Noritz (5943) AI Stock Analysis

• Market Cap: $90.23B
• Dividend Yield: 3.57%
• Average Volume (3M): 110.66K
• Price to Earnings (P/E): 35.4
• Beta (1Y): 0.36
• Revenue Growth: 2.69%
• EPS Growth: 1.74%
• Country: JP
• Employees: 6,128
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): -11.50
• Shares Outstanding: 48,554,930
• 10 Day Avg. Volume: 172,890
• 30 Day Avg. Volume: 110,656
• PEG Ratio: 0.04
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.38
• P/FCF Ratio: 47.98
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 1.19
• Enterprise Value/Ebitda: 5.10
• 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: 56 Neutral
• Price Target: ¥1,978.00 ▼(-4.07% Downside)

Noritz's overall stock score is primarily influenced by its stable financial performance and strong balance sheet, which are offset by bearish technical indicators and a relatively high valuation. The lack of growth in revenue and profitability, combined with negative market momentum, suggests caution for potential investors.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal leverage reduces financial risk, providing stability and flexibility for future investments and growth.

Cash Flow Improvement

Improved cash flow generation indicates better operational efficiency, enhancing the company's ability to fund growth initiatives and return capital to shareholders.

Energy Efficiency Focus

Focus on energy-efficient products aligns with global sustainability trends, potentially driving demand and providing a competitive advantage in the HVAC sector.

Negative Factors

Flat Revenue Growth

Stagnant revenue growth may indicate challenges in market expansion and competitive pressures, potentially limiting long-term profitability and market share.

Profit Margin Pressure

Declining profit margins suggest operational challenges and cost pressures, which could impact profitability and shareholder returns if not addressed.

Operational Efficiency Challenges

Decreased operational efficiency may hinder the company's ability to maintain competitive pricing and profitability, affecting long-term financial health.

Noritz Business Overview & Revenue Model

Company Description

Noritz Corporation engages in the development, manufacture, and sale of household appliances and equipment, and related services worldwide. The company offers heating ventilation and air conditioning (HVAC) equipment, such as water heaters, hydronic heating systems, gas fan heaters, gas co-generation systems, water tank units for use with fuel cells, solar water heaters, and industrial-use photovoltaic power generation systems. It also provides kitchen appliances, including built-in and counter-top gas stoves, gas ovens, and range hoods. In addition, the company offers product repair, installation, after-sales, and regulatory compliance and safety inspection services. Noritz Corporation was incorporated in 1951 and is headquartered in Kobe, Japan.

How the Company Makes Money

Noritz generates revenue primarily through the sale of its core products, including tankless water heaters and boilers, which are both highly sought after in the residential and commercial sectors. The company benefits from a strong distribution network, partnering with various retailers, plumbing, and HVAC contractors to reach end consumers effectively. Additionally, Noritz may generate income from aftermarket services, including maintenance, repair, and parts sales. Factors contributing to its earnings include the increasing demand for energy-efficient heating solutions, government incentives for eco-friendly products, and a growing focus on reducing carbon footprints in heating practices.

Noritz Financial Statement Overview

Summary

Noritz demonstrates stable financial performance with a strong balance sheet, highlighted by a low debt-to-equity ratio and robust equity ratio. However, challenges in revenue growth and profitability, as well as room for improvement in cash retention, slightly dampen the overall financial outlook.

Income Statement

Noritz's income statement indicates stable revenue levels with minor fluctuations over the years. The gross profit margin is strong at approximately 31.2% TTM, showing good cost management. However, the net profit margin has decreased to 2.2% TTM from higher levels in previous years, indicating pressure on profitability. The EBIT and EBITDA margins have also experienced declines, highlighting challenges in operational efficiency. Revenue growth has been relatively flat, suggesting limited expansion in market presence.

Balance Sheet

Noritz maintains a solid balance sheet with a low debt-to-equity ratio of 0.03, reflecting minimal leverage and reduced financial risk. The equity ratio is robust at 59%, indicating a strong capital structure. Return on equity is modest at 3.3% TTM, suggesting that the company could improve its profitability relative to equity. The company’s liquidity position is healthy, with substantial cash reserves contributing to a negative net debt position.

Cash Flow

The cash flow statement reveals variability in operating cash flow, with a significant improvement from negative to positive territory in the latest year. The free cash flow growth rate is positive at 116.7% TTM, indicating better cash generation from operations after capital expenditures. However, the operating cash flow to net income ratio is 1.97, demonstrating efficient cash conversion. Free cash flow to net income ratio is 0.37, suggesting room for improvement in cash retention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	204.72B	202.20B	201.89B	210.97B	178.14B	183.86B
Gross Profit	64.20B	63.14B	63.83B	67.32B	57.19B	58.01B
EBITDA	14.92B	15.23B	11.06B	14.67B	15.39B	3.15B
Net Income	5.94B	4.38B	868.00M	4.80B	5.48B	-3.01B
Balance Sheet
Total Assets	209.36B	223.77B	207.77B	216.97B	194.53B	189.73B
Cash, Cash Equivalents and Short-Term Investments	29.29B	29.02B	26.14B	36.25B	43.53B	30.92B
Total Debt	3.64B	3.79B	2.53B	2.11B	849.00M	865.00M
Total Liabilities	78.66B	86.83B	81.11B	97.32B	78.34B	78.76B
Stockholders Equity	125.92B	132.07B	122.06B	115.35B	112.09B	107.27B
Cash Flow
Free Cash Flow	0.00	1.60B	-9.59B	-2.03B	11.82B	4.63B
Operating Cash Flow	0.00	8.62B	-1.87B	2.40B	15.45B	9.41B
Investing Cash Flow	0.00	-6.00B	-5.66B	-7.79B	-2.52B	-5.43B
Financing Cash Flow	0.00	-2.48B	-3.23B	-4.78B	-3.12B	-4.32B

Noritz Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2062.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5943, the sentiment is Positive. The current price of 2062 is above the 20-day moving average (MA) of 1972.84, above the 50-day MA of 1930.52, and above the 200-day MA of 1875.26, indicating a bullish trend. The MACD of 37.59 indicates Negative momentum. The RSI at 73.66 is Negative, neither overbought nor oversold. The STOCH value of 90.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5943.

Noritz Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5929	68 Neutral	¥875.39B	14.82	18.61%	2.94%	2.90%	36.64%
7943	66 Neutral	¥109.43B	32.72	―	3.53%	-0.58%	-46.15%
5930	66 Neutral	¥140.66B	10.87	12.89%	3.40%	2.98%	41.11%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5938	62 Neutral	¥547.34B	58.91	1.44%	4.80%	0.68%	―
5332	62 Neutral	¥704.39B	182.75	0.83%	2.36%	-0.03%	-89.02%
5943	56 Neutral	$90.23B	35.44	2.01%	3.57%	2.69%	1.74%

Noritz Corporate Events

Noritz Buys Back Fractional Treasury Shares After Partial Share Exchange with Ogihara

Noritz Corporation has executed a corporate action tied to its recent partial share exchange with subsidiary Ogihara Mfg. Co., Ltd., resolving to purchase as treasury stock the fractional shares of less than one share that arose for Ogihara shareholders in the transaction. Effective December 19, 2025, Noritz became the parent company in this partial share exchange, and on December 24, 2025, it moved to acquire one share of its own common stock corresponding to the aggregated fractions, with the cash consideration to be calculated based on the closing price on the Tokyo Stock Exchange on the purchase date. While the scale of the buyback is minimal, the step tidies up shareholdings and reflects Noritz’s adherence to Japanese Companies Act procedures in integrating Ogihara’s shareholders, supporting a smoother post-transaction capital structure and corporate governance framework.

The most recent analyst rating on (JP:5943) stock is a Hold with a Yen1978.00 price target. To see the full list of analyst forecasts on Noritz stock, see the JP:5943 Stock Forecast page.

Noritz Boosts Stake in Ogihara to 69.9% Through Partial Share Exchange

Noritz Corporation has completed a simplified partial share exchange to increase its stake in OGIHARA MFG.CO., Ltd., turning the firm into a consolidated subsidiary. Through the transaction, effective December 19, 2025, Noritz acquired 30,325 additional OGIHARA shares—exceeding the minimum acceptance threshold—and now holds 56,658 OGIHARA shares, raising its ownership from 32.5% to 69.9% in exchange for issuing 365,416 of its own shares, a move that strengthens its control and integration of OGIHARA within the group structure.

The most recent analyst rating on (JP:5943) stock is a Hold with a Yen1978.00 price target. To see the full list of analyst forecasts on Noritz stock, see the JP:5943 Stock Forecast page.

Noritz Corporation Evaluates and Enhances Board Effectiveness

Noritz Corporation has evaluated the effectiveness of its Board of Directors for fiscal year 2025, confirming appropriate functionality and setting new objectives for 2026. The company plans to enhance discussions on ESG management, continue monitoring investment decisions, and improve group governance to further strengthen board effectiveness.

The most recent analyst rating on (JP:5943) stock is a Hold with a Yen1978.00 price target. To see the full list of analyst forecasts on Noritz stock, see the JP:5943 Stock Forecast page.

Noritz Revises 2025 Forecast: Lower Sales, Higher Income

Noritz Corporation has revised its full-year consolidated results forecast for 2025, anticipating lower net sales due to sluggish market conditions in China. However, the company expects higher operating and net income, driven by improved productivity and cost control measures. The year-end dividend forecast remains unchanged.

The most recent analyst rating on (JP:5943) stock is a Hold with a Yen1978.00 price target. To see the full list of analyst forecasts on Noritz stock, see the JP:5943 Stock Forecast page.

Noritz to Acquire Ogihara as Subsidiary through Partial Share Exchange

Noritz Corporation has announced a partial share exchange to make Ogihara MFG. Co., Ltd. a subsidiary, utilizing treasury shares without issuing new ones. This strategic move is part of Noritz’s Medium-Term Management Plan to boost earning power and expand its customer base by leveraging Ogihara’s technological capabilities and management resources, ultimately aiming to enhance corporate value and streamline operations.

The most recent analyst rating on (JP:5943) stock is a Hold with a Yen1978.00 price target. To see the full list of analyst forecasts on Noritz stock, see the JP:5943 Stock Forecast page.

Noritz Corporation Reports Improved Operating Income Amidst Market Challenges

Noritz Corporation reported its consolidated financial results for the first nine months of 2025, showing a slight increase in net sales and a significant improvement in operating income compared to the previous year. Despite challenges in the Chinese real estate market, the company achieved growth in its domestic business through the sale of eco-friendly water heaters and kitchen appliances, while its overseas business saw mixed results with strong performance in North America and Australia.

The most recent analyst rating on (JP:5943) stock is a Hold with a Yen2173.00 price target. To see the full list of analyst forecasts on Noritz stock, see the JP:5943 Stock Forecast page.

Noritz Cancels Share Exchange Resolution with Ogihara

Noritz Corporation has announced the cancellation of its board resolution for a partial share exchange with Ogihara MFG. Co., Ltd. due to procedural defects related to the unfiled Securities Registration Statement. The company plans to rectify this by preparing the necessary documentation to comply with financial regulations, which will allow them to proceed with the share exchange in the future.

The most recent analyst rating on (JP:5943) stock is a Hold with a Yen2096.00 price target. To see the full list of analyst forecasts on Noritz stock, see the JP:5943 Stock Forecast page.

Noritz Adjusts Growth Rate in Share Exchange with Ogihara

Noritz Corporation has made a correction to its earlier announcement regarding the partial share exchange with Ogihara MFG. Co., Ltd., which aims to make Ogihara a subsidiary. The correction involves an adjustment in the perpetual growth rate from a range of -0.5% to 0.5% to a new rate of 2.0%, potentially impacting the valuation and strategic positioning of the company.

The most recent analyst rating on (JP:5943) stock is a Hold with a Yen2096.00 price target. To see the full list of analyst forecasts on Noritz stock, see the JP:5943 Stock Forecast page.

Noritz to Acquire Ogihara as Subsidiary in Strategic Share Exchange

Noritz Corporation has announced a partial share exchange to make Ogihara MFG.CO., Ltd. a subsidiary, as part of its Medium-Term Management Plan ‘V-plan 26.’ This strategic move aims to leverage Ogihara’s technological capabilities to enhance Noritz’s quality management systems, stabilize its supply structure, and support its long-term growth strategy, ultimately improving corporate value for both companies.

The most recent analyst rating on (JP:5943) stock is a Hold with a Yen2096.00 price target. To see the full list of analyst forecasts on Noritz stock, see the JP:5943 Stock Forecast page.