Nagawa Co., Ltd. (9663) AI Stock Analysis

• Market Cap: ¥95.40B
• Dividend Yield: 0.96%
• Average Volume (3M): 11.49K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.69
• Revenue Growth: 4.12%
• EPS Growth: 23.44%
• Country: JP
• Employees: 533
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 75.70
• Shares Outstanding: 16,357,214
• 10 Day Avg. Volume: 11,070
• 30 Day Avg. Volume: 11,490
• PEG Ratio: 0.64
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 2.67
• P/FCF Ratio: 37.92
• 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: ¥7,158.00 ▲(13.08% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

The score is driven primarily by strong financial performance—especially the debt-free, flexible balance sheet and steady growth—partly offset by uneven cash-flow consistency. Technicals are supportive but somewhat extended, while valuation (P/E ~25 with a sub-1% yield) tempers the overall attractiveness.

Positive Factors

Balance Sheet Strength

A debt-free balance sheet enhances financial flexibility and reduces risk, allowing the company to invest in growth opportunities without the burden of interest payments.

Revenue Growth

Steady revenue growth indicates strong demand for the company's products and services, supporting long-term business expansion and market position.

Profitability

Strong profitability and stable margins suggest effective cost management and pricing power, contributing to sustainable earnings over time.

Negative Factors

Cash Flow Volatility

Volatile cash flow can hinder long-term planning and investment, as unpredictable cash availability may impact the company's ability to fund operations and growth consistently.

Margin Pressure

Margin pressure could indicate rising costs or competitive pricing challenges, potentially affecting profitability if not managed effectively.

Cash Flow History

A history of negative cash flow suggests potential issues with working capital management or timing of cash receipts, which could impact financial stability.

Nagawa Co., Ltd. Business Overview & Revenue Model

Company Description

NAGAWA Co., Ltd. manufactures, sells, and rents unit houses under the Super House name in Japan. It also engages in the system module architecture design and construction of the building. In addition, the company rents and sells construction machinery and equipment, as well as sells construction materials. Further, it undertakes remodeling, civil engineering, and various types of construction works; and rents surveillance cameras, as well as engages in the factory repair/renovation business. The company was formerly known as Nagawa Sekiyu Corporation and changed its name to NAGAWA Co., Ltd. in March 1978. NAGAWA Co., Ltd. was founded in 1966 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nagawa Co., Ltd. generates revenue through the sale and leasing of prefabricated buildings. The company's revenue model includes direct sales to customers across multiple sectors, such as commercial enterprises, government agencies, and residential customers. Additionally, Nagawa offers leasing services for temporary structures, which provides a steady stream of recurring income. The company's ability to customize solutions and offer high-quality products enhances its competitive edge, attracting a wide range of clients. Strategic partnerships with construction firms and suppliers may also play a role in the company's revenue generation, although specific partnerships are not detailed in available data.

Nagawa Co., Ltd. Financial Statement Overview

Summary

Strong fundamentals supported by steady revenue growth, resilient profitability, and an exceptionally strong balance sheet with effectively no debt. The key offset is cash-flow volatility, with prior periods of weak conversion and negative free cash flow despite a strong rebound in 2025.

Income Statement

Revenue has grown steadily over the last several years, with a noticeable acceleration in the latest year (2025) versus 2024. Profitability is consistently strong for the period shown, with gross margins holding in the high-30% to low-40% range and net margins generally around ~10% (and improving in 2025). A key watch item is modest margin pressure versus earlier years (EBIT margin lower than 2021–2022 levels), even though absolute earnings improved.

Balance Sheet

The balance sheet is a standout: total debt is effectively eliminated in the latest two years (2024–2025), and prior years’ leverage was already very low. Equity has steadily expanded alongside total assets, supporting financial flexibility and downside protection. Return on equity improved in 2025 versus 2024, though it remains moderate rather than exceptionally high, reflecting a conservatively capitalized profile.

Cash Flow

Cash generation is positive but has been volatile. Operating cash flow rebounded sharply in 2025 after very weak conversion in 2023–2024, and free cash flow swung back to positive in 2025 with strong growth. However, the history of negative free cash flow (2023–2024) and periods where operating cash flow covered only a small portion of net income suggests working-capital or timing-related swings that reduce predictability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	33.97B	35.29B	32.58B	31.65B	30.59B	29.38B
Gross Profit	13.41B	13.50B	13.16B	12.86B	12.52B	11.93B
EBITDA	8.20B	8.46B	7.93B	7.57B	7.50B	7.34B
Net Income	3.23B	4.21B	3.12B	3.13B	3.02B	3.04B
Balance Sheet
Total Assets	67.33B	69.76B	66.88B	58.81B	55.90B	53.41B
Cash, Cash Equivalents and Short-Term Investments	8.19B	11.43B	7.17B	10.87B	12.80B	14.22B
Total Debt	0.00	0.00	0.00	1.30B	1.10B	587.00M
Total Liabilities	7.12B	8.08B	7.15B	5.33B	4.89B	5.34B
Stockholders Equity	60.20B	61.67B	59.73B	53.48B	51.01B	48.07B
Cash Flow
Free Cash Flow	1.92B	2.48B	-765.00M	-961.00M	1.06B	2.72B
Operating Cash Flow	1.92B	4.39B	1.14B	524.00M	2.20B	3.15B
Investing Cash Flow	0.00	1.41B	-3.81B	-1.43B	-3.25B	-3.15B
Financing Cash Flow	0.00	-1.53B	-1.03B	-1.02B	-377.00M	-351.00M

Nagawa Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6330.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9663, the sentiment is Negative. The current price of 6330 is above the 20-day moving average (MA) of 5996.50, above the 50-day MA of 6134.40, and above the 200-day MA of 6273.35, indicating a neutral trend. The MACD of 16.82 indicates Negative momentum. The RSI at 51.10 is Neutral, neither overbought nor oversold. The STOCH value of 72.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9663.

Nagawa Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1870	79 Outperform	¥97.23B	15.89	―	3.63%	35.73%	62.37%
9663	73 Outperform	¥95.40B	24.41	―	0.96%	4.12%	23.44%
1720	68 Neutral	¥173.05B	9.00	―	2.89%	20.38%	128.85%
1762	64 Neutral	¥121.03B	13.33	―	2.13%	7.22%	21.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%