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Nireco Corporation (JP:6863)
:6863
Japanese Market

Nireco Corporation (6863) AI Stock Analysis

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JP

Nireco Corporation

(6863)

Rating:78Outperform
Price Target:
¥2,209.00
▲(13.87%Upside)
Nireco Corporation's overall stock score is driven primarily by its strong financial performance and attractive valuation. The company demonstrates robust financial health with strong revenue growth, profitability, and cash generation. The low P/E ratio and attractive dividend yield make the stock appealing to value investors. Although the technical analysis indicates a potential overbought condition, the long-term fundamentals remain strong, supporting future growth potential.

Nireco Corporation (6863) vs. iShares MSCI Japan ETF (EWJ)

Nireco Corporation Business Overview & Revenue Model

Company DescriptionNireco Corporation, a Japanese company listed on the Tokyo Stock Exchange under the ticker 6863, specializes in precision control and inspection equipment. The company primarily operates in sectors such as industrial automation, quality control, and measurement technologies. Its core products include web control systems, inspection devices, and optical measurement equipment, catering to industries like printing, packaging, and electronics manufacturing.
How the Company Makes MoneyNireco Corporation generates revenue through the sale of its precision control and inspection equipment to various industrial sectors. The company's key revenue streams include product sales, after-sales services, and maintenance contracts. These products are integral to the production processes of their clients, ensuring high quality and efficiency. Additionally, Nireco might engage in strategic partnerships or collaborations to enhance its technological capabilities and expand its market reach, further contributing to its earnings.

Nireco Corporation Financial Statement Overview

Summary
Nireco Corporation exhibits strong financial health across all verticals. The income statement reflects robust revenue growth and profitability enhancements with improved margins. The balance sheet indicates financial stability with low leverage and high equity levels. Cash flow analysis shows strong cash generation and efficient conversion of revenue into cash. Overall, the company is well-positioned for future growth with a stable financial foundation.
Income Statement
85
Very Positive
Nireco Corporation demonstrates strong financial performance with a consistent increase in total revenue over the years. The Gross Profit Margin saw a slight increase from 36.1% in 2024 to 41.8% in 2025, indicating improved cost management. The Net Profit Margin also improved significantly from 10.3% to 14.5%, reflecting enhanced profitability. The EBIT and EBITDA Margins show steady growth, confirming operational efficiency gains. Overall, the income statement reflects robust growth and profitability.
Balance Sheet
80
Positive
The company maintains a strong financial position with a low Debt-to-Equity Ratio of 0.008 in 2025, indicating low financial leverage. The Return on Equity (ROE) increased from 6.4% in 2024 to 9.3% in 2025, showing improved returns on shareholders' equity. The Equity Ratio remains high at 86.7%, indicating a strong equity base relative to total assets. The balance sheet reflects financial stability and low risk due to minimal reliance on debt.
Cash Flow
78
Positive
Nireco Corporation's cash flow statements show a positive trajectory with an increase in Free Cash Flow from 287 million in 2024 to 1,157 million in 2025, indicating strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 0.83, suggesting efficient cash conversion from net income. The Free Cash Flow to Net Income Ratio of 0.74 indicates strong cash flow relative to net income. Overall, the cash flow position is strong, with significant growth in free cash flow.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
10.39B10.76B9.86B9.16B8.12B7.90B
Gross Profit
4.26B4.50B3.93B3.59B2.92B2.86B
EBIT
1.64B1.91B1.39B1.18B563.72M600.76M
EBITDA
1.95B2.39B1.82B1.54B944.46M880.78M
Net Income Common Stockholders
1.25B1.56B1.01B860.53M406.15M432.55M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.77B4.82B4.38B4.41B4.83B4.68B
Total Assets
18.46B19.35B18.57B17.00B16.15B15.32B
Total Debt
147.00M142.70M170.00M234.48M404.19M253.14M
Net Debt
-3.60B-4.67B-4.18B-4.15B-4.43B-4.43B
Total Liabilities
2.35B2.56B2.75B2.40B2.30B1.80B
Stockholders Equity
16.09B16.77B15.81B14.59B13.84B13.52B
Cash FlowFree Cash Flow
0.001.16B287.35M-80.29M634.15M925.57M
Operating Cash Flow
0.001.30B892.35M135.71M849.15M1.14B
Investing Cash Flow
0.00-325.40M-449.61M-91.69M-359.52M-285.64M
Financing Cash Flow
0.00-514.47M-431.38M-476.89M-393.04M-409.86M

Nireco Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1940.00
Price Trends
50DMA
1704.34
Positive
100DMA
1711.16
Positive
200DMA
1561.71
Positive
Market Momentum
MACD
78.43
Negative
RSI
72.15
Negative
STOCH
70.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6863, the sentiment is Positive. The current price of 1940 is above the 20-day moving average (MA) of 1860.60, above the 50-day MA of 1704.34, and above the 200-day MA of 1561.71, indicating a bullish trend. The MACD of 78.43 indicates Negative momentum. The RSI at 72.15 is Negative, neither overbought nor oversold. The STOCH value of 70.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6863.

Nireco Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
¥6.73B3.83
1.67%6.18%206.74%
79
Outperform
¥19.73B9.87
3.86%6.94%13.27%
78
Outperform
¥13.49B9.19
7.13%9.08%53.84%
76
Outperform
¥14.52B13.29
4.52%0.16%5.68%
73
Outperform
¥10.18B22.58
2.21%-3.36%39.15%
68
Neutral
¥76.83B12.22
3.55%4.55%4.94%
62
Neutral
$11.97B10.08-7.46%2.96%7.37%-8.22%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6863
Nireco Corporation
1,940.00
576.75
42.31%
JP:6850
Chino Corporation
2,312.00
-69.80
-2.93%
JP:6853
Kyowa Electronic Instruments Co., Ltd.
525.00
98.54
23.11%
JP:6858
Ono Sokki Co., Ltd.
585.00
-69.97
-10.68%
JP:6864
NF Holdings Corporation
1,450.00
395.37
37.49%
JP:6866
Hioki E.E.Corporation
5,540.00
-1,024.08
-15.60%
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.