Want to see JP:4736 full AI Analyst Report?
Top Page
Nippon RAD Inc.
(4736)
Select Model
Select Model
Rating:64Neutral
Price Target:
¥624.00
▼(-3.41% Downside)
Action:Reiterated
Date:06/02/26
The score is driven primarily by solid financial stability from an exceptionally low-debt balance sheet, offset by a notable recent deterioration in profitability and returns plus uneven cash-flow consistency. Technicals show improving short-term momentum, but longer-term trend signals remain weak, and valuation appears only moderate with a modest dividend yield.
Positive Factors
Balance sheet strength
Very low leverage and growing equity provide durable financial flexibility: the company can fund working capital swings, absorb client payment delays, invest in systems or hires, and pursue selective M&A without stress. This reduces insolvency risk and supports long-term operations even in downturns.
Negative Factors
Revenue and margin decline
A recent revenue decline with net margin halving signals structural pressure: either pricing erosion, higher delivery costs, or rising SG&A. If persistent, this reduces retained earnings, weakens reinvestment capacity, and threatens long-term competitiveness in services markets where scale and margin matter.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Very low leverage and growing equity provide durable financial flexibility: the company can fund working capital swings, absorb client payment delays, invest in systems or hires, and pursue selective M&A without stress. This reduces insolvency risk and supports long-term operations even in downturns.
Read all positive factors
Nippon RAD Inc. (4736) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.21B
Dividend Yield1.54%
Average Volume (3M)11.22K
Price to Earnings (P/E)19.4
Beta (1Y)0.91
Revenue Growth-5.15%
EPS Growth-60.51%
CountryJP
Employees270
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)31.22
Shares Outstanding5,355,390
10 Day Avg. Volume14,110
30 Day Avg. Volume11,223
Financial Highlights & Ratios
PEG Ratio-0.30
Price to Book (P/B)0.85
Price to Sales (P/S)0.72
P/FCF Ratio20.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nippon RAD Inc. Business Overview & Revenue Model
Company Description
Nippon RAD Inc. operates in Japan, delivering a diverse range of enterprise technology solutions and Internet of Things (IoT) integration services. Its offerings include pre-built software packages, cloud computing, hosting, and rental server serv...
How the Company Makes Money
Nippon RAD primarily generates revenue by delivering IT services on a contract basis. Key revenue streams generally include (1) commissioned software and system development projects where customers pay for design, build, testing, and deployment wo...
Nippon RAD Inc. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
86
Very Positive
Cash Flow
55
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.13B | 4.36B | 3.98B | 3.56B | 3.31B |
| Gross Profit | 906.19M | 1.10B | 933.33M | 696.99M | 607.25M |
| EBITDA | 262.72M | 390.34M | 317.99M | 133.09M | 87.32M |
| Net Income | 164.94M | 417.17M | 327.92M | 140.68M | 19.11M |
Balance Sheet | |||||
| Total Assets | 4.95B | 4.99B | 4.32B | 4.11B | 4.03B |
| Cash, Cash Equivalents and Short-Term Investments | 1.96B | 2.18B | 2.25B | 2.49B | 2.68B |
| Total Debt | 22.19M | 2.13M | 3.04M | 123.93M | 244.81M |
| Total Liabilities | 1.42B | 1.60B | 1.39B | 1.49B | 1.49B |
| Stockholders Equity | 3.53B | 3.39B | 2.93B | 2.62B | 2.54B |
Cash Flow | |||||
| Free Cash Flow | 146.80M | -56.63M | 362.49M | -13.67M | 188.47M |
| Operating Cash Flow | 164.57M | 139.30M | 375.68M | 1.99M | 194.13M |
| Investing Cash Flow | -329.22M | -183.49M | -436.82M | -3.41M | -292.52M |
| Financing Cash Flow | -57.42M | -26.01M | -172.72M | -186.21M | -146.90M |
Nippon RAD Inc. Technical Analysis
Positive
646.00
Price Trends
576.04
Positive
584.80
Positive
628.52
Negative
Market Momentum
7.73
Negative
55.69
Neutral
82.19
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4736, the sentiment is Positive. The current price of 646 is above the 20-day moving average (MA) of 588.00, above the 50-day MA of 576.04, and above the 200-day MA of 628.52, indicating a neutral trend. The MACD of 7.73 indicates Negative momentum. The RSI at 55.69 is Neutral, neither overbought nor oversold. The STOCH value of 82.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4736.
Nippon RAD Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥2.84B | 12.68 | ― | 2.86% | 7.29% | -10.63% | |
69 Neutral | ¥2.05B | 25.48 | ― | ― | 20.34% | 503.40% | |
64 Neutral | ¥3.21B | 19.44 | ― | 1.54% | -5.15% | -60.51% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | ¥5.15B | 36.90 | ― | 1.61% | 2.87% | -46.98% | |
61 Neutral | ¥3.45B | 28.61 | ― | ― | 2.38% | -15.87% | |
60 Neutral | ¥3.23B | 76.78 | ― | 4.95% | -9.71% | -88.93% |
* Technology Sector Average
JP:4736
Nippon RAD Inc.
607.00
-146.73
-19.47%
JP:3839
ODK Solutions Company, Ltd.
628.00
45.29
7.77%
JP:4068
Basis Corporation
1,826.00
-183.00
-9.11%
JP:4198
TENDA Co., Ltd.
486.00
-256.25
-34.52%
JP:4416
True Data Inc.
424.00
-533.00
-55.69%
JP:4421
D.I.System Co.,Ltd.
927.00
22.24
2.46%
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.