NIPPON GAS Co (8174) AI Stock Analysis

• Market Cap: ¥321.42B
• Dividend Yield: 3.28%
• Average Volume (3M): 291.71K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.35
• Revenue Growth: 4.45%
• EPS Growth: 53.88%
• Country: JP
• Employees: 1,716
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 7.42
• Shares Outstanding: 112,827,194
• 10 Day Avg. Volume: 227,610
• 30 Day Avg. Volume: 291,713
• PEG Ratio: 2.31
• Price to Book (P/B): 3.66
• Price to Sales (P/S): 1.23
• P/FCF Ratio: 11.14
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ¥3,396.00 ▲(12.90% Upside)

NIPPON GAS Co's strong financial performance, characterized by robust revenue growth and effective cash management, is the most significant factor driving the score. Technical analysis supports a positive trend, with the stock trading above key moving averages. Valuation metrics indicate the stock is fairly valued, with an attractive dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective market strategies, enhancing the company's competitive position in the gas utility sector.

Cash Flow Management

Effective cash flow management supports operational flexibility and investment capacity, crucial for sustaining long-term growth and stability.

Profitability

Strong profitability margins reflect efficient operations and pricing power, contributing to financial resilience and shareholder value.

Negative Factors

Rising Costs

Rising costs can erode profit margins and competitiveness, potentially impacting long-term financial performance if not managed effectively.

Debt Levels

Increasing debt levels may strain financial resources and limit strategic flexibility, posing risks to long-term stability and growth.

Free Cash Flow Volatility

Volatility in free cash flow can affect the company's ability to fund operations and investments consistently, impacting financial predictability.

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-related services, including electricity generation and sales, as well as providing energy efficiency solutions. NIPPON GAS is committed to sustainability and innovation in energy services, aiming to enhance the quality of life for its customers while contributing to a low-carbon society.

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 of gas but also the provision of supplementary energy services, such as electricity supply and energy management solutions. Key revenue streams include fixed and variable charges associated with gas supply contracts, service fees for energy efficiency consultations, and income from electricity sales. Additionally, the company may benefit from partnerships with other energy firms and participation in government programs aimed at promoting renewable energy sources, further diversifying its revenue portfolio.

NIPPON GAS Co Financial Statement Overview

Summary

NIPPON GAS Co exhibits strong financial health with robust revenue growth and profitability. The company effectively manages its debt levels and generates substantial cash flows. While there are some concerns regarding rising costs and debt levels, the overall financial trajectory remains positive.

Income Statement

NIPPON GAS Co has demonstrated strong revenue growth, particularly in the TTM period with a 44.1% increase. The company maintains healthy profit margins, with a gross profit margin of 32.1% and a net profit margin of 6.6% in the TTM. EBIT and EBITDA margins have also improved, indicating efficient operations. However, the gross profit margin has decreased over the years, suggesting rising costs or pricing pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.66 in the TTM. Return on equity is strong at 19.4%, indicating effective use of equity to generate profits. The equity ratio is reasonable, suggesting a balanced approach to financing. However, the slight increase in debt levels over time could pose future risks if not managed carefully.

Cash Flow

Cash flow analysis shows positive trends, with a 12.4% growth in free cash flow in the TTM. The operating cash flow to net income ratio is solid at 0.70, indicating good cash generation relative to net income. The free cash flow to net income ratio is also strong at 0.77, highlighting efficient cash management. However, fluctuations in free cash flow growth rates in previous years suggest potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	202.20B	200.06B	194.36B	207.89B	162.55B	143.49B
Gross Profit	64.91B	63.29B	73.62B	69.82B	66.59B	67.79B
EBITDA	40.54B	28.35B	26.49B	26.71B	26.47B	24.74B
Net Income	13.38B	11.55B	10.82B	10.57B	9.97B	9.37B
Balance Sheet
Total Assets	138.93B	156.02B	159.22B	153.43B	153.81B	140.12B
Cash, Cash Equivalents and Short-Term Investments	13.48B	19.81B	18.99B	13.05B	17.02B	12.45B
Total Debt	43.01B	46.94B	47.19B	40.58B	45.94B	41.51B
Total Liabilities	74.23B	88.57B	86.50B	79.90B	81.92B	70.78B
Stockholders Equity	64.69B	67.45B	72.72B	74.30B	71.89B	69.34B
Cash Flow
Free Cash Flow	21.02B	22.15B	13.79B	11.92B	10.94B	602.00M
Operating Cash Flow	27.26B	27.92B	23.44B	19.59B	20.69B	16.07B
Investing Cash Flow	-9.00B	-8.81B	-9.19B	-7.58B	-8.79B	-14.51B
Financing Cash Flow	-17.94B	-18.39B	-8.71B	-16.07B	-7.41B	-5.71B

NIPPON GAS Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3008.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8174, the sentiment is Neutral. The current price of 3008 is above the 20-day moving average (MA) of 2958.47, above the 50-day MA of 2976.16, and above the 200-day MA of 2756.02, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 46.78 is Neutral, neither overbought nor oversold. The STOCH value of 17.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8174.

NIPPON GAS Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9534	77 Outperform	¥71.29B	5.70	―	2.88%	2.77%	10.64%
9536	76 Outperform	¥84.16B	8.40	9.07%	3.61%	9.39%	77.24%
8174	76 Outperform	¥321.42B	24.18	21.07%	3.28%	4.45%	53.88%
9533	73 Outperform	¥508.07B	18.05	6.03%	1.81%	7.08%	43.50%
9543	70 Outperform	¥88.92B	9.07	8.29%	3.89%	1.08%	37.11%
9539	68 Neutral	¥38.72B	11.88	―	1.81%	0.93%	1212.45%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

NIPPON GAS Co Corporate Events

Nippon Gas Reports Progress on Ongoing Share Buyback Program

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 authorization approved by the board in October 2025—covering up to 4 million shares or ¥9 billion through March 31, 2026—the company has cumulatively repurchased 670,000 shares for about ¥1.98 billion as of December 31, 2025, representing 16.8% of the maximum share volume and 22.0% of the planned monetary amount, signaling a continued commitment to shareholder returns and balance sheet optimization.

The most recent analyst rating on (JP:8174) stock is a Buy with a Yen3396.00 price target. To see the full list of analyst forecasts on NIPPON GAS Co stock, see the JP:8174 Stock Forecast page.

Nippon Gas Reshapes Executive Team, Elevates Corporate Headquarters and Finance Functions

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 Head of Corporate Headquarters, while Executive Officer Madoka Yamagishi assumes expanded responsibilities as Deputy Head of Corporate Headquarters, Head of Corporate Planning/IR Department, and General Manager of the Financial Department, consolidating key planning, investor relations, and finance functions under a single role. The updated management lineup also reaffirms the roles of senior executives overseeing sales, regional branches, and core corporate functions including safety, human resources, electricity business, legal, and ICT, signaling an organizational realignment designed to enhance governance, operational oversight, and support for the company’s nationwide energy operations.

The most recent analyst rating on (JP:8174) stock is a Buy with a Yen3396.00 price target. To see the full list of analyst forecasts on NIPPON GAS Co stock, see the JP:8174 Stock Forecast page.

Nippon Gas Co. Reports Progress in Share Repurchase Program

Nippon Gas Co., Ltd. announced the progress of its share repurchase program, with 305,600 common shares repurchased for 908,032,050 yen during November 2025. This move is part of a broader plan approved in October 2025 to repurchase up to 4 million shares, which represents 3.7% of its outstanding shares, by March 2026. The ongoing repurchase is expected to enhance shareholder value and optimize the company’s capital structure.

The most recent analyst rating on (JP:8174) stock is a Buy with a Yen3142.00 price target. To see the full list of analyst forecasts on NIPPON GAS Co stock, see the JP:8174 Stock Forecast page.

Nippon Gas Co. Reports Progress in Share Repurchase Program

Nippon Gas Co., Ltd. announced the progress of its share repurchase program, acquiring 105,000 common shares for approximately 301 million yen between October 29 and October 31, 2025. This repurchase is part of a larger plan approved by the Board of Directors to buy back up to 4 million shares, equivalent to 3.7% of outstanding shares, by March 2026. The initiative is aimed at enhancing shareholder value and optimizing the company’s capital structure.

The most recent analyst rating on (JP:8174) stock is a Buy with a Yen3142.00 price target. To see the full list of analyst forecasts on NIPPON GAS Co stock, see the JP:8174 Stock Forecast page.

Nippon Gas Co. Announces Strategic Share Buyback to Enhance Shareholder Value

Nippon Gas Co., Ltd. has announced a share repurchase program as part of its strategy to optimize its capital-to-asset ratio and increase shareholder value. The company plans to buy back up to 4 million shares, equivalent to 3.7% of its outstanding shares, for a maximum of 9.0 billion yen, aiming to reduce unnecessary shareholder equity while maintaining a strong financial base amidst industry consolidation.

The most recent analyst rating on (JP:8174) stock is a Hold with a Yen2966.00 price target. To see the full list of analyst forecasts on NIPPON GAS Co stock, see the JP:8174 Stock Forecast page.

NIPPON GAS Co. Reports Strong Financial Growth in First Half of 2025

NIPPON GAS Co., Ltd. reported significant growth in its financial results for the six months ending September 30, 2025, with net sales increasing by 2.5% and operating income surging by 116.6% compared to the previous year. This strong performance reflects the company’s improved operational efficiency and market positioning, potentially benefiting stakeholders through increased dividends and a robust financial outlook.

The most recent analyst rating on (JP:8174) stock is a Hold with a Yen2966.00 price target. To see the full list of analyst forecasts on NIPPON GAS Co stock, see the JP:8174 Stock Forecast page.