Nohmi Bosai Ltd. (6744) AI Stock Analysis

• Market Cap: ¥264.43B
• Dividend Yield: 2.42%
• Average Volume (3M): 71.37K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 0.55
• 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: ¥5,300.00
• Price Target Upside: 36.77% 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: ¥4,955.00 ▲(27.87% 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

Balance sheet strength

Near-zero leverage and steadily rising equity create a durable capital base that reduces insolvency risk and preserves financial flexibility. Over 2-6 months this supports stable funding for warranty, maintenance obligations and selective investments without relying on volatile external financing.

Improving profitability and margins

Step-up in gross and net margins signals better cost control and pricing power in equipment and services. Sustained margin improvement enhances free cash generation potential and funds reinvestment in installation and service capabilities, improving durable earnings quality.

Recurring service revenue from installed base

A business model combining equipment sales with recurring inspections/maintenance creates predictable, annuity-like revenue. Over months this stabilizes cash flows, raises lifetime customer value, and supports higher margin service mixes versus one-off project sales.

Negative Factors

Cash-flow volatility

Material swings in operating and free cash flow indicate working-capital and timing sensitivity in project execution. This reduces predictability for capex, dividends and M&A over the medium term and necessitates conservative planning despite strong recent cash results.

Uneven revenue growth

Lumpy, project-driven sales tied to construction and public spending create recurring unevenness in top-line growth. This makes medium-term forecasting harder and can pressure margins in down cycles, limiting smooth earnings progression despite recent rebounds.

Returns below historical peaks

ROE and margin levels still trail past peaks, indicating room to improve capital efficiency. If management cannot sustain margin expansion or accelerate higher-return businesses, long-term shareholder returns may be constrained despite a strong balance sheet.

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 makes money primarily through (1) selling fire protection and disaster prevention products and systems and (2) delivering project-based engineering services and recurring after-sales services. Product-related revenue comes from supplying equipment such as fire alarm panels, smoke/heat detectors, notification devices, and other system components that are procured by building owners, contractors, and public agencies as part of new construction, renovation, or compliance upgrades. Service-related revenue is generated when the company designs system layouts, manages installation/commissioning work (often as part of broader construction projects), and performs periodic inspections, maintenance, repairs, and replacements over the installed base’s lifecycle. A significant economic driver is the installed base: once systems are deployed, regulatory and safety requirements typically create ongoing demand for inspections and maintenance, as well as replacement of consumables and aging components, supporting more repeatable service income in addition to one-time project sales. Information on specific pricing, segment revenue mix, or named strategic partnerships is null.

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	46.60B	46.45B	39.47B	34.86B	38.76B	35.13B
EBITDA	18.05B	18.66B	14.77B	12.68B	15.51B	13.34B
Net Income	10.63B	11.10B	8.57B	7.02B	9.35B	7.62B
Balance Sheet
Total Assets	154.63B	168.28B	158.67B	151.94B	149.00B	140.31B
Cash, Cash Equivalents and Short-Term Investments	55.17B	47.52B	46.61B	48.96B	48.75B	52.10B
Total Debt	0.00	150.00M	0.00	0.00	13.00M	38.00M
Total Liabilities	27.48B	38.25B	33.51B	35.30B	37.10B	36.19B
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: Neutral
• Last Price: 3875.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6744, the sentiment is Neutral. The current price of 3875 is below the 20-day moving average (MA) of 4464.50, below the 50-day MA of 4168.50, and above the 200-day MA of 3864.60, indicating a neutral trend. The MACD of 93.66 indicates Positive momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 40.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥80.58B	8.04	―	0.82%	7.10%	36.47%
6809	78 Outperform	¥62.94B	8.62	―	3.69%	4.46%	127.52%
6744	76 Outperform	¥264.43B	14.78	―	2.42%	9.55%	9.52%
9735	73 Outperform	¥2.65T	19.24	8.35%	1.77%	5.39%	4.89%
7734	73 Outperform	¥149.50B	14.99	―	1.39%	11.23%	16.49%
2331	64 Neutral	¥625.54B	16.50	―	2.14%	7.73%	30.92%
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.