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Nippon Densetsu Kogyo Co., Ltd.
(1950)
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Rating:68Neutral
Price Target:
¥4,355.00
▲(31.57% Upside)
Action:Downgraded
Date:08/06/26
The score is driven primarily by strong financial performance (notably improved profitability and a low-leverage balance sheet), offset by meaningful cash-flow volatility and weak cash conversion. Technical indicators are currently a headwind due to negative momentum and the stock trading below key moving averages, while valuation is supportive with a moderate P/E and a ~3.1% dividend yield.
Positive Factors
Sustained Revenue Growth
Revenue expansion over several years indicates stronger business scale and project execution. Continued growth provides a broader base for earnings and supports the company’s ability to participate in infrastructure demand over the medium term.
Negative Factors
Volatile Cash Generation
Large year-to-year cash-flow swings reduce visibility into internally generated funding and may reflect working-capital or project timing risk. This can constrain reinvestment and make reported earnings less dependable as a liquidity measure.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Revenue expansion over several years indicates stronger business scale and project execution. Continued growth provides a broader base for earnings and supports the company’s ability to participate in infrastructure demand over the medium term.
Read all positive factors
Nippon Densetsu Kogyo Co., Ltd. (1950) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥242.20B
Dividend Yield3.12%
Average Volume (3M)98.11K
Price to Earnings (P/E)12.3
Beta (1Y)1.01
Revenue Growth9.25%
EPS Growth38.06%
CountryJP
Employees4,645
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)323.89
Shares Outstanding61,537,220
10 Day Avg. Volume86,150
30 Day Avg. Volume98,106
Financial Highlights & Ratios
PEG Ratio0.40
Price to Book (P/B)1.29
Price to Sales (P/S)1.21
P/FCF Ratio59.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥5,200.00Price Target Upside57.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)326.35
Revenue Forecast (FY)¥244.35B
Nippon Densetsu Kogyo Co., Ltd. Business Overview & Revenue Model
Company Description
Nippon Densetsu Kogyo Co., Ltd., a Japanese company established in Tokyo in 1942 and renamed from Railway Electric Industries Co., Ltd. in 1949, primarily focuses on constructing electronic equipment for railways. Beyond this core specialization, ...
How the Company Makes Money
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Nippon Densetsu Kogyo Co., Ltd. Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 233.94B | 229.21B | 216.92B | 194.03B | 172.10B | 173.57B |
| Gross Profit | 43.50B | 40.92B | 34.31B | 28.51B | 23.92B | 21.66B |
| EBITDA | 32.67B | 32.28B | 24.68B | 19.22B | 14.64B | 12.08B |
| Net Income | 18.91B | 18.06B | 13.19B | 10.04B | 7.17B | 5.22B |
Balance Sheet | ||||||
| Total Assets | 275.43B | 333.79B | 296.39B | 282.60B | 261.37B | 257.70B |
| Cash, Cash Equivalents and Short-Term Investments | 32.96B | 34.34B | 27.17B | 36.21B | 42.34B | 45.29B |
| Total Debt | 7.71B | 12.20B | 5.06B | 1.06B | 863.00M | 1.04B |
| Total Liabilities | 51.95B | 103.06B | 86.73B | 83.48B | 71.14B | 72.51B |
| Stockholders Equity | 208.80B | 215.75B | 195.72B | 185.79B | 177.23B | 172.37B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 4.67B | -9.12B | 3.76B | -93.00M | 6.80B |
| Operating Cash Flow | 0.00 | 10.52B | -4.34B | 7.38B | 13.23B | 9.51B |
| Investing Cash Flow | 0.00 | -4.70B | -5.77B | -4.18B | -12.44B | -6.64B |
| Financing Cash Flow | 0.00 | 1.94B | 169.00M | -7.93B | -2.34B | -2.74B |
Nippon Densetsu Kogyo Co., Ltd. Technical Analysis
Neutral
3310.00
Price Trends
4104.60
Negative
4396.80
Negative
4088.13
Negative
Market Momentum
-48.07
Negative
51.09
Neutral
76.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1950, the sentiment is Neutral. The current price of 3310 is below the 20-day moving average (MA) of 3904.75, below the 50-day MA of 4104.60, and below the 200-day MA of 4088.13, indicating a neutral trend. The MACD of -48.07 indicates Negative momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 76.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1950.
Nippon Densetsu Kogyo Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥282.14B | 14.81 | 7.85% | 2.72% | 5.94% | -10.93% | |
76 Outperform | ¥148.27B | 10.63 | ― | 2.81% | 11.40% | 26.49% | |
68 Neutral | ¥242.20B | 12.29 | ― | 2.79% | 9.25% | 38.06% | |
68 Neutral | ¥174.49B | 15.34 | ― | 3.02% | -4.04% | -3.71% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ¥161.42B | 11.96 | ― | 2.72% | 18.80% | 47.26% |
* Industrials Sector Average
JP:1950
Nippon Densetsu Kogyo Co., Ltd.
3,980.00
1,317.18
49.47%
JP:1941
CHUDENKO
5,120.00
1,364.61
36.34%
JP:1934
Yurtec Corporation
2,590.00
5.34
0.21%
JP:1952
Shin Nippon Air Technologies Co., Ltd.
3,115.00
87.57
2.89%
JP:1968
Taihei Dengyo Kaisha, Ltd.
2,486.00
433.35
21.11%
Nippon Densetsu Kogyo Co., Ltd. Corporate Events
Nippon Densetsu Kogyo Completes Share Buyback and Plans Major Treasury Share Cancellation
Aug 3, 2026
Nippon Densetsu Kogyo has completed the repurchase of 1,200,000 of its common shares for approximately 4.85 billion yen via the Tokyo Stock Exchange’s ToSTNeT-3 off-auction system, representing 2.00% of its issued shares excluding treasury s...
Nippon Densetsu Kogyo Launches Share Buyback and Cancellation to Boost Capital Efficiency
Jul 31, 2026
Nippon Densetsu Kogyo Co., Ltd., a Japan-based electrical construction and engineering company listed on the TSE Prime Market, emphasizes sustainable growth and disciplined capital management in its operations. The firm targets domestic industrial...
Nippon Densetsu Kogyo Delivers Strong Q1 Profit Rebound and Raises Dividend
Jul 31, 2026
Nippon Densetsu Kogyo reported consolidated net sales of ¥34,971 million for the three months ended June 30, 2026, up 15.7% year-on-year. Profit attributable to owners of the parent surged to ¥1,443 million, a 143.6% increase, with basic...
Nippon Densetsu Kogyo Details JR East Ties and Affirms Independence
Jun 26, 2026
Nippon Densetsu Kogyo has clarified its relationship with East Japan Railway Company, which holds 19.6% of its voting rights and is classified as an other affiliated company and largest shareholder. Positioned as a partner within JR East’s c...
Nippon Densetsu Kogyo Revamps Board Lineup While Keeping Core Leadership Intact
May 25, 2026
Nippon Densetsu Kogyo has announced a slate of officer changes to take effect following shareholder approval at its June 26, 2026 annual general meeting, while maintaining continuity in top management with President and CEO Kazushige Yasuda and ot...
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.