Nohmi Bosai Ltd. (6744) AI Stock Analysis

• Market Cap: ¥240.31B
• Dividend Yield: 2.42%
• Average Volume (3M): 71.37K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.54
• Revenue Growth: 9.55%
• EPS Growth: 9.52%
• Country: JP
• Employees: 2,766
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 37.45
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥4,390.00 ▲(13.29% Upside)

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 conservative balance sheet with near-zero leverage provides financial stability and flexibility, allowing the company to invest in growth opportunities without the burden of high debt.

Revenue Growth

Consistent revenue growth indicates a strong market position and demand for the company's products and services, supporting long-term business sustainability.

Improving Profitability

Improving profitability with higher margins enhances the company's ability to generate earnings, which can be reinvested into the business or returned to shareholders.

Negative Factors

Volatile Cash Flow

Volatile cash flow can hinder the company's ability to consistently fund operations and growth initiatives, posing a risk to financial stability and strategic planning.

Decreased Profitability

Decreased profitability despite increased sales suggests challenges in cost management or pricing power, potentially impacting long-term earnings potential.

Uneven Revenue Growth

Uneven revenue growth can indicate market volatility or inconsistent demand, which may affect the company's ability to plan and execute long-term strategies effectively.

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

Nohmi Bosai Ltd. demonstrates strong financial health, driven by excellent profitability and a robust balance sheet. Solid revenue growth and efficient operations are evident from the income statement, while the balance sheet reflects financial stability with low debt levels. However, cash flow management is a potential area of concern, with the need for improved cash flow generation.

Income Statement

Nohmi Bosai Ltd. exhibits robust financial health on its income statement. The TTM data shows a strong Gross Profit Margin of 34.95% and a Net Profit Margin of 8.89%, indicating efficient cost management and solid profitability. Revenue growth is evident with a 21.41% increase from the previous year, reflecting strong market demand. The EBIT Margin of 12.34% and EBITDA Margin of 14.01% further underscore its operational efficiency. Overall, the company displays a healthy growth trajectory with stable margins.

Balance Sheet

The balance sheet of Nohmi Bosai Ltd. is remarkably strong, highlighted by a low Debt-to-Equity Ratio of 0.0012, showcasing low leverage and financial stability. The Return on Equity (ROE) is a healthy 9.36%, reflecting effective utilization of equity to generate profits. An impressive Equity Ratio of 80.78% indicates a solid financial structure with substantial equity backing its assets, minimizing financial risk. Overall, the balance sheet underscores strong financial stability and low leverage risk.

Cash Flow

The cash flow analysis reveals some areas for improvement. Despite a Free Cash Flow to Net Income Ratio of 0.09 in the annual report, indicating some cash generation from operations, the TTM data presents a challenge with no reported operating or free cash flow. This raises concerns about cash flow generation and sustainability. The company may need to focus on enhancing cash flow management to support its strong income and balance sheet performance.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Neutral
• 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 3937.50, above the 50-day MA of 3778.30, and above the 200-day MA of 3668.24, indicating a bullish trend. The MACD of 53.90 indicates Negative momentum. The RSI at 63.89 is Neutral, neither overbought nor oversold. The STOCH value of 86.54 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
6809	78 Outperform	¥57.66B	16.63	―	3.69%	4.46%	127.52%
1909	78 Outperform	¥72.53B	15.03	―	0.82%	7.10%	36.47%
6870	77 Outperform	¥10.30B	8.01	―	3.98%	4.35%	7.25%
6744	76 Outperform	¥240.31B	22.00	―	2.42%	9.55%	9.52%
7464	76 Outperform	¥3.23B	12.82	―	5.23%	-1.35%	-17.35%
7734	73 Outperform	¥155.60B	17.88	―	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 Ltd. Reports Mixed Interim Financial Results Amid Increased Sales

Nohmi Bosai Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a 4.5% increase in net sales to ¥57,020 million. However, operating income and net income attributable to owners of the parent decreased by 20.1% and 17.2%, respectively, compared to the previous year. The company maintained a strong equity-to-asset ratio of 82.7% and announced an increase in annual dividends per share, forecasting a total of ¥100.00 for the fiscal year ending March 31, 2026. This financial performance reflects challenges in maintaining profitability despite increased sales, impacting stakeholders’ expectations.