Nippon Sharyo (7102) AI Stock Analysis

• Market Cap: $29.70B
• Dividend Yield: 1.94%
• Average Volume (3M): 10.03K
• Price to Earnings (P/E): 4.6
• Beta (1Y): 1.01
• Revenue Growth: 9.41%
• EPS Growth: 19.24%
• Country: JP
• Employees: 2,263
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Machinery
• EPS (TTM): 444.62
• Shares Outstanding: 14,675,012
• 10 Day Avg. Volume: 8,700
• 30 Day Avg. Volume: 10,033
• PEG Ratio: -0.23
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.39
• 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: 71 Outperform
• Price Target: ¥2,279.00 ▲(12.27%Upside)

Nippon Sharyo's stock is attractive due to its strong valuation, with a low P/E ratio and high dividend yield. While technical indicators are mostly stable, financial performance is moderate due to concerns over cash flow and profitability. Improving these areas could enhance the stock's attractiveness further.

Nippon Sharyo Business Overview & Revenue Model

Company Description

Nippon Sharyo, Ltd. is a Japanese company primarily engaged in the manufacturing and sale of railway rolling stock. Founded in 1896, the company has a long-standing heritage in producing a variety of rail vehicles, including electric and diesel multiple units, passenger coaches, and freight cars. In addition to its core focus on rail transportation, Nippon Sharyo also operates in sectors such as construction equipment and transportation infrastructure.

How the Company Makes Money

Nippon Sharyo generates revenue mainly through the design, manufacturing, and sale of railway vehicles and related equipment. The company's key revenue streams include contracts with domestic and international railway operators for the supply of electric and diesel trains, as well as maintenance and after-sales services for these vehicles. Additionally, Nippon Sharyo is involved in the construction equipment industry, providing machinery that supports infrastructure development projects. Significant partnerships with government agencies and major rail operators, along with its established reputation for quality and innovation, contribute to its earnings. The company also benefits from long-term contracts and repeat business in the rail vehicle sector.

Nippon Sharyo Financial Statement Overview

Summary

Nippon Sharyo shows solid revenue growth and a strong equity base, but profitability metrics like net profit margin and cash flow generation are areas of concern. The balance sheet remains strong, yet cash flow volatility needs addressing.

Income Statement

Nippon Sharyo has shown solid revenue growth with a 9.4% increase from 2024 to 2025. The gross profit margin for 2025 stands at 15.3%, indicating efficient cost management. However, the net profit margin is 6.7%, which is moderate and suggests potential for improvement in profitability. EBIT and EBITDA margins are 7.2% and 11.3% respectively, highlighting a stable operating performance though slightly lower than optimal for the industry.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 49.3%, which is favorable for financial stability. The return on equity has improved to 9.9%, showing enhanced shareholder returns. However, the debt-to-equity ratio is 0.56, which, while not alarming, suggests a moderate level of leverage that should be monitored.

Cash Flow

Nippon Sharyo's cash flow from operations has improved in 2025 but remains volatile, with a free cash flow of -1.38 billion yen. The operating cash flow to net income ratio is 0.23, indicating room for improvement in cash conversion. The free cash flow to net income ratio also suggests underperformance in generating free cash flow relative to profits.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
99.99B	96.34B	88.06B	97.97B	94.02B	99.45B
	Gross Profit
14.42B	14.69B	14.08B	12.54B	13.29B	16.05B
	EBIT
6.55B	6.94B	6.06B	4.46B	6.24B	9.05B
	EBITDA
8.44B	10.92B	8.95B	7.17B	8.93B	12.27B
	Net Income Common Stockholders
5.78B	6.42B	5.38B	3.12B	5.23B	7.93B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.75B	3.44B	3.91B	3.57B	3.56B	4.89B
	Total Assets
130.50B	131.16B	136.40B	124.36B	132.87B	136.59B
	Total Debt
37.39B	35.98B	38.88B	42.70B	53.43B	56.40B
	Net Debt
33.64B	32.54B	34.97B	39.13B	49.87B	51.51B
	Total Liabilities
67.22B	66.51B	74.17B	73.24B	84.85B	91.31B
	Stockholders Equity
63.28B	64.65B	62.23B	50.96B	47.87B	45.15B
Cash Flow		Free Cash Flow
0.00	-1.38B	-4.51B	5.42B	11.95B	8.42B
	Operating Cash Flow
0.00	1.45B	-2.48B	7.15B	14.51B	11.54B
	Investing Cash Flow
0.00	-1.72B	-1.44B	-1.58B	-2.64B	-2.29B
	Financing Cash Flow
0.00	-3.56B	-4.00B	-11.43B	-3.57B	-1.64B

Nippon Sharyo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2030.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7102, the sentiment is Negative. The current price of 2030 is below the 20-day moving average (MA) of 2074.40, below the 50-day MA of 2033.78, and below the 200-day MA of 2111.22, indicating a bearish trend. The MACD of -3.73 indicates Positive momentum. The RSI at 43.31 is Neutral, neither overbought nor oversold. The STOCH value of 27.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7102.

Nippon Sharyo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6016	74 Outperform	¥50.87B	11.74		1.64%	37.64%	69.78%
7102	71 Outperform	$29.70B	4.63	10.04%	1.94%	9.41%	19.24%
Sector *	66 Neutral	$4.44B	12.08	5.34%	5.82%	4.17%	-11.81%
6203	65 Neutral	¥12.83B	16.65		1.95%	25.48%	―
6018	62 Neutral	¥9.93B	18.50		2.28%	15.54%	-47.78%
7122	62 Neutral	¥14.33B	25.58		2.40%	-29.89%	-87.19%
6210	58 Neutral	¥12.58B	―		5.71%	-6.30%	34.61%

Nippon Sharyo Corporate Events

Nippon Sharyo Announces Leadership Changes to Drive Business Growth

Nippon Sharyo, Ltd. announced changes in its leadership, with Michikazu Fukaya set to become the new Representative Director and Senior Managing Director, succeeding Akira Koyasu. These changes are part of a strategic move to foster business development under a new management structure, which will be finalized at the upcoming Annual General Meeting of Shareholders.

Nippon Sharyo Increases Year-End Dividend Amid Positive Financial Outlook

Nippon Sharyo, Ltd. announced a decision by its Board of Directors to increase the year-end dividend for the fiscal year ended March 31, 2025, to 20 yen per share, up from the previously forecasted 15 yen. This decision, which will be proposed at the upcoming Annual General Meeting, reflects the company’s positive financial outlook and commitment to enhancing shareholder value.

Nippon Sharyo Reports Strong Financial Growth for FY 2025

Nippon Sharyo reported a positive financial performance for the fiscal year ending March 31, 2025, with significant increases in net sales and profits compared to the previous year. The company achieved a 9.4% increase in net sales and a 19.2% rise in profit attributable to owners of the parent, indicating strong operational efficiency and market demand. Despite a forecasted decline in financial metrics for the next fiscal year, the company has increased its annual dividend, reflecting confidence in its financial stability and commitment to shareholder returns.