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

• Market Cap: ¥24.25B
• Dividend Yield: 4.18%
• Average Volume (3M): 24.92K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.47
• Revenue Growth: 5.13%
• EPS Growth: 22.57%
• Country: JP
• Employees: 1,636
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 7.35
• 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: 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: 71 Outperform
• Price Target: ¥603.00 ▲(10.64% 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.

Positive Factors

Revenue Growth

The company's robust revenue growth indicates effective market penetration and customer demand, supporting long-term business expansion.

Operational Margins

Strong operational margins suggest efficient cost control and pricing strategies, enhancing profitability and competitive positioning.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility for future investments and growth opportunities.

Negative Factors

Net Profit Margin Decline

A declining net profit margin can impact overall profitability, indicating rising costs or inefficiencies that need addressing for sustainable growth.

Cash Conversion Efficiency

Low cash conversion efficiency may limit the company's ability to reinvest in growth and manage liabilities, affecting long-term financial health.

Net Profit Margin Challenges

Ongoing challenges in maintaining net profit margins could hinder earnings growth, necessitating strategic adjustments to improve profitability.

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. demonstrates strong revenue growth and solid operational margins. The balance sheet is robust with conservative leverage and strong equity ratio. However, challenges include a 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: Neutral
• Last Price: 545.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9788, the sentiment is Neutral. The current price of 545 is below the 20-day moving average (MA) of 545.50, above the 50-day MA of 535.30, and below the 200-day MA of 549.08, indicating a neutral trend. The MACD of 1.62 indicates Positive momentum. The RSI at 50.27 is Neutral, neither overbought nor oversold. The STOCH value of 15.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	76 Outperform	¥27.82B	7.92	―	2.03%	26.15%	64.47%
1827	75 Outperform	¥43.37B	13.73	―	1.96%	2.55%	-14.37%
1828	73 Outperform	¥29.83B	10.40	―	3.44%	-5.43%	34.48%
1866	72 Outperform	¥38.31B	14.18	―	2.04%	-3.21%	-45.14%
9788	71 Outperform	¥24.25B	15.07	―	4.18%	5.13%	22.57%
1811	69 Neutral	¥56.30B	13.74	―	1.57%	11.01%	231.83%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

NAC Co., Ltd. Corporate Events

NAC to Absorb Yesmart Subsidiary in Streamlining, Brand-Unification Merger

NAC Co., Ltd. has decided to absorb its wholly owned subsidiary Nac Yesmart Co., Ltd., which handles the import and sale of Korean food products, through an absorption-type merger effective March 1, 2026, with NAC as the surviving entity. The move consolidates the Yesmart supermarket business—originally spun off from acquired subsidiary CONVEBOX, INC.—back into the parent to eliminate operational overlaps between NAC and Nac Yesmart, streamline group management, and unify the Yesmart brand strategy. As the transaction is a simplified and short-form merger involving a wholly owned subsidiary, no merger consideration will be paid and no shareholder meetings will be held, while NAC plans to resolve Nac Yesmart’s negative net worth via a capital increase before completion, aiming to improve economic rationality and operational efficiency in its growing Korean food retail business.

The most recent analyst rating on (JP:9788) stock is a Buy with a Yen603.00 price target. To see the full list of analyst forecasts on NAC Co., Ltd. stock, see the JP:9788 Stock Forecast page.

NAC Co., Ltd. Reports Mixed Financial Results Amid Strategic Expansion

NAC Co., Ltd. reported a slight decline in net sales for the six months ending September 30, 2025, with a notable decrease in operating and ordinary profits compared to the previous year. Despite these declines, the company experienced a significant increase in profit attributable to owners of the parent, largely due to strategic consolidation moves. The company’s financial position remains stable, with a slight decrease in equity-to-asset ratio. The forecast for the fiscal year ending March 31, 2026, anticipates a modest increase in net sales, although operating and ordinary income are expected to decrease slightly.

The most recent analyst rating on (JP:9788) stock is a Buy with a Yen603.00 price target. To see the full list of analyst forecasts on NAC Co., Ltd. stock, see the JP:9788 Stock Forecast page.

NAC Co., Ltd. Revises Financial Forecast Amid Regulatory Changes

NAC Co., Ltd. has revised its financial forecast for the six months ended September 30, 2025, due to a decrease in sales and profits primarily caused by changes in building regulations affecting its Construction Consulting and Housing Sales businesses. The company anticipates improvements in its Rental and CreCla businesses in the full-year forecast, maintaining its previous expectations.

The most recent analyst rating on (JP:9788) stock is a Buy with a Yen603.00 price target. To see the full list of analyst forecasts on NAC Co., Ltd. stock, see the JP:9788 Stock Forecast page.