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Nireco Corporation (JP:6863)
:6863
Japanese Market
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Nireco Corporation (6863) AI Stock Analysis

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JP:6863

Nireco Corporation

(6863)

Rating:74Outperform
Price Target:
¥2,237.00
▲(12.13% Upside)
Nireco Corporation's strong financial performance is the most significant factor driving the score, supported by robust revenue growth, profitability, and financial stability. The valuation is favorable with a low P/E ratio and high dividend yield, appealing to value and income investors. Technical analysis indicates a neutral trend, with no significant bullish or bearish signals.

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

Nireco Corporation Business Overview & Revenue Model

Company DescriptionNireco 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 MoneyNireco 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 with robust revenue growth, improved profitability, low financial leverage, and strong cash generation. The income statement, balance sheet, and cash flow analysis all reflect a stable and efficient financial position.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.76B10.76B9.86B9.16B8.12B7.90B
Gross Profit4.50B4.50B3.93B3.59B2.92B2.86B
EBITDA2.39B2.39B1.82B1.54B944.46M880.78M
Net Income1.56B1.56B1.01B860.53M406.15M432.55M
Balance Sheet
Total Assets19.35B19.35B18.57B17.00B16.15B15.32B
Cash, Cash Equivalents and Short-Term Investments4.82B4.82B4.38B4.41B4.83B4.68B
Total Debt142.70M142.70M170.00M234.48M404.19M253.14M
Total Liabilities2.56B2.56B2.75B2.40B2.30B1.80B
Stockholders Equity16.77B16.77B15.81B14.59B13.84B13.52B
Cash Flow
Free Cash Flow0.001.16B287.35M-80.29M634.15M925.57M
Operating Cash Flow0.001.30B892.35M135.71M849.15M1.14B
Investing Cash Flow0.00-325.40M-449.61M-91.69M-359.52M-285.64M
Financing Cash Flow0.00-514.47M-431.38M-476.89M-393.04M-409.86M

Nireco Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1995.00
Price Trends
50DMA
1991.74
Positive
100DMA
1873.31
Positive
200DMA
1734.86
Positive
Market Momentum
MACD
-1.43
Negative
RSI
53.89
Neutral
STOCH
63.91
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 1995 is above the 20-day moving average (MA) of 1963.00, above the 50-day MA of 1991.74, and above the 200-day MA of 1734.86, indicating a bullish trend. The MACD of -1.43 indicates Negative momentum. The RSI at 53.89 is Neutral, neither overbought nor oversold. The STOCH value of 63.91 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥21.75B11.41
2.67%9.88%11.83%
74
Outperform
¥13.55B10.14
4.76%4.80%32.85%
71
Outperform
¥6.40B12.93
2.63%13.34%-74.02%
69
Neutral
¥18.37B17.34
3.26%2.10%4.70%
68
Neutral
¥82.15B13.90
3.28%7.11%7.49%
61
Neutral
$35.52B8.84-11.06%1.87%8.55%-8.14%
61
Neutral
¥8.89B24.48
2.51%4.03%-2.88%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6863
Nireco Corporation
1,995.00
685.44
52.34%
JP:6850
Chino Corporation
2,624.00
539.04
25.85%
JP:6853
Kyowa Electronic Instruments Co., Ltd.
675.00
266.93
65.41%
JP:6858
Ono Sokki Co., Ltd.
571.00
24.27
4.44%
JP:6864
NF Holdings Corporation
1,277.00
394.07
44.63%
JP:6866
Hioki E.E.Corporation
6,090.00
-1,812.64
-22.94%
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.Date of analysis: Aug 26, 2025