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Nakanishi
(7716)
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Rating:66Neutral
Price Target:
¥3,402.00
▲(71.73% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid underlying financial position (strong balance sheet and cash generation) and a favorable uptrend in technicals. These positives are materially offset by the 2025 swing to a net loss (earnings volatility) and an exceptionally high P/E that makes the stock look expensive relative to current earnings.
Positive Factors
Balance sheet strength
Nakanishi's substantial equity base and moderate leverage provide durable financial flexibility. With debt roughly 0.23x equity in 2025, the company can absorb cyclical pressure, fund capex or distribution expansion, and withstand temporary earnings shocks without immediate liquidity strain.
Negative Factors
Earnings volatility
The swing to a net loss in 2025 signals material below-the-line volatility (non-operating items, taxes, or one-offs) that weakens earnings predictability. Persistent volatility can strain investor confidence and complicate planning for investments, dividends, and debt servicing over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Nakanishi's substantial equity base and moderate leverage provide durable financial flexibility. With debt roughly 0.23x equity in 2025, the company can absorb cyclical pressure, fund capex or distribution expansion, and withstand temporary earnings shocks without immediate liquidity strain.
Read all positive factors
Nakanishi (7716) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥256.20B
Dividend Yield1.91%
Average Volume (3M)128.45K
Price to Earnings (P/E)215.2
Beta (1Y)0.66
Revenue Growth9.95%
EPS Growth-79.87%
CountryJP
Employees2,204
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)14.10
Shares Outstanding92,218,200
10 Day Avg. Volume125,180
30 Day Avg. Volume128,446
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)1.45
Price to Sales (P/S)2.04
P/FCF Ratio13.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,633.33Price Target Upside83.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)153.99
Revenue Forecast (FY)¥91.84B
Nakanishi Business Overview & Revenue Model
Company Description
Nakanishi Inc. operates as an international producer and supplier of an extensive array of goods for the dental, industrial, and medical markets. Their comprehensive dental offerings feature turbines, clinical micromotors, contra-angles, in additi...
How the Company Makes Money
Nakanishi makes money primarily by selling precision rotary products and related items used in dentistry and medical procedures. Its core revenue stream is the sale of high-speed handpieces, micro-motors, and associated control units/attachments t...
Nakanishi Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 85.13B | 81.18B | 77.04B | 59.69B | 48.67B | 44.86B |
| Gross Profit | 46.66B | 44.59B | 40.39B | 34.15B | 30.39B | 26.60B |
| EBITDA | 12.05B | 9.29B | 19.59B | 32.27B | 19.40B | 15.80B |
| Net Income | 1.14B | -2.40B | 8.58B | 22.80B | 12.47B | 10.10B |
Balance Sheet | ||||||
| Total Assets | 165.78B | 160.16B | 158.30B | 140.77B | 102.64B | 94.46B |
| Cash, Cash Equivalents and Short-Term Investments | 60.70B | 62.80B | 47.11B | 32.65B | 38.19B | 41.75B |
| Total Debt | 32.70B | 26.77B | 18.73B | 11.67B | 480.80M | 100.00M |
| Total Liabilities | 49.37B | 46.08B | 37.10B | 27.60B | 11.61B | 11.54B |
| Stockholders Equity | 116.40B | 114.07B | 121.19B | 113.15B | 91.02B | 82.92B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 12.26B | 10.48B | 2.93B | 4.29B | 10.20B |
| Operating Cash Flow | 0.00 | 16.65B | 15.30B | 8.56B | 7.76B | 11.97B |
| Investing Cash Flow | 0.00 | -8.68B | -7.94B | -19.15B | -6.31B | -4.15B |
| Financing Cash Flow | 0.00 | 679.15M | 598.51M | 3.41B | -6.11B | -3.97B |
Nakanishi Technical Analysis
Positive
1981.00
Price Trends
3007.70
Positive
2902.51
Positive
2517.24
Positive
Market Momentum
30.80
Negative
58.30
Neutral
65.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7716, the sentiment is Positive. The current price of 1981 is below the 20-day moving average (MA) of 3061.50, below the 50-day MA of 3007.70, and below the 200-day MA of 2517.24, indicating a bullish trend. The MACD of 30.80 indicates Negative momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 65.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7716.
Nakanishi Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥75.26B | 15.35 | ― | 2.83% | 3.35% | 13.05% | |
76 Outperform | ¥953.31B | 31.30 | 19.68% | 1.36% | 15.13% | 196.11% | |
70 Outperform | ¥148.96B | 22.05 | ― | 2.73% | 9.94% | 10.50% | |
66 Neutral | ¥256.20B | 215.25 | 0.98% | 2.66% | 9.95% | -79.87% | |
66 Neutral | ¥2.00T | 29.66 | 8.94% | 1.65% | 1.34% | -40.41% | |
54 Neutral | ¥265.03B | 19.63 | 5.37% | 2.03% | 2.47% | 164.11% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Nakanishi Corporate Events
Nakanishi Leaves Share Buyback Authorization Untapped Through July 2026
Aug 3, 2026
Nakanishi Inc. reported that, under its ongoing share repurchase program authorized in February 2026, it acquired no common shares during the period from July 1 to July 31, 2026, resulting in zero repurchase cost for the month. As of July 31, the ...
Nakanishi Reports No Share Buybacks Yet Under 2026 Repurchase Program
Jul 1, 2026
Nakanishi Inc. reported the status of its ongoing share repurchase program authorized by its board in February 2026, which permits buybacks of up to 1.5 million common shares, or 1.81% of outstanding stock, for a maximum of JPY 2.5 billion through...
Nakanishi Sets Final Terms for Director Stock Option Compensation
Jun 3, 2026
Nakanishi Inc. has finalized the terms for issuing compensation-type stock options, originally approved by its board in May 2026, as part of its executive remuneration framework. The company will allocate 15 units of stock acquisition rights to th...
Nakanishi Completes Treasury Share Disposal for Overseas Executive Incentive Plan
Jun 1, 2026
Nakanishi Inc. has completed payment procedures for the disposal of 2,100 treasury shares under its post-delivery restricted stock unit plan, originally approved by the board on May 14, 2026. The shares, allocated to three managing directors of th...
Nakanishi Reports No Share Buybacks Yet Under 2026 Repurchase Program
Jun 1, 2026
Nakanishi Inc. reported that, under its ongoing share repurchase program authorized by the board on February 12, 2026, it did not buy back any of its common shares during the period from May 1 to May 31, 2026. As a result, both the total number of...
Nakanishi Introduces Long-Term Stock Options to Align Director Pay With Performance
May 14, 2026
Nakanishi Inc. has approved the issuance of compensation-type stock options in the form of stock acquisition rights to three company directors, aligning their remuneration more closely with business performance and shareholder interests. The progr...
Nakanishi to Allocate Treasury Shares Under RSU Plan for Overseas Executives
May 14, 2026
Nakanishi Inc. has approved the disposal of 2,100 treasury shares under its post-delivery restricted stock unit plan for managing directors of overseas subsidiaries, scheduled for June 1, 2026. The shares, priced at ¥2,688 each for a total of...
Nakanishi Delivers Strong Q1 2026 Earnings and Plans Higher Dividend
May 14, 2026
Nakanishi reported strong consolidated results for the first quarter ended March 31, 2026, with net sales rising 21.3% year on year to ¥22.49 billion and operating income jumping 39.1% to ¥4.68 billion. Ordinary income more than doubled,...
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.