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NIPPON RIETEC CO., LTD.
(1938)
Select Model
Select Model
Rating:75Outperform
Price Target:
¥2,746.00
▲(20.70% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by strong financial resilience (notably very low leverage) and improved 2026 operating performance, plus supportive valuation (low P/E and solid dividend yield). These positives are tempered by weaker technical momentum and a key fundamental risk: historically volatile cash-flow conversion.
Positive Factors
Very Low Leverage
The exceptionally conservative balance sheet limits interest and refinancing risk, preserving flexibility to fund railway infrastructure projects, withstand contract cycles, and maintain operations during periods of weaker demand.
Negative Factors
Volatile Cash Conversion
Large year-to-year cash flow swings suggest working-capital movements or project timing materially affect liquidity. This reduces earnings visibility and may complicate funding decisions even though the balance sheet is strong.
Read all positive and negative factors
Positive Factors
Negative Factors
Very Low Leverage
The exceptionally conservative balance sheet limits interest and refinancing risk, preserving flexibility to fund railway infrastructure projects, withstand contract cycles, and maintain operations during periods of weaker demand.
Read all positive factors
NIPPON RIETEC CO., LTD. (1938) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥63.33B
Dividend Yield3.23%
Average Volume (3M)38.85K
Price to Earnings (P/E)10.6
Beta (1Y)0.94
Revenue Growth9.06%
EPS Growth20.01%
CountryJP
Employees1,434
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)239.75
Shares Outstanding25,117,718
10 Day Avg. Volume41,980
30 Day Avg. Volume38,853
Financial Highlights & Ratios
PEG Ratio0.65
Price to Book (P/B)0.90
Price to Sales (P/S)0.84
P/FCF Ratio20.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
NIPPON RIETEC CO., LTD. Business Overview & Revenue Model
Company Description
Headquartered in Tokyo, Japan, and founded in 1945, Nippon Rietec Co., Ltd. specializes in the construction of electrical infrastructure for railway systems across Japan. This includes the implementation of signaling apparatus, power generation an...
How the Company Makes Money
The company makes money mainly by contracting for engineering and construction work and by providing ongoing maintenance services for installed infrastructure. Key revenue streams typically include: (1) project-based revenue from construction/inst...
NIPPON RIETEC CO., LTD. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 75.89B | 74.04B | 68.67B | 58.54B | 53.75B | 53.23B |
| Gross Profit | 13.59B | 13.03B | 10.84B | 8.79B | 7.70B | 7.71B |
| EBITDA | 9.11B | 9.16B | 8.05B | 5.39B | 4.51B | 4.85B |
| Net Income | 5.94B | 5.55B | 4.73B | 2.77B | 2.14B | 2.40B |
Balance Sheet | ||||||
| Total Assets | 92.48B | 101.34B | 96.70B | 87.32B | 82.85B | 79.86B |
| Cash, Cash Equivalents and Short-Term Investments | 9.38B | 8.39B | 8.31B | 8.91B | 7.85B | 7.84B |
| Total Debt | 2.59B | 873.90M | 2.26B | 2.13B | 1.79B | 1.49B |
| Total Liabilities | 24.78B | 32.07B | 32.97B | 27.54B | 26.07B | 24.35B |
| Stockholders Equity | 67.70B | 69.27B | 63.73B | 59.78B | 56.78B | 55.50B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 3.12B | 309.04M | 1.80B | 1.25B | 1.76B |
| Operating Cash Flow | 0.00 | 4.74B | 2.04B | 3.86B | 2.17B | 2.63B |
| Investing Cash Flow | 0.00 | -1.61B | -1.19B | -1.85B | -830.85M | -455.04M |
| Financing Cash Flow | 0.00 | -2.94B | -1.44B | -960.44M | -1.33B | -1.09B |
NIPPON RIETEC CO., LTD. Technical Analysis
Positive
2275.00
Price Trends
2562.70
Positive
2641.96
Negative
2493.06
Positive
Market Momentum
2.61
Negative
55.83
Neutral
84.04
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1938, the sentiment is Positive. The current price of 2275 is below the 20-day moving average (MA) of 2465.50, below the 50-day MA of 2562.70, and below the 200-day MA of 2493.06, indicating a bullish trend. The MACD of 2.61 indicates Negative momentum. The RSI at 55.83 is Neutral, neither overbought nor oversold. The STOCH value of 84.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1938.
NIPPON RIETEC CO., LTD. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥63.33B | 10.58 | ― | 2.61% | 9.06% | 20.01% | |
68 Neutral | ¥5.84T | 25.16 | ― | 1.20% | 21.98% | 57.54% | |
66 Neutral | ¥820.24B | 25.92 | 8.80% | 1.78% | 15.94% | 6.46% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
52 Neutral | ¥60.95B | 45.94 | 1.18% | 4.00% | -1.57% | -49.55% | |
51 Neutral | ¥67.60B | 45.16 | -2.26% | 2.25% | 7.59% | -34.90% | |
49 Neutral | ¥169.66B | 25.68 | 5.10% | 2.44% | 7.73% | -29.74% |
* Industrials Sector Average
JP:1938
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NIPPON RIETEC CO., LTD. Corporate Events
Nippon Rietec Posts Strong Q1 Rebound and Keeps Profit, Dividend Outlook Intact
Aug 6, 2026
Nippon Rietec reported consolidated net sales of ¥14.0 billion for the three months ended June 30, 2026, up 15.2% year on year, with operating profit rebounding to ¥425 million and ordinary profit surging to ¥646 million. Profit att...
Nippon Rietec to Grant Transfer-Restricted Treasury Shares to Directors and Executives
Jul 24, 2026
NIPPON RIETEC has approved the disposal of 39,336 shares of its treasury stock as transfer-restricted stock to four directors and eleven executive officers, priced at 2,517 yen per share for a total of about 99 million yen. The allocation excludes...
Nippon Rietec Details Governance and Business Ties With JR East
Jun 25, 2026
Nippon Rietec has clarified its relationship with East Japan Railway Company, which holds 19.7% of its voting rights and is classified as an other affiliated company and largest shareholder. Despite JR East’s significant ownership and the hi...
Nippon Rietec to Expand Into Renewable Energy and Introduce Interim Dividends
Jun 4, 2026
Nippon Rietec Co., Ltd. will seek shareholder approval on June 25, 2026 to amend its Articles of Incorporation, adding new business purposes related to installation and operation of storage batteries, renewable energy power generation and electric...
Nippon Rietec Updates Policy on Capital-Efficient, Market-Conscious Management
May 18, 2026
Nippon Rietec has revisited its approach to management that is conscious of cost of capital and stock price, reflecting an increased emphasis on capital efficiency and market valuation. At a board meeting on May 18, 2026, the company re-analyzed a...
Nippon Rietec Overhauls Board and Executive Lineup to Strengthen Governance
May 18, 2026
Nippon Rietec announced a slate of board changes following a May 18 Board meeting, with director candidates to be confirmed at the June 25 annual shareholders’ meeting. The company will maintain Kimito Kubo as Representative Director and Pre...
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.