolidated results for the second quarter of the fiscal year ending May 2026 showing modest growth in sales and a return to profitability. Net sales rose 1.6% year on year to ¥2,189 million, while operating profit remained flat at ¥12 million, and ordinary profit increased 16.1% to ¥31 million despite still being at a low level. Profit attributable to owners of parent recovered to a small surplus of ¥3 million from a loss of ¥8 million a year earlier, and comprehensive income turned positive at ¥93 million versus a prior deficit. The company’s financial position remains solid, with total assets of ¥5,566 million, net assets of ¥4,868 million, and an equity ratio of 84.5%, indicating a strong balance sheet even as earnings remain modest. Per-share indicators also improved, with basic earnings per share turning positive to ¥0.08, though net assets per share edged down slightly, suggesting that while operational profitability is only gradually recovering, the company maintains robust capital adequacy that could support future strategic initiatives and shareholder stability.

The most recent analyst rating on (JP:4829) stock is a Hold with a Yen108.00 price target. To see the full list of analyst forecasts on Nihon Enterprise Co., Ltd. stock, see the JP:4829 Stock Forecast page.