Want to see JP:6741 full AI Analyst Report?
Top Page
Nippon Signal Company, Limited
(6741)
Select Model
Select Model
Rating:82Outperform
Price Target:
¥1,979.00
▲(51.07% Upside)
Action:Reiterated
Date:08/05/26
The score is driven primarily by strong financial fundamentals (high profitability and low leverage, tempered by weaker cash-flow consistency) and a very attractive valuation (low P/E with a solid dividend). Technicals also support the outlook with an established uptrend and positive momentum.
Positive Factors
Recurring service & maintenance revenue
The business model includes significant follow-on maintenance and upgrade revenue from installed signaling assets. Recurring service contracts provide durable cash flows, deepen customer relationships, and raise lifetime value, smoothing project cyclicality and supporting long-term revenue visibility.
Negative Factors
Inconsistent cash conversion and volatile FCF
Earnings have not consistently translated to cash, with volatile free cash flow over recent years. This undermines resilience to project timing, constrains internal funding for capex or dividends, and increases sensitivity to working-capital swings in engineering project cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring service & maintenance revenue
The business model includes significant follow-on maintenance and upgrade revenue from installed signaling assets. Recurring service contracts provide durable cash flows, deepen customer relationships, and raise lifetime value, smoothing project cyclicality and supporting long-term revenue visibility.
Read all positive factors
Nippon Signal Company, Limited (6741) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥100.23B
Dividend Yield3.48%
Average Volume (3M)148.54K
Price to Earnings (P/E)8.6
Beta (1Y)0.79
Revenue Growth6.75%
EPS Growth36.35%
CountryJP
Employees3,066
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)216.72
Shares Outstanding68,339,710
10 Day Avg. Volume135,480
30 Day Avg. Volume148,543
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)0.87
Price to Sales (P/S)0.88
P/FCF Ratio38.05
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)162.9
Revenue Forecast (FY)¥121.65B
Nippon Signal Company, Limited Business Overview & Revenue Model
Company Description
Nippon Signal Co., Ltd., founded in Tokyo, Japan, in 1928, is a prominent developer and provider of critical infrastructure technologies. The company specializes in a broad range of systems, including railway signaling and communications-based tra...
How the Company Makes Money
The company makes money mainly by providing signaling and safety systems and related services to railway operators and public/industrial infrastructure customers. A core revenue stream is the sale and installation of railway signaling equipment an...
Nippon Signal Company, Limited Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
64
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 119.56B | 114.04B | 106.86B | 98.54B | 85.42B | 85.02B |
| Gross Profit | 31.60B | 28.92B | 25.21B | 21.17B | 19.55B | 19.14B |
| EBITDA | 21.91B | 20.54B | 14.41B | 10.46B | 8.46B | 8.80B |
| Net Income | 13.52B | 11.59B | 8.50B | 5.35B | 4.08B | 4.50B |
Balance Sheet | ||||||
| Total Assets | 155.48B | 172.22B | 166.24B | 165.29B | 146.02B | 134.09B |
| Cash, Cash Equivalents and Short-Term Investments | 19.25B | 10.96B | 11.29B | 11.80B | 8.41B | 6.40B |
| Total Debt | 44.00M | 15.51B | 19.21B | 18.71B | 17.53B | 11.95B |
| Total Liabilities | 42.31B | 57.88B | 63.61B | 68.47B | 56.66B | 47.34B |
| Stockholders Equity | 113.16B | 114.34B | 102.62B | 96.82B | 89.35B | 86.74B |
Cash Flow | ||||||
| Free Cash Flow | 12.38B | 2.62B | 1.81B | 4.15B | 25.00M | 301.00M |
| Operating Cash Flow | 17.56B | 7.87B | 5.78B | 6.77B | 1.72B | 2.10B |
| Investing Cash Flow | -1.92B | -2.73B | -4.50B | -2.98B | -3.60B | -2.34B |
| Financing Cash Flow | -8.78B | -6.55B | -1.60B | -338.00M | 3.91B | -6.75B |
Nippon Signal Company, Limited Technical Analysis
Positive
1310.00
Price Trends
1581.92
Positive
1620.92
Positive
1484.95
Positive
Market Momentum
25.07
Negative
74.04
Negative
85.30
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6741, the sentiment is Positive. The current price of 1310 is below the 20-day moving average (MA) of 1605.90, below the 50-day MA of 1581.92, and below the 200-day MA of 1484.95, indicating a bullish trend. The MACD of 25.07 indicates Negative momentum. The RSI at 74.04 is Negative, neither overbought nor oversold. The STOCH value of 85.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6741.
Nippon Signal Company, Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥100.23B | 8.64 | ― | 3.49% | 6.75% | 36.35% | |
72 Outperform | ¥3.81T | 6.97 | 11.27% | 0.80% | 7.78% | 16.25% | |
66 Neutral | ¥1.37T | 10.81 | 10.79% | 3.28% | 8.07% | 15.55% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥649.66B | 12.16 | 8.88% | 1.69% | 4.15% | -26.13% | |
58 Neutral | ¥631.74B | 16.31 | 7.55% | 3.17% | -0.94% | -26.46% | |
57 Neutral | ¥4.15T | 17.50 | 8.29% | 2.04% | 7.74% | 3.47% |
* Industrials Sector Average
JP:6741
Nippon Signal Company, Limited
1,788.00
644.18
56.32%
JP:9022
Central Japan Railway Company
3,830.00
90.36
2.42%
JP:9020
East Japan Railway Company
3,369.00
-29.93
-0.88%
JP:9009
Keisei Electric Railway Co
1,255.00
-11.49
-0.91%
JP:9007
Odakyu Electric Railway Co
1,661.00
-3.73
-0.22%
JP:9021
West Japan Railway Company
2,894.00
-415.47
-12.55%
Nippon Signal Company, Limited Corporate Events
Nippon Signal Swings Back to Profit as Quarterly Sales Jump 30%
Aug 4, 2026
Nippon Signal reported a sharp year-on-year rebound in earnings for the quarter ended June 30, 2026, with net sales up 30.4% to ¥23.55 billion and profit attributable to owners of parent swinging from a loss to ¥1.52 billion. Operating p...
Nippon Signal to End Capital Alliance with Nagoya Electric, Retain Business Ties
Jul 31, 2026
Nippon Signal has agreed with Nagoya Electric Works to terminate their capital and business alliance first signed in 2015, which was aimed at expanding sales channels, product offerings, and overseas cooperation in transportation and road manageme...
Nippon Signal Completes Treasury Share Disposal for Restricted Stock Compensation
Jul 17, 2026
Nippon Signal Co., Ltd. has completed the payment procedures for the disposal of a portion of its treasury shares under a restricted stock compensation scheme for management. The transaction, originally announced in June, involves common shares al...
Nippon Signal to Grant Restricted Stock to Executives via Treasury Share Disposal
Jun 19, 2026
Nippon Signal has approved the disposal of 40,863 treasury shares as restricted stock, valued at approximately ¥63.8 million, to three directors and ten executive officers as part of a newly introduced equity-based compensation plan. The move...
Nippon Signal boosts full-year profits on AFC-driven sales growth
May 12, 2026
Nippon Signal reported a solid rise in non-consolidated results for the fiscal year ended March 31, 2026, with net sales climbing 5.6% to ¥87,948 million and ordinary profit up 27.2% to ¥9,547 million. Net profit surged 44.3% to ¥10...
Nippon Signal to Introduce Restricted Stock Plan for Executives
May 12, 2026
Nippon Signal Co., Ltd. has approved the introduction of a restricted stock compensation plan for its directors, excluding audit committee members and outside directors, as part of an overhaul of its executive pay system. The plan is designed to m...
Nippon Signal Raises Year-End Dividend, Signals Stronger Shareholder Returns
May 12, 2026
Nippon Signal Co., Ltd. has approved a year-end dividend of 43 yen per share for the fiscal year ended March 31, 2026, up from 33 yen in the previous period, bringing the total annual dividend to 56 yen per share. The total payout will reach 2,681...
Nippon Signal boosts profits, raises dividend as assets and equity strengthen
May 12, 2026
Nippon Signal reported consolidated net sales of ¥114.1 billion for the year to March 31, 2026, up 6.7% year on year, with operating profit rising 18.1% to ¥11.7 billion and profit attributable to owners of the parent jumping 36.3% to &#...
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.