Nireco Corporation (JP:6863)
:6863
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Nireco Corporation
(6863)
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Rating:81Outperform
Price Target:
¥2,775.00
▲(35.04% Upside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by strong financial quality (very conservative balance sheet and solid profitability) and attractive valuation (low P/E with a healthy dividend). Technicals are supportive of an uptrend, but overbought signals (high RSI/stochastic) temper the score due to increased near-term volatility/pullback risk.
Positive Factors
Very low leverage
Extremely low debt-to-equity (~0.03) and steady equity growth give the company durable financial flexibility. This strengthens resilience to industry downturns, supports sustained capex/maintenance spending, dividend distributions, and optionality for strategic investments or small M&A without stressing liquidity.
Negative Factors
Recent margin compression
Material margin declines from 2025 to 2026 indicate rising cost pressures or adverse product mix. If structural (input costs, pricing pressure, or increased SG&A), this could erode the company's long-term profitability and reduce ability to fund investments or maintain payout ratios without margin recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Extremely low debt-to-equity (~0.03) and steady equity growth give the company durable financial flexibility. This strengthens resilience to industry downturns, supports sustained capex/maintenance spending, dividend distributions, and optionality for strategic investments or small M&A without stressing liquidity.
Read all positive factors
Nireco Corporation (6863) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥15.12B
Dividend Yield5.39%
Average Volume (3M)17.68K
Price to Earnings (P/E)10.1
Beta (1Y)1.06
Revenue Growth2.47%
EPS Growth-6.77%
CountryJP
Employees450
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)197.25
Shares Outstanding7,350,000
10 Day Avg. Volume16,870
30 Day Avg. Volume17,676
Financial Highlights & Ratios
PEG Ratio-1.48
Price to Book (P/B)0.85
Price to Sales (P/S)1.31
P/FCF Ratio8.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)208.9
Revenue Forecast (FY)¥13.00B
Nireco Corporation Business Overview & Revenue Model
Company Description
Nireco Corporation provides process control, Web control, and inspection systems in Japan. The company offers control and measuring systems, including electro-hydraulic actuators, eddy current level meters, edge position control systems, and autom...
How the Company Makes Money
Nireco makes money primarily by selling industrial equipment and systems to corporate customers, with revenue recognized from (1) product sales of inspection/measurement devices and control-related equipment and (2) project/system sales where the ...
Nireco Corporation Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.65B | 11.02B | 10.76B | 9.86B | 9.16B | 8.12B |
| Gross Profit | 4.38B | 4.43B | 4.50B | 3.93B | 3.59B | 2.92B |
| EBITDA | 2.11B | 2.02B | 2.39B | 1.82B | 1.54B | 944.46M |
| Net Income | 1.46B | 1.44B | 1.56B | 1.01B | 860.53M | 406.15M |
Balance Sheet | ||||||
| Total Assets | 18.68B | 20.59B | 19.35B | 18.57B | 17.00B | 16.15B |
| Cash, Cash Equivalents and Short-Term Investments | 4.56B | 5.11B | 4.82B | 4.38B | 4.41B | 4.83B |
| Total Debt | 134.09M | 548.28M | 142.70M | 170.00M | 234.48M | 404.19M |
| Total Liabilities | 2.43B | 3.52B | 2.68B | 2.75B | 2.40B | 2.30B |
| Stockholders Equity | 16.23B | 17.07B | 16.65B | 15.81B | 14.59B | 13.84B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 1.64B | 1.16B | 287.35M | -80.29M | 634.15M |
| Operating Cash Flow | 0.00 | 1.86B | 1.30B | 892.35M | 135.71M | 849.15M |
| Investing Cash Flow | 0.00 | 776.48M | -325.40M | -449.61M | -91.69M | -359.52M |
| Financing Cash Flow | 0.00 | -1.51B | -514.47M | -431.38M | -476.89M | -393.04M |
Nireco Corporation Technical Analysis
Positive
2055.00
Price Trends
2157.14
Positive
2131.85
Positive
1999.86
Positive
Market Momentum
80.21
Negative
61.47
Neutral
75.27
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 2055 is below the 20-day moving average (MA) of 2209.10, below the 50-day MA of 2157.14, and above the 200-day MA of 1999.86, indicating a bullish trend. The MACD of 80.21 indicates Negative momentum. The RSI at 61.47 is Neutral, neither overbought nor oversold. The STOCH value of 75.27 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥15.12B | 10.05 | ― | 5.39% | 2.47% | -6.77% | |
81 Outperform | ¥73.71B | 11.00 | ― | 3.12% | 4.08% | -1.67% | |
81 Outperform | ¥159.12B | 14.32 | ― | 3.23% | 5.32% | -3.12% | |
73 Outperform | ¥21.26B | 8.02 | ― | 2.93% | 6.08% | 10.11% | |
72 Outperform | ¥22.69B | 5.85 | ― | 2.84% | -1.94% | 0.20% | |
66 Neutral | ¥8.68B | 7.40 | ― | 2.45% | 14.74% | -73.19% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JP:6863
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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.