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Nichiryoku Co., Ltd. (JP:7578)
:7578
Japanese Market

Nichiryoku Co., Ltd. (7578) AI Stock Analysis

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JP:7578

Nichiryoku Co., Ltd.

(7578)

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Neutral 44 (OpenAI - 5.2)
Rating:44Neutral
Price Target:
¥111.00
▼(-3.48% Downside)
Action:ReiteratedDate:10/25/25
Nichiryoku Co., Ltd. receives a low overall stock score due to significant financial challenges, including declining revenue and profitability, negative cash flows, and high leverage risks. The technical analysis indicates neutral to bearish momentum, and the valuation is unattractive with a negative P/E ratio and no dividend yield. These factors collectively contribute to a cautious outlook for the stock.
Positive Factors
Healthy equity base
A healthy equity ratio provides a durable solvency cushion that can absorb further losses and support ongoing operations. This structural capital base improves creditor confidence and gives management time to implement strategic adjustments without immediate distress refinancing.
Negative Factors
Declining revenue trend
Sustained revenue decline erodes scale economics and reduces bargaining power with suppliers and customers. Over several months this trend pressures margins, limits ability to leverage fixed costs, and makes recovery more difficult without clear new demand drivers.
Read all positive and negative factors
Positive Factors
Negative Factors
Healthy equity base
A healthy equity ratio provides a durable solvency cushion that can absorb further losses and support ongoing operations. This structural capital base improves creditor confidence and gives management time to implement strategic adjustments without immediate distress refinancing.
Read all positive factors

Nichiryoku Co., Ltd. (7578) vs. iShares MSCI Japan ETF (EWJ)

Nichiryoku Co., Ltd. Business Overview & Revenue Model

Company Description
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...
How the Company Makes Money
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Nichiryoku Co., Ltd. Financial Statement Overview

Summary
Nichiryoku Co., Ltd. shows a concerning financial performance with declining revenue, profitability, and negative cash flows. The company faces significant operational challenges, as evidenced by negative EBIT and EBITDA margins. While the balance sheet shows a solid equity base, high leverage poses financial risks. Urgent strategic measures are necessary to stabilize financial performance and improve cash flow generation.
Income Statement
35
Negative
Balance Sheet
60
Neutral
Cash Flow
30
Negative
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue2.24B2.85B3.22B2.98B2.62B
Gross Profit1.49B1.92B2.11B2.04B1.69B
EBITDA-30.32M361.44M340.85M412.99M260.14M
Net Income-271.01M279.61M118.06M129.23M-292.81M
Balance Sheet
Total Assets7.48B8.07B8.91B9.47B9.74B
Cash, Cash Equivalents and Short-Term Investments107.06M282.91M670.05M1.13B1.68B
Total Debt2.22B2.44B3.30B4.07B4.84B
Total Liabilities2.89B3.21B4.37B5.15B5.81B
Stockholders Equity4.59B4.86B4.54B4.31B3.92B
Cash Flow
Free Cash Flow-118.39M83.33M329.56M319.53M115.64M
Operating Cash Flow-113.54M90.71M339.68M336.86M128.23M
Investing Cash Flow152.50M351.86M280.52M-181.00M-662.91M
Financing Cash Flow-214.80M-829.71M-663.15M-521.76M633.15M

Nichiryoku Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price115.00
Price Trends
50DMA
117.90
Negative
100DMA
119.08
Negative
200DMA
122.17
Negative
Market Momentum
MACD
-0.86
Negative
RSI
43.79
Neutral
STOCH
42.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7578, the sentiment is Negative. The current price of 115 is above the 20-day moving average (MA) of 114.90, below the 50-day MA of 117.90, and below the 200-day MA of 122.17, indicating a bearish trend. The MACD of -0.86 indicates Negative momentum. The RSI at 43.79 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7578.

Nichiryoku Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
¥18.06B37.682.53%4.71%-0.41%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
57
Neutral
¥1.93B1.828.17%37.03%
54
Neutral
¥3.07B46.160.21%-3.00%-387.10%
52
Neutral
¥10.24B5.245.06%0.36%81.58%
44
Neutral
¥1.98B-4.38-15.38%
41
Neutral
¥2.22B11.92-6.45%99.39%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7578
Nichiryoku Co., Ltd.
114.00
-6.00
-5.00%
JP:4331
Take and Give. Needs Co., Ltd.
705.00
-117.66
-14.30%
JP:4679
TAYA Co.,Ltd.
294.00
26.00
9.70%
JP:6571
QB Net Holdings Co., Ltd.
1,343.00
293.37
27.95%
JP:7372
Decollte Holdings Corporation
379.00
98.00
34.88%
JP:9439
M H GROUP LTD
264.00
63.44
31.63%
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: Oct 25, 2025