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

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Nippon Air Conditioning Services Co., Ltd.

(TSE/TYO:4658)

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Rating:70Outperform

Price Target:JPY 1,549.00▲(8.09% Upside)

Action:upgraded

Date:11/03/26

The score is driven primarily by strong financial fundamentals (steady growth, improving margins, and a low-leverage balance sheet) and supportive valuation (low P/E and high dividend yield). These positives are partially offset by weak technicals, with the price below key moving averages and bearish momentum/oversold conditions indicating elevated near-term trend risk.

Positive Factors

Sustained Revenue GrowthThe multi-year increase in revenue indicates continued demand for the company’s HVAC installation, replacement, maintenance, and facilities services. This expanding base can support recurring service activity, strengthen operating scale, and provide a durable foundation for growth over the next several quarters.

Negative Factors

Volatile Cash GenerationMeaningful year-to-year swings in operating cash flow reduce visibility into the timing and quality of earnings conversion. Although cash generation remains positive, variability can complicate investment planning and make internally funded growth less predictable across project and working-capital cycles.

Nippon Air Conditioning Services Co., Ltd. (4658) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 50.01B
Dividend Yield: 4.15%
Average Volume (3M): 141.12K
Price to Earnings (P/E): 12.3
Beta (1Y): 1.05
Revenue Growth: 7.19%
EPS Growth: 14.56%
Country: Japan
Employees: 2,268
Sector: Industrials
Sector Strength: 63
Industry: Specialty Business Services

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

Company Description

Nippon Air Conditioning Services Co., Ltd. delivers specialized construction support services, operating both domestically within Japan and across international markets. Their core offerings encompass a full spectrum of air conditioning maintenance,...

How the Company Makes Money

Nippon Air Conditioning Services Co., Ltd. generates revenue primarily by delivering and maintaining air-conditioning and related building facilities systems. Its core revenue streams typically include (1) construction/installation income from design...

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

Summary

Financials are solid overall: revenue has expanded steadily (49.2B in 2021 to 69.2B in 2026) with improving profitability versus earlier years (net margin rising to ~5.3% in 2026) and a conservatively levered balance sheet (debt-to-equity ~0.10) with healthy ~11–12% returns on equity. The main drag is cash-flow quality/visibility, as operating cash flow is volatile year-to-year and free cash flow conversion is only moderate (~48% of net income in 2026).

Income Statement

78Positive

Balance Sheet

86Very Positive

Cash Flow

60Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	70.41B	69.25B	64.44B	58.23B	52.89B	49.89B
Gross Profit	15.39B	14.91B	12.96B	10.97B	9.33B	8.81B
EBITDA	6.07B	5.80B	4.86B	4.26B	3.36B	4.64B
Net Income	3.98B	3.69B	3.10B	2.73B	1.94B	2.82B
Balance Sheet
Total Assets	50.97B	53.14B	48.57B	42.95B	37.56B	35.14B
Cash, Cash Equivalents and Short-Term Investments	9.17B	8.20B	9.00B	6.99B	6.58B	7.25B
Total Debt	3.73B	3.20B	3.65B	1.73B	1.02B	887.00M
Total Liabilities	19.18B	22.20B	22.44B	18.73B	15.85B	14.65B
Stockholders Equity	31.58B	30.74B	25.93B	24.04B	21.54B	20.34B
Cash Flow
Free Cash Flow	0	1.32B	1.64B	762.00M	368.00M	1.49B
Operating Cash Flow	0	2.76B	4.96B	2.42B	921.00M	1.78B
Investing Cash Flow	0	-1.54B	-3.47B	-1.80B	-697.00M	971.00M
Financing Cash Flow	0	-2.08B	378.00M	-287.00M	-1.02B	-2.37B

Nippon Air Conditioning Services Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1433.00

Price Trends

50DMA1533.90Negative

100DMA1542.47Negative

200DMA1525.44Negative

Market Momentum

MACD-41.42Positive

RSI40.11Neutral

STOCH34.86Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4658, the sentiment is Negative. The current price of 1433.00 is below the 20-day moving average (MA) of 1494.90, below the 50-day MA of 1533.90, and below the 200-day MA of 1525.44, indicating a bearish trend. The MACD of -41.42 indicates Positive momentum. The RSI at 40.11 is Neutral, neither overbought nor oversold. The STOCH value of 34.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4658.

Nippon Air Conditioning Services Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:4658 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6544	73Outperform	JPY 264.39B	34.37	―	1.43%	16.94%	29.51%
JP:6086	72Outperform	JPY 20.67B	13.87	―	2.02%	12.37%	14.91%
JP:8876	70Outperform	JPY 363.26B	16.66	27.45%	4.39%	7.13%	-9.94%
JP:4658	70Outperform	JPY 49.27B	12.31	―	4.15%	7.19%	14.56%
JP:6044	66Neutral	JPY 12.02B	12.22	―	1.62%	11.52%	8.39%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

* Industrials Sector Average

Performance Comparison

JP:4658 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4658	Nippon Air Conditioning Services Co., Ltd.	1433.00	250.79	21.21%
JP:8876	Relo Group	2359.50	757.82	47.31%
JP:6044	SANKI SERVICE CORP.	1853.00	-427.64	-18.75%
JP:6086	Shin Maint Holdings Co.Ltd.	990.00	-51.40	-4.94%
JP:6544	Japan Elevator Service Holdings Co., Ltd.	1471.00	-334.04	-18.51%

Nippon Air Conditioning Services Co., Ltd. Corporate Events

Nippon Air Conditioning Services Delivers Strong First-Half Earnings and Raises Dividend

Oct 30, 2026

Nippon Air Conditioning Services reported solid results for the six months to September 30, 2026, with net sales up 8.4% year on year to ¥31.88 billion and profit attributable to owners of the parent rising 20.9% to ¥1.91 billion. Operating and ordin...

Nippon Air Conditioning Services Moves to Rebuild Trust After Employee Misconduct

Sep 25, 2026

Nippon Air Conditioning Services Co., Ltd. has announced a comprehensive set of measures to address misconduct by an employee and reinforce management responsibility. The company is prioritizing a rebuilding of its corporate culture by elevating its...

Nippon Air Conditioning Services Completes Treasury Share Disposal for Restricted Stock Compensation

Aug 10, 2026

Nippon Air Conditioning Services has completed the payment procedures for the disposal of 47,500 treasury shares, which are being used as restricted stock compensation under a board resolution passed on July 24, 2026. The shares, priced at ¥1,603 eac...

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.

Date of analysis: Nov 03, 2026

Nippon Air Conditioning Services Co., Ltd. AI Stock Analysis