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

• Market Cap: ¥4.86B
• Dividend Yield: 2.78%
• Average Volume (3M): 177.65K
• Price to Earnings (P/E): 93.8
• Beta (1Y): 0.72
• 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: ¥126.00 ▲(16.67% Upside)
• Action: Reiterated Date: 01/04/26
• Date: Action: Reiterated 01/04/26

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

Balance Sheet Strength

Zero debt and a large equity base materially reduce financial risk and preserve strategic optionality. This conservatism lets the company fund operations, support dividends, pursue selective investments or M&A, and absorb profit volatility without needing external financing.

Stable Gross Margin

A stable ~37% gross margin indicates resilient core unit economics and controlled direct costs. With gross profitability intact, the company has a foundation for margin recovery if operating expenses are managed or revenue stabilizes, improving long-term earnings potential.

Positive Free Cash Flow

Positive free cash flow means the business generates cash after capex, supporting dividends, buybacks or reinvestment without new debt. Even though cash generation weakened, sustained FCF provides a durable buffer to fund strategy and navigate cyclical earnings pressure.

Negative Factors

Profitability Compression

Sharp erosion in net and EBIT margins signals weakening operating profitability and lower earnings power. This reduces retained earnings available for strategic initiatives, heightens sensitivity to cost inflation, and requires structural cost or revenue improvements to restore durable profitability.

Revenue Decline

Declining top line and recent negative growth undermine operating leverage and strain margin recovery efforts. Persistent revenue weakness lengthens the timeline for profitability normalization, makes fixed-cost absorption harder, and risks competitive share loss absent product or commercial traction.

Weak Cash Conversion

Poor cash conversion means reported earnings translate poorly into cash, constraining the firm's ability to fund growth or dividends internally. Lower OCF relative to profits raises vulnerability to earnings volatility and reduces the margin of safety for capital allocation decisions.

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

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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	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	4.46B	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	165.80M	178.88M	371.94M	289.66M	227.29M	495.13M
Net Income	24.21M	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	25.65M	17.74M	182.66M	183.40M	207.12M	231.97M
Total Liabilities	683.63M	696.42M	884.86M	791.40M	771.19M	951.35M
Stockholders Equity	4.67B	4.74B	4.92B	4.79B	4.76B	5.06B
Cash Flow
Free Cash Flow	0.00	157.99M	262.12M	264.12M	-6.89M	463.52M
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: Neutral
• Last Price: 108.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4829, the sentiment is Neutral. The current price of 108 is below the 20-day moving average (MA) of 130.45, below the 50-day MA of 124.34, and below the 200-day MA of 117.45, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 46.63 is Neutral, neither overbought nor oversold. The STOCH value of 29.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
4060	74 Outperform	¥6.02B	21.40	―	0.57%	21.03%	32.29%
4397	68 Neutral	¥6.79B	27.15	―	―	11.32%	―
5033	66 Neutral	¥4.86B	21.99	―	―	7.60%	19.13%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4074	59 Neutral	¥5.10B	18.91	―	―	-3.20%	-39.38%
4484	55 Neutral	¥4.99B	29.81	―	―	4.36%	-0.02%
4829	50 Neutral	¥4.86B	93.82	―	2.78%	-4.90%	-85.89%

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.