NAC Co., Ltd. (9788) AI Stock Analysis

• Market Cap: ¥24.25B
• Dividend Yield: 4.06%
• Average Volume (3M): 24.92K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.52
• Revenue Growth: 9.26%
• EPS Growth: 4.73%
• Country: JP
• Employees: 1,636
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.62
• Shares Outstanding: 46,613,500
• 10 Day Avg. Volume: 25,290
• 30 Day Avg. Volume: 24,920
• PEG Ratio: -4.43
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 6.70
• 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: ¥603.00
• Price Target Upside: 11.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥603.00 ▲(11.25% Upside)

NAC Co., Ltd. has a strong financial foundation with impressive revenue growth and solid operational margins. The valuation is attractive with a reasonable P/E ratio and high dividend yield. However, technical indicators suggest a bearish trend, which could pose short-term challenges.

NAC Co., Ltd. Business Overview & Revenue Model

Company Description

Nac Co., Ltd. engages in the water delivery and housing businesses in Japan. The company produces and sells home delivery water; and provides finance and insurance services. It also rents and sells pest control equipment and dust control products; and undertakes regular cleaning work and construction contracts for custom-built detached houses. In addition, the company constructs and sells construction-related know-how products and materials of the building department to local construction companies, consulting business, and housing franchise business, as well as solar power generation and energy-saving products. Further, it engages in the cosmetics and dietary supplements business. The company was formerly known as Duskin Tsurugawa Co., Ltd. and changed its name to Nac Co., Ltd. in 1977. Nac Co., Ltd. was founded in 1971 and is based in Tokyo, Japan.

How the Company Makes Money

NAC Co., Ltd. generates revenue through several key streams. Its primary income comes from the sale of cosmetics and personal care products through direct sales channels, which include door-to-door and online sales. Additionally, the company earns money from its construction consulting services, offering expertise and solutions in home renovation and improvement projects. Another significant revenue stream for NAC Co., Ltd. is its bottled water delivery service, which provides convenient home and office delivery to consumers. The company benefits from strategic partnerships with local suppliers to maintain a steady flow of products and services, ensuring customer satisfaction and loyalty.

NAC Co., Ltd. Financial Statement Overview

Summary

NAC Co., Ltd. shows strong revenue growth and solid operational margins. The balance sheet is stable with prudent leverage, but there are concerns about the declining net profit margin and low cash conversion efficiency.

Income Statement

NAC Co., Ltd. demonstrates strong revenue growth from the previous year with a rate of 9.85%. The gross profit margin is healthy at 45.57%, indicating effective cost management. However, the net profit margin decreased from 2.64% to 2.28%, suggesting increased expenses or other operational challenges. The EBIT and EBITDA margins remain solid at 5.03% and 6.20% respectively, reflecting stable operational performance.

Balance Sheet

The company's balance sheet is robust with a debt-to-equity ratio of 0.32, indicating conservative leverage. The equity ratio is strong at 58.64%, showcasing financial stability. Return on equity is moderate at 6.10%, pointing to a reasonable return on shareholders' investments. The company's liquidity position remains stable with increasing cash reserves.

Cash Flow

NAC Co., Ltd. has shown a positive shift in its cash flow management with a significant improvement in free cash flow. The free cash flow growth rate is substantial, turning from negative to positive, indicating better capital expenditure control. However, the operating cash flow to net income ratio is low at 3.04, suggesting potential challenges in converting income into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.23B	59.79B	54.43B	57.07B	54.92B	55.51B
Gross Profit	28.17B	27.25B	26.93B	27.74B	26.95B	27.45B
EBITDA	5.71B	3.71B	3.55B	4.42B	4.02B	3.61B
Net Income	1.54B	1.36B	1.44B	2.00B	1.71B	1.84B
Balance Sheet
Total Assets	36.78B	38.19B	37.62B	38.73B	39.72B	40.85B
Cash, Cash Equivalents and Short-Term Investments	6.62B	8.59B	8.06B	11.03B	12.29B	14.29B
Total Debt	6.24B	7.22B	7.18B	7.23B	8.83B	11.30B
Total Liabilities	15.12B	15.79B	14.90B	15.53B	17.59B	19.49B
Stockholders Equity	21.65B	22.39B	22.71B	23.20B	22.06B	21.30B
Cash Flow
Free Cash Flow	0.00	3.80B	-297.00M	1.40B	2.19B	5.85B
Operating Cash Flow	0.00	4.15B	-10.00M	1.71B	2.85B	6.45B
Investing Cash Flow	0.00	-575.00M	-1.10B	-361.00M	-1.11B	-1.45B
Financing Cash Flow	0.00	-3.07B	-1.91B	-2.56B	-3.74B	54.00M

NAC Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 542.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9788, the sentiment is Negative. The current price of 542 is below the 20-day moving average (MA) of 547.06, below the 50-day MA of 546.93, and below the 200-day MA of 570.60, indicating a bearish trend. The MACD of -2.17 indicates Positive momentum. The RSI at 45.08 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9788.

NAC Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1780	80 Outperform	¥27.08B	9.00	―	2.06%	3.21%	4.85%
1828	74 Outperform	¥25.59B	9.58	―	3.66%	-5.11%	30.22%
1827	73 Outperform	¥30.45B	12.02	―	2.48%	>-0.01%	-11.62%
1811	72 Outperform	¥48.35B	10.23	―	1.78%	5.57%	506.81%
9788	71 Outperform	¥24.25B	15.10	―	4.06%	9.26%	4.73%
1866	69 Neutral	¥29.11B	8.79	―	9.34%	2.38%	-22.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

NAC Co., Ltd. Corporate Events

NAC Co., Ltd. Reports Q1 2025 Financial Results and Positive Outlook

NAC Co., Ltd. reported a slight increase in net sales for the three months ending June 30, 2025, compared to the previous year, despite a continued operating loss. The company also announced a forecast for the fiscal year ending March 31, 2026, with expectations of increased net sales and profit attributable to owners of the parent, indicating a positive outlook for future financial performance.

NAC Co., Ltd. Completes Treasury Share Disposal for Stock Compensation

NAC Co., Ltd. has completed the payment procedures for the disposal of treasury shares as restricted stock compensation, which was resolved at a Board of Directors meeting on June 27, 2025. The disposal involved 75,139 shares of common stock at a price of 554 yen per share, totaling 41,627,006 yen, distributed among five directors and eleven employees, excluding outside directors.

NAC Co., Ltd. Affirms Independence Amid Duskin’s Significant Stake

NAC Co., Ltd. announced that Duskin Co., Ltd., an affiliated company, holds a significant 27.94% of its voting rights. Despite this, NAC maintains its business independence, having appointed an Outside Director at Duskin’s proposal without any operational restrictions. The announcement highlights the financial and operational relationship between the two companies, including product purchases amounting to 3,752 million yen.

NAC Co., Ltd. Implements Restricted Stock Compensation Plan

NAC Co., Ltd. announced the disposal of 75,139 treasury shares as part of a restricted stock compensation plan aimed at incentivizing directors and employees to increase corporate value. This strategic move is designed to align the interests of management with shareholders and enhance long-term value creation.