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Nippon Sharyo
(7102)
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Rating:72Outperform
Price Target:
¥3,874.00
▲(0.62% Upside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by improving financial fundamentals (stronger earnings and a clearly improved balance sheet) and very attractive valuation (low P/E). These positives are tempered by historically volatile cash flow and mixed/soft technical signals, which reduce confidence in near-term momentum and cash-flow durability.
Positive Factors
Profitability Recovery
A substantial jump in net income indicates durable operational improvement and margin recovery rather than a one-off. Higher earnings increase internal cash generation capacity, support reinvestment in operations and R&D, and improve resilience to funding needs over the next several quarters.
Negative Factors
Volatile Cash Generation
Inconsistent operating and free cash flow history lowers confidence in the firm's ability to consistently self-fund capex, working capital needs, and shareholder returns. Persistent swings complicate capital allocation and increase reliance on precise project execution and working capital management.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Recovery
A substantial jump in net income indicates durable operational improvement and margin recovery rather than a one-off. Higher earnings increase internal cash generation capacity, support reinvestment in operations and R&D, and improve resilience to funding needs over the next several quarters.
Read all positive factors
Nippon Sharyo (7102) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥48.78B
Dividend Yield1.33%
Average Volume (3M)56.07K
Price to Earnings (P/E)3.8
Beta (1Y)1.11
Revenue Growth2.28%
EPS Growth80.43%
CountryJP
Employees2,176
SectorIndustrials
Sector Strength72
IndustryRailroads
Share Statistics
EPS (TTM)901.02
Shares Outstanding14,675,012
10 Day Avg. Volume32,350
30 Day Avg. Volume56,066
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.60
Price to Sales (P/S)0.50
P/FCF Ratio11.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nippon Sharyo Business Overview & Revenue Model
Company Description
Nippon Sharyo, Ltd. engages in the railway vehicles, construction machinery, transportation equipment and steel structures, engineering, and other businesses in Japan, the United States, Asia, and internationally. The company offers electric train...
How the Company Makes Money
Nippon Sharyo primarily makes money by manufacturing and selling railway rolling stock and related transportation equipment under customer contracts. Its main revenue stream is the delivery of completed rail vehicles (e.g., commuter and intercity ...
Nippon Sharyo Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 100.40B | 99.97B | 96.34B | 88.06B | 97.97B | 94.02B |
| Gross Profit | 20.82B | 19.58B | 15.84B | 14.08B | 12.54B | 13.29B |
| EBITDA | 15.14B | 14.16B | 10.96B | 8.95B | 7.26B | 9.08B |
| Net Income | 13.00B | 11.66B | 6.42B | 5.38B | 3.12B | 5.23B |
Balance Sheet | ||||||
| Total Assets | 153.31B | 152.56B | 131.16B | 136.40B | 124.36B | 132.87B |
| Cash, Cash Equivalents and Short-Term Investments | 3.18B | 5.09B | 3.44B | 3.91B | 3.57B | 29.31B |
| Total Debt | 30.36B | 32.60B | 36.47B | 39.54B | 43.31B | 54.06B |
| Total Liabilities | 68.87B | 70.31B | 66.51B | 74.17B | 73.24B | 84.85B |
| Stockholders Equity | 84.44B | 82.25B | 64.65B | 62.23B | 50.96B | 47.87B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 4.46B | -1.38B | -4.51B | 5.42B | 11.95B |
| Operating Cash Flow | 0.00 | 8.00B | 1.45B | -2.48B | 7.15B | 14.51B |
| Investing Cash Flow | 0.00 | -1.21B | -1.72B | -1.44B | -1.58B | -2.64B |
| Financing Cash Flow | 0.00 | -4.61B | -3.56B | -4.00B | -11.43B | -3.57B |
Nippon Sharyo Technical Analysis
Neutral
3850.00
Price Trends
3351.60
Positive
3459.84
Positive
3549.57
Negative
Market Momentum
20.30
Positive
49.68
Neutral
30.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7102, the sentiment is Neutral. The current price of 3850 is above the 20-day moving average (MA) of 3560.75, above the 50-day MA of 3351.60, and above the 200-day MA of 3549.57, indicating a neutral trend. The MACD of 20.30 indicates Positive momentum. The RSI at 49.68 is Neutral, neither overbought nor oversold. The STOCH value of 30.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7102.
Nippon Sharyo Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥34.75B | 9.50 | ― | 2.74% | 9.38% | 49.37% | |
75 Outperform | ¥16.12B | 10.27 | ― | 2.02% | 22.62% | 180.38% | |
74 Outperform | ¥21.38B | 29.06 | ― | 1.49% | 5.18% | 37.10% | |
72 Outperform | ¥48.78B | 3.75 | 16.07% | 1.07% | 2.28% | 80.43% | |
70 Outperform | ¥69.94B | 11.19 | 12.85% | 2.51% | 1.11% | 32.63% | |
65 Neutral | ¥78.41B | 16.46 | ― | 0.55% | 2.93% | 10.00% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
JP:7102
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Nippon Sharyo Corporate Events
Nippon Sharyo Posts Profit Surge but Flags Weaker Margins Despite Higher Dividend Plan
Jul 28, 2026
Nippon Sharyo reported consolidated net sales of ¥23.65 billion for the three months to June 30, 2026, a modest 1.8% increase year on year, while operating profit surged 86% to ¥2.92 billion and profit attributable to owners more than do...
Nippon Sharyo Details Reliance on Central Japan Railway as Controlling Shareholder
Jun 25, 2026
Nippon Sharyo, Ltd., a major Japanese manufacturer of Shinkansen and other railcars, reports that Central Japan Railway Company holds 51.2% of its voting rights and remains its dominant customer, taking 30.2% of sales in the fiscal year ended Marc...
Nippon Sharyo Announces Broad Management Reshuffle Effective June 2026
May 20, 2026
Nippon Sharyo’s board has approved a broad reshuffle of its leadership, with changes to representative directors, board officers, and executive officers to be finalized following the June 26, 2026 shareholders’ meeting. Senior Managing...
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.