Nireco Corporation (6863) AI Stock Analysis

• Market Cap: ¥12.78B
• Dividend Yield: 5.03%
• Average Volume (3M): 40.47K
• Price to Earnings (P/E): 8.9
• 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: 49,860
• 30 Day Avg. Volume: 40,473
• PEG Ratio: 2.37
• Price to Book (P/B): 0.75
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥2,209.00 ▲(15.84%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 shows strong financial health with solid revenue growth and profitability. The company maintains a robust balance sheet with minimal leverage and a high equity ratio, enhancing its financial stability. However, the recent zero free cash flow in TTM suggests a need for improvement in cash generation.

Income Statement

Nireco Corporation demonstrates strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 5.36% compared to the previous year. The gross profit margin stands at 40.97%, and the net profit margin is 12.02%, indicating efficient cost management and profitability. EBIT and EBITDA margins of 15.82% and 18.33%, respectively, reflect strong operational performance.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.009, and a high equity ratio of 87.19%, suggesting a strong capital structure with minimal leverage. The return on equity (ROE) is impressive at 7.76%, indicating effective use of equity capital to generate profits.

Cash Flow

The cash flow situation is mixed. While the company had a free cash flow of 287 million JPY in the previous year, the TTM data shows zero free cash flow, indicating potential challenges in cash generation. The operating cash flow to net income ratio is undefined due to zero operating cash flow, suggesting a need for improvement in cash conversion efficiency.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
10.39B	9.86B	9.16B	8.12B	7.90B	8.78B
	Gross Profit
4.26B	3.93B	3.59B	2.92B	2.86B	3.32B
	EBIT
1.64B	1.39B	1.18B	563.72M	600.76M	952.00M
	EBITDA
1.90B	1.82B	1.54B	944.46M	880.78M	1.10B
	Net Income Common Stockholders
1.25B	1.01B	860.53M	406.15M	432.55M	779.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.77B	4.38B	4.41B	4.83B	4.68B	4.16B
	Total Assets
18.46B	18.57B	17.00B	16.15B	15.32B	14.99B
	Total Debt
147.00M	170.00M	234.48M	404.19M	253.14M	433.61M
	Net Debt
-3.60B	-4.18B	-4.15B	-4.43B	-4.43B	-2.16B
	Total Liabilities
2.35B	2.75B	2.40B	2.30B	1.80B	2.10B
	Stockholders Equity
16.09B	15.81B	14.59B	13.84B	13.52B	12.87B
Cash Flow		Free Cash Flow
0.00	287.35M	-80.29M	634.15M	925.57M	73.00M
	Operating Cash Flow
0.00	892.35M	135.71M	849.15M	1.14B	241.00M
	Investing Cash Flow
0.00	-449.61M	-91.69M	-359.52M	-285.64M	-148.00M
	Financing Cash Flow
0.00	-431.38M	-476.89M	-393.04M	-409.86M	-485.00M

Nireco Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1907.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 1907 is above the 20-day moving average (MA) of 1795.65, above the 50-day MA of 1688.54, and above the 200-day MA of 1547.19, indicating a bullish trend. The MACD of 68.66 indicates Negative momentum. The RSI at 64.49 is Neutral, neither overbought nor oversold. The STOCH value of 50.57 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	¥6.77B	3.96		4.97%	6.18%	206.74%
6850	79 Outperform	¥19.40B	9.78		3.49%	6.94%	13.27%
6863	78 Outperform	¥12.78B	8.94		5.03%	9.08%	53.84%
6853	76 Outperform	¥14.38B	13.32		3.80%	0.16%	5.68%
6866	68 Neutral	¥76.70B	12.40		3.56%	4.55%	4.94%
6864	67 Neutral	¥9.09B	20.17		2.47%	-3.36%	39.15%
Sector *	62 Neutral	$11.80B	10.31	-7.45%	2.91%	7.43%	-7.78%