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Nichireki Co., Ltd.
(5011)
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Rating:67Neutral
Price Target:
¥2,554.00
▲(4.50% Upside)
Action:Reiterated
Date:08/17/26
The score is primarily held back by weakening fundamentals—especially the sharp deterioration in cash generation and two years of negative free cash flow—despite a conservatively capitalized balance sheet. Technicals are strong with the stock trading above major moving averages, but overbought signals reduce near-term confidence. Valuation is supportive with a reasonable P/E and a ~3.4% dividend yield.
Positive Factors
Conservative Balance Sheet
Low leverage and rising equity provide a durable funding base for operations and infrastructure projects. This reduces dependence on external financing and gives Nichireki greater capacity to absorb demand swings or fund ongoing investment.
Negative Factors
Weak Cash Conversion
The sharp decline in operating cash flow indicates that reported earnings are converting into cash less effectively. Persistently weak conversion can restrict internal funding, increase reliance on financing, and reduce flexibility for investment or shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low leverage and rising equity provide a durable funding base for operations and infrastructure projects. This reduces dependence on external financing and gives Nichireki greater capacity to absorb demand swings or fund ongoing investment.
Read all positive factors
Nichireki Co., Ltd. (5011) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥71.84B
Dividend Yield3.41%
Average Volume (3M)30.33K
Price to Earnings (P/E)14.8
Beta (1Y)0.62
Revenue Growth0.61%
EPS Growth-2.73%
CountryJP
Employees1,434
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)158.56
Shares Outstanding31,685,955
10 Day Avg. Volume27,400
30 Day Avg. Volume30,326
Financial Highlights & Ratios
PEG Ratio-1.53
Price to Book (P/B)0.76
Price to Sales (P/S)0.80
P/FCF Ratio-20.39
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)161.7
Revenue Forecast (FY)¥75.00B
Nichireki Co., Ltd. Business Overview & Revenue Model
Company Description
Nichireki Co., Ltd., founded in 1943 and headquartered in Tokyo, Japan, is a prominent manufacturer and supplier of diverse paving materials, primarily serving the Japanese market. The company's main product lines include various asphalt emulsions...
How the Company Makes Money
null...
Nichireki Co., Ltd. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 76.38B | 75.85B | 75.75B | 73.83B | 78.40B | 78.00B |
| Gross Profit | 18.55B | 17.88B | 16.39B | 15.68B | 16.66B | 17.61B |
| EBITDA | 9.37B | 9.25B | 9.70B | 9.08B | 11.41B | 11.95B |
| Net Income | 4.52B | 4.29B | 4.85B | 4.49B | 6.28B | 6.81B |
Balance Sheet | ||||||
| Total Assets | 111.26B | 122.62B | 112.37B | 95.09B | 91.47B | 88.42B |
| Cash, Cash Equivalents and Short-Term Investments | 19.25B | 24.75B | 31.62B | 25.75B | 27.32B | 29.00B |
| Total Debt | 18.71B | 18.86B | 19.97B | 1.56B | 1.53B | 1.60B |
| Total Liabilities | 32.13B | 42.94B | 35.05B | 20.26B | 19.00B | 20.35B |
| Stockholders Equity | 79.08B | 79.63B | 77.32B | 74.84B | 72.47B | 68.08B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -2.96B | -7.29B | 3.57B | 3.79B | 4.50B |
| Operating Cash Flow | 0.00 | 2.42B | 4.89B | 7.39B | 6.56B | 7.74B |
| Investing Cash Flow | 0.00 | -5.29B | -12.46B | -3.85B | -5.83B | -2.36B |
| Financing Cash Flow | 0.00 | -4.01B | 13.73B | -2.82B | -3.12B | -1.43B |
Nichireki Co., Ltd. Technical Analysis
Positive
2444.00
Price Trends
2150.78
Positive
2106.72
Positive
2238.65
Positive
Market Momentum
51.72
Negative
70.69
Negative
90.82
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5011, the sentiment is Positive. The current price of 2444 is above the 20-day moving average (MA) of 2230.15, above the 50-day MA of 2150.78, and above the 200-day MA of 2238.65, indicating a bullish trend. The MACD of 51.72 indicates Negative momentum. The RSI at 70.69 is Negative, neither overbought nor oversold. The STOCH value of 90.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5011.
Nichireki Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥26.39B | 11.74 | ― | 5.04% | 4.27% | 27.05% | |
74 Outperform | ¥115.48B | 9.65 | ― | 4.87% | 4.27% | 226.52% | |
67 Neutral | ¥71.84B | 14.81 | ― | 3.31% | 0.61% | -2.73% | |
66 Neutral | ¥187.51B | 14.83 | 5.85% | 2.10% | 4.79% | 25.74% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | ¥476.94B | 16.75 | 3.93% | 2.43% | 1.17% | -45.49% |
* Industrials Sector Average
JP:5011
Nichireki Co., Ltd.
2,348.00
-318.31
-11.94%
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Nichireki Co., Ltd. Corporate Events
Nichireki Returns to Profit in First Quarter, Affirms Full-Year Outlook and Dividend Plan
Aug 7, 2026
Nichireki Group reported a solid rebound in profitability for the quarter ended June 30, 2026, with net sales rising 3.8% year on year to ¥14.2 billion and operating profit swinging to ¥143 million from a loss a year earlier. Ordinary pr...
Nichireki Completes Treasury Stock Disposal for Restricted Share Compensation
Jul 24, 2026
Nichireki Group Co., Ltd. has completed the payment process for a disposal of treasury stock that will be used as restricted stock compensation for its management team. The move aligns executive and director incentives with shareholder interests b...
Nichireki to Grant Restricted Treasury Shares to Align Management Pay With Long-Term Performance
Jun 26, 2026
Nichireki Group Co., Ltd. has approved the disposal of 45,600 shares of its treasury stock as restricted stock compensation to 21 directors, audit and supervisory committee members, and senior executives, at ¥2,128 per share for a total of ab...
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.