NOMURA CORPORATION (7131) AI Stock Analysis

• Market Cap: ¥5.11B
• Dividend Yield: 2.85%
• Average Volume (3M): 12.58K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.43
• Revenue Growth: 7.55%
• EPS Growth: 49.84%
• Country: JP
• Employees: 111
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 126.81
• Shares Outstanding: 1,391,575
• 10 Day Avg. Volume: 26,790
• 30 Day Avg. Volume: 12,580
• PEG Ratio: 0.15
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 3.95
• 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: 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: 82 Outperform
• Price Target: ¥4,257.00 ▲(43.82% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by strong financial performance and very attractive valuation (low P/E with a solid dividend yield). Technicals are supportive but less decisive, with moderate momentum and the price sitting below the 20-day average.

Positive Factors

Free cash flow strength

Sustained growth in free cash flow is a durable advantage: it funds dividends, buybacks, debt reduction, and strategic investments without reliance on external capital. Strong FCF conversion increases resilience across cycles and supports long-term capital allocation flexibility.

Low leverage / healthy balance sheet

A low debt-to-equity profile and stable equity ratio give the firm financial flexibility to underwrite deals, absorb market shocks, and allocate capital to growth opportunities. This conservative structure lowers refinancing and solvency risk over the medium term.

Consistent revenue growth & margin improvement

Multi-year revenue growth coupled with rising gross and net margins indicates improving product mix, pricing power, or operational efficiency. These trends underpin sustainable earnings power and better ability to generate shareholder returns over 2–6 months and beyond.

Negative Factors

Earnings volatility risk

Very large year-over-year EPS growth can reflect one-off gains or volatile earnings drivers in investment banking and trading. Such volatility raises uncertainty about the sustainability of profits and complicates medium-term planning for capital allocation and dividend policy.

Small workforce vs. business scope

A relatively small headcount for a firm described as offering wholesale, retail and asset management services may constrain scale, client coverage, and capacity to expand product lines or meet regulatory/compliance demands, limiting durable growth execution.

Metadata / industry classification inconsistency

A clear mismatch between company description (financial services) and listed industry suggests data or coverage inconsistencies. Misclassification can impair peer benchmarking, reduce relevant analyst coverage, and lead to suboptimal strategic comparisons over the medium term.

NOMURA CORPORATION Business Overview & Revenue Model

Company Description

Nomura Corporation develops, manufactures, and sells packaging materials and packaging machines in Japan. The company offers rice bags; other packaging materials, such as labels, containers, paper, film, and cardboard products; tube roll packaging materials; and logistics packing services. It also provides packaging machines, such as tube roll weighing and packaging machine; bag feeding weighing and packaging machine; weighing machine; accumulating packaging machine; cardboard sealing machine; other related equipment products; and food processing machines. The company sells its products to factories, wholesalers, rice milling factories, rice retailers, restaurants, and producers. In addition, it engages in the construction of shipping systems for rice milling factories. The company was founded in 1959 and is headquartered in Higashikurume, Japan.

How the Company Makes Money

NOMURA Corporation generates revenue through multiple streams including brokerage commissions from trading activities, underwriting fees from the issuance of securities, and advisory fees for mergers and acquisitions. The wholesale segment contributes significantly to its earnings through institutional client services, while the retail segment generates income from individual investors through financial products and services. Additionally, asset management services provide a steady revenue source from management fees based on assets under management. Strategic partnerships with other financial institutions and corporations enhance its service offerings and market reach, further supporting its revenue growth.

NOMURA CORPORATION Financial Statement Overview

Summary

Strong overall fundamentals: consistent revenue growth, improving profitability/margins, low leverage, and solid free cash flow conversion support a healthy financial profile.

Income Statement

Nomura Corporation has demonstrated consistent revenue growth over the past five years, with a notable increase in gross profit and net profit margins. The company has improved its EBIT and EBITDA margins, indicating enhanced operational efficiency. The revenue growth rate has been positive, reflecting a strong market position and demand for its products.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio, indicating prudent financial management and low leverage risk. The return on equity has been strong, showcasing effective use of shareholder funds. The equity ratio is stable, reflecting a solid capital structure.

Cash Flow

Nomura Corporation has shown robust cash flow management, with significant growth in free cash flow. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is high, suggesting effective conversion of profits into cash.

Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	7.11B	6.61B	5.97B	5.46B	5.07B
Gross Profit	1.90B	1.67B	1.55B	1.39B	1.27B
EBITDA	812.63M	586.99M	510.43M	433.14M	391.74M
Net Income	508.27M	339.22M	290.32M	239.94M	205.38M
Balance Sheet
Total Assets	4.91B	4.11B	3.78B	3.63B	3.47B
Cash, Cash Equivalents and Short-Term Investments	2.27B	1.46B	1.26B	1.04B	863.06M
Total Debt	33.64M	78.51M	203.85M	335.89M	493.86M
Total Liabilities	2.56B	2.20B	2.13B	2.24B	2.21B
Stockholders Equity	2.32B	1.90B	1.64B	1.39B	1.26B
Cash Flow
Free Cash Flow	933.46M	417.78M	408.14M	451.31M	423.62M
Operating Cash Flow	977.74M	479.13M	450.44M	454.58M	424.67M
Investing Cash Flow	-45.43M	-62.20M	-42.29M	-2.79M	1.20M
Financing Cash Flow	-126.33M	-209.92M	-196.07M	-271.48M	-203.10M

NOMURA CORPORATION Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2960.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7131, the sentiment is Neutral. The current price of 2960 is below the 20-day moving average (MA) of 3974.00, below the 50-day MA of 3552.50, and above the 200-day MA of 2877.93, indicating a neutral trend. The MACD of 107.05 indicates Positive momentum. The RSI at 45.12 is Neutral, neither overbought nor oversold. The STOCH value of 32.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7131.

NOMURA CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7131	82 Outperform	¥5.11B	6.42	―	2.85%	7.55%	49.84%
5901	79 Outperform	¥516.76B	10.13	6.90%	2.71%	-0.06%	137.47%
7917	77 Outperform	¥103.95B	7.99	7.53%	3.01%	5.44%	45.99%
3950	76 Outperform	¥78.32B	12.05	―	6.64%	2.85%	-9.13%
7942	73 Outperform	¥72.67B	5.78	―	3.31%	0.83%	-9.16%
7864	70 Outperform	¥145.48B	4.25	10.46%	2.35%	4.56%	49.23%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%