Nadex Co., Ltd. (7435) AI Stock Analysis

• Market Cap: ¥8.92B
• Dividend Yield: 3.3%
• Average Volume (3M): 2.72K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.38
• Revenue Growth: 6.86%
• EPS Growth: 725.63%
• Country: JP
• Employees: 835
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 28.87
• Shares Outstanding: 8,800,500
• 10 Day Avg. Volume: 1,340
• 30 Day Avg. Volume: 2,716
• PEG Ratio: -0.43
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 5.17
• 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: 64 Neutral
• Price Target: ¥1,067.00 ▲(8.43% Upside)
• Action: Reiterated Date: 10/29/25
• Date: Action: Reiterated 10/29/25

Nadex Co., Ltd. has a moderate overall stock score driven by improved financial stability and cash flow metrics. However, challenges in profitability and operational efficiency, along with bearish technical indicators and a potentially high valuation, weigh on the score. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Nadex's revenue growth of 12.4% indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Leverage Reduction

The significant reduction in leverage enhances financial stability, providing Nadex with greater flexibility to invest in growth opportunities.

Cash Flow Improvement

Improved cash flow metrics indicate efficient operations and better cash generation, supporting sustainable business operations and investments.

Negative Factors

Profitability Margins

Declining profitability margins suggest challenges in cost management, which could impact long-term earnings and competitiveness.

Operational Efficiency

Reduced operational efficiency may hinder Nadex's ability to maintain competitive pricing and profitability, affecting long-term growth.

Return on Equity

A declining ROE indicates reduced effectiveness in generating returns on shareholder equity, potentially impacting investor confidence.

Nadex Co., Ltd. Business Overview & Revenue Model

Company Description

Nadex Co., Ltd. engages in the development, manufacture, sale, and installation of welding equipment in Japan and internationally. The company's welding equipment and materials include resistance, arc, laser, plasma, and other welding equipment, as well as welding electrodes/wires, industrial robots, numerically controlled machines, hemming equipment, cranes, plant equipment, and others. It also offers factory automation equipment, such as automatic/labor-saving car parts manufacturing facilities; electronics-related production, inspection and measurement, molding, and cleaning equipment; resistance, arc, laser, plasma, and other welding equipment; and industrial robots, logistics systems, and others. In addition, the company provides electronic control equipment, such as electronics, control components/equipment, power supply modules, factory automation systems, eco-friendly/energy-saving products, and assemblage/processing products; and IT solutions. Further, it sells welding materials and electric control equipment; designs, develops, manufactures, sells, and installs factory automation systems; and plans, designs, develops, sells, maintains, and consults information network systems. The company was incorporated in 1950 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Nadex Co., Ltd. generates revenue primarily through transaction fees associated with trading activities on its platform. Each trade executed by users incurs a fee, which constitutes a significant portion of the company's income. Additionally, Nadex earns revenue through the sale of various financial products and services, including market data subscriptions and advanced analytical tools. Partnerships with financial institutions and technology providers further bolster its revenue streams by expanding its service offerings and increasing market reach. The company's focus on innovation and user experience also plays a crucial role in attracting and retaining clients, contributing positively to its overall earnings.

Nadex Co., Ltd. Financial Statement Overview

Summary

Nadex Co., Ltd. shows mixed financial performance. Revenue growth and cash flow metrics have improved, with a significant reduction in leverage enhancing financial stability. However, profitability margins and return on equity have declined, indicating challenges in maintaining profitability and operational efficiency.

Income Statement

Nadex Co., Ltd. has shown a moderate revenue growth rate of 5.79% in the latest year, indicating a positive trend compared to the previous year's decline. However, the gross profit margin has decreased from 20.29% to 18.72%, and the net profit margin has significantly dropped from 2.54% to 0.68%, suggesting challenges in maintaining profitability. The EBIT and EBITDA margins have also declined, reflecting reduced operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved significantly, dropping to 0.0189 from 0.0784, indicating a strong reduction in leverage. The return on equity (ROE) has decreased to 1.35% from 4.50%, which may concern investors looking for high returns. The equity ratio remains stable, suggesting a solid capital structure.

Cash Flow

Nadex Co., Ltd. has demonstrated a strong improvement in free cash flow, with a growth rate labeled as 'Infinity' due to the previous year's negative free cash flow. The operating cash flow to net income ratio has improved to 0.185 from 0.0039, indicating better cash generation relative to net income. The free cash flow to net income ratio is strong at 0.71, showing efficient cash conversion.

Breakdown	TTM	Apr 2024	Apr 2023	Apr 2022	Apr 2022	Apr 2021
Income Statement
Total Revenue	37.51B	36.89B	34.44B	36.19B	34.61B	30.74B
Gross Profit	6.94B	6.91B	6.99B	7.65B	6.62B	5.85B
EBITDA	1.63B	1.43B	1.92B	2.67B	2.29B	1.83B
Net Income	292.75M	251.79M	874.72M	1.33B	1.01B	560.20M
Balance Sheet
Total Assets	28.71B	30.78B	31.38B	29.96B	29.94B	27.30B
Cash, Cash Equivalents and Short-Term Investments	3.11B	3.63B	4.48B	5.13B	4.87B	5.20B
Total Debt	108.00M	352.30M	1.53B	736.37M	1.27B	1.64B
Total Liabilities	10.23B	11.85B	11.79B	11.06B	12.53B	11.19B
Stockholders Equity	18.13B	18.62B	19.46B	18.77B	17.30B	16.01B
Cash Flow
Free Cash Flow	0.00	1.44B	-191.23M	462.43M	358.57M	1.25B
Operating Cash Flow	0.00	2.03B	41.56M	729.85M	920.69M	1.48B
Investing Cash Flow	0.00	-1.05B	-638.40M	153.88M	-855.88M	447.10M
Financing Cash Flow	0.00	-1.90B	-369.61M	-937.18M	-607.15M	-2.94B

Nadex Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 984.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7435, the sentiment is Positive. The current price of 984 is below the 20-day moving average (MA) of 1008.90, below the 50-day MA of 989.80, and above the 200-day MA of 971.61, indicating a bullish trend. The MACD of 15.17 indicates Negative momentum. The RSI at 77.89 is Negative, neither overbought nor oversold. The STOCH value of 92.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7435.

Nadex Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6492	77 Outperform	¥16.71B	15.97	―	0.72%	6.51%	3.68%
6384	73 Outperform	¥11.26B	16.44	―	4.76%	41.13%	535.42%
5368	71 Outperform	¥11.79B	10.15	―	3.51%	14.57%	14.12%
6018	71 Outperform	¥15.87B	19.37	―	2.78%	38.48%	100.84%
6346	69 Neutral	¥8.17B	14.35	―	2.42%	3.68%	-14.90%
7435	64 Neutral	¥8.92B	11.55	―	3.30%	6.86%	725.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%