Namura Shipbuilding Co (7014) AI Stock Analysis

• Market Cap: ¥346.57B
• Dividend Yield: 1.36%
• Average Volume (3M): 2.10M
• Price to Earnings (P/E): 8.6
• Beta (1Y): 2.03
• Revenue Growth: 0.58%
• EPS Growth: -24.42%
• Country: JP
• Employees: 2,232
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 103.17
• Shares Outstanding: 69,475,550
• 10 Day Avg. Volume: 2,533,440
• 30 Day Avg. Volume: 2,103,083
• PEG Ratio: 0.19
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 4.89
• 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: ¥5,600.00
• Price Target Upside: 51.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 238.42
• Revenue Forecast (FY): ¥152.67B

• Rating: 75 Outperform
• Price Target: ¥5,394.00 ▲(45.59% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by strong financial performance improvements across profitability, leverage, and cash flow. Technicals are supportive but appear overbought (high RSI/Stoch), tempering the outlook. Valuation is reasonable on earnings but offers limited dividend support.

Positive Factors

Improving Profitability

Sustained revenue growth with materially higher gross and net margins reflects improved cost control, pricing and project execution. These structural profitability gains support durable cash generation, higher ROE and greater resilience across the shipbuilding cycle over the next 2–6 months.

Conservative Capital Structure

Very low leverage and a strong equity ratio provide financial flexibility to fund yard investments, absorb delivery timing swings and avoid stressful refinancing in downturns. This conservative balance sheet underpins long-term stability in a cyclical industry.

Strengthening Cash Generation

Marked improvement in cash conversion and double-digit free cash flow growth reduces reliance on external funding for working capital and capex. Strong, improving FCF supports reinvestment in yards and creates a durable buffer through industry troughs.

Negative Factors

Concentration in Newbuilds

Revenue is heavily concentrated in newbuild contracts with limited diversification into repairs, offshore or financing. That concentration amplifies exposure to shipping owner capex cycles and makes revenue and margins sensitive to order timing and vessel delivery schedules.

Industry Cyclicality

Shipbuilding is inherently cyclical; even after a turnaround, orderbook timing and fleet investment trends can reverse, causing large swings in yard utilization, pricing power and margins. This structural cyclicality raises medium-term execution and cash flow variability.

Input-cost and FX Exposure

Margins are exposed to volatile steel, equipment costs and currency moves given milestone-based contracts. Adverse input-cost inflation or FX shifts can compress fixed-price project margins, and limited diversification increases sensitivity to these structural cost risks.

Namura Shipbuilding Co Business Overview & Revenue Model

Company Description

Namura Shipbuilding Co., Ltd. engages in shipbuilding business worldwide. The company builds crude oil carriers, tankers, product carriers, bulk carriers, ore carriers, LPG carriers, etc., as well as provides ship repair services. It is also involved in the design, production, and installation of bridges and steel structures. Namura Shipbuilding Co., Ltd. was founded in 1911 and is headquartered in Osaka, Japan.

How the Company Makes Money

Namura Shipbuilding primarily makes money by contracting with shipowners and shipping companies to build new vessels. Revenue is recognized from shipbuilding projects based on contractual arrangements for each vessel (or series of vessels), with customers typically paying in installments tied to milestones (e.g., contract signing, steel cutting/keel laying, launching, and delivery), and final revenue tied to successful delivery under agreed specifications. The company’s key revenue stream is newbuild ship sales; earnings are driven by the number and type of vessels delivered in a given period, contracted prices, construction costs (materials such as steel and major equipment), labor and yard utilization, and the mix of vessels under construction. Profitability is also influenced by the orderbook (timing and volume of future deliveries), changes in input costs, and foreign-exchange movements when contracts or costs are denominated in different currencies. Specific details on meaningful partnerships or other material revenue streams beyond shipbuilding (e.g., ship repair, offshore, or financing arrangements) are null.

Namura Shipbuilding Co Financial Statement Overview

Summary

Strong turnaround and profitability improvement: 2025 revenue growth of 17.95%, gross margin up to 22.8%, and net margin at 16.48%. Balance sheet leverage is conservative (debt-to-equity 0.17) with higher ROE (24.96%), and cash generation is solid (operating cash flow to net income 1.44) with free cash flow growth of 27.29%, though results may remain sensitive to industry cycles.

Income Statement

Namura Shipbuilding Co has demonstrated a remarkable turnaround in its income statement metrics over the past few years. The company achieved a substantial revenue growth rate of 17.95% from 2024 to 2025, driven by a recovery from negative profitability in earlier years. The gross profit margin improved significantly to 22.8% in 2025, indicating effective cost management. Net profit margin also saw impressive gains, reaching 16.48% in 2025. The company maintained strong EBIT and EBITDA margins, showcasing improved operational efficiency. The positive trajectory in these metrics highlights both stability and profitability, though risks remain from potential market fluctuations.

Balance Sheet

The balance sheet of Namura Shipbuilding Co reflects a strengthening financial position with increasing stockholders' equity, which reached 50.31% of total assets in 2025. The debt-to-equity ratio decreased to 0.17, demonstrating effective leverage management. Return on equity rose to 24.96%, underscoring robust profitability from equity. While the equity ratio indicates a solid financial foundation, maintaining this trajectory will be crucial in managing any potential risks associated with industry cycles or economic downturns.

Cash Flow

Namura Shipbuilding Co's cash flow position has improved significantly with a healthy operating cash flow to net income ratio of 1.44 in 2025, reflecting strong cash generation capabilities. Free cash flow growth rate increased by 27.29% from 2024 to 2025, supporting further investments and financial flexibility. The company's transition from negative to positive free cash flow over recent years demonstrates improved financial health, though careful monitoring is necessary to sustain these gains amidst potential industry volatility.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	155.95B	159.23B	135.01B	124.08B	83.42B	98.40B
Gross Profit	33.73B	36.31B	22.92B	15.01B	-4.13B	-5.09B
EBITDA	30.14B	32.91B	20.08B	13.17B	-5.58B	-6.30B
Net Income	21.11B	26.25B	19.95B	11.19B	-8.42B	-18.78B
Balance Sheet
Total Assets	222.38B	209.04B	174.79B	124.90B	123.72B	111.56B
Cash, Cash Equivalents and Short-Term Investments	99.91B	90.14B	55.39B	29.46B	25.28B	13.51B
Total Debt	17.62B	18.51B	13.57B	11.87B	15.33B	17.82B
Total Liabilities	112.18B	103.89B	94.89B	74.84B	86.55B	71.20B
Stockholders Equity	109.82B	104.76B	79.68B	49.96B	37.17B	40.36B
Cash Flow
Free Cash Flow	0.00	32.42B	25.61B	7.10B	13.65B	-30.41B
Operating Cash Flow	0.00	37.73B	27.41B	9.00B	15.10B	-26.64B
Investing Cash Flow	0.00	-5.26B	-1.92B	-1.26B	-715.00M	-4.07B
Financing Cash Flow	0.00	2.29B	571.00M	-3.38B	-2.50B	-124.00M

Namura Shipbuilding Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3705.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7014, the sentiment is Positive. The current price of 3705 is below the 20-day moving average (MA) of 5128.75, below the 50-day MA of 4854.90, and below the 200-day MA of 3857.96, indicating a neutral trend. The MACD of -22.29 indicates Positive momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 73.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7014.

Namura Shipbuilding Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7014	75 Outperform	¥346.57B	8.58	16.64%	1.36%	0.58%	-24.42%
7003	72 Outperform	¥677.64B	17.86	13.69%	0.60%	7.78%	-53.68%
7004	66 Neutral	¥165.84B	-49.70	―	2.41%	2.47%	1.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7224	63 Neutral	¥158.13B	8.92	9.14%	2.84%	0.26%	14.29%
7018	63 Neutral	¥26.36B	12.29	―	0.27%	1.60%	314.05%
6022	59 Neutral	¥4.38B	-19.32	―	0.67%	-3.25%	45.54%