Nareru Group Inc. (9163) AI Stock Analysis

• Market Cap: ¥20.61B
• Dividend Yield: 5.04%
• Average Volume (3M): 62.90K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.49
• Revenue Growth: 11.80%
• EPS Growth: -6.32%
• Country: JP
• Employees: 3,812
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 55.81
• Shares Outstanding: 8,750,349
• 10 Day Avg. Volume: 55,570
• 30 Day Avg. Volume: 62,896
• PEG Ratio: -1.56
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 8.81
• 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: 72 Outperform
• Price Target: ¥2,464.00 ▲(10.99% Upside)
• Action: Upgraded Date: 12/19/25
• Date: Action: Upgraded 12/19/25

Nareru Group Inc. receives a solid score driven by its strong financial performance and attractive valuation. The main risks are related to technical indicators showing bearish trends, which may impact short-term stock performance.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial stability.

Strategic Partnerships

Partnerships enhance product offerings and client attraction, driving sustainable growth and competitive advantage.

Debt Management

Improved debt management strengthens financial health, providing flexibility for future investments and growth.

Negative Factors

Profit Margin Challenges

Declining profit margins suggest cost pressures, which could impact long-term profitability if not addressed.

Free Cash Flow Fluctuations

Volatile free cash flow can limit investment capacity and affect financial stability, requiring careful management.

Earnings Growth Concerns

Negative EPS growth indicates challenges in profitability, potentially affecting investor confidence and future growth prospects.

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 construction and plant industries; and recruitment services, as well as operates a human resource matching platform for the construction industry. It also dispatches engineers for the IT industry and offers system engineering services. The company was founded in 2008 and is headquartered in Tokyo, Japan.

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 services, and ongoing support and maintenance agreements. Key revenue streams come from large enterprises seeking to enhance their technological infrastructure and improve operational workflows. Additionally, the company has established strategic partnerships with technology providers, enabling it to offer comprehensive solutions that integrate third-party innovations, thereby attracting more clients and driving growth in its earnings.

Nareru Group Inc. Financial Statement Overview

Summary

Nareru Group Inc. shows strong financial health with consistent revenue growth and operational efficiency. However, challenges in maintaining profit margins and free cash flow growth slightly impact the score.

Income Statement

Nareru Group Inc. has demonstrated consistent revenue growth over the years, with a notable increase in total revenue from 2021 to 2025. However, the gross profit margin has slightly declined from 2023 to 2025, indicating potential cost pressures. The net profit margin has also decreased, suggesting challenges in maintaining profitability. Despite these issues, the company maintains a solid EBIT and EBITDA margin, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved over the years, indicating a reduction in leverage and a stronger equity base. Return on equity remains robust, showcasing effective use of shareholder funds. However, the equity ratio is moderate, suggesting a balanced approach to financing with both debt and equity.

Cash Flow

Nareru Group Inc. has experienced fluctuations in free cash flow growth, with a decline in the most recent year. The operating cash flow to net income ratio is stable, indicating reliable cash generation relative to earnings. The free cash flow to net income ratio is strong, demonstrating efficient cash conversion from profits.

Breakdown	Oct 2025	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	24.16B	21.61B	17.99B	14.54B	12.13B
Gross Profit	5.95B	5.94B	5.17B	4.23B	3.32B
EBITDA	3.12B	3.37B	2.77B	2.28B	1.99B
Net Income	2.09B	2.19B	1.74B	1.24B	1.04B
Balance Sheet
Total Assets	24.56B	23.62B	22.51B	20.16B	19.25B
Cash, Cash Equivalents and Short-Term Investments	4.82B	4.57B	4.09B	2.28B	2.23B
Total Debt	5.62B	6.15B	6.61B	7.28B	8.26B
Total Liabilities	10.08B	10.18B	10.33B	10.22B	10.61B
Stockholders Equity	14.48B	13.44B	12.18B	9.93B	8.63B
Cash Flow
Free Cash Flow	2.24B	2.29B	2.26B	1.48B	1.05B
Operating Cash Flow	2.30B	2.31B	2.31B	1.55B	1.08B
Investing Cash Flow	-197.64M	-6.38M	22.05M	-176.44M	-1.01B
Financing Cash Flow	-1.92B	-1.87B	-536.63M	-1.25B	158.22M

Nareru Group Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2220.00
• 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:9163, the sentiment is Neutral. The current price of 2220 is below the 20-day moving average (MA) of 2370.65, below the 50-day MA of 2351.30, and below the 200-day MA of 2294.06, indicating a neutral trend. The MACD of 10.34 indicates Positive momentum. The RSI at 47.56 is Neutral, neither overbought nor oversold. The STOCH value of 55.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9163.

Nareru Group Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9768	77 Outperform	¥30.63B	11.92	―	2.37%	3.01%	-13.60%
1948	76 Outperform	¥58.26B	17.50	―	2.01%	14.48%	122.79%
9233	73 Outperform	¥23.59B	-39.49	―	3.59%	3.28%	-5.52%
1828	73 Outperform	¥30.80B	9.70	―	3.44%	-5.43%	34.48%
9163	72 Outperform	¥20.61B	9.46	―	5.04%	11.80%	-6.32%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1826	59 Neutral	¥14.95B	11.13	―	5.36%	-3.19%	109.84%

Nareru Group Inc. Corporate Events

Nareru Group Inc. Reports Strong November 2025 KPIs

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, while the IT solution business showed a utilization ratio of 88.5%. These metrics indicate a strong operational performance, which could positively impact the company’s market positioning and stakeholder confidence.

The most recent analyst rating on (JP:9163) stock is a Hold with a Yen2534.00 price target. To see the full list of analyst forecasts on Nareru Group Inc. stock, see the JP:9163 Stock Forecast page.

Nareru Group Inc. Announces Executive Leadership Changes

Nareru Group Inc. announced changes in its executive leadership, aiming to drive sustainable growth and enhance corporate value. Ryo Kobayashi will transition from Representative Director to Chairman and Director, while Naoki Shibata will assume the role of Representative Director. These changes, effective January 29, 2026, reflect the company’s strategic focus on strengthening its leadership team.

The most recent analyst rating on (JP:9163) stock is a Hold with a Yen2534.00 price target. To see the full list of analyst forecasts on Nareru Group Inc. stock, see the JP:9163 Stock Forecast page.

Nareru Group Inc. Announces Stable Dividend Payout

Nareru Group Inc. has announced a dividend payout from surplus, with a record date of October 31, 2025, amounting to 60.00 yen per share. This decision aligns with the company’s policy to provide stable returns to shareholders while utilizing internal reserves for future growth and financial improvements.

The most recent analyst rating on (JP:9163) stock is a Hold with a Yen2534.00 price target. To see the full list of analyst forecasts on Nareru Group Inc. stock, see the JP:9163 Stock Forecast page.

Nareru Group Inc. Reports Fiscal Year 2025 Financial Results with Revenue Growth

Nareru Group Inc. reported its consolidated financial results for the fiscal year ending October 31, 2025, showing an 11.8% increase in revenue to 24,158 million yen. Despite the revenue growth, the company experienced a decline in operating profit and profit before tax by 9.1% and 9.8%, respectively. The company also announced an increase in annual dividends per share from 110 yen to 115 yen, indicating a commitment to returning value to shareholders. The forecast for the fiscal year ending October 31, 2026, anticipates further revenue growth of 21.1%, although operating profit and profit before tax are expected to grow modestly.

The most recent analyst rating on (JP:9163) stock is a Hold with a Yen2534.00 price target. To see the full list of analyst forecasts on Nareru Group Inc. stock, see the JP:9163 Stock Forecast page.

Nareru Group Secures Financial Stability with New Agreements

Nareru Group Inc. has announced the conclusion of a commitment line agreement and a special overdraft agreement to secure working capital and enhance financial stability. The agreements involve major financial institutions such as Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Bank, and Mizuho Bank, with a combined borrowing limit of 2,000 million yen. The impact on the company’s financial results for the fiscal year ending October 2025 is expected to be minor.

The most recent analyst rating on (JP:9163) stock is a Buy with a Yen2683.00 price target. To see the full list of analyst forecasts on Nareru Group Inc. stock, see the JP:9163 Stock Forecast page.

Nareru Group Inc. Receives Dividends from Subsidiaries

Nareru Group Inc. announced it will receive a total of 1,100,000 thousand yen in dividends from its subsidiaries, World Corporation Co., Ltd. and ATJC Co., Ltd. This transaction will be recorded as operating revenue in the company’s non-consolidated financial statements for the fiscal year ending October 2025, with no impact on the consolidated financial results.

The most recent analyst rating on (JP:9163) stock is a Buy with a Yen2683.00 price target. To see the full list of analyst forecasts on Nareru Group Inc. stock, see the JP:9163 Stock Forecast page.