Nomura Research Institute (4307) AI Stock Analysis

• Market Cap: $3.31T
• Dividend Yield: 1.08%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 34.1
• Beta (1Y): 0.47
• Revenue Growth: 3.28%
• EPS Growth: 16.48%
• Country: JP
• Employees: 16,708
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 45.43
• Shares Outstanding: 581,241,500
• 10 Day Avg. Volume: 1,033,200
• 30 Day Avg. Volume: 1,130,380
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 4.45
• Enterprise Value/Gross Profit: 12.36
• Enterprise Value/Ebitda: 18.32
• 1Y Price Target: $6,297.51
• Price Target Upside: 8.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 66 Neutral
• Price Target: ¥6,188.00 ▲(6.32% Upside)

Nomura Research Institute's strong financial performance is the most significant factor, supported by robust revenue growth and cash flow. However, technical indicators suggest a bearish short-term trend, and the high P/E ratio indicates potential overvaluation. These factors combined result in a moderate overall stock score.

Nomura Research Institute Business Overview & Revenue Model

Company Description

Nomura Research Institute, Ltd. provides consulting, financial information technology (IT) solution, industrial IT solution, and IT platform services in Japan. Its Consulting segment offers management, operational, and system consulting services for enterprise and government agencies. This segment is also involved in the research, future projection, and recommendations related to society, economics, business, technology, etc. The company's Financial IT Solutions segment provides system consulting, development, and management solutions, as well as shared online services for the financial institutions, including the securities, insurance, banking, asset management, and other financial sectors. Its Industrial IT Solutions segment offers system consulting, development, and management solutions, as well as shared online services primarily for the distribution, manufacturing, service, and public sectors. The company's IT Platform Services segment engages in the data center operation activities and construction of platforms and networks to the Financial IT and Industrial IT Solutions segments, as well as provides IT platform solutions and information security services to external clients. This segment is also involved in research related to advance IT, etc. The company was founded in 1965 and is headquartered in Tokyo, Japan.

How the Company Makes Money

NRI generates revenue primarily through its four main business segments: Consulting, Financial IT Solutions, Industrial IT Solutions, and IT Infrastructure Services. The Consulting segment provides management and systems consulting services, deriving income from advisory fees. The Financial IT Solutions segment offers comprehensive IT services to financial institutions, including system development and maintenance, thereby earning from service contracts and software solutions. The Industrial IT Solutions segment caters to various industries, providing tailored IT services and solutions, generating revenue through project-based contracts and software implementation. Finally, the IT Infrastructure Services segment supports the operation and maintenance of IT systems and infrastructure, earning income through long-term service agreements. NRI's earnings are further bolstered by strategic partnerships with technology providers and continuous investment in developing advanced IT solutions.

Nomura Research Institute Financial Statement Overview

Summary

Nomura Research Institute demonstrates strong financial health with solid revenue growth, efficient cost management, and healthy profit margins. The balance sheet is stable with a strong equity base, though liabilities require attention. Robust cash flow generation supports operational and growth flexibility.

Income Statement

Nomura Research Institute has demonstrated strong revenue growth, evident from a consistent increase in total revenue over the years with a 3.84% growth in the latest year. The Gross Profit Margin is healthy at 35.98%, and the Net Profit Margin has improved to 12.26%, indicating efficient cost management. The EBIT and EBITDA margins at 17.16% and 24.58%, respectively, also reflect robust operational efficiency. Overall, the income statement shows a positive trajectory in profitability and revenue growth, suggesting good financial health.

Balance Sheet

The balance sheet of Nomura Research Institute shows a moderate Debt-to-Equity Ratio of 0.62, indicating a stable leverage position. The Return on Equity is impressive at 21.61%, suggesting effective use of equity to generate profits. The Equity Ratio stands at 46.75%, reflecting a strong equity base relative to total assets. Despite these strengths, a relatively high amount of total liabilities suggests potential leverage risks if not managed carefully. Overall, the balance sheet is solid with a strong equity position and good returns.

Cash Flow

The company's cash flow is robust, with Free Cash Flow growing significantly by 33.60%, showcasing strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 1.39, indicating good cash flow relative to net income, while the Free Cash Flow to Net Income Ratio is 1.32, further reinforcing cash efficiency. These metrics highlight the company's ability to generate cash and meet its operational and investment needs efficiently. Overall, the cash flow statement reflects strong cash generation and management practices.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	764.81B	764.81B	736.56B	692.16B	611.63B	550.34B
Gross Profit	275.30B	275.30B	261.01B	239.83B	216.07B	185.80B
EBITDA	185.70B	187.97B	171.26B	154.67B	144.60B	123.82B
Net Income	93.76B	93.76B	79.64B	76.31B	71.44B	52.87B
Balance Sheet
Total Assets	928.50B	928.50B	922.77B	838.22B	789.65B	656.54B
Cash, Cash Equivalents and Short-Term Investments	168.60B	168.60B	173.94B	143.46B	129.63B	163.03B
Total Debt	271.02B	271.02B	298.54B	237.74B	250.42B	165.59B
Total Liabilities	490.54B	490.54B	519.75B	435.82B	447.17B	323.33B
Stockholders Equity	434.04B	434.04B	399.53B	399.01B	339.36B	330.50B
Cash Flow
Free Cash Flow	123.54B	123.54B	92.48B	64.20B	55.16B	55.56B
Operating Cash Flow	130.20B	130.20B	142.28B	118.90B	98.14B	84.59B
Investing Cash Flow	-47.59B	-47.59B	-53.42B	-61.19B	-130.55B	-20.52B
Financing Cash Flow	-87.31B	-87.31B	-47.58B	-44.92B	-8.00B	-13.18B

Nomura Research Institute Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5820.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4307, the sentiment is Neutral. The current price of 5820 is above the 20-day moving average (MA) of 5777.10, below the 50-day MA of 5820.88, and above the 200-day MA of 5359.05, indicating a neutral trend. The MACD of -1.99 indicates Negative momentum. The RSI at 49.31 is Neutral, neither overbought nor oversold. The STOCH value of 28.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4307.

Nomura Research Institute Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6701	79 Outperform	¥6.39T	31.30	8.97%	0.60%	-0.35%	32.66%
6702	70 Outperform	¥6.61T	17.13	19.84%	0.78%	-8.36%	45.42%
9719	70 Neutral	¥1.43T	28.98	16.96%	1.56%	33.00%	21.00%
3626	67 Neutral	¥1.16T	22.25	14.57%	1.41%	4.39%	7.80%
4307	66 Neutral	$3.31T	34.14	23.37%	1.08%	3.28%	16.48%
9613	61 Neutral	¥5.56T	39.07	7.78%	0.63%	3.73%	11.64%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Nomura Research Institute Corporate Events

Nomura Research Institute Reports Strong Q1 Growth and Positive Outlook

Nomura Research Institute reported a 4.1% increase in revenue for the quarter ending June 30, 2025, with significant growth in operating profit and profit before tax. The company anticipates continued growth for the fiscal year ending March 31, 2026, with projected revenue and profit increases, reflecting a strong market position and positive outlook for stakeholders.

The most recent analyst rating on (JP:4307) stock is a Buy with a Yen6000.00 price target. To see the full list of analyst forecasts on Nomura Research Institute stock, see the JP:4307 Stock Forecast page.

Nomura Research Institute Affirms Independence Amidst Nomura Holdings Affiliation

Nomura Research Institute, Ltd. announced its relationship with Nomura Holdings, Inc., which holds 23% of NRI’s voting rights, establishing NRI as an affiliated company. Despite this affiliation, NRI operates independently without governance influence from Nomura HD, ensuring its business activities and management decisions remain autonomous. The announcement highlights NRI’s commitment to maintaining independence while continuing its collaborative efforts with Nomura HD, impacting stakeholders by reinforcing NRI’s strategic positioning in the market.

The most recent analyst rating on (JP:4307) stock is a Buy with a Yen6000.00 price target. To see the full list of analyst forecasts on Nomura Research Institute stock, see the JP:4307 Stock Forecast page.