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Nihon Kogyo Co., Ltd. (JP:5279)
:5279
Japanese Market
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Nihon Kogyo Co., Ltd. (5279) AI Stock Analysis

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JP:5279

Nihon Kogyo Co., Ltd.

(5279)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
¥1,274.00
▼(-6.87% Downside)
Action:Downgraded
Date:05/05/26
The score is supported most by attractive valuation (low P/E and strong dividend yield). This is tempered by mixed fundamentals—improving revenue/margins but notably weak 2026 cash flow—and a bearish technical setup with the price below key moving averages.
Positive Factors
Revenue and margin improvement
Consistent revenue rebound and margin expansion through 2026 indicate improving commercial execution and favorable product mix or pricing. Higher gross and operating margins suggest better cost control and competitiveness, supporting sustainable earnings improvement if construction demand remains stable.
Negative Factors
Severe cash-flow deterioration in 2026
A collapse in cash conversion substantially reduces financial flexibility: operating cash covered only ~5% of earnings and FCF turned deeply negative. If higher working-capital needs or investment levels persist, the company may face funding pressure, higher borrowing, or cutbacks to support liquidity.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin improvement
Consistent revenue rebound and margin expansion through 2026 indicate improving commercial execution and favorable product mix or pricing. Higher gross and operating margins suggest better cost control and competitiveness, supporting sustainable earnings improvement if construction demand remains stable.
Read all positive factors

Nihon Kogyo Co., Ltd. (5279) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Nihon Kogyo Co., Ltd. engages in the civil engineering materials, landscape, and exterior and gardening businesses in Japan. The company processes, manufactures, and sells various concrete products, such as box culvert, culvert, storage and disast...
How the Company Makes Money
The company primarily makes money by manufacturing and selling concrete secondary products for public works and private-sector construction projects. Revenue is generated from product sales to customers such as construction contractors, civil engi...

Nihon Kogyo Co., Ltd. Financial Statement Overview

Summary
Revenue and margins have improved through 2026, and leverage appears manageable with gradually better ROE. The main offset is a sharp deterioration in 2026 cash generation, with operating cash flow covering only a small portion of earnings and free cash flow turning negative, reducing near-term financial flexibility.
Income Statement
71
Positive
Balance Sheet
68
Positive
Cash Flow
46
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue15.00B16.32B14.75B13.67B11.34B11.77B
Gross Profit3.24B3.61B3.05B2.76B2.29B2.34B
EBITDA1.22B1.38B1.12B900.35M678.46M745.61M
Net Income469.85M577.91M393.68M295.15M198.68M273.18M
Balance Sheet
Total Assets15.45B17.21B16.21B15.62B15.21B13.76B
Cash, Cash Equivalents and Short-Term Investments1.45B1.42B1.47B1.45B1.44B1.37B
Total Debt3.38B4.39B3.70B3.70B3.95B3.14B
Total Liabilities7.64B8.58B8.30B7.96B7.72B6.60B
Stockholders Equity7.81B8.62B7.91B7.66B7.31B7.16B
Cash Flow
Free Cash Flow0.00-326.48M370.18M826.49M-33.47M441.06M
Operating Cash Flow0.00340.77M665.69M1.26B224.92M678.88M
Investing Cash Flow0.00-753.65M-310.71M-426.83M-735.68M-256.84M
Financing Cash Flow0.00367.48M-342.15M-816.65M581.38M-388.46M

Nihon Kogyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1368.00
Price Trends
50DMA
1321.99
Negative
100DMA
1311.67
Negative
200DMA
1304.15
Negative
Market Momentum
MACD
-19.30
Negative
RSI
51.68
Neutral
STOCH
84.69
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5279, the sentiment is Neutral. The current price of 1368 is above the 20-day moving average (MA) of 1231.71, above the 50-day MA of 1321.99, and above the 200-day MA of 1304.15, indicating a neutral trend. The MACD of -19.30 indicates Negative momentum. The RSI at 51.68 is Neutral, neither overbought nor oversold. The STOCH value of 84.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5279.

Nihon Kogyo Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥15.83B8.082.87%-1.65%-12.79%
70
Outperform
¥8.33B5.352.03%26.86%0.06%
70
Outperform
¥4.45B2.291.16%36.36%155.68%
67
Neutral
¥6.07B9.152.03%7.64%101.11%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
¥3.39B3.583.09%10.68%46.32%
61
Neutral
¥4.48B5.080.46%3.20%19.17%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5279
Nihon Kogyo Co., Ltd.
1,172.00
216.14
22.61%
JP:1443
Giken Holdings Co., Ltd.
276.00
90.70
48.95%
JP:1716
Daiichi Cutter Kogyo K.K.
1,391.00
45.97
3.42%
JP:1758
Taiyo Kisokogyo Co., Ltd.
2,610.00
870.35
50.03%
JP:4642
Original Engineering Consultants Co., Ltd.
1,530.00
280.84
22.48%
JP:4673
Kawasaki Geological Engineering Co., Ltd.
5,150.00
2,310.65
81.38%
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.Date of analysis: May 05, 2026