NIPPON RIETEC CO., LTD. (1938) AI Stock Analysis

• Market Cap: ¥42.30B
• Dividend Yield: 3.61%
• Average Volume (3M): 38.09K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.74
• Revenue Growth: 14.18%
• EPS Growth: 24.76%
• Country: JP
• Employees: 1,551
• Sector: Technology
• Sector Strength: 65
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 125.25
• Shares Outstanding: 25,617,716
• 10 Day Avg. Volume: 44,910
• 30 Day Avg. Volume: 38,090
• PEG Ratio: 1.46
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

Nippon Rietec is performing well financially, with robust revenue growth and strong profitability. The valuation indicates the stock is undervalued, offering a good entry point, reinforced by a healthy dividend yield. Although technical indicators suggest positive momentum, the lack of comprehensive technical data and absence of current cash flow figures require cautious monitoring.

NIPPON RIETEC CO., LTD. Business Overview & Revenue Model

Company Description

NIPPON RIETEC CO., LTD. (1938) is a Japanese company that specializes in the engineering and construction of electrical facilities. The company operates in various sectors, including infrastructure, telecommunications, and power generation, offering comprehensive services such as design, installation, and maintenance of electrical systems. Its core products and services are focused on providing reliable and efficient solutions for complex electrical projects, ensuring the integration and enhancement of infrastructural capabilities.

How the Company Makes Money

NIPPON RIETEC CO., LTD. generates revenue through a diversified model centered around engineering and construction services for electrical facilities. Key revenue streams include project contracts with government agencies, private corporations, and utility companies for the design and installation of electrical systems. The company also earns from maintenance and after-sales services, ensuring long-term operational efficiency for its clients. Significant partnerships with technology providers and equipment manufacturers enhance its service offerings, while its reputation for reliable and high-quality service delivery contributes to consistent business from repeat clients and referrals.

NIPPON RIETEC CO., LTD. Financial Statement Overview

Summary

Nippon Rietec exhibits strong revenue growth and profitability indicators, supported by a robust balance sheet with low leverage. However, the lack of current cash flow data could pose potential risks in liquidity assessment. Overall, the company is positioned well in its industry, but monitoring cash flows will be crucial for sustained financial health.

Income Statement

Nippon Rietec has demonstrated solid revenue growth, with a steady increase from 53,745 million Yen in 2023 to 65,336 million Yen in the TTM. The gross profit and net profit margins have shown resilience, with the TTM gross profit margin at 16.27% and net profit margin at 5.98%. The EBIT and EBITDA margins have also improved, reflecting effective cost management and operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a healthy equity ratio of 63.00% in the TTM, indicating financial stability. The debt-to-equity ratio remains low at 0.17, showcasing conservative leverage. However, the return on equity slightly decreased to 6.48% in the TTM, suggesting room for improvement in equity utilization.

Cash Flow

Cash flow metrics are mixed, with a notable absence of operating and free cash flow data for the TTM, hindering comprehensive analysis. Historical data shows variability in free cash flow, but generally positive operating cash flow in previous years, indicating operational cash generation capability.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
65.34B	58.54B	53.75B	53.23B	55.20B	61.59B
	Gross Profit
10.63B	8.79B	7.70B	7.71B	8.84B	9.25B
	EBIT
5.38B	3.43B	2.69B	3.07B	4.22B	4.53B
	EBITDA
6.06B	5.39B	4.51B	4.85B	5.83B	6.11B
	Net Income Common Stockholders
3.91B	2.77B	2.14B	2.40B	3.28B	3.63B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.56B	8.91B	7.85B	7.84B	6.76B	7.23B
	Total Assets
95.84B	87.32B	82.85B	79.86B	80.62B	79.71B
	Total Debt
10.00B	2.13B	1.79B	1.49B	1.32B	1.98B
	Net Debt
2.44B	-6.78B	-6.06B	-6.35B	-5.44B	-5.25B
	Total Liabilities
35.48B	27.54B	26.07B	24.35B	25.98B	27.83B
	Stockholders Equity
60.36B	59.78B	56.78B	55.50B	54.64B	51.89B
Cash Flow		Free Cash Flow
0.00	1.80B	1.25B	1.76B	1.50B	-1.37B
	Operating Cash Flow
0.00	3.86B	2.17B	2.63B	3.07B	469.54M
	Investing Cash Flow
0.00	-1.85B	-830.85M	-455.04M	-1.52B	-1.72B
	Financing Cash Flow
0.00	-960.44M	-1.33B	-1.09B	-2.02B	205.81M

NIPPON RIETEC CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1682.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1682 is above the 20-day moving average (MA) of 1548.55, above the 50-day MA of 1498.96, and above the 200-day MA of 1221.93, indicating a bullish trend. The MACD of 48.73 indicates Negative momentum. The RSI at 63.68 is Neutral, neither overbought nor oversold. The STOCH value of 80.79 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1941	79 Outperform	$188.37B	9.34	8.99%	3.37%	10.38%	151.57%
1959	76 Outperform	¥358.20B	12.38		2.79%	1.04%	3.13%
9644	76 Outperform	¥26.02B	27.72		3.22%	13.15%	44.68%
1938	73 Outperform	¥42.30B	8.80		3.61%	14.18%	24.76%
1951	69 Neutral	¥376.55B	14.49		3.66%	5.92%	-6.78%
Sector *	60 Neutral	$11.39B	10.50	-6.42%	2.97%	7.77%	-11.17%
1963	54 Neutral	¥297.75B	―	-5.79%	3.19%	5.60%	-220.39%

NIPPON RIETEC CO., LTD. Corporate Events

NIPPON RIETEC Revises Earnings Forecast with Positive Outlook

NIPPON RIETEC CO., LTD. has revised its earnings forecast for the fiscal year ending March 31, 2025, projecting increased net sales and profits due to steady progress in construction projects and improved cost management. This revision suggests a positive outlook for the company’s financial performance, potentially enhancing its market position and benefiting stakeholders.