Nakanishi (7716) AI Stock Analysis

• Market Cap: ¥164.81B
• Dividend Yield: 2.7%
• Average Volume (3M): 155.92K
• Price to Earnings (P/E): 28.8
• Beta (1Y): 0.75
• Revenue Growth: 20.53%
• EPS Growth: -75.16%
• Country: JP
• Employees: 2,180
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 5.23
• Shares Outstanding: 93,418,200
• 10 Day Avg. Volume: 166,790
• 30 Day Avg. Volume: 155,923
• PEG Ratio: 0.71
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 57.99
• 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

• Rating: 75 Outperform
• Price Target: ¥2,104.00 ▲(12.51%Upside)

Nakanishi's overall stock score reflects its strong financial performance, characterized by significant revenue growth and efficient cash flow management. While technical analysis indicates neutral market sentiment, a high P/E ratio suggests potential overvaluation. The absence of earnings call and corporate event data limits further insights.

Nakanishi Business Overview & Revenue Model

Company Description

Nakanishi Inc. manufactures and sells dental, industrial, and medical products worldwide. The company offers turbines; clinical micromotors; contra-angles; and built-in, mobile dentistry, oral hygiene, endodontic, surgical, dental laboratory, and hygiene and maintenance products. It also offers motor spindles, and micro gridlers and tools. The company serves automotive, micromechanics, electronics, medical, die/mold, aerospace, and energy industries. Nakanishi Inc. was founded in 1930 and is headquartered in Kanuma, Japan.

How the Company Makes Money

Nakanishi Inc. generates revenue through the manufacture and sale of precision instruments and equipment in the dental and medical sectors. The company’s primary revenue stream comes from its dental products, including high-speed and low-speed handpieces, which are essential tools for dental professionals worldwide. Nakanishi also earns income from its medical instruments, such as surgical handpieces and ultrasonic devices, which cater to various medical procedures. The company leverages its strong reputation for quality and innovation to maintain a competitive edge in the global market. Additionally, Nakanishi has established significant partnerships and distribution networks, enhancing its market presence and facilitating international sales, which contribute substantially to its earnings.

Nakanishi Financial Statement Overview

Summary

Nakanishi exhibits strong financial health with significant revenue growth and efficient cash flow management. The company maintains a robust balance sheet with low leverage, though the recent decline in net income impacts profitability metrics.

Income Statement

Nakanishi shows strong revenue growth with a notable increase of 29.05% from 2023 to 2024, indicating a healthy business expansion. The gross profit margin is robust at 57.66% for 2024, suggesting efficient production and cost management. Despite a decline in net income from 2023 to 2024, the net profit margin remains solid at 11.13%. EBIT and EBITDA margins are strong at 18.94% and 26.55% respectively, showcasing operational efficiency.

Balance Sheet

Nakanishi maintains a strong equity base with an equity ratio of 76.55% in 2024, indicating financial stability and low leverage. The debt-to-equity ratio is low at 0.15, reflecting prudent debt management. However, there is a significant decline in net income impacting the ROE, which stands at 7.08% for 2024, down from previous years.

Cash Flow

The company demonstrates impressive free cash flow growth of 287.01% from 2023 to 2024, highlighting effective cash generation. The operating cash flow to net income ratio is 1.78, indicating strong cash conversion. The free cash flow to net income ratio is 1.17, reflecting efficient capital expenditure management. However, the operating cash flow growth is moderate compared to revenue growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.04B	59.69B	48.67B	44.86B	33.06B
Gross Profit	44.42B	36.09B	31.22B	27.30B	19.73B
EBITDA	19.59B	32.30B	19.40B	15.80B	10.88B
Net Income	8.58B	22.80B	12.47B	10.10B	6.46B
Balance Sheet
Total Assets	158.30B	140.71B	102.15B	94.46B	82.47B
Cash, Cash Equivalents and Short-Term Investments	47.11B	32.65B	36.18B	37.41B	33.67B
Total Debt	18.73B	11.67B	480.80M	100.00M	100.00M
Total Liabilities	37.10B	27.51B	11.13B	11.54B	6.20B
Stockholders Equity	121.19B	113.19B	91.02B	82.92B	76.27B
Cash Flow
Free Cash Flow	10.05B	2.60B	3.78B	9.62B	7.99B
Operating Cash Flow	15.30B	8.56B	7.76B	11.97B	9.18B
Investing Cash Flow	-7.94B	-19.15B	-6.31B	-4.15B	-1.38B
Financing Cash Flow	598.51M	3.41B	-6.11B	-3.97B	-2.69B

Nakanishi Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1870.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7716, the sentiment is Negative. The current price of 1870 is below the 20-day moving average (MA) of 1871.03, above the 50-day MA of 1858.69, and below the 200-day MA of 2206.33, indicating a neutral trend. The MACD of 6.89 indicates Negative momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 67.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7716.

Nakanishi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7716	75 Outperform	¥164.81B	28.81	4.78%	2.70%	20.53%	-75.16%
Sector *	52 Neutral	$7.50B	0.31	-61.87%	2.27%	17.10%	1.59%
5FA		€1.26B	39.69	2.07%	3.04%	―	―
PBHDF		$939.40M	16.60	6.55%	0.03%	―	―
SHHPF		$1.21B	12.41	10.34%	2.89%	―	―
7730	76 Outperform	¥121.62B	20.15		2.59%	11.54%	-8.30%
7979	61 Neutral	¥70.51B	16.26		3.14%	15.55%	42.14%

Nakanishi Corporate Events

Nakanishi Inc. Updates on Share Repurchase Program

Nakanishi Inc. announced the status of its share repurchase program, resolved in February 2025, aiming to repurchase up to 2,000,000 common shares by the end of December 2025. As of June 30, 2025, the company has repurchased 1,084,100 shares, reflecting a significant step in its financial strategy, impacting its market positioning and shareholder value.

Nakanishi Inc. Updates on Share Repurchase Program

Nakanishi Inc. announced the status of its share repurchase program, which was resolved in a Board of Directors meeting in February 2025. The company has repurchased 1,084,100 shares at a cost of JPY 2,253,016,800 as of May 31, 2025, with plans to repurchase up to 2,000,000 shares by the end of the year. This move is part of Nakanishi’s strategy to enhance shareholder value and optimize its capital structure.

Nakanishi Finalizes Stock Option Terms for Directors

Nakanishi Inc. has finalized the terms for issuing compensation-type stock options to three of its directors, with a total of 15 units being allocated. This decision, resolved at a board meeting, reflects the company’s commitment to aligning executive incentives with its strategic goals, potentially impacting its operational focus and stakeholder interests.

Nakanishi Inc. Issues Stock Options to Align Director Compensation with Performance

Nakanishi Inc. has announced the issuance of stock acquisition rights as compensation-type stock options for its directors, aiming to align director compensation with business performance and shareholder interests. This strategic move is expected to strengthen the company’s operational efficiency and market positioning by incentivizing its leadership team.

Nakanishi Inc. Revises Financial Forecasts Following Tax Audit

Nakanishi Inc. plans to file an amended tax return following a tax audit by the KantoShinetsu Regional Taxation Bureau, which identified that certain overseas subsidiaries should be taxed in Japan. This has led to a revision of the company’s financial forecasts for the fiscal year ending December 31, 2025, with a decrease in profit attributable to owners of the parent due to additional income taxes. Despite this, the dividend forecast remains unchanged. The company is taking steps to improve its tax compliance framework and is monitoring the potential impact of U.S. tariff policies on its business.

Nakanishi Inc. Faces Financial Challenges in Q1 2025

Nakanishi Inc. reported a challenging first quarter for 2025, with a decline in key financial metrics compared to the previous year. The company experienced a decrease in net sales, operating income, and ordinary income, with income attributable to owners of the parent dropping significantly. Despite these setbacks, Nakanishi maintains a strong equity ratio and has forecasted a slight increase in annual dividends, indicating a cautious optimism for the remainder of the year.

Nakanishi Inc. Updates on Share Repurchase Program

Nakanishi Inc. announced the status of its share repurchase program, which was resolved at the Board of Directors meeting on February 12, 2025. The company repurchased 246,600 shares in April 2025 at a cost of JPY 449,986,600, with a plan to repurchase up to 2,000,000 shares by the end of the year. This move is part of Nakanishi’s strategy to enhance shareholder value and reflects its strong financial position.

Nakanishi Completes Restricted Stock Compensation Disposal

Nakanishi Inc. has completed the payment procedures for the disposal of 4,000 shares as restricted stock compensation, a decision made during a board meeting on March 21, 2025. This move reflects the company’s strategic approach to managing its equity and compensating its directors and corporate vice presidents, potentially impacting its financial positioning and stakeholder interests.