Nohmi Bosai Ltd. (6744) AI Stock Analysis

• Market Cap: ¥271.07B
• Dividend Yield: 2.42%
• Average Volume (3M): 71.37K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.57
• Revenue Growth: 9.55%
• EPS Growth: 9.52%
• Country: JP
• Employees: 2,766
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): N/A
• Shares Outstanding: 60,832,770
• 10 Day Avg. Volume: 67,450
• 30 Day Avg. Volume: 71,366
• PEG Ratio: 0.53
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 1.41
• P/FCF Ratio: 20.31
• 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: ¥4,100.00
• Price Target Upside: 5.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥4,995.00 ▲(28.90% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is primarily supported by strong financial performance—especially the near-zero leverage balance sheet and improving profitability—while being tempered by historically volatile cash-flow conversion. Technicals are moderately bullish with price above major moving averages and positive momentum. Valuation is fair-to-slightly expensive on earnings, partly balanced by the dividend yield.

Positive Factors

Conservative balance sheet

A near-zero debt position and steadily expanding equity provide durable financial flexibility. This strong capital base supports funding of projects, withstands demand shocks, enables steady investment in maintenance capabilities, and reduces refinancing risk over the medium term.

Improving margins

Sequential margin improvement across gross, EBITDA and net lines indicates better pricing, cost control, and operational leverage. Sustained margins support cash generation and reinvestment in service networks, making earnings more resilient to modest revenue fluctuations.

Recurring service revenue

A large installed base and regulatory-driven inspection/maintenance create repeatable, predictable service revenue. This lifecycle service model increases customer stickiness, smooths project cyclicality, and underpins durable cash flows and long-term client relationships.

Negative Factors

Volatile cash conversion

Material variability in operating and free cash flow limits predictability of internal funding for capex, dividends, or buybacks. Fluctuations tied to working capital and project timing mean cash coverage can deteriorate abruptly, constraining long-term capital allocation strategies.

Uneven revenue trends

Revenue is project-driven and sensitive to construction cycles and public budgets, producing uneven growth. This variability complicates multi-period planning, weakens predictability of service attach rates, and may pressure margins during slower project windows.

Moderate return on equity

ROE improvements are positive yet remain moderate versus historical peaks, indicating limited capital efficiency. In a mature safety services market, subpar ROE can signal challenges scaling pricing power or cost base, potentially capping long-term shareholder returns.

Nohmi Bosai Ltd. Business Overview & Revenue Model

Company Description

Nohmi Bosai Ltd. develops, markets, installs, and maintains various fire protection systems in Japan, China, rest of Asia, and the United States. The company operates in three segments: Fire Alarm Systems, Fire Extinguishing Systems, and Maintenance Services. The Fire Alarm Systems segment offers various fire alarm systems and equipment, including automatic fire alarm systems, environmental monitoring systems, hinged fire doors, smoke control systems, and other products for homes, and commercial and industrial facilities. It also provides control panels, infrared ray flame detectors, air sampling type smoke detection systems, fire alarms and bells, transmitters, and auxiliary equipment, as well as heat, smoke, and gas detectors. The Fire Extinguishing Systems segment offers sprinklers, spray heads and nozzles, fire extinguishers, foam extinguishing systems, dry chemical extinguishing systems, heat and gas dispersion control systems, and water cannons for office buildings, leisure complexes, industrial plants and factories, road tunnels, waste incineration facilities, chemical plants, medical facilities and welfare institutions, and other specialized facilities. The Maintenance Services segment provides various maintenance and inspection services comprising telephone support services; repair services; and fire protection consulting services to building owners. The company also installs and manages parking lot driving lane control systems; and offers parking lot maintenance services. Nohmi Bosai Ltd. was founded in 1916 and is headquartered in Tokyo, Japan. Nohmi Bosai Ltd. operates as a subsidiary of SECOM Co., Ltd.

How the Company Makes Money

Nohmi Bosai Ltd. generates revenue primarily through the sale of its fire protection products and systems. The company earns money by designing, manufacturing, and installing fire alarm systems, emergency lighting, and fire extinguishing equipment. Additionally, it offers maintenance and inspection services for these systems, providing a recurring revenue stream. Nohmi Bosai Ltd. collaborates with construction companies, property developers, and facility managers to integrate its products into new and existing buildings, which significantly contributes to its earnings. Partnerships with local governments and compliance with fire safety regulations also play a crucial role in driving demand for its offerings.

Nohmi Bosai Ltd. Financial Statement Overview

Summary

Strong overall financial quality driven by an exceptionally conservative balance sheet (near-zero leverage and steadily rising equity) and improving FY2025 profitability and margins. The key risk is cash-flow consistency, with historical volatility in operating/free cash flow despite a strong FY2025 rebound.

Income Statement

Revenue has grown over the last two years (FY2025: +4.33% after FY2024 growth), rebounding from the FY2023 decline. Profitability is solid and improving: gross margin increased to ~34.7% in FY2025 from ~33.3% in FY2024, while operating and EBITDA margins also stepped up (EBIT margin ~12.0%, EBITDA margin ~14.0%). Net margin improved to ~8.3% in FY2025 (vs ~7.2% in FY2024), indicating better earnings conversion, though margins remain below the FY2020 peak and revenue growth has been somewhat uneven over the full period.

Balance Sheet

The balance sheet is exceptionally conservative, with near-zero leverage (debt-to-equity ~0.00 across most years; ~0.001 in FY2025). Equity has steadily expanded over time (to ~¥128.8B in FY2025), supporting a strong capital base. Returns on equity are healthy and improved in FY2025 (~8.6% vs ~6.9% in FY2024), though they are below the strongest historical level (FY2020 was higher), suggesting profitability is good but not maximized.

Cash Flow

Cash generation improved meaningfully in FY2025, with operating cash flow rising to ~¥11.5B and free cash flow to ~¥9.3B, and free cash flow covering a large portion of net income (~0.81x). However, cash flow has been volatile: FY2024 free cash flow was low (~¥0.8B) and FY2022 was negative, indicating variability in working capital and/or spending patterns. Operating cash flow relative to net income remains inconsistent (low in FY2024, better in FY2025), which tempers confidence in year-to-year cash conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	135.31B	133.70B	118.51B	105.54B	112.91B	107.90B
Gross Profit	46.51B	46.40B	39.47B	34.86B	38.76B	35.13B
EBITDA	17.50B	18.66B	14.16B	12.68B	14.98B	13.34B
Net Income	10.63B	11.10B	8.57B	7.02B	9.35B	7.62B
Balance Sheet
Total Assets	154.63B	166.88B	157.49B	151.60B	148.60B	139.88B
Cash, Cash Equivalents and Short-Term Investments	55.17B	47.41B	46.55B	48.80B	48.66B	52.05B
Total Debt	0.00	150.00M	0.00	0.00	13.00M	38.00M
Total Liabilities	27.48B	36.84B	32.32B	34.97B	36.71B	35.76B
Stockholders Equity	126.04B	128.84B	123.64B	114.94B	110.25B	102.56B
Cash Flow
Free Cash Flow	0.00	9.31B	793.00M	2.17B	-635.00M	11.60B
Operating Cash Flow	0.00	11.55B	3.28B	5.19B	3.56B	15.83B
Investing Cash Flow	0.00	-7.09B	-2.66B	-2.61B	-4.87B	-4.34B
Financing Cash Flow	0.00	-7.47B	-2.85B	-2.47B	-2.29B	-2.23B

Nohmi Bosai Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3875.00
• 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:6744, the sentiment is Positive. The current price of 3875 is below the 20-day moving average (MA) of 4077.75, below the 50-day MA of 3995.80, and above the 200-day MA of 3793.12, indicating a bullish trend. The MACD of 131.07 indicates Negative momentum. The RSI at 72.91 is Negative, neither overbought nor oversold. The STOCH value of 85.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6744.

Nohmi Bosai Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1909	80 Outperform	¥87.86B	15.43	―	0.82%	7.10%	36.47%
6809	78 Outperform	¥63.81B	16.74	―	3.69%	4.46%	127.52%
6744	76 Outperform	¥271.07B	22.86	―	2.42%	9.55%	9.52%
7464	76 Outperform	¥3.41B	13.82	―	5.23%	-1.35%	-17.35%
6870	74 Outperform	¥11.56B	9.21	―	3.98%	4.35%	7.25%
7734	73 Outperform	¥170.15B	19.72	―	1.39%	11.23%	16.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Nohmi Bosai Ltd. Corporate Events

Nohmi Bosai Posts Steady Profit Growth and Plans Higher Dividend for FY2025

Nohmi Bosai reported consolidated net sales of ¥92.6 billion for the nine months ended December 31, 2025, a 4.6% increase year on year, with operating income up 4.8% and net income attributable to owners of the parent rising 8.6%. The company’s equity-to-asset ratio improved to 82.7%, reflecting a stronger balance sheet even as total assets declined, and it maintained its full-year forecast, projecting modest growth in sales and profits while planning to raise the annual dividend to ¥100 per share.

These results indicate steady demand for Nohmi Bosai’s fire protection and safety solutions and continued profitability following a strong prior year, suggesting stable operations and efficient cost management. For shareholders, the higher interim and projected full-year dividends, supported by solid earnings and a robust equity position, signal management’s confidence in cash flow generation and the company’s medium-term growth outlook.

The most recent analyst rating on (JP:6744) stock is a Buy with a Yen4714.00 price target. To see the full list of analyst forecasts on Nohmi Bosai Ltd. stock, see the JP:6744 Stock Forecast page.