Nippon Signal Company, Limited (JP:6741)
:6741
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Nippon Signal Company, Limited
(6741)
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Rating:78Outperform
Price Target:
¥1,973.00
▲(50.61% Upside)
Action:ReiteratedDate:02/05/26
The score is driven primarily by improving profitability and a conservatively levered balance sheet, supported by an attractive valuation (low P/E and decent yield). Technicals remain constructive with a strong uptrend, but an elevated RSI and historically volatile free cash flow temper the overall rating.
Positive Factors
Conservative Leverage
A low TTM debt-to-equity (~0.15) and improving leverage give Nippon Signal durable financial flexibility. This conservatism reduces refinancing and interest-rate risk, supports bidding on multi-year infrastructure projects, and preserves capacity for capex or dividends during cyclicality.
Negative Factors
Volatile Free Cash Flow
Historic FCF volatility and a TTM decline (~-23.6%) undermine confidence that current cash generation is stable. Irregular conversion of earnings to cash can constrain capex, maintenance of dividends, or strategic investments and raises cyclic funding risk during project lulls.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Leverage
A low TTM debt-to-equity (~0.15) and improving leverage give Nippon Signal durable financial flexibility. This conservatism reduces refinancing and interest-rate risk, supports bidding on multi-year infrastructure projects, and preserves capacity for capex or dividends during cyclicality.
Read all positive factors
Nippon Signal Company, Limited (6741) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥107.15B
Dividend Yield3.49%
Average Volume (3M)148.54K
Price to Earnings (P/E)7.8
Beta (1Y)0.77
Revenue Growth5.62%
EPS Growth28.00%
CountryJP
Employees2,946
SectorIndustrials
Sector Strength72
IndustryRailroads
Share Statistics
EPS (TTM)41.98
Shares Outstanding68,339,710
10 Day Avg. Volume135,480
30 Day Avg. Volume148,543
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)0.54
Price to Sales (P/S)0.52
P/FCF Ratio30.82
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)144.8
Revenue Forecast (FY)¥117.80B
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
Nippon Signal primarily makes money by designing, manufacturing, installing, and maintaining railway and transportation safety systems for customers such as railway operators and public-sector or infrastructure-related entities. Key revenue stream...
Nippon Signal Company, Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
64
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 113.89B | 106.86B | 98.54B | 85.42B | 85.02B | 92.75B |
| Gross Profit | 29.23B | 25.21B | 21.17B | 19.55B | 19.14B | 19.43B |
| EBITDA | 16.19B | 12.54B | 9.12B | 7.45B | 7.59B | 7.77B |
| Net Income | 9.96B | 8.50B | 5.35B | 4.08B | 4.50B | 4.92B |
Balance Sheet | ||||||
| Total Assets | 165.09B | 166.24B | 165.29B | 146.02B | 134.09B | 141.36B |
| Cash, Cash Equivalents and Short-Term Investments | 11.28B | 11.29B | 11.80B | 8.41B | 6.40B | 13.30B |
| Total Debt | 16.51B | 19.21B | 18.71B | 17.53B | 11.95B | 16.56B |
| Total Liabilities | 57.84B | 63.61B | 68.47B | 56.66B | 47.34B | 56.66B |
| Stockholders Equity | 107.24B | 102.62B | 96.82B | 89.35B | 86.74B | 84.69B |
Cash Flow | ||||||
| Free Cash Flow | 7.96B | 1.81B | 4.15B | 25.00M | 301.00M | -1.10B |
| Operating Cash Flow | 13.29B | 5.78B | 6.77B | 1.72B | 2.10B | 1.15B |
| Investing Cash Flow | -6.20B | -4.50B | -2.98B | -3.60B | -2.34B | -1.91B |
| Financing Cash Flow | -8.99B | -1.60B | -338.00M | 3.91B | -6.75B | 1.35B |
Nippon Signal Company, Limited Technical Analysis
Positive
1310.00
Price Trends
1610.26
Positive
1435.86
Positive
1289.20
Positive
Market Momentum
13.60
Negative
60.13
Neutral
83.89
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 1652.99, below the 50-day MA of 1610.26, and above the 200-day MA of 1289.20, indicating a bullish trend. The MACD of 13.60 indicates Negative momentum. The RSI at 60.13 is Neutral, neither overbought nor oversold. The STOCH value of 83.89 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥4.03T | 6.49 | 11.29% | 0.74% | 9.82% | 24.12% | |
78 Outperform | ¥107.15B | 7.80 | ― | 3.49% | 5.62% | 28.00% | |
74 Outperform | ¥4.05T | 16.15 | 7.85% | 1.69% | 4.61% | 5.75% | |
72 Outperform | ¥627.58B | 8.33 | 13.92% | 1.50% | 6.30% | -16.29% | |
66 Neutral | ¥1.44T | 10.37 | 11.29% | 3.00% | 5.48% | 33.67% | |
65 Neutral | ¥622.61B | 12.46 | 8.51% | 2.96% | -2.82% | -50.73% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
JP:6741
Nippon Signal Company, Limited
1,718.00
897.40
109.36%
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Nippon Signal Company, Limited Corporate Events
Nippon Signal Doubles Operating Profit and Lifts Dividend Forecast on Strong Nine-Month Results
Feb 3, 2026
Nippon Signal reported strong consolidated results for the nine months ended December 31, 2025, with net sales up 11.0% year-on-year to ¥70.8 billion and operating profit more than doubling to ¥5.0 billion, driving a 56.8% rise in profit...
Nippon Signal Lifts FY2026 Profit and Dividend Forecasts on Asset Sale Gains
Feb 3, 2026
Nippon Signal has revised its earnings forecast for the fiscal year ending March 31, 2026, keeping net sales and operating and ordinary profits unchanged but raising profit attributable to owners of parent by ¥2.0 billion, which lifts forecas...
Nippon Signal Elevates Ryuichi Goto to President and CEO in Governance-Focused Leadership Shift
Jan 20, 2026
Nippon Signal has announced a leadership reshuffle effective April 1, 2026, with current President and CEO/COO Hidehiko Tsukamoto moving to the role of Representative Director and Executive Chairman, while Director and Deputy Chief Executive Offic...
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.