Nakano Corporation (1827) AI Stock Analysis

4 Followers

Nakano Corporation

(TSE/TYO:1827)

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Rating:77Outperform

Price Target:JPY 1,612.00▲(13.52% Upside)

Action:reiterated

Date:11/14/26

The overall score of 77 is primarily driven by the company's excellent financial performance, particularly its fortress-like balance sheet with minimal debt and strong profitability improvements. An attractive valuation with a low P/E ratio and a healthy dividend yield further support the positive outlook. Technical indicators show a positive price trend above key moving averages, though mixed momentum signals suggest a neutral short-term posture, slightly tempering the score.

Positive Factors

Very conservative balance sheetMinimal leverage gives Nakano substantial financial flexibility, reducing interest burden and refinancing exposure. A stronger equity base also supports resilience through construction-cycle volatility and leaves more capacity to fund projects, maintain dividends, or pursue growth without relying heavily on additional borrowing.

Negative Factors

Volatile cash generationThe prior two years of negative operating and free cash flow show that reported profits do not always translate smoothly into available cash. Working-capital and project-timing swings can pressure liquidity, complicate capital allocation, and make cash generation less predictable even when accounting earnings remain positive.

Nakano Corporation (1827) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 48.80B
Dividend Yield: 2.68%
Average Volume (3M): 25.30K
Price to Earnings (P/E): 9.6
Beta (1Y): 1.10
Revenue Growth: 35.61%
EPS Growth: 99.85%
Country: Japan
Employees: 1,394
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Nakano Corporation Business Overview & Revenue Model

Company Description

Nakano Corporation is a diversified enterprise with core activities in construction and real estate development. Its operations extend across Japan, Singapore, Malaysia, Indonesia, Thailand, Vietnam, and various other international markets. The compa...

Nakano Corporation Financial Statement Overview

Summary

Strong financial health driven by an exceptional balance sheet (Score 95) with near-zero debt and growing equity, combined with solid income statement improvements (Score 82) showing 27% revenue growth and expanding margins. Cash flow (Score 75) is volatile but recently robust, and the low leverage mitigates this risk.

Income Statement

82Very Positive

Balance Sheet

95Very Positive

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	147.43B	138.07B	110.54B	107.42B	114.46B	96.47B
Gross Profit	15.63B	14.45B	10.50B	9.71B	8.74B	4.81B
EBITDA	7.81B	6.89B	4.43B	4.27B	3.42B	-313.00M
Net Income	5.06B	4.38B	2.90B	2.65B	1.92B	-1.59B
Balance Sheet
Total Assets	91.14B	100.78B	80.67B	80.62B	79.67B	82.19B
Cash, Cash Equivalents and Short-Term Investments	32.35B	30.96B	20.96B	26.23B	27.90B	27.05B
Total Debt	1.13B	50.00M	952.00M	1.17B	1.15B	1.18B
Total Liabilities	39.66B	49.39B	36.21B	38.45B	41.83B	46.61B
Stockholders Equity	49.88B	49.75B	42.84B	40.66B	36.56B	34.43B
Cash Flow
Free Cash Flow	0	10.14B	-4.64B	-2.39B	1.85B	9.92B
Operating Cash Flow	0	10.42B	-4.38B	-2.09B	2.17B	11.52B
Investing Cash Flow	0	548.00M	-398.00M	-28.00M	-256.00M	-2.68B
Financing Cash Flow	0	-1.92B	-891.00M	-801.00M	-776.00M	-5.74B

Nakano Corporation Technical Analysis

Technical Analysis SentimentPositive

Last Price1420.00

Price Trends

50DMA1346.90Positive

100DMA1325.42Positive

200DMA1340.74Positive

Market Momentum

MACD-3.77Negative

RSI61.19Neutral

STOCH77.43Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1827, the sentiment is Positive. The current price of 1420.00 is above the 20-day moving average (MA) of 1293.15, above the 50-day MA of 1346.90, and above the 200-day MA of 1340.74, indicating a bullish trend. The MACD of -3.77 indicates Negative momentum. The RSI at 61.19 is Neutral, neither overbought nor oversold. The STOCH value of 77.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1827.

Nakano Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:1827 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1822	79Outperform	JPY 66.74B	13.91	―	4.27%	4.26%	69.94%
JP:1810	78Outperform	JPY 53.50B	9.93	―	4.95%	-4.88%	22.63%
JP:1827	77Outperform	JPY 45.57B	9.64	―	2.68%	35.61%	99.85%
JP:1929	77Outperform	JPY 48.32B	10.86	―	4.19%	14.74%	34.06%
JP:1866	66Neutral	JPY 29.36B	5.50	―	2.48%	8.04%	101.51%
JP:1811	60Neutral	JPY 49.63B	9.85	―	1.73%	-10.79%	-17.42%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:1827 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:1827	Nakano Corporation	1420.00	443.04	45.35%
JP:1810	Matsui Construction Co., Ltd.	1756.00	376.81	27.32%
JP:1811	Zenitaka Corporation	6950.00	-1253.09	-15.28%
JP:1822	Daiho Corporation	796.00	54.37	7.33%
JP:1866	Kitano Construction Corp.	1212.00	-59.52	-4.68%
JP:1929	Nittoc Construction Co., Ltd.	1170.00	7.00	0.60%

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.

Date of analysis: Nov 14, 2026

Nakano Corporation AI Stock Analysis