NIPPON GAS CoLtd (JP:8174)
:8174
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NIPPON GAS Co
(8174)
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Rating:64Neutral
Price Target:
¥3,374.00
▲(12.17% Upside)
Action:DowngradedDate:02/05/26
The score is primarily supported by improving recent profitability and solid free cash flow generation, alongside strong ROE. Offsetting this are margin compression versus earlier years and a clear upward drift in leverage, while technical indicators point to weak near-term momentum. Valuation is mixed, with a decent dividend yield but a relatively high P/E.
Positive Factors
Recurring revenue model
Nippon Gas's core business is recurring LP gas sales plus installation, maintenance and equipment services. That customer-facing, usage-driven model generates predictable, repeatable cash flows and service revenue streams that support stable demand and long-term revenue visibility.
Negative Factors
Margin compression
A multi-year decline in gross margin from about 47% to ~32% signals structural cost or pricing pressure in the fuel business. Persistent margin erosion reduces operating leverage and leaves profits more exposed to commodity and input cost swings over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue model
Nippon Gas's core business is recurring LP gas sales plus installation, maintenance and equipment services. That customer-facing, usage-driven model generates predictable, repeatable cash flows and service revenue streams that support stable demand and long-term revenue visibility.
Read all positive factors
NIPPON GAS Co (8174) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥323.55B
Dividend Yield3.28%
Average Volume (3M)291.71K
Price to Earnings (P/E)19.2
Beta (1Y)0.36
Revenue Growth4.45%
EPS Growth53.88%
CountryJP
Employees1,716
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)38.53
Shares Outstanding112,827,194
10 Day Avg. Volume227,610
30 Day Avg. Volume291,713
Financial Highlights & Ratios
PEG Ratio2.31
Price to Book (P/B)3.66
Price to Sales (P/S)1.23
P/FCF Ratio11.14
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)138.66
Revenue Forecast (FY)¥200.70B
NIPPON GAS Co Business Overview & Revenue Model
Company Description
NIPPON GAS Co (8174) is a prominent Japanese company primarily involved in the gas utility sector, focusing on the distribution and retail of natural gas to residential, commercial, and industrial customers. The company also engages in energy-rela...
How the Company Makes Money
NIPPON GAS generates revenue primarily through the sale of natural gas to its diverse customer base, which includes households, businesses, and industrial clients. The company's revenue model is multifaceted, encompassing not only the direct sales...
NIPPON GAS Co Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 204.10B | 200.06B | 194.36B | 207.94B | 162.55B | 143.49B |
| Gross Profit | 75.22B | 63.29B | 62.48B | 58.30B | 54.81B | 56.78B |
| EBITDA | 31.90B | 29.85B | 28.63B | 26.62B | 24.65B | 24.74B |
| Net Income | 13.27B | 11.55B | 10.82B | 10.57B | 9.97B | 9.37B |
Balance Sheet | ||||||
| Total Assets | 153.65B | 156.07B | 159.56B | 154.93B | 153.90B | 140.38B |
| Cash, Cash Equivalents and Short-Term Investments | 17.06B | 19.81B | 18.99B | 13.05B | 17.02B | 12.45B |
| Total Debt | 50.67B | 46.94B | 47.19B | 40.58B | 45.94B | 41.51B |
| Total Liabilities | 90.78B | 88.61B | 86.83B | 80.63B | 82.00B | 71.03B |
| Stockholders Equity | 62.39B | 67.45B | 72.72B | 74.30B | 71.89B | 69.34B |
Cash Flow | ||||||
| Free Cash Flow | 19.69B | 22.15B | 17.36B | 15.10B | 13.32B | 3.81B |
| Operating Cash Flow | 26.08B | 27.92B | 23.44B | 19.59B | 20.69B | 16.07B |
| Investing Cash Flow | -7.42B | -8.81B | -9.19B | -7.58B | -8.79B | -14.51B |
| Financing Cash Flow | -15.81B | -18.39B | -8.71B | -16.07B | -7.41B | -5.71B |
NIPPON GAS Co Technical Analysis
Negative
3008.00
Price Trends
3003.65
Negative
2988.30
Negative
2852.36
Positive
Market Momentum
-0.35
Positive
41.82
Neutral
41.71
Neutral
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 below the 20-day moving average (MA) of 3055.65, above the 50-day MA of 3003.65, and above the 200-day MA of 2852.36, indicating a neutral trend. The MACD of -0.35 indicates Positive momentum. The RSI at 41.82 is Neutral, neither overbought nor oversold. The STOCH value of 41.71 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥90.01B | 8.94 | 9.07% | 3.61% | 9.39% | 77.24% | |
75 Outperform | ¥107.15B | 8.99 | 7.99% | 3.89% | 1.08% | 37.11% | |
73 Outperform | ¥459.75B | 28.19 | 6.03% | 1.81% | 7.08% | 43.50% | |
72 Outperform | ¥2.62T | 14.41 | 11.05% | 1.53% | 5.72% | 148.08% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | ¥323.55B | 19.17 | 20.44% | 3.28% | 4.45% | 53.88% | |
63 Neutral | ¥2.44T | 11.58 | 10.44% | 1.98% | 1.99% | 95.71% |
* Utilities Sector Average
JP:8174
NIPPON GAS Co
2,961.00
762.43
34.68%
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NIPPON GAS Co Corporate Events
Nippon Gas Nears Halfway Mark in Share Buyback Program
Mar 2, 2026
Nippon Gas Co., Ltd. reported progress on its ongoing share repurchase program, disclosing that it bought back 590,500 common shares for approximately 1.73 billion yen via market purchases on the Tokyo Stock Exchange between February 1 and Februar...
Nippon Gas Maintains Full-Year Profit Outlook After Record-High Q3 Operating Income
Feb 3, 2026
Nippon Gas reported that operating income for the third quarter of the fiscal year ending March 2026 exceeded its internal plan, supported by higher gross profit driven mainly by its electricity business, while LP gas and city gas performed in lin...
Nippon Gas Delivers Strong Profit Growth and Higher Dividends for Nine Months to December 2025
Feb 3, 2026
Nippon Gas reported solid earnings growth for the nine months ended 31 December 2025, with net sales rising 2.9% year-on-year to ¥141.96 billion and operating income surging 30.3% to ¥11.01 billion, driving a 29.2% increase in profit att...
Nippon Gas Reports Ongoing Progress in Share Buyback Program
Feb 2, 2026
Nippon Gas Co., Ltd. has reported progress on its ongoing share repurchase program, buying back 726,900 common shares for approximately ¥2.14 billion through market purchases on the Tokyo Stock Exchange between January 1 and January 31, 2026....
Nippon Gas Reports Progress on Ongoing Share Buyback Program
Jan 5, 2026
Nippon Gas has reported progress on its ongoing share repurchase program, buying back 259,400 common shares on the Tokyo Stock Exchange between December 1 and December 31, 2025, for a total of ¥773.8 million. Under the broader buyback authori...
Nippon Gas Reshapes Executive Team, Elevates Corporate Headquarters and Finance Functions
Dec 23, 2025
Nippon Gas Co., Ltd. has announced a series of executive officer changes effective December 23, 2025, aimed at strengthening its corporate headquarters and financial management structure. Managing Executive Officer Keiichi Ozaku has been appointed...
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.