NIPPON GAS Co (8174) AI Stock Analysis

• Market Cap: ¥324.04B
• Dividend Yield: 3.26%
• Average Volume (3M): 291.71K
• Price to Earnings (P/E): 24.5
• Beta (1Y): 0.36
• 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 impressive revenue growth and stable profitability. The balance sheet reflects a balanced leverage position and strong return on equity. Cash flow metrics are generally positive, though recent free cash flow growth has been negative, which warrants monitoring.

Income Statement

NIPPON GAS Co has demonstrated strong revenue growth, particularly in the TTM period with a 62.9% increase. The gross profit margin remains healthy at 31.88%, although it has decreased from previous years. Net profit margin is stable at 5.77%, indicating consistent profitability. EBIT and EBITDA margins have improved, reflecting efficient operations.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.70, suggesting a balanced approach to leveraging. Return on equity is strong at 17.34%, indicating effective use of equity to generate profits. The equity ratio is reasonable, showing a solid capital structure.

Cash Flow

Operating cash flow to net income ratio is moderate at 0.57, indicating decent cash generation relative to net income. Free cash flow growth has been negative recently, which could be a concern. However, the free cash flow to net income ratio is robust at 0.79, showing good cash flow relative to earnings.

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: Positive
• Last Price: 3008.00
• 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 3008 is above the 20-day moving average (MA) of 2992.60, above the 50-day MA of 2920.31, and above the 200-day MA of 2661.37, indicating a neutral trend. The MACD of 9.58 indicates Positive momentum. The RSI at 51.49 is Neutral, neither overbought nor oversold. The STOCH value of 58.17 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
9534	77 Outperform	¥65.62B	5.57	―	2.88%	2.77%	10.64%
8174	76 Outperform	¥324.04B	24.50	21.07%	3.26%	4.45%	53.88%
9533	73 Outperform	¥456.80B	16.40	6.03%	1.80%	7.08%	43.50%
9543	70 Outperform	€89.29B	9.17	8.29%	3.92%	1.08%	37.11%
9536	68 Neutral	¥71.83B	8.01	9.07%	3.61%	9.39%	77.24%
9539	68 Neutral	¥38.10B	11.60	―	1.80%	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 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.

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.

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.

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.