Nippon Signal Company, Limited (6741) AI Stock Analysis

• Market Cap: ¥67.17B
• Dividend Yield: 3.99%
• Average Volume (3M): 122.40K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.64
• Revenue Growth: 8.45%
• EPS Growth: 59.05%
• Country: JP
• Employees: 2,946
• Sector: Industrials
• Sector Strength: 92
• Industry: Railroads
• EPS (TTM): 95.31
• Shares Outstanding: 68,339,710
• 10 Day Avg. Volume: 175,980
• 30 Day Avg. Volume: 122,396
• PEG Ratio: 0.65
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.08
• 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

• Rating: 82 Outperform
• Price Target: ¥1,152.00 ▲(6.96%Upside)

Nippon Signal Company, Limited's stock score is strong due to its robust financial performance and attractive valuation. The technical analysis supports a positive outlook with strong momentum indicators. Despite some cash flow limitations, the overall financial health and low P/E ratio make it an appealing investment in the Railroads industry.

Nippon Signal Company, Limited Business Overview & Revenue Model

Company Description

Nippon Signal Company, Limited is a Japanese company specializing in the development and manufacturing of signal systems for railway and road transportation sectors. Founded in 1928, the company provides a range of products and services, including railway signaling systems, traffic management systems, and automatic fare collection systems. With a focus on enhancing safety and efficiency in transportation infrastructure, Nippon Signal serves both domestic and international markets.

How the Company Makes Money

Nippon Signal Company, Limited makes money through the sale and maintenance of its signal systems and related services for transportation infrastructure. The company's key revenue streams include contracts with railway operators for the installation and servicing of railway signaling systems, which are critical for train operation safety and efficiency. Additionally, Nippon Signal earns revenue from its traffic management systems, which help optimize road traffic flow and enhance safety. The company also generates income through its automatic fare collection systems, which are widely used in public transportation networks to streamline fare collection processes. Strategic partnerships and collaborations with transportation authorities and infrastructure companies play a significant role in expanding its market presence and driving sales.

Nippon Signal Company, Limited Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
105.21B	98.54B	85.46B	85.05B	92.75B	111.67B
	Gross Profit
23.42B	21.59B	20.05B	19.57B	19.81B	24.38B
	EBIT
7.73B	6.82B	5.11B	5.39B	5.71B	8.91B
	EBITDA
12.11B	10.46B	8.46B	8.80B	9.38B	11.77B
	Net Income Common Stockholders
7.24B	5.35B	4.08B	4.50B	4.92B	6.58B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.20B	11.80B	8.41B	6.40B	13.30B	12.62B
	Total Assets
163.03B	165.29B	146.02B	134.09B	141.36B	137.97B
	Total Debt
22.70B	18.71B	17.53B	11.95B	16.56B	13.12B
	Net Debt
10.55B	6.95B	9.12B	5.55B	3.25B	501.00M
	Total Liabilities
65.91B	68.47B	56.67B	47.35B	56.66B	58.32B
	Stockholders Equity
97.12B	96.82B	89.35B	86.74B	84.69B	79.65B
Cash Flow		Free Cash Flow
2.82B	2.86B	-904.00M	-199.00M	-1.72B	6.91B
	Operating Cash Flow
6.92B	6.77B	1.72B	2.10B	1.15B	9.16B
	Investing Cash Flow
-4.12B	-2.98B	-3.60B	-2.34B	-1.91B	-4.60B
	Financing Cash Flow
-250.00M	-338.00M	3.91B	-6.75B	1.35B	-4.37B

Nippon Signal Company, Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1077.00
• 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:6741, the sentiment is Positive. The current price of 1077 is above the 20-day moving average (MA) of 1011.45, above the 50-day MA of 944.06, and above the 200-day MA of 914.16, indicating a bullish trend. The MACD of 35.92 indicates Negative momentum. The RSI at 73.37 is Negative, neither overbought nor oversold. The STOCH value of 80.38 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6741	82 Outperform	¥67.17B	7.90		3.99%	8.45%	59.05%
9049	79 Outperform	¥13.42B	7.73		0.30%	2.97%	-16.90%
9052	70 Neutral	¥44.24B	14.60		1.76%	-1.86%	-2.54%
9046	67 Neutral	¥18.53B	16.07		0.87%	-0.82%	12.58%
9044	66 Neutral	¥243.21B	10.81		1.86%	7.94%	-5.97%
Sector *	66 Neutral	$4.50B	12.28	5.32%	248.52%	4.13%	-12.36%
9033	63 Neutral	¥18.22B	13.22		1.33%	10.64%	110.18%

Nippon Signal Company, Limited Corporate Events

Nippon Signal Abolishes Anti-Takeover Measures and Amends Articles of Association

Nippon Signal Co., Ltd. announced the abolition of its Anti-Takeover Measures, which were initially renewed in 2022, following a decision by its Board of Directors. This decision reflects the company’s consideration of shareholder opinions and recent developments in takeover policies. The company plans to amend its Articles of Association to remove provisions related to these measures, ensuring that future large-scale acquisitions will be managed in compliance with relevant laws to protect shareholder interests.

Nippon Signal Announces Increased Year-End Dividends

Nippon Signal Co., Ltd. announced a resolution to distribute year-end dividends, with a record date of March 31, 2025, at 33 yen per share, marking an increase from the previous year. This decision aligns with the company’s strategy to balance growth investments and shareholder returns, aiming for a stable earnings structure and a strong financial position, with a target dividend payout ratio of 30% or higher.

Nippon Signal Reports Strong Financial Performance for FY 2025

Nippon Signal Company, Limited reported a significant increase in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales rising by 8.4% and operating profit increasing by 45.2% compared to the previous year. The company’s strong performance is reflected in its improved capital adequacy ratio and higher dividends, indicating a robust financial position and positive outlook for stakeholders.

Nippon Signal Co., Ltd. Announces Revised Earnings and Dividend Forecasts for FY 2025

Nippon Signal Co., Ltd. has revised its earnings and dividends forecasts for the fiscal year ending March 31, 2025, citing increased demand for equipment replacement due to new banknotes and heightened investment in safety equipment by railway operators. The company anticipates a significant rise in net sales and operating income, leading to an increase in net income attributable to owners of the parent. Consequently, the annual dividend per share is forecasted to rise to 43 yen, reflecting a strategic focus on balanced growth investments and shareholder returns, while maintaining a sound financial strategy.