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Nippon SharyoLtd (JP:7102)
:7102
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Nippon Sharyo (7102) AI Stock Analysis

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JP:7102

Nippon Sharyo

(7102)

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Outperform 72 (OpenAI - 5.2)
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)

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
Overall fundamentals are improving, led by a sharp rebound in profitability and a healthier balance sheet. Net income rose materially (6.4B in 2025 to 11.7B in 2026) and leverage improved as total debt declined (54.1B in 2022 to 32.6B in 2026) while equity expanded (64.6B in 2025 to 82.2B in 2026). The key drag is durability of cash generation: operating cash flow and free cash flow have been volatile, despite a better 2026 (OCF 8.0B; FCF 4.5B).
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
56
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue100.40B99.97B96.34B88.06B97.97B94.02B
Gross Profit20.82B19.58B15.84B14.08B12.54B13.29B
EBITDA15.14B14.16B10.96B8.95B7.26B9.08B
Net Income13.00B11.66B6.42B5.38B3.12B5.23B
Balance Sheet
Total Assets153.31B152.56B131.16B136.40B124.36B132.87B
Cash, Cash Equivalents and Short-Term Investments3.18B5.09B3.44B3.91B3.57B29.31B
Total Debt30.36B32.60B36.47B39.54B43.31B54.06B
Total Liabilities68.87B70.31B66.51B74.17B73.24B84.85B
Stockholders Equity84.44B82.25B64.65B62.23B50.96B47.87B
Cash Flow
Free Cash Flow0.004.46B-1.38B-4.51B5.42B11.95B
Operating Cash Flow0.008.00B1.45B-2.48B7.15B14.51B
Investing Cash Flow0.00-1.21B-1.72B-1.44B-1.58B-2.64B
Financing Cash Flow0.00-4.61B-3.56B-4.00B-11.43B-3.57B

Nippon Sharyo Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3850.00
Price Trends
50DMA
3351.60
Positive
100DMA
3459.84
Positive
200DMA
3549.57
Negative
Market Momentum
MACD
20.30
Positive
RSI
49.68
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥34.75B9.502.74%9.38%49.37%
75
Outperform
¥16.12B10.272.02%22.62%180.38%
74
Outperform
¥21.38B29.061.49%5.18%37.10%
72
Outperform
¥48.78B3.7516.07%1.07%2.28%80.43%
70
Outperform
¥69.94B11.1912.85%2.51%1.11%32.63%
65
Neutral
¥78.41B16.460.55%2.93%10.00%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7102
Nippon Sharyo
3,470.00
1,037.69
42.66%
JP:6023
Daihatsu Diesel Mfg Co
2,981.00
298.59
11.13%
JP:6016
Japan Engine Corp
9,310.00
805.96
9.48%
JP:6018
Hanshin Diesel Works, Ltd.
6,080.00
3,133.68
106.36%
JP:6648
Kawaden Corporation
1,930.00
760.91
65.09%
JP:7122
Kinki Sharyo Co., Ltd.
2,335.00
233.82
11.13%

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.Date of analysis: Aug 06, 2026