NIPPON GAS Co (8174) AI Stock Analysis

• Market Cap: ¥322.78B
• Dividend Yield: 3.57%
• Average Volume (3M): 301.77K
• Price to Earnings (P/E): 24.3
• Beta (1Y): 0.37
• 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: 413,560
• 30 Day Avg. Volume: 301,766
• 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: ¥3,649.78
• Price Target Upside: 31.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 137.98
• Revenue Forecast (FY): ¥202.34B

• Rating: 73 Outperform
• Price Target: ¥3,142.00 ▲(12.96% Upside)

NIPPON GAS Co's strong financial performance, characterized by impressive revenue growth and stable profitability, is the most significant factor driving the score. The technical analysis suggests a positive trend, though short-term indicators are mixed. The valuation is slightly high, but the attractive dividend yield provides a counterbalance.

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	201.31B	200.06B	194.36B	207.89B	162.55B	143.49B
Gross Profit	63.66B	63.29B	73.62B	69.82B	66.59B	67.79B
EBITDA	39.56B	28.35B	26.49B	26.71B	26.47B	24.74B
Net Income	12.73B	11.55B	10.82B	10.57B	9.97B	9.37B
Balance Sheet
Total Assets	141.66B	156.02B	159.22B	153.43B	153.81B	140.12B
Cash, Cash Equivalents and Short-Term Investments	13.79B	19.81B	18.99B	13.05B	17.02B	12.45B
Total Debt	45.78B	46.94B	47.19B	40.58B	45.94B	41.51B
Total Liabilities	76.44B	88.57B	86.50B	79.90B	81.92B	70.78B
Stockholders Equity	65.21B	67.45B	72.72B	74.30B	71.89B	69.34B
Cash Flow
Free Cash Flow	18.70B	22.15B	13.79B	11.92B	10.94B	602.00M
Operating Cash Flow	24.73B	27.92B	23.44B	19.59B	20.69B	16.07B
Investing Cash Flow	-8.87B	-8.81B	-9.19B	-7.58B	-8.79B	-14.51B
Financing Cash Flow	-15.49B	-18.39B	-8.71B	-16.07B	-7.41B	-5.71B

NIPPON GAS Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2781.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2781.5 is below the 20-day moving average (MA) of 2807.90, below the 50-day MA of 2791.48, and above the 200-day MA of 2527.58, indicating a bullish trend. The MACD of 53.73 indicates Negative momentum. The RSI at 67.32 is Neutral, neither overbought nor oversold. The STOCH value of 89.78 is Negative, 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	81 Outperform	¥62.88B	5.30	―	2.84%	2.77%	10.62%
9533	73 Outperform	$443.15B	15.69	6.03%	1.92%	7.08%	44.03%
8174	73 Outperform	¥322.78B	24.28	21.07%	3.57%	4.45%	53.88%
9543	70 Outperform	¥86.55B	8.83	8.29%	4.07%	1.08%	37.11%
9536	68 Neutral	€69.16B	7.71	9.07%	3.79%	9.39%	77.56%
9539	68 Neutral	¥38.10B	11.69	―	1.83%	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. 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.