Nippon Air Conditioning Services Co., Ltd. (4658) AI Stock Analysis

• Market Cap: ¥41.45B
• Dividend Yield: 3.4%
• Average Volume (3M): 105.50K
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.75
• Revenue Growth: 9.63%
• EPS Growth: 11.40%
• Country: JP
• Employees: 2,154
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 30.37
• Shares Outstanding: 35,784,000
• 10 Day Avg. Volume: 58,030
• 30 Day Avg. Volume: 105,499
• PEG Ratio: 0.83
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 20.87
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥1,239.00 ▼(-5.64% Downside)

Nippon Air Conditioning Services Co., Ltd. demonstrates strong financial health with robust revenue growth and profitability, supported by efficient cash flow management. The technical indicators suggest a strong upward trend, though caution is advised due to potential overbought conditions. The valuation is attractive, with a reasonable P/E ratio and a solid dividend yield, making it a balanced investment opportunity. The absence of earnings call data and corporate events does not impact the overall assessment.

Nippon Air Conditioning Services Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Air conditioning Services Co., Ltd. provides construction support services in Japan and internationally. It offers maintenance services, including inspection, servicing, repair, and replacement for air conditioning; and facilities management, reform and construction, and facility/environmental diagnosis services, as well as measuring services. The company was incorporated in 1964 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Nippon Air Conditioning Services generates revenue primarily through the sale and installation of air conditioning systems, as well as ongoing maintenance and repair services. Key revenue streams include new system installations for residential and commercial properties, service contracts for regular maintenance, and emergency repair services. The company may also benefit from partnerships with HVAC manufacturers, allowing it to offer a range of products and exclusive deals. Additionally, as energy efficiency becomes increasingly important, Nippon Air Conditioning Services capitalizes on the growing demand for eco-friendly and energy-efficient air conditioning solutions, which can command higher pricing and attract environmentally conscious customers.

Nippon Air Conditioning Services Co., Ltd. Financial Statement Overview

Summary

Nippon Air Conditioning Services Co., Ltd. demonstrates strong financial performance with consistent revenue growth, robust profitability, low leverage, and strong cash flow generation. The balance sheet and cash flow statements indicate stability and efficient capital management. However, the slight increase in debt warrants monitoring.

Income Statement

The company demonstrates strong financial performance with consistent revenue growth, evidenced by a 10.7% increase from 2024 to 2025. The gross profit margin improved to 20.1%, and net profit margin grew to 4.8%, suggesting efficient cost management. EBIT and EBITDA margins are healthy, at 6.5% and 7.5% respectively, indicating sound operational efficiency. Overall, the income statement reflects robust revenue growth and solid profitability.

Balance Sheet

The balance sheet is strong, with a manageable debt-to-equity ratio of 0.14, highlighting low financial leverage. The equity ratio stands at 53.4%, indicating a well-capitalized company with ample shareholder equity. Return on equity is decent at 12.0%, reflecting effective use of equity to generate profits. However, the increase in total debt needs monitoring to ensure it does not escalate.

Cash Flow

The cash flow statement reflects positive trends, with a significant free cash flow growth of 118.8% from 2024 to 2025. Operating cash flow to net income ratio is strong at 1.60, demonstrating efficient cash generation relative to net income. The free cash flow to net income ratio at 0.53 suggests a healthy conversion of profits into free cash. Overall, cash flow management remains a strength, supporting the company's operational and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.58B	64.44B	58.23B	52.89B	49.89B	49.15B
Gross Profit	13.45B	12.96B	10.97B	9.33B	8.81B	9.12B
EBITDA	5.01B	4.86B	4.27B	3.36B	4.64B	3.60B
Net Income	3.26B	3.10B	2.73B	1.94B	2.82B	2.00B
Balance Sheet
Total Assets	45.64B	48.57B	42.95B	37.56B	35.14B	34.91B
Cash, Cash Equivalents and Short-Term Investments	10.64B	9.00B	6.99B	6.58B	7.25B	6.69B
Total Debt	3.60B	3.60B	1.71B	997.00M	853.00M	1.19B
Total Liabilities	19.43B	22.44B	18.74B	15.86B	14.66B	14.52B
Stockholders Equity	26.01B	25.93B	24.03B	21.54B	20.33B	20.26B
Cash Flow
Free Cash Flow	0.00	1.64B	751.00M	335.00M	1.47B	2.54B
Operating Cash Flow	0.00	4.96B	2.42B	921.00M	1.78B	2.73B
Investing Cash Flow	0.00	-3.47B	-1.80B	-697.00M	971.00M	-267.00M
Financing Cash Flow	0.00	378.00M	-287.00M	-1.02B	-2.37B	-1.81B

Nippon Air Conditioning Services Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1313.00
• 50DMA: Positive
• 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:4658, the sentiment is Positive. The current price of 1313 is above the 20-day moving average (MA) of 1237.55, above the 50-day MA of 1255.45, and above the 200-day MA of 1088.02, indicating a bullish trend. The MACD of 7.58 indicates Negative momentum. The RSI at 63.69 is Neutral, neither overbought nor oversold. The STOCH value of 71.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4658.

Nippon Air Conditioning Services Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4658	―	¥41.45B	12.62	―	3.40%	9.63%	11.40%
2304	―	¥4.92B	12.07	―	4.62%	9.08%	3.33%
9791	―	¥9.66B	8.63	―	2.20%	-7.83%	-13.14%
4771	―	¥42.30B	23.18	―	1.45%	23.94%	47.11%
6044	―	¥14.02B	14.73	―	1.01%	18.17%	191.50%
2498	―	¥36.66B	11.32	―	3.61%	9.06%	-5.33%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Nippon Air Conditioning Services Co., Ltd. Corporate Events

Nippon Air Conditioning Services Introduces Shareholder Benefits Program

Nippon Air Conditioning Services Co., Ltd. has announced the introduction of a shareholder benefits program aimed at enhancing the attractiveness and liquidity of its shares. Shareholders holding at least 100 shares as of the end of September each year will receive a QUO Card worth ¥1,000, with the first record date set for September 30, 2025.

The most recent analyst rating on (JP:4658) stock is a Buy with a Yen1239.00 price target. To see the full list of analyst forecasts on Nippon Air Conditioning Services Co., Ltd. stock, see the JP:4658 Stock Forecast page.

Nippon Air Conditioning Services Completes Treasury Share Disposal for Executive Compensation

Nippon Air Conditioning Services Co., Ltd. has completed the payment procedures for the disposal of 57,400 treasury shares as restricted stock compensation, a move resolved by its Board of Directors on July 17, 2025. This strategic financial decision, involving a total value of ¥62,566,000, is aimed at compensating key company executives and may impact the company’s financial structure and stakeholder interests.

Nippon Air Conditioning Services Reports Strong Q1 Financial Performance

Nippon Air Conditioning Services Co., Ltd. reported a significant increase in its financial performance for the three months ended June 30, 2025, with net sales rising by 9% and operating profit soaring by 48.8% compared to the previous year. This growth reflects the company’s strong operational capabilities and market positioning, potentially benefiting stakeholders through improved profitability and financial stability.