Nireco Corporation (6863) AI Stock Analysis

• Market Cap: ¥14.22B
• Dividend Yield: 4.52%
• Average Volume (3M): 22.01K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.98
• Revenue Growth: 9.08%
• EPS Growth: 53.81%
• Country: JP
• Employees: 450
• Sector: Technology
• Sector Strength: 86
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 74.15
• Shares Outstanding: 7,750,159
• 10 Day Avg. Volume: 23,170
• 30 Day Avg. Volume: 22,013
• PEG Ratio: 0.38
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,209.00
• Price Target Upside: 5.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥2,388.00 ▲(13.77%Upside)

Nireco Corporation receives a strong overall stock score due to its solid financial performance, featuring robust revenue growth and profitability, along with an attractive valuation characterized by a low P/E ratio and high dividend yield. While technical indicators show positive momentum, the potential for an overbought condition slightly tempers the outlook. The absence of earnings call and corporate events data means these factors do not impact the overall score.

Nireco Corporation Business Overview & Revenue Model

Company Description

Nireco Corporation is a Japanese company that specializes in the development and manufacturing of precision control equipment and systems. The company operates primarily in sectors such as industrial machinery, electronics, and automotive. Its core products include control devices, inspection systems, and monitoring instruments that are essential for maintaining high standards of efficiency and quality in industrial processes.

How the Company Makes Money

Nireco Corporation generates revenue through the sale of its precision control equipment and systems to various industries, including automotive, electronics, and industrial manufacturing. The company offers products ranging from control devices and inspection systems to monitoring instruments, which are crucial for ensuring optimal performance and quality in production processes. Key revenue streams include direct product sales, aftermarket services such as maintenance and repairs, and customized solutions tailored to specific industrial needs. Additionally, Nireco may engage in partnerships or collaborations that enhance its product offerings and market reach, 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
EBITDA	1.95B	2.39B	1.82B	1.54B	944.46M	880.78M
Net Income	1.25B	1.56B	1.01B	860.53M	406.15M	432.55M
Balance Sheet
Total Assets	18.46B	19.35B	18.57B	17.00B	16.15B	15.32B
Cash, Cash Equivalents and Short-Term Investments	3.77B	4.82B	4.38B	4.41B	4.83B	4.68B
Total Debt	147.00M	142.70M	170.00M	234.48M	404.19M	253.14M
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: 2099.00
• 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:6863, the sentiment is Positive. The current price of 2099 is above the 20-day moving average (MA) of 1988.20, above the 50-day MA of 1931.36, and above the 200-day MA of 1648.52, indicating a bullish trend. The MACD of 33.41 indicates Negative momentum. The RSI at 68.79 is Neutral, neither overbought nor oversold. The STOCH value of 86.03 is Negative, 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	¥6.41B	3.93		2.62%	6.18%	206.74%
6850	79 Outperform	¥19.74B	9.96		3.00%	6.94%	13.25%
6863	78 Outperform	¥14.22B	9.70		4.52%	9.08%	53.81%
6853	76 Outperform	¥14.27B	13.19		4.17%	0.16%	5.68%
6866	68 Neutral	¥75.47B	12.75		3.62%	4.55%	4.94%
6864	66 Neutral	¥9.18B	20.68		2.51%	-3.36%	39.15%
Sector *	57 Neutral	HK$14.57B	5.76	-5.77%	4.75%	9.65%	-43.80%