Nice Corporation (8089) AI Stock Analysis

• Market Cap: ¥20.98B
• Dividend Yield: 3.85%
• Average Volume (3M): 4.53K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.48
• Revenue Growth: 10.01%
• EPS Growth: 47.35%
• Country: JP
• Employees: 2,504
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 25.58
• Shares Outstanding: 12,247,639
• 10 Day Avg. Volume: 4,820
• 30 Day Avg. Volume: 4,526
• PEG Ratio: -0.20
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.08
• P/FCF Ratio: -2.07
• 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: ¥1,838.00
• Price Target Upside: 4.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: ¥1,838.00 ▲(4.14% Upside)

The overall stock score reflects a mixed outlook. The most significant factor is the bearish technical analysis, indicating potential short-term challenges. However, the valuation is attractive with a low P/E ratio and a solid dividend yield, suggesting potential long-term value. Financial performance shows stable revenue growth but highlights the need for improved profitability and cash flow management.

Nice Corporation Business Overview & Revenue Model

Company Description

Nice Corporation imports, distributes, and sells building materials for housing in Japan and internationally. It engages in the manufacture, processing, and sale of wood products; lumbering and processing of wood; development and sale of solar power generation systems and storage batteries; wholesale of lumber products, structural structures, and housing equipment; and provision of mortgage consultation and insurance services. The company is also involved in the construction and sale of single-family houses, detached houses, seismic isolation structures, wooden buildings, and housing for the elderly, as well as custom-built houses, including shrines and temples; brokerage, management, and rental of condominiums; design, construction, an mediation of construction and contracting works; real estate sale and lease, and interior construction and renovation activities; and provision of housing consultation services. In addition, it engages in the development and sale of software for the wood and housing industry; collecting, processing, and providing information; operation and management of housing history; and freight forwarding and warehousing, building equipment management, cleaning, nursing care, cable TV, and internet and landline businesses. The company was formerly known as Nice Holdings, Inc. and changed its name to Nice Corporation in March 2020. Nice Corporation was founded in 1950 and is headquartered in Yokohama, Japan.

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	250.91B	243.05B	225.87B	236.33B	229.51B	214.07B
Gross Profit	35.80B	34.68B	32.35B	32.07B	37.23B	32.01B
EBITDA	8.06B	7.30B	7.65B	7.10B	9.44B	5.99B
Net Income	3.17B	2.87B	4.20B	3.78B	4.48B	2.02B
Balance Sheet
Total Assets	170.32B	171.04B	161.31B	156.72B	157.92B	143.87B
Cash, Cash Equivalents and Short-Term Investments	24.67B	30.07B	41.77B	37.42B	33.11B	27.83B
Total Debt	46.41B	41.90B	40.85B	46.41B	51.72B	50.89B
Total Liabilities	108.82B	109.37B	104.33B	105.33B	109.38B	104.72B
Stockholders Equity	56.03B	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: Negative
• Last Price: 1765.00
• 50DMA: Negative
• 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:8089, the sentiment is Negative. The current price of 1765 is below the 20-day moving average (MA) of 1832.22, below the 50-day MA of 1855.34, and above the 200-day MA of 1636.62, indicating a neutral trend. The MACD of -25.14 indicates Positive momentum. The RSI at 31.17 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8089.

Nice Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8103	78 Outperform	¥35.16B	9.74	―	4.24%	-2.99%	14.80%
7417	77 Outperform	¥17.52B	8.26	―	4.03%	-1.64%	6.18%
9845	72 Outperform	¥28.03B	8.31	―	2.43%	0.43%	21.46%
8052	68 Neutral	¥50.28B	9.07	―	3.07%	16.43%	52.00%
7628	67 Neutral	¥26.59B	16.17	―	3.36%	0.49%	29.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8089	59 Neutral	¥20.98B	6.60	―	3.85%	10.01%	47.35%

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.