Nikken Kogaku Co., Ltd. (9767) AI Stock Analysis

• Market Cap: ¥3.45B
• Dividend Yield: 2.13%
• Average Volume (3M): 1.72K
• Price to Earnings (P/E): 3.8
• Beta (1Y): 0.14
• Revenue Growth: 4.48%
• EPS Growth: 5.88%
• Country: JP
• Employees: 147
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): 95.33
• Shares Outstanding: 1,862,254
• 10 Day Avg. Volume: 1,640
• 30 Day Avg. Volume: 1,723
• PEG Ratio: -57.42
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 69.70
• 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: 75 Outperform
• Price Target: ¥2,262.00 ▲(55.14% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is driven by a very attractive valuation (low P/E) and strong technical uptrend (price above major moving averages with positive MACD). These positives are tempered by fundamental risks from declining revenue and materially weaker operating/free cash flow, despite a notably strong, low-leverage balance sheet.

Positive Factors

Very low financial leverage and high equity ratio

A Debt-to-Equity of 0.07 and ~70% equity ratio provide durable financial flexibility and low solvency risk. This capital structure supports resilience through cyclical downturns, preserves borrowing capacity for strategic investment or M&A, and reduces refinancing pressure over the medium term.

Stable gross margins and improved operating margins

Consistent ~30% gross margin plus improved EBIT/EBITDA margins from cost management indicate durable operating discipline. Even if top-line volatility continues, structurally healthier operating margins support ongoing profitability, cash generation potential, and ability to sustain operating investment over multiple quarters.

Stable return on equity despite earnings variability

Stable ROE amid net income fluctuations suggests management has historically used equity capital effectively. This structural strength implies the company can generate acceptable returns on shareholders' funds and reinvest selectively, reinforcing long-term capital allocation credibility.

Negative Factors

Declining revenue trend

A year-over-year revenue decline reduces scale and can erode competitive position if sustained. Lower sales limit fixed-cost absorption, constrain reinvestment in product or market development, and make margin improvements harder to maintain without reversing the top-line trend.

Sharp deterioration in free cash flow

A collapse in free cash flow from ¥527M to ¥36M materially weakens internal funding capacity. Even with low leverage, persistent cash conversion weakness constrains capex, dividends, and strategic spending, increasing reliance on balance sheet buffers and limiting long-term growth execution.

Limited forward guidance and investor disclosure

Absence of guidance and empty earnings highlights reduces management transparency and makes medium-term planning visibility poor. For investors this raises execution risk: unclear targets impede assessment of strategic priorities and complicate forecasting over the next several quarters.

Nikken Kogaku Co., Ltd. Business Overview & Revenue Model

Company Description

Nikken Kogaku Co., Ltd. manufactures and sells wave-absorbing blocks in Japan. The company offers wave dissipating and coastal revetment blocks. It also provides coastal protection blocks, and riverbank disaster-prevention and environment protection blocks. In addition, the company offers natural stones and geosynthetics products. It serves infrastructure, transport, tourism, civil engineering, as well as government and construction consultants. Nikken Kogaku Co., Ltd. was incorporated in 1950 and is headquartered in Tokyo, Japan.

How the Company Makes Money

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Nikken Kogaku Co., Ltd. Financial Statement Overview

Summary

Strong balance sheet strength (low leverage with Debt-to-Equity of 0.07 and ~70% equity ratio) supports stability, but this is offset by declining revenue (2025 vs 2024) and a sharp deterioration in cash generation (free cash flow fell to 36M JPY from 527M JPY). Margins improved at EBIT/EBITDA, but net margin slipped slightly.

Income Statement

Nikken Kogaku experienced a decline in revenue over recent years, with a Total Revenue of 5.52 billion JPY in 2025 compared to 6.19 billion JPY in 2024. Despite this, the company maintained a stable Gross Profit Margin of around 30% and improved its EBIT and EBITDA margins in 2025 due to cost management. However, the net profit margin slightly decreased, indicating challenges in maintaining profitability amidst declining sales.

Balance Sheet

The company's balance sheet is robust, with a strong equity position and a low Debt-to-Equity Ratio of 0.07, reflecting low financial leverage. The Equity Ratio stands at 70.3%, highlighting substantial equity financing. Return on Equity (ROE) was stable, despite slight fluctuations in net income, indicating effective equity utilization.

Cash Flow

Nikken Kogaku's cash flow from operations decreased significantly from 2024 to 2025, impacting the Free Cash Flow, which fell from 527 million JPY to 36 million JPY. The Operating Cash Flow to Net Income ratio dropped, suggesting less efficient conversion of profits to cash. The Free Cash Flow to Net Income ratio also decreased, indicating potential constraints in generating free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.78B	5.52B	6.19B	6.25B	8.32B	10.59B
Gross Profit	1.72B	1.70B	1.69B	1.66B	2.16B	2.62B
EBITDA	569.81M	548.67M	592.52M	649.73M	1.12B	1.58B
Net Income	297.51M	283.50M	284.65M	280.64M	662.09M	1.01B
Balance Sheet
Total Assets	6.22B	6.53B	7.20B	6.93B	7.31B	7.67B
Cash, Cash Equivalents and Short-Term Investments	2.54B	2.74B	2.93B	2.88B	2.72B	2.52B
Total Debt	265.87M	323.68M	513.46M	809.06M	733.77M	909.00M
Total Liabilities	1.68B	1.93B	2.81B	2.85B	3.49B	4.43B
Stockholders Equity	4.53B	4.59B	4.40B	4.08B	3.82B	3.23B
Cash Flow
Free Cash Flow	0.00	35.98M	527.45M	422.62M	685.48M	1.82B
Operating Cash Flow	0.00	94.80M	658.51M	632.64M	795.02M	2.10B
Investing Cash Flow	0.00	-24.54M	-322.63M	-401.11M	-333.14M	-131.36M
Financing Cash Flow	0.00	-269.70M	-286.87M	-77.86M	-263.50M	-771.48M

Nikken Kogaku Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1458.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9767, the sentiment is Positive. The current price of 1458 is below the 20-day moving average (MA) of 1718.75, below the 50-day MA of 1648.36, and below the 200-day MA of 1511.08, indicating a bullish trend. The MACD of 61.98 indicates Negative momentum. The RSI at 81.17 is Negative, neither overbought nor oversold. The STOCH value of 71.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9767.

Nikken Kogaku Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9767	75 Outperform	¥3.45B	3.82	―	2.13%	4.48%	5.88%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7896	60 Neutral	¥2.48B	-289.58	―	3.86%	2.13%	156.83%
5386	58 Neutral	¥2.92B	9.08	―	1.59%	-4.01%	-41.29%
5271	54 Neutral	¥2.98B	-4.93	―	3.85%	0.29%	-45.50%
5928	51 Neutral	¥3.01B	6.00	―	2.96%	-8.43%	135.83%
6173	41 Neutral	¥1.50B	-4.30	―	―	-41.75%	-116.16%