Nakanishi (7716) AI Stock Analysis

• Market Cap: €177.65B
• Dividend Yield: 2.59%
• Average Volume (3M): 128.45K
• Price to Earnings (P/E): 34.5
• Beta (1Y): 0.67
• Revenue Growth: 5.43%
• EPS Growth: -20.67%
• Country: JP
• Employees: 2,180
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 32.01
• Shares Outstanding: 93,418,200
• 10 Day Avg. Volume: 125,180
• 30 Day Avg. Volume: 128,446
• PEG Ratio: -0.38
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 2.64
• P/FCF Ratio: 20.22
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥2,222.00 ▲(10.82% Upside)

Nakanishi's strong financial performance, characterized by significant revenue growth and efficient cash flow management, is the primary driver of its stock score. Technical indicators suggest neutral momentum, while the high P/E ratio indicates potential overvaluation. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Significant revenue growth indicates robust business expansion and strong market demand for Nakanishi's products, supporting long-term sustainability.

Cash Flow Management

Strong cash flow growth highlights effective cash generation and capital expenditure management, ensuring financial flexibility and stability.

Balance Sheet Health

A strong equity base and low leverage enhance Nakanishi's financial stability, reducing risk and supporting long-term operational resilience.

Negative Factors

Net Income Decline

A decline in net income can affect profitability and return on equity, potentially limiting reinvestment capabilities and shareholder returns.

ROE Impact

A lower ROE indicates reduced efficiency in generating profits from equity, which may impact investor confidence and long-term growth prospects.

Operating Cash Flow Growth

Moderate operating cash flow growth relative to revenue suggests potential challenges in converting sales into cash, impacting liquidity management.

Nakanishi Business Overview & Revenue Model

Company Description

Nakanishi (7716) is a Japanese company that specializes in the manufacturing of precision tools and equipment for various sectors, including dental, medical, and industrial applications. The company is renowned for its innovative products such as dental handpieces, surgical instruments, and cutting tools that are designed to enhance operational efficiency and precision in their respective fields. With a focus on quality and technology, Nakanishi serves a global market, catering to the needs of professionals in healthcare and manufacturing.

How the Company Makes Money

Nakanishi generates revenue primarily through the sale of its precision tools and instruments, which are in high demand in the dental and medical sectors. The company’s revenue model is multifaceted, including direct sales to healthcare providers and distributors, as well as partnerships with medical and dental equipment suppliers. Key revenue streams include sales from dental handpieces, surgical equipment, and industrial cutting tools. Additionally, Nakanishi may benefit from ongoing service contracts, maintenance agreements, and training programs for its products, which provide a steady source of recurring income. Strategic collaborations with industry leaders and participation in global trade fairs further enhance their market reach and contribute to revenue growth.

Nakanishi Financial Statement Overview

Summary

Nakanishi exhibits strong financial health with significant revenue growth of 29.05% and efficient cash flow management, evidenced by a 287.01% increase in free cash flow. 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	77.67B	77.04B	59.69B	48.67B	44.86B	33.06B
Gross Profit	43.93B	44.42B	36.09B	31.22B	27.30B	19.73B
EBITDA	18.57B	19.59B	32.30B	19.40B	15.80B	10.88B
Net Income	5.06B	8.58B	22.80B	12.47B	10.10B	6.46B
Balance Sheet
Total Assets	153.77B	158.30B	140.71B	102.15B	94.46B	82.47B
Cash, Cash Equivalents and Short-Term Investments	47.81B	47.11B	32.65B	36.18B	37.41B	33.67B
Total Debt	20.57B	18.73B	11.67B	480.80M	100.00M	100.00M
Total Liabilities	36.47B	37.10B	27.51B	11.13B	11.54B	6.20B
Stockholders Equity	117.30B	121.19B	113.19B	91.02B	82.92B	76.27B
Cash Flow
Free Cash Flow	0.00	10.05B	2.60B	3.78B	9.62B	7.99B
Operating Cash Flow	0.00	15.30B	8.56B	7.76B	11.97B	9.18B
Investing Cash Flow	0.00	-7.94B	-19.15B	-6.31B	-4.15B	-1.38B
Financing Cash Flow	0.00	598.51M	3.41B	-6.11B	-3.97B	-2.69B

Nakanishi Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2005.00
• 50DMA: Negative
• 100DMA: Negative
• 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:7716, the sentiment is Neutral. The current price of 2005 is below the 20-day moving average (MA) of 2017.30, below the 50-day MA of 2057.38, and above the 200-day MA of 1994.65, indicating a neutral trend. The MACD of -25.40 indicates Positive momentum. The RSI at 48.15 is Neutral, neither overbought nor oversold. The STOCH value of 48.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7716.

Nakanishi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7817	76 Outperform	$190.59B	21.79	6.47%	3.17%	1.96%	22.78%
3360	75 Outperform	$219.10B	15.77	10.19%	2.29%	8.90%	-3.71%
7730	73 Outperform	¥139.70B	30.08	―	2.75%	5.10%	-26.13%
7979	69 Neutral	¥65.94B	14.44	―	2.85%	3.69%	1.86%
7716	66 Neutral	€177.65B	34.47	5.66%	2.59%	5.43%	-20.67%
8086	62 Neutral	¥234.45B	21.53	4.38%	2.09%	6.04%	733.13%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Nakanishi Corporate Events

Nakanishi Inc. Updates on Share Repurchase Program

Nakanishi Inc. announced the status of its share repurchase program, with 1,416,300 shares repurchased at a cost of JPY 2,926,825,900 as of November 30, 2025. The program aims to repurchase up to 2,000,000 shares by the end of December 2025, reflecting the company’s strategic financial management and potential impact on shareholder value.

Nakanishi Inc. Reports Decline in Q3 2025 Financial Performance

Nakanishi Inc. reported a decline in its financial performance for the third quarter of 2025, with net sales increasing slightly by 3.8%, but operating income and ordinary income decreasing by 7.5% and 11.0% respectively. The company’s equity ratio also saw a decrease from 76.3% to 73.3%. Despite these challenges, Nakanishi plans to increase its year-end dividend, indicating a commitment to shareholder returns.

Nakanishi Inc. Updates on Share Repurchase Program

Nakanishi Inc. announced the status of its share repurchase program, initially resolved in February 2025. As of October 31, 2025, the company has repurchased 1,277,700 shares at a cost of JPY 2,652,962,400, with plans to repurchase up to 2,000,000 shares by the end of December 2025. This move is part of the company’s strategy to enhance shareholder value and optimize its capital structure.

Nakanishi Inc. Updates on Share Repurchase Program

Nakanishi Inc. announced the status of its share repurchase program, initially resolved in February 2025. The company plans to repurchase up to 2,000,000 shares, representing 2.37% of outstanding shares, with a maximum cost of JPY 3 billion. As of September 30, 2025, they have repurchased 1,277,700 shares at a cost of JPY 2.65 billion. This move could impact the company’s market positioning and shareholder value.