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Nireco Corporation
(6863)
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Rating:78Outperform
Price Target:
¥3,141.00
▲(52.85% Upside)
Action:Reiterated
Date:07/08/26
The score is driven primarily by strong financial quality (notably very low leverage and solid profitability) and supportive valuation (P/E ~13.9 with a ~3.23% dividend). The main offset is technical positioning: the stock is in an uptrend but appears overbought (RSI ~73, Stoch ~93), which raises the risk of a near-term consolidation.
Positive Factors
Balance-sheet strength
Very low leverage (debt-to-equity ~0.03 in 2026) gives Nireco durable financial flexibility. That balance-sheet conservatism supports funded capex, R&D and dividends, and provides a cushion through equipment demand cycles, enabling strategic optionality over the next 2–6 months.
Negative Factors
Margin compression
Net margin fell from ~14.5% to ~13.1% and EBIT from ~19.3% to ~15.4% in 2026, a notable step-down. If driven by structural cost increases or adverse product mix, this erosion reduces operating leverage and cash available for reinvestment or dividends unless cost control or pricing remedies are sustained.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
Very low leverage (debt-to-equity ~0.03 in 2026) gives Nireco durable financial flexibility. That balance-sheet conservatism supports funded capex, R&D and dividends, and provides a cushion through equipment demand cycles, enabling strategic optionality over the next 2–6 months.
Read all positive factors
Nireco Corporation (6863) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥17.38B
Dividend Yield5.39%
Average Volume (3M)17.68K
Price to Earnings (P/E)13.8
Beta (1Y)1.05
Revenue Growth2.47%
EPS Growth-6.22%
CountryJP
Employees533
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)196.74
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)223.5
Revenue Forecast (FY)¥12.80B
Nireco Corporation Business Overview & Revenue Model
Company Description
Nireco Corporation, headquartered in Hachioji, Japan, and established in 1931 (operating as Nippon Regulator Co., Ltd. until its name change in November 1984), specializes in advanced industrial automation. The company provides a comprehensive sui...
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 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.02B | 10.76B | 9.86B | 9.16B | 8.12B |
| Gross Profit | 4.43B | 4.50B | 3.93B | 3.59B | 2.92B |
| EBITDA | 2.25B | 2.39B | 1.82B | 1.54B | 944.46M |
| Net Income | 1.44B | 1.56B | 1.01B | 860.53M | 406.15M |
Balance Sheet | |||||
| Total Assets | 20.59B | 19.35B | 18.57B | 17.00B | 16.15B |
| Cash, Cash Equivalents and Short-Term Investments | 5.11B | 4.82B | 4.38B | 4.41B | 4.83B |
| Total Debt | 548.28M | 142.70M | 170.00M | 234.48M | 404.19M |
| Total Liabilities | 3.52B | 2.68B | 2.75B | 2.40B | 2.30B |
| Stockholders Equity | 17.07B | 16.65B | 15.81B | 14.59B | 13.84B |
Cash Flow | |||||
| Free Cash Flow | 1.64B | 1.16B | 287.35M | -80.29M | 634.15M |
| Operating Cash Flow | 1.86B | 1.30B | 892.35M | 135.71M | 849.15M |
| Investing Cash Flow | 776.48M | -325.40M | -449.61M | -91.69M | -359.52M |
| Financing Cash Flow | -1.51B | -514.47M | -431.38M | -476.89M | -393.04M |
Nireco Corporation Technical Analysis
Positive
2055.00
Price Trends
2575.92
Positive
2358.53
Positive
2141.48
Positive
Market Momentum
65.09
Positive
50.02
Neutral
6.15
Positive
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 2770.60, below the 50-day MA of 2575.92, and below the 200-day MA of 2141.48, indicating a neutral trend. The MACD of 65.09 indicates Positive momentum. The RSI at 50.02 is Neutral, neither overbought nor oversold. The STOCH value of 6.15 is Positive, 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 | ¥156.80B | 25.25 | ― | 3.23% | 5.32% | -3.12% | |
80 Outperform | ¥87.25B | 14.26 | ― | 3.12% | 4.08% | -1.67% | |
78 Outperform | ¥17.38B | 13.81 | ― | 5.39% | 2.47% | -6.22% | |
73 Outperform | ¥20.06B | 17.79 | ― | 2.93% | 6.08% | 10.11% | |
72 Outperform | ¥21.20B | 8.96 | ― | 2.84% | -1.94% | 0.20% | |
66 Neutral | ¥9.86B | 21.15 | ― | 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.