NIPPON GAS Co (8174) AI Stock Analysis

• Market Cap: €290.16B
• Dividend Yield: 3.48%
• Average Volume (3M): 254.36K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.41
• Revenue Growth: 2.93%
• EPS Growth: 8.93%
• Country: JP
• Employees: 1,716
• Sector: Energy
• Sector Strength: 47
• Industry: Regulated Gas
• EPS (TTM): 51.23
• Shares Outstanding: 112,827,194
• 10 Day Avg. Volume: 219,520
• 30 Day Avg. Volume: 254,363
• PEG Ratio: 2.60
• Price to Book (P/B): 2.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.42
• 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: €3,179.20
• Price Target Upside: 19.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥2,969.00 ▲(12.00%Upside)

The overall stock score is driven primarily by strong financial performance, with stable profitability and growth. Technical analysis indicates positive momentum, supporting a favorable stock outlook. Valuation is a mixed factor due to a high P/E ratio, though the dividend yield remains attractive.

NIPPON GAS Co Business Overview & Revenue Model

Company Description

Nippon Gas Co., Ltd. engages in the supply and sale of LP gas and natural gas in Japan. It operates through LP Gas Business, Electricity Business, and City Gas Business segments. The company supplies LP gas through pipelines to homes built for sale, company dormitories, apartment buildings, other residential apartment complexes, as well as for commercial, industrial, agricultural, and automotive use; and high-pressure gas for commercial and industrial use. It also sells glass-top stoves, built-in stoves, gas oven ranges, gas rice cookers, dishwashers; gas water heaters, instant water heaters, floor heating products, bathroom heater/ventilation/dryer combo systems, and mist saunas; and commercial and industrial gas appliances. In addition, the company sells air-conditioning equipment, including gas and absorption heat pumps, cogeneration systems, and gas infrared heaters; remodeling-related equipment; and household equipment, as well as offers accident insurance agency services. Further, it engages in residential remodeling and consulting business; and the construction of gas, water supply, drainage, and air conditioning/heating equipment. Additionally, the company is involved in the electric power and gas business. Nippon Gas Co., Ltd. was founded in 1955 and is based in Tokyo, Japan.

How the Company Makes Money

NIPPON GAS Co. makes money primarily through the sale and distribution of LPG and natural gas to residential, commercial, and industrial clients. The company's revenue model is driven by the volume of gas sold and the contractual rates agreed upon with its customers. In addition to gas sales, NIPPON GAS Co. generates income from the electricity retail business, where it competes in the deregulated Japanese electricity market. The company also earns revenue through service contracts for the installation and maintenance of gas-related equipment and energy consulting services designed to help clients improve energy efficiency. Key factors contributing to its earnings include stable demand for energy in Japan, strategic pricing, and the expansion of its service offerings, including partnerships with local governments and businesses to promote energy conservation.

NIPPON GAS Co Financial Statement Overview

Summary

NIPPON GAS Co shows a solid financial performance with stable margins and strong cash flows. The company maintains profitability and growth, though increasing debt levels warrant monitoring.

Income Statement

The company's income statement shows a stable gross profit margin and improving net profit margin. The revenue has generally increased over the years, with a slight dip in the most recent period. EBIT and EBITDA margins are consistent, reflecting efficient operations. Overall, the financial performance is strong with healthy margins.

Balance Sheet

The balance sheet displays a reasonable debt-to-equity ratio and a stable return on equity, suggesting effective use of equity. The equity ratio indicates a solid capital structure with a relatively low reliance on debt. However, the debt levels have increased recently, which could pose a risk if not managed carefully.

Cash Flow

The company exhibits strong free cash flow growth, highlighting efficient cash management. The operating cash flow to net income ratio suggests robust cash generation relative to profits. There is a positive trend in free cash flow over the years, indicating financial flexibility and the ability to invest or reduce debt.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	200.06B	194.36B	207.89B	162.55B	143.49B
Gross Profit	63.29B	73.62B	69.82B	66.59B	67.79B
EBITDA	28.35B	26.49B	26.71B	24.65B	24.74B
Net Income	11.55B	10.82B	10.57B	9.97B	9.37B
Balance Sheet
Total Assets	156.02B	159.22B	153.43B	153.81B	140.12B
Cash, Cash Equivalents and Short-Term Investments	19.81B	18.99B	13.05B	17.02B	12.45B
Total Debt	46.94B	47.19B	40.58B	45.94B	41.51B
Total Liabilities	88.57B	86.50B	79.90B	81.92B	70.78B
Stockholders Equity	67.45B	72.72B	73.53B	71.89B	69.34B
Cash Flow
Free Cash Flow	22.15B	13.79B	11.92B	10.94B	602.00M
Operating Cash Flow	27.92B	23.44B	19.59B	20.69B	16.07B
Investing Cash Flow	-8.81B	-9.19B	-7.58B	-8.79B	-14.51B
Financing Cash Flow	-18.39B	-8.71B	-16.07B	-7.41B	-5.71B

NIPPON GAS Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2651.00
• 50DMA: Positive
• 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:8174, the sentiment is Positive. The current price of 2651 is above the 20-day moving average (MA) of 2630.10, above the 50-day MA of 2589.11, and above the 200-day MA of 2264.37, indicating a bullish trend. The MACD of 25.86 indicates Positive momentum. The RSI at 58.88 is Neutral, neither overbought nor oversold. The STOCH value of 54.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8174.

NIPPON GAS Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8174	78 Outperform	€290.16B	25.42	16.52%	3.48%	2.93%	8.93%
Sector *	67 Neutral	$14.91B	9.64	6.38%	5.29%	4.12%	-66.77%
THOGF		$2.75B	17.17	5.51%	1.88%	―	―
XSG		€384.11M	9.72	6.29%	3.98%	―	―
1KS		€468.12M	8.37	7.82%	3.83%	―	―
9534	78 Outperform	¥52.78B	5.05		3.02%	-2.06%	-10.54%
9539	64 Neutral	¥35.89B	10.91		2.00%	0.03%	―

NIPPON GAS Co Corporate Events

Nippon Gas Co. Extends Stock-Based Compensation Plan for Executives

Nippon Gas Co., Ltd. has announced the continuation and revision of its stock-based compensation plan for executives, extending it for another five years. The plan aims to enhance shareholder value by increasing the maximum contribution amount and adjusting the number of shares issued, thereby strengthening executives’ motivation to improve business productivity and financial results.

NIPPON GAS Co. Reports Strong Fiscal Year 2025 Results and Strategic Expansion

NIPPON GAS Co., Ltd. reported a positive financial performance for the fiscal year ending March 31, 2025, with increases in net sales, operating income, and profit attributable to owners of the parent. The company also announced a significant increase in annual dividends, reflecting its strong financial position and commitment to returning value to shareholders. The acquisition of Kadokura Co., Ltd. indicates strategic expansion, potentially enhancing its market presence and operational capabilities.