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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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Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
¥3,412.00
▼(-11.38% Downside)
Action:Downgraded
Date:04/26/26
The score is driven primarily by improving fundamentals (earnings rebound and balance-sheet deleveraging) and very attractive valuation (low P/E). These positives are tempered by weak technical momentum and a history of volatile cash-flow generation.
Positive Factors
Improved Balance Sheet
Substantially lower debt and a larger equity base materially increase financial flexibility and reduce refinancing and interest-rate risk. This stronger capital structure supports bidding on large rolling-stock contracts, sustains R&D/capacity investment, and improves resilience across cycles.
Negative Factors
Volatile Cash Generation
Multi‑year swings in operating and free cash flow signal sensitivity to project timing, working capital and order flow. That volatility undermines confidence in sustainable internal funding for capex, dividends or larger bids, and raises reliance on external liquidity in weaker cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Balance Sheet
Substantially lower debt and a larger equity base materially increase financial flexibility and reduce refinancing and interest-rate risk. This stronger capital structure supports bidding on large rolling-stock contracts, sustains R&D/capacity investment, and improves resilience across cycles.
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 selling newly manufactured railway vehicles to rail operators and other institutional customers under project-based contracts. Revenue is typically recognized as production progresses and/or upon delivery and...

Nippon Sharyo Financial Statement Overview

Summary
Earnings improved materially in 2026 with a strong net income rebound, and the balance sheet is healthier as debt declined and equity expanded. The main drag is volatile operating and free cash flow over multiple years, which reduces confidence in durability through a cycle.
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
56
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue98.16B99.97B96.34B88.06B97.97B94.02B
Gross Profit16.27B19.58B15.84B14.08B12.54B13.29B
EBITDA12.45B14.16B10.96B8.95B7.26B9.08B
Net Income7.21B11.66B6.42B5.38B3.12B5.23B
Balance Sheet
Total Assets132.82B152.56B131.16B136.40B124.36B132.87B
Cash, Cash Equivalents and Short-Term Investments3.51B5.09B3.44B3.91B3.57B29.31B
Total Debt34.39B32.60B36.47B39.54B43.31B54.06B
Total Liabilities66.98B70.31B66.51B74.17B73.24B84.85B
Stockholders Equity65.84B82.25B64.65B62.23B50.96B47.87B
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
Negative
Last Price3850.00
Price Trends
50DMA
3388.20
Negative
100DMA
3620.55
Negative
200DMA
3453.24
Negative
Market Momentum
MACD
-60.57
Negative
RSI
39.40
Neutral
STOCH
11.93
Positive
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 3850 is above the 20-day moving average (MA) of 3185.25, above the 50-day MA of 3388.20, and above the 200-day MA of 3453.24, indicating a bearish trend. The MACD of -60.57 indicates Negative momentum. The RSI at 39.40 is Neutral, neither overbought nor oversold. The STOCH value of 11.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
¥36.09B9.782.74%9.38%49.37%
75
Outperform
¥16.41B10.462.02%22.62%180.38%
74
Outperform
¥18.14B24.922.78%5.18%37.10%
70
Outperform
¥64.70B10.8411.47%1.88%-0.81%28.72%
68
Neutral
¥45.17B3.8816.07%1.07%3.77%81.76%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
¥69.34B13.620.55%2.93%10.00%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7102
Nippon Sharyo
3,135.00
1,107.22
54.60%
JP:6023
Daihatsu Diesel Mfg Co
2,546.00
329.38
14.86%
JP:6016
Japan Engine Corp
7,800.00
905.37
13.13%
JP:6018
Hanshin Diesel Works, Ltd.
5,660.00
2,374.85
72.29%
JP:6648
Kawaden Corporation
1,801.00
955.16
112.92%
JP:7122
Kinki Sharyo Co., Ltd.
2,388.00
382.59
19.08%

Nippon Sharyo Corporate Events

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...
Nippon Sharyo Lifts Year-End Dividend on Strong Earnings and Signals Higher Payouts Ahead
Apr 24, 2026
Nippon Sharyo’s board has approved a year-end dividend of 25 yen per share for shareholders of record on March 31, 2026, up from both the prior forecast and the previous year’s 20 yen, bringing the total payout to 360 million yen from ...
Nippon Sharyo Posts Strong FY2026 Beat on Sales Mix and Efficiency Gains
Apr 24, 2026
Nippon Sharyo reported that its full-year results for the fiscal year ended March 31, 2026 significantly exceeded prior forecasts on both a consolidated and non-consolidated basis. Consolidated net sales rose to ¥99.97 billion, about 2% above...
Nippon Sharyo Posts Profit Surge but Warns of Earnings Slowdown in FY2027
Apr 24, 2026
Nippon Sharyo reported consolidated net sales of ¥99.97 billion for the fiscal year ended March 31, 2026, a 3.8% increase year on year, while operating profit surged 67.5% to ¥11.62 billion and profit attributable to owners of parent ros...
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: Apr 26, 2026