Balance Sheet Equity BufferThe firm’s balance sheet shows a solid equity base and a healthy equity ratio, providing a structural capital buffer. That equity foundation gives the company longer runway to absorb shocks and pursue restructuring or refinancing, supporting survival during multi-quarter turnarounds.

Gross Margin StabilityDespite revenue declines, gross profit margin is reported as relatively stable, indicating core product economics may hold. Stable gross margins imply the underlying cost structure and pricing power are intact, which supports margin recovery if fixed-cost absorption and sales volumes improve.

Lower Market Volatility (beta)A beta around 0.77 suggests the business historically exhibits below-market sensitivity, which can reflect steadier demand or niche positioning. For investors and management, lower volatility supports more predictable operating plans and reduces refinancing/strategic execution risk during multi-quarter restructuring.

Bears Say

Declining Revenue TrendRevenue has fallen sharply, with a roughly 17.7% decline, signaling weakening demand or loss of customer traction. Persistent top-line contraction pressures scale economics, hinders fixed-cost absorption, and makes multi-quarter profitability recovery more difficult without new products or market repositioning.

Negative Operating And Free Cash FlowOperating cash flow has turned negative and free cash flow is also negative, indicating cash outflows exceed inflows from core operations. Sustained cash burn undermines the company’s ability to invest, service debt, or fund working capital, increasing reliance on external financing or asset sales.

Negative EBIT/EBITDA And Leverage RiskNegative EBIT and EBITDA margins point to structural operational inefficiencies and poor operating leverage. Combined with a moderately high debt-to-equity ratio, this constrains financial flexibility, raises refinancing risk, and limits capacity to execute turnaround initiatives without painful cost cuts or capital raises.

7578 FAQ

What was Nichiryoku Co., Ltd.’s price range in the past 12 months?

Nichiryoku Co., Ltd. lowest stock price was ¥110.00 and its highest was ¥173.00 in the past 12 months.

What is Nichiryoku Co., Ltd.’s market cap?

Nichiryoku Co., Ltd.’s market cap is ¥2.03B.

When is Nichiryoku Co., Ltd.’s upcoming earnings report date?

Nichiryoku Co., Ltd.’s upcoming earnings report date is Aug 07, 2026 which is in 152 days.

How were Nichiryoku Co., Ltd.’s earnings last quarter?

Nichiryoku Co., Ltd. released its earnings results on Feb 13, 2026. The company reported -¥7.06 earnings per share for the quarter, missing the consensus estimate of N/A by -¥7.06.

Is Nichiryoku Co., Ltd. overvalued?

According to Wall Street analysts Nichiryoku Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Nichiryoku Co., Ltd. pay dividends?

Nichiryoku Co., Ltd. pays a Annually dividend of ¥6 which represents an annual dividend yield of N/A. See more information on Nichiryoku Co., Ltd. dividends here

What is Nichiryoku Co., Ltd.’s EPS estimate?

Nichiryoku Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Nichiryoku Co., Ltd. have?

Nichiryoku Co., Ltd. has 17,393,505 shares outstanding.

What happened to Nichiryoku Co., Ltd.’s price movement after its last earnings report?

Nichiryoku Co., Ltd. reported an EPS of -¥7.06 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -1.6%.

Which hedge fund is a major shareholder of Nichiryoku Co., Ltd.?

Currently, no hedge funds are holding shares in JP:7578

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Nichiryoku Co., Ltd.

Nichiryoku Co.,Ltd. engages in the funeral and cemetery businesses in Japan. It is involved in the construction, sale, and management of cemeteries; mining, design, manufacture, and sale of stone products and materials; planning and contracting of various rituals; and sale of funeral gifts and Buddhist altars, as well as the management of funeral operations. Nichiryoku Co.,Ltd. was founded in 1966 and is headquartered in Tokyo, Japan.