Nice Corporation (8089) AI Stock Analysis

• Market Cap: ¥22.78B
• Dividend Yield: 3.36%
• Average Volume (3M): 7.22K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.49
• Revenue Growth: 10.01%
• EPS Growth: 47.35%
• Country: JP
• Employees: 2,504
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Distribution
• EPS (TTM): 25.58
• Shares Outstanding: 12,208,619
• 10 Day Avg. Volume: 6,260
• 30 Day Avg. Volume: 7,216
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,903.00
• Price Target Upside: -1.60% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥1,911.00 ▼(-1.19% Downside)

The overall stock score is primarily driven by strong technical indicators and attractive valuation metrics. While financial performance shows areas for improvement, particularly in profitability and cash flow, the stock's current valuation and technical momentum present a compelling investment case.

Nice Corporation Business Overview & Revenue Model

Company Description

Nice Corporation (8089) is a Japan-based company primarily engaged in the wholesale and retail of building materials and housing equipment. It operates through various segments, including the Building Materials segment, which involves the purchase and sale of wood products, building materials, and housing equipment. The company also engages in the construction business, providing construction work and housing construction services, and has a real estate segment that includes the sale and leasing of real estate properties.

How the Company Makes Money

Nice Corporation generates revenue through several key streams. The primary source is its Building Materials segment, where it earns money by distributing and selling wood products, building materials, and housing equipment to construction companies and retail customers. Additionally, the company gains revenue from its construction business by executing construction projects and providing housing construction services. Its real estate segment contributes to its earnings through the sale, leasing, and management of real estate properties. Furthermore, the company may form partnerships with construction firms and suppliers to enhance its product offerings and expand its market reach, contributing to its financial performance.

Nice Corporation Financial Statement Overview

Summary

Nice Corporation shows a mixed financial performance. Revenue growth is positive, but profitability and cash flow metrics indicate challenges. The balance sheet remains stable with moderate leverage, but there is room to improve returns. The company should focus on enhancing profitability and cash flow to strengthen its financial position.

Income Statement

Nice Corporation has demonstrated a stable revenue growth trajectory with a 7.6% increase in the latest year. However, the gross profit margin has slightly decreased to 14.3% from the previous year. The net profit margin has also declined to 1.2%, indicating pressure on profitability. The EBIT margin is relatively stable at 1.9%, but the EBITDA margin shows a slight improvement to 3.0%. Overall, while revenue growth is positive, profitability metrics suggest room for improvement.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.75, indicating a balanced approach to leveraging. The return on equity (ROE) is 5.1%, which is modest but stable. The equity ratio stands at 32.9%, reflecting a solid equity base. Overall, the balance sheet is stable with manageable leverage, but there is potential to enhance returns on equity.

Cash Flow

Nice Corporation experienced a significant decline in free cash flow, turning negative in the latest year. The operating cash flow to net income ratio is negative, indicating challenges in converting income to cash. The free cash flow to net income ratio is also negative. These metrics highlight potential liquidity concerns and the need to improve cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	243.05B	243.05B	225.87B	236.33B	229.51B	214.07B
Gross Profit	34.68B	34.68B	32.35B	32.07B	37.23B	32.01B
EBITDA	7.21B	7.30B	7.65B	7.10B	9.44B	5.99B
Net Income	2.87B	2.87B	4.20B	3.78B	4.48B	2.02B
Balance Sheet
Total Assets	171.04B	171.04B	161.31B	156.72B	157.92B	143.87B
Cash, Cash Equivalents and Short-Term Investments	30.07B	30.07B	41.77B	37.42B	33.11B	27.83B
Total Debt	41.90B	41.90B	40.85B	46.41B	51.72B	50.89B
Total Liabilities	109.37B	109.37B	104.33B	105.33B	109.38B	104.72B
Stockholders Equity	56.23B	56.23B	52.98B	48.00B	45.41B	36.28B
Cash Flow
Free Cash Flow	0.00	-9.04B	6.92B	10.50B	171.00M	14.12B
Operating Cash Flow	0.00	-4.93B	10.10B	12.96B	1.73B	15.83B
Investing Cash Flow	0.00	-7.52B	614.00M	-2.34B	-675.00M	-623.00M
Financing Cash Flow	0.00	45.00M	-6.62B	-5.98B	4.28B	-6.97B

Nice Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1934.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8089, the sentiment is Positive. The current price of 1934 is above the 20-day moving average (MA) of 1899.60, above the 50-day MA of 1806.28, and above the 200-day MA of 1616.35, indicating a bullish trend. The MACD of 28.55 indicates Positive momentum. The RSI at 72.82 is Negative, neither overbought nor oversold. The STOCH value of 87.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8089.

Nice Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9845	81 Outperform	¥30.63B	9.08		2.08%	0.43%	21.46%
8052	80 Outperform	¥57.25B	10.33		2.37%	16.43%	52.00%
8103	78 Outperform	¥33.99B	9.41		4.42%	-2.99%	14.80%
8089	73 Outperform	¥22.78B	7.19		3.36%	10.01%	47.35%
7417	73 Outperform	¥17.26B	8.14		4.01%	-1.64%	6.18%
7628	71 Outperform	¥29.48B	17.93		2.97%	0.49%	29.48%
Sector *	63 Neutral	$10.73B	15.32	7.39%	2.01%	2.86%	-14.57%

Nice Corporation Corporate Events

Nice Corporation Reports Fiscal Year 2025 Financial Results and Future Outlook

Nice Corporation reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 7.6% increase in net sales to 243,054 million yen. Despite this growth, the profit attributable to owners of the parent decreased by 31.7% to 2,872 million yen, indicating challenges in maintaining profitability. The company has announced an increase in annual dividends, reflecting a commitment to returning value to shareholders. Looking ahead, Nice Corporation forecasts continued growth in net sales and profits for the fiscal year ending March 31, 2026, suggesting a positive outlook for the company’s future performance.