NISSO HOLDINGS Co.,Ltd (9332) AI Stock Analysis

• Market Cap: ¥23.69B
• Dividend Yield: 3.09%
• Average Volume (3M): 121.28K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.83
• Revenue Growth: 4.92%
• EPS Growth: -27.88%
• Country: JP
• Employees: 2,336
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 8.95
• Shares Outstanding: 34,024,720
• 10 Day Avg. Volume: 147,420
• 30 Day Avg. Volume: 121,276
• PEG Ratio: 7.01
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 20.06
• 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: 73 Outperform
• Price Target: ¥806.00 ▲(13.04% Upside)

NISSO HOLDINGS shows strong financial performance with robust revenue growth and operational efficiency. The stock's valuation is reasonable with a good dividend yield. Technical indicators suggest a neutral trend with some bullish momentum. The main area of concern is the need to improve cash flow from operations.

Positive Factors

Strong balance sheet / low leverage

A high equity ratio and minimal debt indicate durable financial stability and low interest burden. This balance sheet strength provides flexibility to fund organic growth, pursue selective M&A, sustain dividends, and withstand economic downturns without increasing financial risk.

Consistent revenue growth and margin improvement

Sustained revenue growth with rising gross margins signals healthy demand and improved cost control in the staffing business. This combination supports longer-term operating leverage, enhances reinvestment capacity into services and geographic expansion, and strengthens competitive positioning.

Solid free cash flow conversion

A robust FCF-to-net-income ratio reflects effective cash conversion and operational cash discipline. Reliable free cash flow underpins sustainable dividend payments, funding for technology or hiring investments, and provides buffer for cyclical staffing cash needs over multiple quarters.

Negative Factors

Declining operating cash flow

A drop in operating cash flow may indicate working-capital pressure or weaker cash conversion from revenue. If persistent, this undermines the company's ability to self-fund growth, maintain dividends or invest in service capabilities, increasing reliance on cash reserves or external financing.

Low net profit margin

A sub-2% net margin provides a thin cushion against cost inflation, pricing pressure, or client mix shifts typical in staffing. Low profitability limits retained earnings for strategic initiatives and makes earnings volatile to modest revenue or margin shocks over a multi-quarter horizon.

Material EPS decline

A nearly 28% drop in EPS signals earnings volatility or one-off pressures that could reflect margin compression or nonrecurring charges. Sustained EPS weakness would constrain capital allocation, reduce shareholder returns, and raise questions about earnings quality and operational resilience.

NISSO HOLDINGS Co.,Ltd Business Overview & Revenue Model

Company Description

NISSO HOLDINGS Co., Ltd provides human resources services in Japan. The company offers recruitment, manufacturing outsourcing, labor management support, and consulting services. It also offers engineer and manufacture dispatch services; IT solutions and training services. The company serves mechanical, electrical, electronic, and chemical engineering, and IT sectors. NISSO HOLDINGS Co., Ltd was founded in 1971 and is headquartered in Yokohama, Japan.

How the Company Makes Money

NISSO HOLDINGS generates revenue primarily through its staffing and recruitment services. The company charges clients for placing temporary and permanent employees, receiving a fee that is based on the salary of the employees placed. Key revenue streams include the provision of temporary staff to manufacturing and logistics sectors, which is a significant portion of its business. Additionally, NISSO HOLDINGS earns income through contracts for outsourced services, where they manage workforce solutions for clients. Strategic partnerships with various organizations and companies in different industries enhance their service offerings and contribute to revenue growth. The company's ability to adapt to market demands and expand its service capabilities further strengthens its earnings potential.

NISSO HOLDINGS Co.,Ltd Financial Statement Overview

Summary

NISSO HOLDINGS demonstrates strong revenue growth and operational efficiency, reflected in improving margins. The balance sheet shows financial stability with low leverage and a strong equity base. Cash flow generation remains positive, though challenges in operating cash flow need attention. Overall, the company is stable with strong growth prospects, but must focus on enhancing cash flow from operations.

Income Statement

NISSO HOLDINGS has shown consistent revenue growth with a 4.9% increase from 2024 to 2025. The company's gross profit margin improved to 17.18%, indicating better cost management. However, net profit margin slightly decreased to 1.91%, showing some pressure on profitability despite revenue growth. The EBIT and EBITDA margins improved, reflecting stronger operational efficiency.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 52.78%, suggesting financial stability. The debt-to-equity ratio is low at 0.09, indicating minimal reliance on debt financing. Return on equity is moderate at 11.73%, showing decent profitability relative to equity. Overall, the balance sheet reflects a stable financial position with low leverage.

Cash Flow

NISSO HOLDINGS experienced a decrease in operating cash flow, but maintained a positive free cash flow despite reduced capital expenditures. The free cash flow to net income ratio is strong at 0.63, indicating efficient cash conversion. However, the operating cash flow to net income ratio decreased, suggesting potential challenges in cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	101.36B	101.56B	96.86B	90.83B	77.55B	68.21B
Gross Profit	17.22B	17.44B	16.02B	14.55B	12.95B	11.79B
EBITDA	3.23B	3.67B	3.48B	2.74B	2.67B	2.80B
Net Income	1.64B	1.94B	1.95B	1.62B	1.70B	1.59B
Balance Sheet
Total Assets	35.33B	31.28B	31.35B	30.09B	27.46B	21.63B
Cash, Cash Equivalents and Short-Term Investments	7.22B	8.19B	9.64B	9.80B	8.78B	5.87B
Total Debt	3.81B	1.53B	2.06B	2.52B	3.01B	67.00M
Total Liabilities	18.48B	14.48B	16.02B	15.29B	13.90B	8.87B
Stockholders Equity	16.56B	16.50B	15.06B	14.57B	13.56B	12.76B
Cash Flow
Free Cash Flow	0.00	1.23B	2.51B	2.07B	2.15B	1.48B
Operating Cash Flow	0.00	1.68B	3.23B	2.29B	2.27B	1.67B
Investing Cash Flow	0.00	-2.08B	-1.29B	-146.00M	-1.54B	-496.00M
Financing Cash Flow	0.00	-1.06B	-2.10B	-1.11B	2.16B	-1.67B

NISSO HOLDINGS Co.,Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 713.00
• 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:9332, the sentiment is Positive. The current price of 713 is below the 20-day moving average (MA) of 714.85, above the 50-day MA of 690.12, and above the 200-day MA of 662.64, indicating a bullish trend. The MACD of 8.29 indicates Positive momentum. The RSI at 61.37 is Neutral, neither overbought nor oversold. The STOCH value of 50.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9332.

NISSO HOLDINGS Co.,Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2163	84 Outperform	¥23.37B	17.54	―	4.05%	8.88%	12.64%
9332	73 Outperform	¥23.69B	15.13	―	3.09%	4.92%	-27.88%
6089	73 Outperform	¥27.90B	15.57	―	3.86%	1.18%	-5.05%
6539	73 Outperform	¥26.60B	25.61	―	5.45%	21.90%	0.46%
4433	64 Neutral	¥17.95B	27.61	―	3.66%	8.62%	―
6070	64 Neutral	¥31.86B	13.59	―	4.69%	-1.06%	3.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

NISSO HOLDINGS Co.,Ltd Corporate Events

NISSO HOLDINGS Updates Progress on Ongoing Share Buyback Program

NISSO HOLDINGS Co., Ltd. has reported the status of its ongoing share buyback program, disclosing that it purchased 101,700 shares of its common stock on the Tokyo Stock Exchange between December 1 and December 31, 2025, for a total of ¥70,323,100. This buyback is part of a board-approved program dated November 10, 2025, which authorizes the acquisition of up to 300,000 shares or ¥200 million between November 11, 2025 and January 31, 2026; as of December 31, the company has cumulatively acquired 179,200 shares for ¥122,121,100, indicating active execution of its capital policy that may support shareholder value through reduced share float and more flexible balance-sheet management.

The most recent analyst rating on (JP:9332) stock is a Buy with a Yen725.00 price target. To see the full list of analyst forecasts on NISSO HOLDINGS Co.,Ltd stock, see the JP:9332 Stock Forecast page.

NISSO HOLDINGS Acquires Treasury Shares to Optimize Capital Structure

NISSO HOLDINGS Co., Ltd. has announced the acquisition of 77,500 shares of its common stock through a market purchase on the Tokyo Stock Exchange, valued at 51,798,000 JPY. This acquisition is part of a broader plan approved by the Board of Directors to acquire up to 300,000 shares, with a total value limit of 200,000,000 JPY, aimed at optimizing the company’s capital structure.

The most recent analyst rating on (JP:9332) stock is a Buy with a Yen725.00 price target. To see the full list of analyst forecasts on NISSO HOLDINGS Co.,Ltd stock, see the JP:9332 Stock Forecast page.

NISSO HOLDINGS Announces Treasury Share Acquisition for Capital Efficiency

NISSO HOLDINGS Co., Ltd. has announced a decision to acquire up to 300,000 of its treasury shares, representing 0.88% of its outstanding shares, with a maximum value of 200 million JPY. This move is intended to improve capital efficiency and support flexible capital strategies in response to changing business conditions, thereby contributing to sustainable growth and increased corporate value.

The most recent analyst rating on (JP:9332) stock is a Buy with a Yen725.00 price target. To see the full list of analyst forecasts on NISSO HOLDINGS Co.,Ltd stock, see the JP:9332 Stock Forecast page.

NISSO HOLDINGS Reports Mixed Financial Results for First Half of FY 2026

NISSO HOLDINGS Co., Ltd. reported its consolidated financial results for the first half of the fiscal year ending March 2026, showing a 6% increase in net sales to 53,165 million yen. However, the company experienced a decline in operating profit by 33.6% and profit attributable to owners of the parent by 40.2%, indicating challenges in maintaining profitability despite sales growth. The company’s financial position showed an increase in total assets and net assets, although the equity ratio decreased slightly. The dividend forecast remains unchanged, with an expected year-end dividend of 25 yen per share.

The most recent analyst rating on (JP:9332) stock is a Buy with a Yen725.00 price target. To see the full list of analyst forecasts on NISSO HOLDINGS Co.,Ltd stock, see the JP:9332 Stock Forecast page.