Nireco Corporation (6863) AI Stock Analysis

• Market Cap: ¥13.53B
• Dividend Yield: 7.11%
• Average Volume (3M): 45.19K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.94
• Revenue Growth: 9.08%
• EPS Growth: 53.84%
• Country: JP
• Employees: 450
• Sector: Technology
• Sector Strength: 84
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 74.15
• Shares Outstanding: 7,750,159
• 10 Day Avg. Volume: 46,400
• 30 Day Avg. Volume: 45,193
• PEG Ratio: 0.00
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 64.60
• 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

• Rating: 78 Outperform
• Price Target: ¥2,209.00 ▲(10.62%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 Business Overview & Revenue Model

Company Description

Nireco 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 Money

Nireco 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

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

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

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
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
10.39B	10.76B	9.86B	9.16B	8.12B	7.90B
	Gross Profit
4.26B	4.50B	3.93B	3.59B	2.92B	2.86B
	EBIT
1.64B	1.91B	1.39B	1.18B	563.72M	600.76M
	EBITDA
1.95B	2.39B	1.82B	1.54B	944.46M	880.78M
	Net Income Common Stockholders
1.25B	1.56B	1.01B	860.53M	406.15M	432.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.77B	4.82B	4.38B	4.41B	4.83B	4.68B
	Total Assets
18.46B	19.35B	18.57B	17.00B	16.15B	15.32B
	Total Debt
147.00M	142.70M	170.00M	234.48M	404.19M	253.14M
	Net Debt
-3.60B	-4.67B	-4.18B	-4.15B	-4.43B	-4.43B
	Total Liabilities
2.35B	2.56B	2.75B	2.40B	2.30B	1.80B
	Stockholders Equity
16.09B	16.77B	15.81B	14.59B	13.84B	13.52B
Cash Flow		Free Cash Flow
0.00	1.16B	287.35M	-80.29M	634.15M	925.57M
	Operating Cash Flow
0.00	1.30B	892.35M	135.71M	849.15M	1.14B
	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 Price: 1997.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 1997 is above the 20-day moving average (MA) of 1847.30, above the 50-day MA of 1698.68, and above the 200-day MA of 1558.19, indicating a bullish trend. The MACD of 77.22 indicates Negative momentum. The RSI at 72.92 is Negative, neither overbought nor oversold. The STOCH value of 69.73 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6858	84 Outperform	¥6.73B	3.93		1.67%	6.18%	206.74%
6850	79 Outperform	¥19.73B	9.94		3.86%	6.94%	13.27%
6863	78 Outperform	¥13.53B	9.46		7.11%	9.08%	53.84%
6853	76 Outperform	¥14.74B	13.65		4.45%	0.16%	5.68%
6864	71 Outperform	¥9.88B	21.93		2.27%	-3.36%	39.15%
6866	68 Neutral	¥77.38B	12.51		3.53%	4.55%	4.94%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%