Nareru Group Inc. (JP:9163)
:9163
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Nareru Group Inc.
(9163)
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Rating:72Outperform
Price Target:
¥2,577.00
▲(16.08% Upside)
Action:ReiteratedDate:03/14/26
The score is driven primarily by solid underlying financial performance (strong growth and cash generation with improving leverage) and attractive valuation (low P/E and high dividend yield). These positives are tempered by weaker near-term technical signals and evidence of margin compression and slightly softer recent earnings.
Positive Factors
Multi-year revenue growth
Sustained multi-year revenue expansion indicates durable product-market fit and steady demand for Nareru's software and transformation services. Over 2-6 months this underpins predictable contract renewals, backlog conversion and scale benefits that support investment, resilience and longer-term growth execution.
Negative Factors
Margin compression
Compression of gross and operating margins versus recent peaks signals persistent price-cost or mix pressures that can erode earnings power. If structural, weaker margins reduce the company's ability to fund growth, service debt or pay dividends, and make results more sensitive to revenue swings over months to quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue growth
Sustained multi-year revenue expansion indicates durable product-market fit and steady demand for Nareru's software and transformation services. Over 2-6 months this underpins predictable contract renewals, backlog conversion and scale benefits that support investment, resilience and longer-term growth execution.
Read all positive factors
Nareru Group Inc. (9163) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥21.41B
Dividend Yield5.04%
Average Volume (3M)62.90K
Price to Earnings (P/E)10.4
Beta (1Y)0.54
Revenue Growth11.80%
EPS Growth-6.32%
CountryJP
Employees3,812
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)56.82
Shares Outstanding8,753,849
10 Day Avg. Volume55,570
30 Day Avg. Volume62,896
Financial Highlights & Ratios
PEG Ratio-1.47
Price to Book (P/B)1.36
Price to Sales (P/S)0.82
P/FCF Ratio8.81
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)N/A
Revenue Forecast (FY)N/A
Nareru Group Inc. Business Overview & Revenue Model
Company Description
Nareru Group Inc., together with its subsidiaries, provides engineer outsourcing services for the construction industry in Japan. The company offers engineer dispatching services, construction management services, architectural drawing for the con...
How the Company Makes Money
Nareru Group Inc. generates revenue through multiple streams, primarily focusing on software development services, digital transformation solutions, and consulting services. Their revenue model includes project-based contracts, subscription servic...
Nareru Group Inc. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.54B | 24.16B | 21.61B | 17.99B | 14.54B | 12.13B |
| Gross Profit | 5.89B | 5.95B | 5.68B | 4.92B | 3.99B | 3.10B |
| EBITDA | 2.99B | 3.15B | 3.36B | 2.70B | 2.24B | 1.64B |
| Net Income | 1.93B | 2.09B | 2.19B | 1.74B | 1.24B | 1.04B |
Balance Sheet | ||||||
| Total Assets | 24.35B | 24.58B | 23.62B | 22.51B | 20.16B | 19.25B |
| Cash, Cash Equivalents and Short-Term Investments | 4.31B | 4.82B | 4.52B | 4.08B | 2.28B | 2.16B |
| Total Debt | 5.42B | 5.62B | 6.15B | 6.61B | 7.28B | 8.26B |
| Total Liabilities | 9.89B | 10.10B | 10.18B | 10.33B | 10.22B | 10.61B |
| Stockholders Equity | 14.45B | 14.48B | 13.44B | 12.18B | 9.93B | 8.63B |
Cash Flow | ||||||
| Free Cash Flow | 2.40B | 2.24B | 2.30B | 2.27B | 1.49B | 1.07B |
| Operating Cash Flow | 2.52B | 2.30B | 2.31B | 2.31B | 1.55B | 1.08B |
| Investing Cash Flow | -304.24M | -197.64M | -6.38M | 22.05M | -176.44M | -1.01B |
| Financing Cash Flow | -1.95B | -1.92B | -1.87B | -536.63M | -1.25B | 158.22M |
Nareru Group Inc. Technical Analysis
Positive
2220.00
Price Trends
2369.48
Positive
2324.16
Positive
2304.92
Positive
Market Momentum
12.45
Negative
59.18
Neutral
91.99
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9163, the sentiment is Positive. The current price of 2220 is below the 20-day moving average (MA) of 2372.25, below the 50-day MA of 2369.48, and below the 200-day MA of 2304.92, indicating a bullish trend. The MACD of 12.45 indicates Negative momentum. The RSI at 59.18 is Neutral, neither overbought nor oversold. The STOCH value of 91.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9163.
Nareru Group Inc. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥18.98B | 5.93 | ― | 3.03% | 4.18% | 1.38% | |
73 Outperform | ¥21.23B | 8.25 | ― | 2.97% | 22.32% | 5024.88% | |
72 Outperform | ¥21.41B | 10.44 | ― | 5.04% | 11.80% | -6.32% | |
69 Neutral | ¥19.22B | 12.53 | ― | 0.56% | 13.31% | 4.29% | |
65 Neutral | ¥22.41B | -39.49 | ― | 3.59% | 3.28% | -5.52% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | ¥18.23B | 14.29 | ― | 2.54% | 5.89% | -30.27% |
* Industrials Sector Average
JP:9163
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Nareru Group Inc. Corporate Events
Nareru Group’s World Corporation Forms Construction DX Alliance With Arent
Mar 13, 2026
Nareru Group’s core unit World Corporation has entered a strategic business alliance with Arent Inc. to deploy Arent’s AI-powered cloud-based process management system, PROCOLLA, on construction sites. The collaboration combines World ...
Nareru Group Sets Q1 FY2026 Briefing Under Long‑Term Growth Vision
Mar 13, 2026
Nareru Group Inc. has released materials for its financial results briefing covering the first quarter of the fiscal year ending October 2026, outlining performance metrics, key performance indicators and priority initiatives. The presentation emp...
Nareru Group Posts Profit Decline but Affirms 2026 Outlook and Dividend Plan
Mar 13, 2026
Nareru Group Inc. reported revenue of ¥6.28 billion for the three months ended January 31, 2026, up 6.5% year on year, but saw operating profit fall 19.6% to ¥724 million and profit attributable to owners of parent decline 23.5% to ¥...
Nareru Group Posts Higher Engineer Utilization and Mixed Turnover Across Units in January
Feb 18, 2026
Nareru Group Inc. reported key performance indicators for January 2026 for its World Corporation construction solutions unit, showing 3,650 total engineers and 3,334 active engineers, with utilization ratios rising to 92.4% excluding trainees and ...
Nareru Group Posts Strong Engineer Utilization in December 2025 KPIs
Jan 21, 2026
Nareru Group Inc. reported key performance indicators for December 2025 for its core engineering dispatch units, World Corporation (construction solutions) and ATJC (IT solutions), highlighting the scale and utilization of its technical workforce....
Nareru Group Inc. Reports Strong November 2025 KPIs
Dec 16, 2025
Nareru Group Inc. has released its key performance indicators for November 2025, highlighting the performance of its construction and IT solution businesses. The construction business reported a high utilization ratio of 90.1% excluding trainees, ...
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.