Nakano Corporation (1827) AI Stock Analysis

Nakano Corporation

(TSE/TYO:1827)

Select Model

Rating:84Outperform

Price Target:JPY 1,849.00▲(39.65% Upside)

Action:reiterated

Date:08/17/26

Nakano Corporation earns a strong overall score, led by an exceptional, debt-free balance sheet and accelerating revenue growth. Compelling valuation metrics, including a P/E of 9.4, and strong, non-overextended technical momentum further support a highly favorable outlook, outweighing the minor risks of historical cash flow lumpiness.

Positive Factors

Very low leverageMinimal debt and steadily rising equity give Nakano substantial financial flexibility. A conservative capital structure reduces interest and refinancing pressure, supports resilience through construction cycles, and leaves greater capacity to fund projects or absorb cost and timing disruptions.

Negative Factors

Volatile cash conversionThe repeated negative cash flow years show that profitability does not consistently translate into available liquidity. Working-capital and project-timing swings can require funding before customer collections arrive, increasing financial management demands even with minimal balance-sheet leverage.

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

Market Cap: JPY 45.36B
Dividend Yield: 2.88%
Average Volume (3M): 24.05K
Price to Earnings (P/E): 9.0
Beta (1Y): 0.97
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...

How the Company Makes Money

Nakano Corporation primarily makes money by earning contract revenue from construction projects it undertakes as a general contractor. Its key revenue stream is project-based income tied to executing building and civil engineering works; payments are...

Nakano Corporation Financial Statement Overview

Summary

Nakano Corporation exhibits a resilient financial profile with accelerating top-line growth and an exceptionally conservative, practically debt-free balance sheet. While historic cash flows display some lumpiness, recent cash generation is robust, mitigating industry cyclicality risks.

Income Statement

86Very Positive

Balance Sheet

92Very 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 Price1324.00

Price Trends

50DMA1351.90Negative

100DMA1314.54Positive

200DMA1330.61Negative

Market Momentum

MACD-21.77Negative

RSI48.97Neutral

STOCH65.88Neutral

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 1324.00 is above the 20-day moving average (MA) of 1318.05, below the 50-day MA of 1351.90, and below the 200-day MA of 1330.61, indicating a neutral trend. The MACD of -21.77 indicates Negative momentum. The RSI at 48.97 is Neutral, neither overbought nor oversold. The STOCH value of 65.88 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:1827	84Outperform	JPY 45.37B	8.96	―	2.88%	35.61%	99.85%
JP:1822	79Outperform	JPY 65.47B	13.52	―	4.39%	0.75%	46.28%
JP:1810	78Outperform	JPY 42.52B	8.71	―	6.25%	-6.31%	34.94%
JP:1929	77Outperform	JPY 48.23B	11.29	―	4.25%	20.57%	50.62%
JP:1866	62Neutral	JPY 26.94B	6.48	―	2.75%	-3.56%	25.50%
JP:1811	60Neutral	JPY 53.07B	10.50	―	1.62%	-6.91%	-46.52%
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	1320.00	415.40	45.92%
JP:1810	Matsui Construction Co., Ltd.	1393.00	29.89	2.19%
JP:1811	Zenitaka Corporation	7410.00	-753.60	-9.23%
JP:1822	Daiho Corporation	774.00	10.33	1.35%
JP:1866	Kitano Construction Corp.	1090.00	-178.58	-14.08%
JP:1929	Nittoc Construction Co., Ltd.	1154.00	-22.46	-1.91%

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: Aug 17, 2026

Nakano Corporation AI Stock Analysis