Nippon Sharyo (7102) AI Stock Analysis

• Market Cap: $29.88B
• Dividend Yield: 2.42%
• Average Volume (3M): 8.87K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 1.02
• Revenue Growth: 9.41%
• EPS Growth: 19.24%
• Country: JP
• Employees: 2,263
• Sector: Industrials
• Sector Strength: 89
• Industry: Industrial - Machinery
• EPS (TTM): 166.62
• Shares Outstanding: 14,675,012
• 10 Day Avg. Volume: 10,220
• 30 Day Avg. Volume: 8,870
• PEG Ratio: 0.43
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: $2,279.13
• Price Target Upside: 10.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥2,281.00 ▲(10.19%Upside)

The overall stock score is driven by a robust valuation due to a low P/E ratio and decent dividend yield, which suggests potential undervaluation. Financial performance is stable but shows areas for improvement in profitability and cash flow management. Technical analysis indicates a neutral to slightly bearish trend, which moderately impacts the score.

Nippon Sharyo Business Overview & Revenue Model

Company Description

Nippon Sharyo, Ltd. is a Japanese company primarily engaged in the manufacturing of railway rolling stock and related components. It operates in the transportation equipment sector, focusing on the design, production, and sale of various types of railway vehicles, including electric and diesel trains. The company is renowned for its high-quality engineering and innovation in railcar technology, serving both domestic and international markets.

How the Company Makes Money

Nippon Sharyo generates revenue through the sale of its railway vehicles and components to railway operators and transit authorities. Its key revenue streams include manufacturing and delivering electric and diesel railcars, as well as providing maintenance services and spare parts. The company also engages in infrastructure projects involving railway systems. Significant partnerships with government railway agencies and private transport companies both in Japan and abroad play a crucial role in sustaining its revenue. Additionally, Nippon Sharyo may engage in joint ventures and collaborations to expand its market reach and technological capabilities.

Nippon Sharyo Financial Statement Overview

Summary

Nippon Sharyo exhibits solid revenue growth and a healthy balance sheet with a strong equity position. However, profitability metrics and cash flow generation need improvement, particularly to enhance net margins and stabilize free cash flows.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	96.34B	88.06B	97.97B	94.02B	99.45B
Gross Profit	14.69B	14.08B	12.54B	13.29B	16.05B
EBITDA	10.92B	8.95B	7.17B	8.93B	12.27B
Net Income	6.42B	5.38B	3.12B	5.23B	7.93B
Balance Sheet
Total Assets	131.16B	136.40B	124.36B	132.87B	136.59B
Cash, Cash Equivalents and Short-Term Investments	3.44B	3.91B	3.57B	3.56B	4.89B
Total Debt	35.98B	38.88B	42.70B	53.43B	56.40B
Total Liabilities	66.51B	74.17B	73.24B	84.85B	91.31B
Stockholders Equity	64.65B	62.23B	50.96B	47.87B	45.15B
Cash Flow
Free Cash Flow	-1.38B	-4.51B	5.42B	11.95B	8.42B
Operating Cash Flow	1.45B	-2.48B	7.15B	14.51B	11.54B
Investing Cash Flow	-1.72B	-1.44B	-1.58B	-2.64B	-2.29B
Financing Cash Flow	-3.56B	-4.00B	-11.43B	-3.57B	-1.64B

Nippon Sharyo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2070.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 2070 is above the 20-day moving average (MA) of 2063.05, above the 50-day MA of 2067.08, and below the 200-day MA of 2108.74, indicating a neutral trend. The MACD of 6.67 indicates Negative momentum. The RSI at 51.02 is Neutral, neither overbought nor oversold. The STOCH value of 53.97 is Neutral, 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
6016	79 Outperform	¥57.84B	13.35		1.53%	37.64%	69.78%
Sector *	71 Outperform	¥255.75B	13.62	8.48%	4.48%	6.34%	13.16%
7102	71 Outperform	$29.88B	4.66	10.04%	2.42%	9.41%	19.24%
6018	62 Neutral	¥9.59B	17.88		2.36%	15.54%	-47.78%
7122	62 Neutral	¥13.97B	24.94		4.93%	-29.89%	-87.19%
6203	57 Neutral	¥12.12B	15.73		2.05%	25.48%	―
6210	54 Neutral	¥12.51B	―		8.61%	-6.30%	34.61%

Nippon Sharyo Corporate Events

Nippon Sharyo Strengthens Ties with Parent Company

Nippon Sharyo, Ltd. announced its ongoing strategic relationship with its parent company, Central Japan Railway Company, which involves technological and human resource exchanges to enhance their business foundation. The company has repurchased the Toyokawa Plant, reducing its long-term borrowings, and continues to maintain a level of independence in its management despite the parent company’s significant ownership. This partnership aims to leverage the technological strengths of both companies, potentially impacting their market positioning and stakeholder interests.

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.