Nippon Sharyo (7102) AI Stock Analysis

• Market Cap: $50.44B
• Dividend Yield: 1.29%
• Average Volume (3M): 56.07K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 1.01
• Revenue Growth: 6.01%
• EPS Growth: 49.59%
• Country: JP
• Employees: 2,263
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 307.19
• Shares Outstanding: 14,675,012
• 10 Day Avg. Volume: 32,350
• 30 Day Avg. Volume: 56,066
• PEG Ratio: 0.24
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.30
• P/FCF Ratio: -21.28
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 3.81
• Enterprise Value/Ebitda: 5.11
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥3,915.00 ▲(12.02% Upside)

Nippon Sharyo's stock is supported by strong technical momentum and attractive valuation metrics, suggesting potential for price appreciation. However, financial performance is moderate due to profitability and cash flow challenges, which slightly temper the overall outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Nippon Sharyo's products and services, enhancing its competitive position in the rail sector.

Equity Base

A strong equity base provides financial stability and resilience, supporting long-term growth and investment in new projects.

Gross Profit Margin

Efficient cost management and a healthy gross profit margin suggest Nippon Sharyo can sustain profitability and invest in innovation.

Negative Factors

Cash Flow Volatility

Volatile cash flow can hinder Nippon Sharyo's ability to fund operations and growth initiatives, impacting financial flexibility.

Net Profit Margin

A moderate net profit margin indicates room for improvement in profitability, which is crucial for long-term financial health.

Free Cash Flow

Underperformance in free cash flow generation can limit Nippon Sharyo's ability to invest in growth and manage debt effectively.

Nippon Sharyo Business Overview & Revenue Model

Company Description

Nippon Sharyo (7102) is a prominent Japanese manufacturer specializing in the production of rolling stock, including high-speed trains, commuter trains, and freight cars. The company is a key player in the rail transportation sector, providing advanced engineering solutions and innovative technologies to enhance the efficiency and safety of rail systems. With a focus on both domestic and international markets, Nippon Sharyo is known for its commitment to quality and reliability in the development of rail vehicles and systems.

How the Company Makes Money

Nippon Sharyo generates revenue primarily through the manufacturing and sale of rolling stock, which includes high-speed trains, passenger cars, and freight cars. The company earns money by securing contracts with railway operators and government entities for the production of new trains and the refurbishment of existing rolling stock. Key revenue streams include large-scale projects for the construction of train fleets, maintenance services, and technology solutions tailored for rail systems. Additionally, Nippon Sharyo often engages in partnerships with other transportation companies and governmental agencies, which can lead to joint ventures or collaborative projects that further enhance its revenue potential.

Nippon Sharyo Financial Statement Overview

Summary

Nippon Sharyo shows solid revenue growth and a strong equity base, but profitability metrics and cash flow generation need improvement. The net profit margin is moderate, and cash flow remains volatile, indicating room for enhancement in financial performance.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	98.16B	96.34B	88.06B	97.97B	94.02B	99.45B
Gross Profit	16.27B	14.69B	14.08B	12.54B	13.29B	16.05B
EBITDA	12.13B	10.92B	8.95B	7.26B	9.08B	12.27B
Net Income	7.21B	6.42B	5.38B	3.12B	5.23B	7.93B
Balance Sheet
Total Assets	132.82B	131.16B	136.40B	124.36B	132.87B	136.59B
Cash, Cash Equivalents and Short-Term Investments	3.51B	3.44B	3.91B	3.57B	3.56B	4.89B
Total Debt	34.39B	35.98B	38.88B	42.70B	53.43B	56.40B
Total Liabilities	66.98B	66.51B	74.17B	73.24B	84.85B	91.31B
Stockholders Equity	65.84B	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: Positive
• Last Price: 3495.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7102, the sentiment is Positive. The current price of 3495 is above the 20-day moving average (MA) of 3365.25, above the 50-day MA of 3068.63, and above the 200-day MA of 2379.30, indicating a bullish trend. The MACD of 114.31 indicates Positive momentum. The RSI at 63.15 is Neutral, neither overbought nor oversold. The STOCH value of 81.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7102.

Nippon Sharyo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7102	75 Outperform	$50.44B	5.45	13.58%	1.29%	6.01%	49.59%
6016	75 Outperform	¥101.08B	23.59	―	0.58%	9.04%	-7.84%
6018	75 Outperform	¥12.42B	18.23	―	2.96%	38.48%	100.84%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6210	57 Neutral	¥13.60B	-28.46	―	5.18%	1.46%	89.88%
7122	57 Neutral	¥17.13B	-57.28	―	2.03%	-19.01%	-66.73%
6203	53 Neutral	¥13.56B	42.77	―	1.81%	26.09%	―

Nippon Sharyo Corporate Events

Nippon Sharyo Reports Strong Financial Growth and Positive Outlook

Nippon Sharyo reported a positive financial performance for the six months ending September 30, 2025, with a notable increase in profit attributable to owners of the parent by 97.2% compared to the previous year. The company also revised its earnings forecasts upward, indicating a strong financial outlook and potential for increased dividends, reflecting positively on its operational efficiency and market positioning.

The most recent analyst rating on (JP:7102) stock is a Buy with a Yen3335.00 price target. To see the full list of analyst forecasts on Nippon Sharyo stock, see the JP:7102 Stock Forecast page.

Nippon Sharyo Announces Subsidiary Dissolution and Financial Forecast Revision

Nippon Sharyo, Ltd. announced the dissolution of its subsidiary, Nippon Sharyo Manufacturing, LLC, in Illinois, USA, which is expected to be completed by the end of March 2026. This strategic move has prompted a revision of the company’s consolidated financial forecast for the fiscal year ending March 31, 2026, with anticipated increases in net sales and profits due to a stronger performance across its businesses and an improved sales mix. The dissolution will also result in a decrease in income taxes due to the recognition of previously recognized losses as tax losses, although an extraordinary loss is expected from the reversal of foreign currency translation adjustments. The company remains committed to strengthening its financial position through various operational improvements.

The most recent analyst rating on (JP:7102) stock is a Buy with a Yen3335.00 price target. To see the full list of analyst forecasts on Nippon Sharyo stock, see the JP:7102 Stock Forecast page.

Nippon Sharyo Secures Major Shinkansen Order from JR Central

Nippon Sharyo, Ltd. has secured an order from Central Japan Railway Company for 192 N700S Shinkansen cars, to be delivered between fiscal years ending March 2027 and March 2029. While this order will not impact the company’s financial results for the fiscal year ending March 2026, it is expected to contribute to net sales from March 2027 onwards. The transaction, involving the company’s parent company, was carefully reviewed to ensure fairness and protect minority shareholders, with independent oversight confirming its appropriateness.

The most recent analyst rating on (JP:7102) stock is a Buy with a Yen2747.00 price target. To see the full list of analyst forecasts on Nippon Sharyo stock, see the JP:7102 Stock Forecast page.