Namura Shipbuilding Co (7014) AI Stock Analysis

• Market Cap: ¥382.69B
• Dividend Yield: 1.36%
• Average Volume (3M): 2.10M
• Price to Earnings (P/E): 20.0
• Beta (1Y): 2.11
• 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: ¥6,109.00 ▲(64.89% 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

Sustained profitability turnaround

Namura’s clear turnaround to double-digit revenue growth and materially higher gross and net margins indicates durable operational improvements. Improved margins signal better cost control and pricing on newbuilds, supporting earnings resilience across the next several quarters.

Conservative leverage and stronger equity base

A low debt-to-equity ratio and an equity ratio above 50% provide financial flexibility to fund cycles, absorb orderbook timing, and invest in yard capacity without meaningfully raising insolvency risk, supporting stability through industry downturns.

Improved cash generation and FCF growth

Strong conversion of earnings to cash and meaningful free cash flow growth indicate the company can fund capex, working capital needs, and selective investments from internal cash. This strengthens long-term liquidity and reduces dependence on external financing.

Negative Factors

Concentrated revenue mix (newbuilds)

Reliance on newbuild contracts concentrates revenue and cashflow on discrete, long-cycle projects. Order timing and vessel mix can cause multi-quarter swings in revenue and margins, making sustained growth dependent on winning contracts and maintaining yard utilization.

Exposure to industry cycles and input cost/FX risk

Shipbuilding is cyclical; demand and pricing can shift with shipping markets. Material and equipment cost inflation and currency moves can erode margins on fixed-price contracts, requiring ongoing procurement and contract management to preserve profitability.

Earnings volatility history

Historical negative EPS and uneven revenue growth point to earnings volatility that may recur with orderbook fluctuations. This raises execution and forecasting risk for investors and management over the medium term as the business scales delivery schedules.

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 generates revenue primarily through the construction and sale of ships, which includes large commercial vessels such as bulk carriers and tankers. The company's revenue model is based on contracts with shipping companies and other maritime operators, where they receive payments for new ship orders and repair services. Key revenue streams include the sale of new ships, refurbishment and maintenance work on existing vessels, and manufacturing marine equipment. Additionally, Namura may engage in joint ventures or partnerships with other maritime firms, which can enhance its market reach and operational capabilities, contributing to its overall earnings.

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	30.07B	33.23B	23.89B	15.17B	-3.97B	-14.49B
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	18.24B	13.32B	11.94B	15.23B	17.82B
Total Liabilities	112.18B	103.89B	94.89B	74.94B	86.55B	71.20B
Stockholders Equity	109.82B	105.14B	79.68B	49.96B	37.17B	40.36B
Cash Flow
Free Cash Flow	0.00	32.42B	25.47B	6.92B	13.56B	-30.56B
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: Negative
• 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 4951.25, below the 50-day MA of 4375.60, and above the 200-day MA of 3606.13, indicating a bullish trend. The MACD of 371.68 indicates Negative momentum. The RSI at 64.96 is Neutral, neither overbought nor oversold. The STOCH value of 64.47 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	¥382.69B	20.05	19.39%	1.36%	0.58%	-24.42%
7003	72 Outperform	¥779.50B	26.65	13.69%	0.60%	7.78%	-53.68%
6022	70 Outperform	¥5.04B	78.81	―	0.67%	-3.25%	45.54%
7004	66 Neutral	¥179.49B	17.22	―	2.41%	2.47%	1.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7224	63 Neutral	¥172.49B	16.71	7.75%	2.84%	0.26%	14.29%
7018	63 Neutral	¥27.99B	16.42	―	0.27%	1.60%	314.05%