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Nireco Corporation (JP:6863)
:6863
Japanese Market

Nireco Corporation (6863) AI Stock Analysis

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JP

Nireco Corporation

(6863)

Rating:78Outperform
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 (6863) vs. iShares MSCI Japan ETF (EWJ)

Nireco Corporation Business Overview & Revenue Model

Company DescriptionNireco 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 MoneyNireco 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
85
Very Positive
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
90
Very Positive
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
70
Positive
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
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
10.39B9.86B9.16B8.12B7.90B8.78B
Gross Profit
4.26B3.93B3.59B2.92B2.86B3.32B
EBIT
1.64B1.39B1.18B563.72M600.76M952.00M
EBITDA
1.90B1.82B1.54B944.46M880.78M1.10B
Net Income Common Stockholders
1.25B1.01B860.53M406.15M432.55M779.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
3.77B4.38B4.41B4.83B4.68B4.16B
Total Assets
18.46B18.57B17.00B16.15B15.32B14.99B
Total Debt
147.00M170.00M234.48M404.19M253.14M433.61M
Net Debt
-3.60B-4.18B-4.15B-4.43B-4.43B-2.16B
Total Liabilities
2.35B2.75B2.40B2.30B1.80B2.10B
Stockholders Equity
16.09B15.81B14.59B13.84B13.52B12.87B
Cash FlowFree Cash Flow
0.00287.35M-80.29M634.15M925.57M73.00M
Operating Cash Flow
0.00892.35M135.71M849.15M1.14B241.00M
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 Price1907.00
Price Trends
50DMA
1688.54
Positive
100DMA
1695.49
Positive
200DMA
1547.19
Positive
Market Momentum
MACD
68.66
Negative
RSI
64.49
Neutral
STOCH
50.57
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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
¥6.77B3.96
4.97%6.18%206.74%
79
Outperform
¥19.40B9.78
3.49%6.94%13.27%
78
Outperform
¥12.78B8.94
5.03%9.08%53.84%
76
Outperform
¥14.38B13.32
3.80%0.16%5.68%
68
Neutral
¥76.70B12.40
3.56%4.55%4.94%
67
Neutral
¥9.09B20.17
2.47%-3.36%39.15%
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6863
Nireco Corporation
1,925.00
544.58
39.45%
JP:6850
Chino Corporation
2,319.00
-145.10
-5.89%
JP:6853
Kyowa Electronic Instruments Co., Ltd.
540.00
109.68
25.49%
JP:6858
Ono Sokki Co., Ltd.
602.00
-77.79
-11.44%
JP:6864
NF Holdings Corporation
1,412.00
313.46
28.53%
JP:6866
Hioki E.E.Corporation
5,640.00
-1,089.40
-16.19%
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.