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

• Market Cap: ¥9.41B
• Dividend Yield: 3.3%
• Average Volume (3M): 2.72K
• Price to Earnings (P/E): 1951.7
• Beta (1Y): 0.35
• Revenue Growth: 6.86%
• EPS Growth: 725.63%
• Country: JP
• Employees: 835
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.18
• Shares Outstanding: 8,800,500
• 10 Day Avg. Volume: 1,340
• 30 Day Avg. Volume: 2,716
• PEG Ratio: -0.44
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 4.56
• 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: ¥1,182.00 ▲(20.12% 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

Low leverage / strong balance sheet

A very low debt-to-equity ratio materially improves financial flexibility and resilience. Over the coming months this reduces interest burden, increases capacity to fund capex or opportunistic investments, and helps the business withstand manufacturing-cycle downturns without balance-sheet stress.

Improved cash generation

Marked improvement in operating and free cash flow is a durable strength: higher cash conversion supports reinvestment in engineering services, funds working capital during long project cycles, underpins dividends or buybacks, and provides internal capital for product support and selective growth.

Revenue recovery

A return to positive revenue growth signals improving demand for automation products and services. Sustained top-line expansion over the next several quarters would support economies of scale, better utilization of engineering resources, and the ability to offset some margin pressure through higher volumes.

Negative Factors

Compressing margins

Falling gross and net margins indicate either pricing pressure, rising input costs, or weaker operational efficiency. Persistently compressed margins erode earnings leverage from revenue growth and limit internally generated funds for R&D, service capability expansion, and capital spending over the medium term.

Low returns on equity

ROE near 1.35% signals limited effectiveness in converting equity into profits. Over time this constrains shareholder returns and may limit the company's ability to attract capital or justify reinvestment, especially if margins remain suppressed and asset turnover is slow.

Cyclicality of end-market demand

Heavy reliance on manufacturing capex and automation cycles creates structural revenue volatility and long sales/implementation timelines. This cyclicality complicates capacity planning, exposes results to macro swings, and can prolong recovery in revenues and margins after downturns.

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 makes money mainly by selling industrial automation and production-related products and solutions to manufacturing customers. Its core revenue stream is product sales: (1) distribution/trading margins earned by purchasing FA components, industrial equipment, and related devices from manufacturers and reselling them to end users (or integrators), and (2) solution/engineering-related income where it supports customers with system selection, integration support, and implementation services tied to automation projects, which can be bundled with equipment sales. Earnings are influenced by demand from capital expenditure and automation investment cycles in the manufacturing sector (e.g., factory upgrades and productivity/quality improvements). Specific disclosures on revenue breakdown by segment, named major customers, or material partnerships are null.

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	34.39B	36.16B	34.58B	30.74B
Gross Profit	6.94B	6.91B	7.00B	7.68B	6.66B	5.85B
EBITDA	1.56B	1.46B	1.70B	2.67B	2.03B	1.55B
Net Income	292.20M	251.79M	813.95M	1.31B	935.09M	560.20M
Balance Sheet
Total Assets	28.71B	30.78B	31.29B	29.91B	29.90B	27.30B
Cash, Cash Equivalents and Short-Term Investments	3.11B	3.63B	4.48B	5.13B	4.87B	5.20B
Total Debt	108.40M	352.30M	1.53B	736.37M	1.27B	1.64B
Total Liabilities	10.23B	11.85B	11.84B	11.09B	12.56B	11.19B
Stockholders Equity	18.13B	18.62B	19.31B	18.69B	17.23B	16.01B
Cash Flow
Free Cash Flow	0.00	1.63B	-167.25M	503.82M	439.60M	1.30B
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: Neutral
• STOCH: Neutral

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 1046.25, below the 50-day MA of 1011.86, and below the 200-day MA of 984.06, indicating a bullish trend. The MACD of 28.49 indicates Negative momentum. The RSI at 67.37 is Neutral, neither overbought nor oversold. The STOCH value of 53.65 is Neutral, 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
6402	79 Outperform	¥10.88B	6.38	―	2.15%	-0.94%	6.93%
5367	73 Outperform	¥9.06B	9.44	―	3.42%	3.23%	-9.88%
6408	67 Neutral	¥6.89B	3.03	―	1.37%	-3.05%	―
7435	64 Neutral	¥9.41B	1,951.73	―	3.30%	6.86%	725.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6495	52 Neutral	¥12.39B	42.22	―	1.65%	3.96%	―
3444	47 Neutral	¥9.06B	44.43	―	1.56%	11.20%	―

Nadex Co., Ltd. Corporate Events

Nadex Swings Back to Profit and Lifts Earnings Outlook Despite Lower Sales

Nadex reported consolidated net sales of ¥24.49 billion for the nine months ended January 31, 2026, down 5.7% year on year, but operating profit surged 197.7% to ¥537 million and ordinary profit rose 155.6% to ¥677 million. Profit attributable to owners of parent swung to ¥109 million from a loss a year earlier, boosting basic earnings per share to ¥13.44 and lifting equity to ¥19.06 billion, while the company maintained a robust equity-to-asset ratio of 64.3% and kept its dividend plan unchanged.

For the full fiscal year to April 30, 2026, Nadex forecasts modest sales growth of 3.0% to ¥38 billion but expects sharp profit expansion, with operating profit projected to climb 83.5% to ¥1.4 billion and profit attributable to owners of parent to jump 158.2% to ¥650 million, or ¥79.51 per share. The firm plans a total annual dividend of ¥31 per share, up from ¥33 the prior year on an interim and year-end basis combined, signaling confidence in its earnings recovery despite slightly softer top-line performance.

The most recent analyst rating on (JP:7435) stock is a Hold with a Yen1036.00 price target. To see the full list of analyst forecasts on Nadex Co., Ltd. stock, see the JP:7435 Stock Forecast page.