Nippon Densetsu Kogyo Co., Ltd. (JP:1950)
:1950
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Nippon Densetsu Kogyo Co., Ltd.
(1950)
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Rating:70Outperform
Price Target:
¥4,697.00
▲(41.90% Upside)
Action:Reiterated
Date:05/02/26
The score is driven primarily by strong financial statements—especially improving profitability and a conservatively financed balance sheet—offset by meaningful cash-flow volatility and weak cash conversion. Technicals are mixed with short-term weakness, while valuation looks broadly reasonable with a moderate dividend yield.
Positive Factors
Profitability & Margin Expansion
Sustained margin expansion and more than doubling of EBIT and net income since 2022 indicate durable operational improvements. Higher margins provide ongoing earnings power, support reinvestment in capabilities and bidding competitiveness across infrastructure projects over the medium term.
Negative Factors
Volatile Cash Generation
Irregular operating cash flow and inconsistent free cash flow reflect working-capital and project payment timing risks. Even with strong reported earnings, weak cash conversion can constrain capital allocation, dividend reliability and funding for capex or larger contracts without raising debt.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & Margin Expansion
Sustained margin expansion and more than doubling of EBIT and net income since 2022 indicate durable operational improvements. Higher margins provide ongoing earnings power, support reinvestment in capabilities and bidding competitiveness across infrastructure projects over the medium term.
Read all positive factors
Nippon Densetsu Kogyo Co., Ltd. (1950) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥274.47B
Dividend Yield2.79%
Average Volume (3M)98.11K
Price to Earnings (P/E)14.1
Beta (1Y)0.99
Revenue Growth5.66%
EPS Growth38.22%
CountryJP
Employees4,744
SectorIndustrials
Sector Strength72
IndustryIndustrial - Infrastructure Operations
Share Statistics
EPS (TTM)234.93
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)325.5
Revenue Forecast (FY)¥243.00B
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
The company generates revenue by providing electrical construction services, including designing, installing, and maintaining electrical systems for buildings, industrial facilities, and infrastructure projects. Its revenue streams are derived pri...
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 | 214.15B | 229.21B | 216.92B | 194.03B | 172.10B | 173.57B |
| Gross Profit | 34.33B | 40.92B | 34.31B | 28.51B | 23.92B | 21.66B |
| EBITDA | 25.26B | 32.28B | 24.68B | 19.22B | 14.64B | 12.08B |
| Net Income | 13.83B | 18.06B | 13.19B | 10.04B | 7.17B | 5.22B |
Balance Sheet | ||||||
| Total Assets | 258.08B | 333.79B | 296.39B | 282.60B | 261.37B | 257.70B |
| Cash, Cash Equivalents and Short-Term Investments | 32.47B | 34.34B | 27.17B | 36.21B | 42.34B | 45.29B |
| Total Debt | 5.35B | 12.20B | 5.06B | 1.06B | 863.00M | 1.04B |
| Total Liabilities | 52.44B | 103.06B | 86.73B | 83.48B | 71.14B | 72.51B |
| Stockholders Equity | 191.99B | 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
Negative
3310.00
Price Trends
4637.80
Negative
4618.60
Negative
3780.60
Positive
Market Momentum
-37.38
Negative
45.55
Neutral
46.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1950, the sentiment is Negative. The current price of 3310 is below the 20-day moving average (MA) of 4404.25, below the 50-day MA of 4637.80, and below the 200-day MA of 3780.60, indicating a neutral trend. The MACD of -37.38 indicates Negative momentum. The RSI at 45.55 is Neutral, neither overbought nor oversold. The STOCH value of 46.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥307.44B | 15.97 | 7.43% | 2.78% | 2.69% | -6.83% | |
75 Outperform | ¥169.69B | 13.32 | ― | 2.81% | 12.49% | 26.17% | |
70 Outperform | ¥274.47B | 14.13 | ― | 2.79% | 5.66% | 38.22% | |
66 Neutral | ¥170.93B | 13.77 | ― | 2.72% | 12.72% | 17.23% | |
64 Neutral | ¥166.82B | 15.94 | ― | 2.87% | -1.92% | -12.16% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
JP:1950
Nippon Densetsu Kogyo Co., Ltd.
4,370.00
1,879.16
75.44%
JP:1941
CHUDENKO
5,460.00
2,223.76
68.71%
JP:1934
Yurtec Corporation
2,397.00
356.74
17.48%
JP:1952
Shin Nippon Air Technologies Co., Ltd.
3,565.00
1,317.16
58.60%
JP:1968
Taihei Dengyo Kaisha, Ltd.
2,597.00
840.84
47.88%
Nippon Densetsu Kogyo Co., Ltd. Corporate Events
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...
Nippon Densetsu Kogyo Lifts Year-End Dividend and Raises Payout Forecast
Apr 30, 2026
Nippon Densetsu Kogyo has approved a higher year-end dividend for the fiscal year ended March 31, 2026, lifting the payout to 124 yen per share from the previous year’s 90 yen and exceeding its earlier forecast of 115 yen. The move, funded f...
Nippon Densetsu Kogyo Delivers Strong Profit Growth and Hikes Dividend for FY2026
Apr 30, 2026
Nippon Densetsu Kogyo reported consolidated net sales of ¥229.2 billion for the fiscal year ended March 31, 2026, up 5.7% year on year, with operating profit surging 31.4% to ¥23.6 billion and profit attributable to owners of parent clim...
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.