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NISHIO HOLDINGS CO. LTD.
(9699)
Select Model
Select Model
Rating:85Outperform
Price Target:
¥5,152.00
▲(8.81% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strong financial performance—especially exceptional free cash flow growth and robust revenue growth—supported by moderate leverage. Valuation further strengthens the outlook with a low P/E and a healthy dividend yield. Technicals are also constructive, with the stock above key moving averages and positive momentum indicators.
Positive Factors
Recurring rental business model
Nishio operates an equipment rental model with recurring rental fees plus logistics and maintenance services, creating stable, contractual cash flows. This asset-light customer-facing service mix supports predictable revenue streams and long-term customer relationships that endure across cycles.
Negative Factors
Margin pressure
Although profitable, a modest 5.6% net margin and recent margin decline suggest cost inflation or competitive pricing pressure. Sustained margin erosion would constrain free cash flow potential and limit the company's ability to fund capex or accelerate deleveraging without reducing returns to shareholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring rental business model
Nishio operates an equipment rental model with recurring rental fees plus logistics and maintenance services, creating stable, contractual cash flows. This asset-light customer-facing service mix supports predictable revenue streams and long-term customer relationships that endure across cycles.
Read all positive factors
NISHIO HOLDINGS CO. LTD. (9699) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥119.20B
Dividend Yield3.05%
Average Volume (3M)36.37K
Price to Earnings (P/E)10.3
Beta (1Y)0.61
Revenue Growth1.06%
EPS Growth-7.68%
CountryJP
Employees4,842
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)415.51
Shares Outstanding28,391,464
10 Day Avg. Volume39,090
30 Day Avg. Volume36,373
Financial Highlights & Ratios
PEG Ratio2.23
Price to Book (P/B)0.86
Price to Sales (P/S)0.55
P/FCF Ratio4.32
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)450.2
Revenue Forecast (FY)¥218.00B
NISHIO HOLDINGS CO. LTD. Business Overview & Revenue Model
Company Description
Nishio Rent All Co., Ltd. operates in the construction machinery rental sector both domestically in Japan and across international markets. The company provides an extensive fleet of equipment for civil and road construction projects, including li...
How the Company Makes Money
The company primarily makes money by renting out equipment and charging customers recurring rental fees over the rental period. Key revenue streams typically include (1) rental income from construction and industrial machinery and tools, (2) servi...
NISHIO HOLDINGS CO. LTD. Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
90
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 211.30B | 214.95B | 199.00B | 185.66B | 170.63B | 161.75B |
| Gross Profit | 66.55B | 48.28B | 80.90B | 74.18B | 68.25B | 64.63B |
| EBITDA | 60.37B | 53.65B | 52.87B | 48.38B | 45.91B | 43.07B |
| Net Income | 11.54B | 12.11B | 11.60B | 10.29B | 9.17B | 8.83B |
Balance Sheet | ||||||
| Total Assets | 317.42B | 297.26B | 290.68B | 272.57B | 261.70B | 248.93B |
| Cash, Cash Equivalents and Short-Term Investments | 67.35B | 62.20B | 49.82B | 43.04B | 47.70B | 47.59B |
| Total Debt | 106.53B | 96.26B | 95.27B | 92.34B | 93.83B | 87.85B |
| Total Liabilities | 172.05B | 156.97B | 156.38B | 148.17B | 144.93B | 138.14B |
| Stockholders Equity | 143.38B | 138.53B | 132.16B | 122.24B | 114.57B | 107.22B |
Cash Flow | ||||||
| Free Cash Flow | 14.81B | 27.57B | 21.47B | 12.91B | 13.02B | 18.03B |
| Operating Cash Flow | 17.09B | 31.81B | 29.55B | 24.41B | 21.32B | 21.60B |
| Investing Cash Flow | -1.97B | -4.21B | -9.39B | -11.79B | -9.15B | -5.59B |
| Financing Cash Flow | -10.53B | -15.18B | -13.50B | -17.70B | -12.08B | -1.97B |
NISHIO HOLDINGS CO. LTD. Technical Analysis
Positive
4735.00
Price Trends
4011.40
Positive
4142.05
Positive
4322.32
Positive
Market Momentum
105.68
Negative
64.22
Neutral
72.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9699, the sentiment is Positive. The current price of 4735 is above the 20-day moving average (MA) of 4181.75, above the 50-day MA of 4011.40, and above the 200-day MA of 4322.32, indicating a bullish trend. The MACD of 105.68 indicates Negative momentum. The RSI at 64.22 is Neutral, neither overbought nor oversold. The STOCH value of 72.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9699.
NISHIO HOLDINGS CO. LTD. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | ¥119.20B | 10.34 | ― | 2.85% | 1.06% | -7.68% | |
74 Outperform | ¥14.79B | 6.94 | ― | 3.03% | 6.36% | 41.53% | |
65 Neutral | ¥1.29T | 11.51 | ― | 3.37% | 6.51% | 30.59% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | ¥35.89B | 9.08 | ― | 4.66% | -8.90% | 9.92% | |
51 Neutral | ¥411.50B | 18.38 | ― | 3.62% | 18.54% | -54.13% |
* Industrials Sector Average
JP:9699
NISHIO HOLDINGS CO. LTD.
4,430.00
457.12
11.51%
JP:7081
Koyou Rentia Co., Ltd.
1,314.00
231.30
21.36%
JP:8424
Fuyo General Lease Co., Ltd.
4,413.00
379.41
9.41%
JP:8439
Tokyo Century Corporation
2,527.50
757.78
42.82%
JP:8596
Kyushu Leasing Service Co., Ltd.
1,603.00
349.96
27.93%
JP:372A
Rent Corporation
5,540.00
-168.14
-2.95%
NISHIO HOLDINGS CO. LTD. Corporate Events
Nishio Holdings Launches ¥2 Billion Share Buyback to Boost Capital Efficiency
Aug 3, 2026
Nishio Holdings Co., Ltd. has approved a share repurchase program aimed at enhancing shareholder value by improving capital efficiency and enabling more dynamic capital policies. The plan underscores management’s intention to actively manage...
Nishio Holdings Clarifies Funding Policy and Launches Treasury Share Buyback
Aug 3, 2026
Nishio Holdings has adopted a clearer funding policy to support ongoing investment in rental assets, business bases and MA, while safeguarding its financial soundness. The company plans to annually disclose its funding outlook with financial resul...
Nishio Holdings Posts Lower Nine-Month Profit but Raises Full-Year Dividend Forecast
Aug 3, 2026
Nishio Holdings reported consolidated net sales of ¥157.8 billion for the nine months ended June 30, 2026, down 3.2% year on year, with operating profit falling 9.8% to ¥13.3 billion and profit attributable to owners of parent declining ...
Nishio Holdings Delivers Softer First-Half Earnings but Keeps Outlook and Dividend Plan Intact
May 11, 2026
Nishio Holdings reported a decline in performance for the six months ended March 31, 2026, with net sales down 3.3% to ¥107.9 billion and profit attributable to owners of the parent falling 7.9% to ¥6.7 billion, alongside lower earnings ...
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.