NISHIO HOLDINGS CO. LTD. (9699) AI Stock Analysis

• Market Cap: ¥129.05B
• Dividend Yield: 2.85%
• Average Volume (3M): 36.37K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.65
• Revenue Growth: 8.02%
• EPS Growth: 4.39%
• Country: JP
• Employees: 4,726
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 128.74
• Shares Outstanding: 28,391,464
• 10 Day Avg. Volume: 39,090
• 30 Day Avg. Volume: 36,373
• PEG Ratio: 2.23
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 4.32
• 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): 459.25
• Revenue Forecast (FY): ¥223.50B

• Rating: 79 Outperform
• Price Target: ¥5,496.00 ▲(16.07% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

NISHIO HOLDINGS CO. LTD. achieves a strong overall stock score driven by robust financial performance and solid valuation metrics. The company's positive technical indicators further support its favorable outlook. The absence of earnings call data and corporate events does not detract from the overall assessment, as the primary factors indicate a well-positioned company for future growth.

Positive Factors

Revenue Growth

A 65.2% revenue increase in the latest year signals durable demand expansion and improved fleet utilization. For a rental-leasing company, sustained top-line growth supports reinvestment in fleet, scale efficiencies, and stronger contract leverage that bolster long-term cash generation and competitive positioning.

Cash Generation

Free cash flow growth of 116.1% and an 86.7% FCF-to-net-income conversion show robust cash conversion. Strong, repeatable FCF enables self-funding of capital expenditure for fleet renewal, supports dividends or deleveraging, and provides a durable liquidity buffer in this capital-intensive business.

Business Model Resilience

The core recurring rental/leasing model combined with delivery, installation, inspection and maintenance fees creates multiple, sticky revenue streams. Service integration increases customer switching costs and diversifies income between rental fees, logistics services and used-asset sales, strengthening long-term resilience.

Negative Factors

Low Profitability Margins

A net profit margin of 5.6% with noted margin declines provides limited cushion against cost inflation or pricing pressure. In an asset-heavy rental business with fixed depreciation and logistics costs, low margins reduce flexibility to absorb lower utilization or rising maintenance expenses without compressing returns or deferring fleet investment.

Moderate Leverage

A debt-to-equity ratio of 0.69 and a 46.6% equity ratio indicate moderate leverage and room to strengthen the balance sheet. For a capital-intensive rental fleet, persistent leverage can constrain financial flexibility for large capex cycles, limit rapid fleet expansion, and raise refinancing risk if sector demand weakens.

Cyclicality and Utilization Risk

Profitability depends heavily on construction and civil-engineering activity levels, fleet utilization and resale values. This structural exposure to industry cycles and utilization volatility can produce durable swings in revenue and cash flow, pressuring margins and asset turnover during prolonged slowdowns.

NISHIO HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

Nishio Rent All Co., Ltd. engages in the construction machinery rental business in Japan and internationally. It rents and sells lighting systems, unmanned construction support systems, asphalt finishers, motor graders, various rollers, small-sized compactors, generators, compressors, welders, and resistors for civil and road construction projects. The company also offers specialty equipment, such as tunneling work equipment, railroad tractors and battery motorized vehicles, construction wastewater treatment systems, shoring, quality assurance, and environmental protection equipment for civil work projects. In addition, it provides various aerial platforms, maintenance equipment, forklifts, tower cranes and work platforms, and unmanned transport vehicles for plant maintenance and building works; and equipment for exhibitions, and equipment and materials for outdoor events. Additionally, it undertakes the planning, manufacture, and sale of materials designed for indoor kids play facilities; and outdoor play equipment. The company also performs the operation, transport, leasing, and contracting of construction machinery; and designs and supervises the construction of electrical equipment, as well as offers parking lot and car maintenance services. It operates through 395 rental operation division; and 57 franchise operation chain stores in Japan. The company was incorporated in 1946 and is headquartered in Osaka, Japan.

How the Company Makes Money

NISHIO HOLDINGS generates revenue through multiple streams, primarily from the sale of electrical and electronic components, as well as through the provision of IT solutions and services. The company's revenue model is built on both direct product sales and long-term service contracts, which ensure ongoing support and maintenance for their clients. Key revenue streams include wholesale distribution to other businesses, retail sales to consumers, and consulting services related to IT infrastructure. Additionally, strategic partnerships with manufacturers and technology providers enhance their product offerings and market reach, contributing significantly to their earnings. The company's reputation for reliability and expertise in the electrical and electronics industry further bolsters its revenue potential.

NISHIO HOLDINGS CO. LTD. Financial Statement Overview

Summary

NISHIO HOLDINGS CO. LTD. exhibits strong financial performance with significant revenue growth and robust cash flow generation. The company maintains a healthy balance sheet with moderate leverage and effective equity utilization. While profitability margins have slightly declined, the overall financial health remains solid, positioning the company well for future growth.

Income Statement

NISHIO HOLDINGS CO. LTD. has demonstrated strong revenue growth with a 65.2% increase in the latest year, indicating robust demand for its services. The company maintains healthy profitability with a gross profit margin of 38.3% and a net profit margin of 5.6%. However, there is a slight decline in margins compared to previous years, which could suggest rising costs or competitive pressures.

Balance Sheet

The company's debt-to-equity ratio of 0.69 reflects a moderate leverage position, which is a positive indicator of financial stability. Return on equity stands at 8.7%, showing effective utilization of shareholder funds. The equity ratio of 46.6% suggests a solid equity base, though there is room for improvement in reducing debt levels further.

Cash Flow

NISHIO HOLDINGS CO. LTD. has achieved impressive free cash flow growth of 116.1%, indicating strong cash generation capabilities. The free cash flow to net income ratio of 86.7% highlights efficient conversion of income into cash. However, the operating cash flow to net income ratio is not available, which limits a full assessment of cash flow efficiency.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	214.95B	199.00B	185.66B	170.63B	161.75B
Gross Profit	48.28B	80.90B	74.18B	68.25B	64.63B
EBITDA	53.65B	52.87B	48.38B	45.91B	43.07B
Net Income	12.11B	11.60B	10.29B	9.17B	8.83B
Balance Sheet
Total Assets	297.26B	290.68B	272.57B	261.70B	248.93B
Cash, Cash Equivalents and Short-Term Investments	62.20B	49.83B	43.04B	47.71B	47.62B
Total Debt	96.26B	95.21B	92.34B	93.72B	87.76B
Total Liabilities	156.97B	156.37B	148.17B	144.92B	138.15B
Stockholders Equity	138.53B	132.16B	122.24B	114.57B	107.22B
Cash Flow
Free Cash Flow	27.57B	21.18B	12.56B	12.69B	16.95B
Operating Cash Flow	31.81B	29.55B	24.41B	21.32B	21.60B
Investing Cash Flow	-4.21B	-9.39B	-11.79B	-9.15B	-5.59B
Financing Cash Flow	-15.18B	-13.50B	-17.70B	-12.08B	-1.97B

NISHIO HOLDINGS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4735.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 4576.50, above the 50-day MA of 4642.40, and above the 200-day MA of 4243.28, indicating a neutral trend. The MACD of -33.05 indicates Negative momentum. The RSI at 49.69 is Neutral, neither overbought nor oversold. The STOCH value of 69.66 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9699	79 Outperform	¥129.05B	11.09	―	2.85%	8.02%	4.39%
9619	78 Outperform	¥51.26B	7.20	―	3.57%	3.70%	-43.85%
9991	78 Outperform	¥65.18B	10.98	―	4.09%	-6.09%	31.18%
7081	76 Outperform	¥15.27B	7.84	―	3.03%	5.72%	60.38%
9763	76 Outperform	¥16.66B	11.67	―	3.57%	6.66%	13.62%
2445	70 Outperform	¥20.26B	13.46	―	3.33%	-1.56%	-3.60%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

NISHIO HOLDINGS CO. LTD. Corporate Events

Nishio Holdings Tightens Corporate Governance and Stakeholder Protections

Nishio Holdings Co., Ltd. has partially revised its initiatives and policies under Japan’s Corporate Governance Code, formalizing its stance that all key stakeholders are equally important and that corporate value must be enhanced from each of their perspectives through stronger governance. The company reiterates its reliance on a holding company framework and an Audit and Supervisory Board structure to ensure clear accountability, speedy decision-making and rigorous oversight, particularly for matters akin to managerial self-dealing such as officer selection, compensation and related-party transactions. It also emphasizes procedures to secure and facilitate shareholder rights, including voting at general meetings and the exercise of minority shareholder rights, and commits to reflecting voting results in board discussions, thereby reinforcing transparency, stakeholder protection and long-term value creation within the group.

The most recent analyst rating on (JP:9699) stock is a Buy with a Yen5525.00 price target. To see the full list of analyst forecasts on NISHIO HOLDINGS CO. LTD. stock, see the JP:9699 Stock Forecast page.

Nishio Holdings Completes Treasury Stock Disposal for Restricted Stock Compensation

Nishio Holdings has completed the payment procedures for the disposal of 900 shares of its treasury stock to company directors (excluding outside directors) as part of a restricted stock compensation plan, at a disposal price of 4,490 yen per share for a total value of 4,041,000 yen, with the transaction dated January 15, 2026. This move underscores the company’s continued use of equity-linked remuneration to strengthen management incentives and align directors’ interests with long-term shareholder value, while representing only a minor change in its overall capital structure.

The most recent analyst rating on (JP:9699) stock is a Buy with a Yen4900.00 price target. To see the full list of analyst forecasts on NISHIO HOLDINGS CO. LTD. stock, see the JP:9699 Stock Forecast page.

Nishio Holdings Grants Restricted Treasury Shares to Directors Under Long-Term Incentive Plan

Nishio Holdings has resolved to dispose of 900 shares of its treasury stock to four internal directors as part of its long-standing restricted stock compensation system, with a total disposal value of ¥4,041,000 at a price set to match the recent market closing price. The allocation is designed to strengthen alignment between directors and shareholders by imposing a 30-year transfer restriction period, with shares managed in dedicated securities accounts and subject to clawback without consideration if conditions are not met, thereby reinforcing long-term commitment, governance discipline, and stability in the company’s leadership incentives.

The most recent analyst rating on (JP:9699) stock is a Buy with a Yen5032.00 price target. To see the full list of analyst forecasts on NISHIO HOLDINGS CO. LTD. stock, see the JP:9699 Stock Forecast page.

Nishio Holdings Tightens Governance Practices and Expands ESG and English Disclosures

Nishio Holdings has partially revised its initiatives related to Japan’s Corporate Governance Code, reaffirming its stance that all stakeholders are equally important and emphasizing a governance framework that clarifies managerial responsibility, enforces a strict duty of loyalty on directors, and leverages a holding company structure with robust oversight by outside directors and auditors. The company is strengthening its alignment with key supplemental principles by expanding English-language disclosures of key documents for overseas investors and by deepening sustainability-related transparency, including climate risk and opportunity reporting in line with TCFD recommendations, which it has integrated into its securities reports from the fiscal year ended September 2024 and its medium-term management plan, “Next Stage 2026.”

The most recent analyst rating on (JP:9699) stock is a Buy with a Yen5032.00 price target. To see the full list of analyst forecasts on NISHIO HOLDINGS CO. LTD. stock, see the JP:9699 Stock Forecast page.

Nishio Holdings Announces Executive Personnel Changes

Nishio Holdings Co., Ltd. has announced changes in its executive personnel following a Board of Directors meeting. The company has nominated Yutaka Masuda as a new external auditor, pending approval at the upcoming Annual General Meeting, while Shuji Abe is scheduled to retire from the same position.

The most recent analyst rating on (JP:9699) stock is a Buy with a Yen5169.00 price target. To see the full list of analyst forecasts on NISHIO HOLDINGS CO. LTD. stock, see the JP:9699 Stock Forecast page.

Nishio Holdings Advances Business Reorganization Under ‘Next Stage 2026’

Nishio Holdings Co., Ltd. has announced significant progress in its business reorganization as part of its Medium-Term Business Plan ‘Next Stage 2026’. The company is integrating its domestic construction machinery rental businesses to strengthen its market presence in Tokyo and Kyushu, aiming for substantial revenue growth. Additionally, it plans to enhance efficiency in the tunnel machinery field by merging businesses and has exited the non-core metal components manufacturing sector. These strategic moves are expected to improve business efficiency and solidify Nishio’s industry positioning.

The most recent analyst rating on (JP:9699) stock is a Buy with a Yen5169.00 price target. To see the full list of analyst forecasts on NISHIO HOLDINGS CO. LTD. stock, see the JP:9699 Stock Forecast page.

Nishio Holdings Increases Year-End Dividend Amid Strong Performance

Nishio Holdings Co., Ltd. announced an increase in its year-end dividend for the fiscal year ending September 30, 2025, from the previously forecasted 128 yen per share to 131 yen per share. This decision reflects the company’s strong business performance and commitment to shareholder value, as it positions dividend policy as a critical management issue.

The most recent analyst rating on (JP:9699) stock is a Buy with a Yen5169.00 price target. To see the full list of analyst forecasts on NISHIO HOLDINGS CO. LTD. stock, see the JP:9699 Stock Forecast page.

NISHIO HOLDINGS Reports Robust Fiscal Year Results with Increased Net Sales

NISHIO HOLDINGS CO., LTD. reported an 8% increase in net sales for the fiscal year ending September 30, 2025, reaching ¥214,954 million. Despite a decrease in comprehensive income by 19.7%, the company showed growth in operating and ordinary profits. The financial results indicate a stable financial position with improved cash flows from operating activities and a slight increase in dividends per share. This performance reflects the company’s resilience and strategic positioning in the equipment rental industry, suggesting a positive outlook for stakeholders.

The most recent analyst rating on (JP:9699) stock is a Buy with a Yen5169.00 price target. To see the full list of analyst forecasts on NISHIO HOLDINGS CO. LTD. stock, see the JP:9699 Stock Forecast page.