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NIPPON GAS Co
(8174)
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Rating:72Outperform
Price Target:
¥3,275.00
▲(8.88% Upside)
Action:Upgraded
Date:07/31/26
The score is driven primarily by improving profitability and solid free cash flow generation, supporting a stable financial profile. Technicals add support with the stock trading above major moving averages and exhibiting low volatility. The main offsets are a somewhat elevated P/E for a regulated business and a gradual rise in leverage alongside uneven cash conversion.
Positive Factors
Improving profitability
Margins have meaningfully expanded versus prior years (EBIT margin ~7.4% in 2023 to ~10.3% in 2026/TTM). For a regulated LP gas distributor, sustained higher margins reflect operational efficiency and pricing pass-through, supporting durable cash generation and resilience over months.
Negative Factors
Rising leverage
Leverage has increased materially from ~0.55 to ~0.75, reducing financial headroom. Higher debt levels heighten interest-rate and refinancing sensitivity, limit strategic flexibility, and could constrain capital returns or investment if cash generation weakens or rates rise over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability
Margins have meaningfully expanded versus prior years (EBIT margin ~7.4% in 2023 to ~10.3% in 2026/TTM). For a regulated LP gas distributor, sustained higher margins reflect operational efficiency and pricing pass-through, supporting durable cash generation and resilience over months.
Read all positive factors
NIPPON GAS Co (8174) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥303.47B
Dividend Yield3.61%
Average Volume (3M)291.71K
Price to Earnings (P/E)20.8
Beta (1Y)0.20
Revenue Growth5.57%
EPS Growth18.57%
CountryJP
Employees1,764
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)137.12
Shares Outstanding107,951,800
10 Day Avg. Volume227,610
30 Day Avg. Volume291,713
Financial Highlights & Ratios
PEG Ratio0.70
Price to Book (P/B)4.75
Price to Sales (P/S)1.53
P/FCF Ratio14.37
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)135.82
Revenue Forecast (FY)¥224.82B
NIPPON GAS Co Business Overview & Revenue Model
Company Description
Nippon Gas Co., Ltd. is primarily engaged in the distribution and sale of liquefied petroleum (LP) gas and natural gas across Japan. Its operations are organized into distinct LP Gas, Electricity, and City Gas business segments. Through pipeline n...
How the Company Makes Money
NIPPON GAS makes money primarily by selling energy—especially LP gas—to end customers and charging for associated services required to deliver and safely use that energy. Key revenue streams generally include: (1) LP gas sales revenue, earned by p...
NIPPON GAS Co Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
71
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 212.53B | 208.48B | 200.06B | 194.36B | 207.94B | 162.55B |
| Gross Profit | 76.72B | 66.27B | 63.29B | 62.48B | 58.30B | 54.81B |
| EBITDA | 31.90B | 31.93B | 28.35B | 26.49B | 26.78B | 26.47B |
| Net Income | 14.78B | 14.81B | 11.55B | 10.82B | 10.57B | 9.97B |
Balance Sheet | ||||||
| Total Assets | 150.42B | 163.59B | 156.07B | 159.56B | 154.93B | 153.90B |
| Cash, Cash Equivalents and Short-Term Investments | 18.45B | 23.93B | 19.81B | 18.99B | 13.05B | 17.02B |
| Total Debt | 49.62B | 49.96B | 46.94B | 47.19B | 40.58B | 45.94B |
| Total Liabilities | 85.61B | 96.11B | 88.61B | 86.83B | 80.63B | 82.00B |
| Stockholders Equity | 64.26B | 66.98B | 67.45B | 72.72B | 74.30B | 71.89B |
Cash Flow | ||||||
| Free Cash Flow | 22.25B | 22.14B | 22.15B | 17.36B | 15.10B | 13.32B |
| Operating Cash Flow | 28.35B | 28.19B | 27.92B | 23.44B | 19.59B | 20.69B |
| Investing Cash Flow | -6.93B | -7.16B | -8.81B | -9.19B | -7.58B | -8.79B |
| Financing Cash Flow | -16.58B | -16.68B | -18.39B | -8.71B | -16.07B | -7.41B |
NIPPON GAS Co Technical Analysis
Negative
3008.00
Price Trends
2815.21
Negative
2841.34
Negative
2872.92
Negative
Market Momentum
-5.00
Positive
39.54
Neutral
8.80
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8174, the sentiment is Negative. The current price of 3008 is above the 20-day moving average (MA) of 2865.70, above the 50-day MA of 2815.21, and above the 200-day MA of 2872.92, indicating a bearish trend. The MACD of -5.00 indicates Positive momentum. The RSI at 39.54 is Neutral, neither overbought nor oversold. The STOCH value of 8.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8174.
NIPPON GAS Co Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥93.44B | 8.91 | 8.20% | 3.89% | -2.47% | 15.81% | |
72 Outperform | ¥303.47B | 20.79 | 22.86% | 3.28% | 5.57% | 18.57% | |
66 Neutral | ¥87.42B | 9.71 | 6.54% | 3.61% | -3.23% | 12.39% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
63 Neutral | ¥2.11T | 15.24 | 8.93% | 2.17% | 1.99% | 95.71% | |
63 Neutral | ¥2.07T | 13.07 | 13.96% | 1.75% | 6.07% | 11.20% | |
59 Neutral | ¥425.41B | 17.53 | 6.82% | 1.86% | -5.50% | -8.68% |
* Utilities Sector Average
JP:8174
NIPPON GAS Co
2,782.00
-2.15
-0.08%
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NIPPON GAS Co Corporate Events
Nippon Gas Beats Q1 Targets on Strong LP Gas and Margin Gains
Jul 30, 2026
Nippon Gas Co., Ltd. is a Japanese energy utility engaged in LP gas, city gas, electricity and platform services for residential and commercial and industrial users. The company also grows its gas-related equipment business, using a diversified en...
NIPPON GAS Delivers Higher Sales but Lowers Full-Year Profit Outlook
Jul 30, 2026
NIPPON GAS Co., Ltd. reported consolidated net sales of ¥49,910 million for the quarter ended 30 June 2026, up 8.8% year on year, with operating income rising 5.0% to ¥3,836 million while profit attributable to owners of parent slipped 1...
Nippon Gas Reports Early Progress on Share Buyback Program
Jul 1, 2026
Nippon Gas announced progress on its ongoing share repurchase program, disclosing that it bought back 63,100 common shares on the Tokyo Stock Exchange between June 1 and June 30, 2026, for a total of about ¥170.7 million. This activity forms ...
Nippon Gas Corrects Data on Share Buyback Progress
Jun 2, 2026
Nippon Gas has issued a correction to its previously announced progress report on the repurchase of its own shares conducted under Article 165-2 of the Companies Act. The company acknowledged an error in the June 1 disclosure and updated the figur...
Nippon Gas Yet to Start Share Buyback Despite ¥3 Billion Authorization
Jun 1, 2026
Nippon Gas Co., Ltd. reported that, despite board authorization to repurchase up to 1.5 million shares for a maximum of ¥3 billion, it has not bought back any of its own stock as of May 31, 2026. The repurchase program, conducted via market p...
Nippon Gas Launches Share Buyback to Boost Capital Efficiency
May 15, 2026
Nippon Gas Co., Ltd. has authorized a share repurchase of up to 1.5 million common shares, equal to about 1.4% of its outstanding stock, for a maximum of 3.0 billion yen through market purchases on the Tokyo Stock Exchange between May 18, 2026, an...
Nippon Gas Completes Cancellation of 4.3% of Treasury Shares
May 14, 2026
Nippon Gas Co., Ltd. has completed the cancellation of 4,875,400 shares of its treasury stock, equivalent to 4.3% of its total issued shares prior to cancellation. The move, executed on May 14, 2026 under a resolution by the board of directors, re...
Nippon Gas Cancels 4.3% of Shares to Streamline Capital Structure
May 14, 2026
Nippon Gas has completed the cancellation of 4,875,400 common shares of its treasury stock, representing 4.3% of its total issued shares prior to the move. The cancellation, executed on May 14, 2026 following an April 30 board resolution, reduces ...
Nippon Gas to Cancel 4.3% of Shares in Capital Optimization Move
Apr 30, 2026
Nippon Gas Co. has resolved to cancel 4,875,400 shares of its treasury stock, equivalent to 4.3% of its outstanding shares excluding treasury holdings. Following the cancellation, scheduled for 14 May 2026, the company’s total shares outstan...
Nippon Gas Delivers Strong FY2026 Earnings and Hikes Dividend Despite Softer Outlook
Apr 30, 2026
Nippon Gas reported solid results for the fiscal year ended March 31, 2026, with net sales rising 4.2% to ¥208.48 billion and operating income climbing 14.7% to ¥21.28 billion. Profit attributable to owners of parent jumped 28.3% to ...
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.