Nagano Keiki Co., Ltd. (7715) AI Stock Analysis

• Market Cap: ¥50.56B
• Dividend Yield: 1.94%
• Average Volume (3M): 161.06K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 1.47
• Revenue Growth: -4.17%
• EPS Growth: -7.07%
• Country: JP
• Employees: 2,421
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 62.56
• Shares Outstanding: 19,432,983
• 10 Day Avg. Volume: 145,740
• 30 Day Avg. Volume: 161,063
• PEG Ratio: 0.51
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 10.49
• 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: 80 Outperform
• Price Target: ¥3,054.00 ▲(25.63% Upside)

Nagano Keiki Co., Ltd. receives a strong overall stock score driven by robust financial performance and attractive valuation. The technical analysis indicates bullish momentum, though caution is warranted due to overbought signals. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Free Cash Flow Strength

Consistent positive free cash flow and strong operating cash conversion provide durable funding for capex, product support and potential shareholder returns. Sustained FCF underpins long-term competitiveness and cushions the business through industrial demand cycles.

Margin Improvement

Improving gross, EBITDA and net margins indicate effective cost control, pricing power or mix shift toward higher-value products. Margin expansion enhances internal funding for R&D and capex and supports sustainable profitability even if top-line growth slows.

Balance Sheet Stability

A healthy equity ratio and manageable leverage provide financial flexibility for long-term investments, working capital and resilience through cycles. Structural balance-sheet strength supports strategic spending and reduces bankruptcy risk during downturns.

Negative Factors

Declining Revenue and EPS

Negative revenue and EPS growth point to weakening demand or adverse product mix. Continued contraction over the next several months would erode internal funding for innovation and maintenance, pressuring margins and limiting strategic flexibility.

Relatively High Total Debt

Although leverage ratios are described as manageable, a relatively high absolute debt level raises refinancing and interest-rate sensitivity. This constrains financial flexibility and increases vulnerability if cash flow or revenue trends deteriorate.

Cyclicality of End Markets

Business reliance on industrial capex, maintenance and replacement cycles makes revenue and order visibility sensitive to macro and sector swings. This structural exposure can create prolonged revenue volatility and complicate long-term planning.

Nagano Keiki Co., Ltd. Business Overview & Revenue Model

Company Description

Nagano Keiki Co., Ltd. manufactures and sells measurement instruments and control equipment in Japan and internationally. It offers various pressure gauges, including compound, vacuum, differential pressure, low pressure, absolute pressure, and diaphragm-seal type products; mechanical and electrical types switches, indicators with switches, and plug-in connectors for pressure switches; pressure sensors comprising pressure transmitters, load and level sensors, and converters; digital pressure gauges, and digital indicators and meter relays; and various types of temperature gauges. The company also provides flow meters for use in water, air, and gas; heat meters and heat monitors; inspection and calibration instruments, including dead weight testers, liquid column manometers, precision aneroid manometers, digital precision manometers, digital pressure checkers, programmable pressure controllers, and data loggers and fiber brag grating sensors; and accessories, such as regulators, ceramic products, noise level and vibration meters; and aluminum and magnesium die cast components, as well as maintenance and calibration services. It serves automobile, industrial vehicle and construction, FA and industrial machinery, HVAC and refrigerator, semiconductor, process instrumentation, and medical and welfare industries; food, drug, and cosmetics sectors; marine, aeronautical, and rail industries; and high-pressure hydrogen, gas, and energy applications. Nagano Keiki Co., Ltd. was founded in 1896 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nagano Keiki generates revenue primarily through the sale of its precision measuring instruments and control equipment. The company's revenue model is based on both direct sales to end-users and distribution partnerships with industrial suppliers. Key revenue streams include sales of pressure gauges, flow meters, and related accessories, as well as custom solutions tailored to specific industrial applications. Additionally, Nagano Keiki benefits from ongoing maintenance and service contracts, which provide a recurring revenue stream. Strategic partnerships with major industrial players enhance its market reach and contribute to its earnings by facilitating access to new markets and customer segments.

Nagano Keiki Co., Ltd. Financial Statement Overview

Summary

Nagano Keiki Co., Ltd. displays an impressive overall financial performance with consistent revenue and profit growth, efficient operational management, and strong cash flow generation. The company maintains a stable financial structure, though the relatively high debt level should be monitored.

Income Statement

Nagano Keiki Co., Ltd. shows strong revenue growth with a consistent increase over the years, especially evident from the latest revenue of 69.5 billion. The gross profit margin remained solid, and there was a noticeable improvement in net profit margin, indicating enhanced profitability. The EBITDA margin also improved, reflecting efficient operations. Overall, the income statement suggests robust financial performance with positive growth trends.

Balance Sheet

The balance sheet indicates a stable financial position with a healthy equity ratio showing strong shareholder equity relative to total assets. The debt-to-equity ratio is manageable, suggesting that the company isn't overly leveraged. The return on equity has shown improvement, highlighting effective use of equity capital. However, the total debt level has been relatively high, which could pose potential risks.

Cash Flow

Nagano Keiki Co., Ltd. demonstrates strong cash flow performance with a positive trend in free cash flow. The operating cash flow to net income ratio is robust, indicating effective cash generation relative to net income. The free cash flow to net income ratio also reflects good cash conversion. Despite the positive cash flow trends, a slight decline in free cash flow growth rate in the most recent period suggests room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	68.50B	69.54B	67.94B	60.54B	54.95B	44.81B
Gross Profit	21.68B	21.93B	21.35B	17.60B	15.68B	12.32B
EBITDA	11.60B	11.40B	9.46B	6.98B	5.88B	3.31B
Net Income	5.65B	6.05B	5.41B	3.41B	2.51B	865.17M
Balance Sheet
Total Assets	75.24B	74.41B	72.37B	62.86B	55.58B	50.82B
Cash, Cash Equivalents and Short-Term Investments	10.63B	10.12B	7.86B	7.41B	7.21B	8.07B
Total Debt	15.22B	14.62B	14.88B	15.77B	12.41B	13.04B
Total Liabilities	29.34B	29.75B	31.79B	29.55B	26.47B	25.16B
Stockholders Equity	44.99B	43.78B	39.77B	32.51B	28.34B	24.92B
Cash Flow
Free Cash Flow	318.13M	3.48B	3.65B	310.31M	575.51M	839.38M
Operating Cash Flow	878.85M	6.10B	6.24B	2.22B	2.81B	2.33B
Investing Cash Flow	-308.16M	-351.28M	-2.04B	-2.00B	-2.30B	-1.53B
Financing Cash Flow	-540.05M	-3.50B	-3.42B	-261.17M	-1.55B	545.95M

Nagano Keiki Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2431.00
• 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:7715, the sentiment is Positive. The current price of 2431 is below the 20-day moving average (MA) of 2623.80, below the 50-day MA of 2486.24, and above the 200-day MA of 2129.50, indicating a bullish trend. The MACD of 56.92 indicates Positive momentum. The RSI at 56.89 is Neutral, neither overbought nor oversold. The STOCH value of 51.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7715.

Nagano Keiki Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7715	80 Outperform	¥50.56B	9.51	―	1.94%	-4.17%	-7.07%
6850	80 Outperform	¥24.89B	13.08	―	2.89%	6.15%	2.98%
6863	75 Outperform	¥14.66B	10.59	―	5.39%	6.45%	26.58%
7500	75 Outperform	¥34.92B	12.50	―	2.29%	6.81%	12.70%
7723	73 Outperform	¥42.87B	9.79	―	3.21%	7.99%	50.13%
6853	72 Outperform	¥18.89B	18.33	―	2.93%	-1.58%	12.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%