Nippon Signal Company, Limited (JP:6741)
:6741
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Nippon Signal Company, Limited
(6741)
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Rating:74Outperform
Price Target:
¥1,904.00
▲(45.34% Upside)
Action:Reiterated
Date:05/13/26
The score is driven primarily by improving profitability and a conservatively levered balance sheet, plus an attractive valuation (low P/E with a ~2.94% dividend). Offsetting these positives, cash-flow quality is a key risk due to weak cash-to-earnings conversion and volatile free cash flow, while technicals are supportive but not strongly bullish.
Positive Factors
Improving Profitability
Sustained margin expansion over multiple years indicates structural improvement in cost control, pricing or product mix. Higher operating and net margins enhance cash generation potential (when converted), provide buffer in downturns, and enable reinvestment or steady shareholder returns.
Negative Factors
Weak Cash Conversion
Low OCF-to-earnings and volatile free cash flow undermine the durability of reported profits. Persistent working-capital timing and weak cash conversion limit free cash available for capex, dividends or debt reduction and raise execution risk for strategic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Profitability
Sustained margin expansion over multiple years indicates structural improvement in cost control, pricing or product mix. Higher operating and net margins enhance cash generation potential (when converted), provide buffer in downturns, and enable reinvestment or steady shareholder returns.
Read all positive factors
Nippon Signal Company, Limited (6741) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥98.67B
Dividend Yield3.49%
Average Volume (3M)148.54K
Price to Earnings (P/E)8.6
Beta (1Y)0.77
Revenue Growth6.75%
EPS Growth36.35%
CountryJP
Employees2,946
SectorIndustrials
Sector Strength72
IndustryRailroads
Share Statistics
EPS (TTM)185.89
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)152.55
Revenue Forecast (FY)¥119.70B
Nippon Signal Company, Limited Business Overview & Revenue Model
Company Description
Nippon Signal Co., Ltd. manufactures and sells railway signal, traffic information, automatic fare collection (AFC), parking information, visionary business center (VBC), and communications-based train control systems. Its railway signaling system...
How the Company Makes Money
null...
Nippon Signal Company, Limited Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
78
Positive
Cash Flow
46
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 114.04B | 106.86B | 98.54B | 85.42B | 85.02B |
| Gross Profit | 28.92B | 25.21B | 21.17B | 19.55B | 19.14B |
| EBITDA | 15.61B | 12.54B | 9.12B | 7.45B | 7.59B |
| Net Income | 11.59B | 8.50B | 5.35B | 4.08B | 4.50B |
Balance Sheet | |||||
| Total Assets | 172.22B | 166.24B | 165.29B | 146.02B | 134.09B |
| Cash, Cash Equivalents and Short-Term Investments | 10.96B | 11.29B | 11.80B | 8.41B | 6.40B |
| Total Debt | 15.51B | 19.21B | 18.71B | 17.53B | 11.95B |
| Total Liabilities | 57.88B | 63.61B | 68.47B | 56.66B | 47.34B |
| Stockholders Equity | 114.34B | 102.62B | 96.82B | 89.35B | 86.74B |
Cash Flow | |||||
| Free Cash Flow | 2.62B | 1.81B | 4.15B | 25.00M | 301.00M |
| Operating Cash Flow | 7.87B | 5.78B | 6.77B | 1.72B | 2.10B |
| Investing Cash Flow | -2.73B | -4.50B | -2.98B | -3.60B | -2.34B |
| Financing Cash Flow | -6.55B | -1.60B | -338.00M | 3.91B | -6.75B |
Nippon Signal Company, Limited Technical Analysis
Neutral
1310.00
Price Trends
1665.43
Negative
1558.18
Positive
1375.22
Positive
Market Momentum
-26.61
Positive
39.37
Neutral
13.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6741, the sentiment is Neutral. The current price of 1310 is below the 20-day moving average (MA) of 1656.55, below the 50-day MA of 1665.43, and below the 200-day MA of 1375.22, indicating a neutral trend. The MACD of -26.61 indicates Positive momentum. The RSI at 39.37 is Neutral, neither overbought nor oversold. The STOCH value of 13.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥98.67B | 8.61 | ― | 3.49% | 6.75% | 36.35% | |
72 Outperform | ¥3.38T | 10.36 | 11.29% | 0.74% | 9.52% | 22.53% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥542.78B | 11.80 | 13.92% | 1.50% | 4.11% | -30.52% | |
62 Neutral | ¥1.24T | 11.26 | 11.29% | 3.00% | 8.07% | 15.81% | |
60 Neutral | ¥4.18T | 35.96 | 7.85% | 1.69% | 6.83% | 10.68% | |
58 Neutral | ¥609.01B | 15.20 | 8.51% | 2.96% | -0.94% | -26.46% |
* Industrials Sector Average
JP:6741
Nippon Signal Company, Limited
1,625.00
675.69
71.18%
JP:9022
Central Japan Railway Company
3,553.00
474.35
15.41%
JP:9020
East Japan Railway Company
3,606.00
600.69
19.99%
JP:9009
Keisei Electric Railway Co
1,072.00
-244.80
-18.59%
JP:9007
Odakyu Electric Railway Co
1,660.50
145.26
9.59%
JP:9021
West Japan Railway Company
2,693.00
-311.55
-10.37%
Nippon Signal Company, Limited Corporate Events
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.