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Nippon RAD Inc.
(4736)
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Rating:63Neutral
Price Target:
¥639.00
▼(-1.08% Downside)
Action:Reiterated
Date:10/24/26
The score is primarily supported by a very strong, low-leverage balance sheet and currently positive cash generation. Offsetting this, profitability and returns have weakened materially versus prior years, and valuation (P/E ~25) appears relatively high for the current margin profile. Technical indicators are broadly neutral, suggesting limited near-term directional conviction.
Positive Factors
Near-debt-free balance sheet
Extremely low leverage reduces interest burden and financial stress, giving Nippon RAD flexibility to sustain operations, invest selectively, and withstand weaker earnings. Growing equity also strengthens the capital base and provides meaningful downside protection over the next several quarters.
Negative Factors
Sharp margin compression
The sharp decline in operating and net margins shows that recent revenue is producing substantially less profit than during the prior peak period. If this lower profitability persists, it can weaken internal funding, reduce returns on capital, and limit the earnings benefit from future growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Near-debt-free balance sheet
Extremely low leverage reduces interest burden and financial stress, giving Nippon RAD flexibility to sustain operations, invest selectively, and withstand weaker earnings. Growing equity also strengthens the capital base and provides meaningful downside protection over the next several quarters.
Read all positive factors
Nippon RAD Inc. (4736) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥3.16B
Dividend Yield1.67%
Average Volume (3M)6.19K
Price to Earnings (P/E)24.9
Beta (1Y)0.65
Revenue Growth-6.80%
EPS Growth-67.57%
CountryJP
Employees299
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)23.69
Shares Outstanding5,355,390
10 Day Avg. Volume12,970
30 Day Avg. Volume6,190
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 Inc. primarily makes money by providing contract-based IT services, where it earns revenue from designing, developing, implementing, and maintaining software and information systems for clients. Key revenue streams generally include (1)...
Nippon RAD Inc. Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
86
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.07B | 4.13B | 4.36B | 3.98B | 3.56B | 3.31B |
| Gross Profit | 858.56M | 906.19M | 1.10B | 933.33M | 696.99M | 607.25M |
| EBITDA | 190.61M | 262.72M | 390.34M | 317.99M | 133.09M | 87.32M |
| Net Income | 125.17M | 164.94M | 417.17M | 327.92M | 140.68M | 19.11M |
Balance Sheet | ||||||
| Total Assets | 4.96B | 4.95B | 4.99B | 4.32B | 4.11B | 4.03B |
| Cash, Cash Equivalents and Short-Term Investments | 2.37B | 1.96B | 2.18B | 2.25B | 2.49B | 2.68B |
| Total Debt | 21.00M | 22.19M | 2.13M | 3.04M | 123.93M | 244.81M |
| Total Liabilities | 1.48B | 1.42B | 1.60B | 1.39B | 1.49B | 1.49B |
| Stockholders Equity | 3.49B | 3.53B | 3.39B | 2.93B | 2.62B | 2.54B |
Cash Flow | ||||||
| Free Cash Flow | 189.65M | 146.80M | -56.63M | 362.49M | -13.67M | 188.47M |
| Operating Cash Flow | 204.59M | 164.57M | 139.30M | 375.68M | 1.99M | 194.13M |
| Investing Cash Flow | -325.31M | -329.22M | -183.49M | -436.82M | -3.41M | -292.52M |
| Financing Cash Flow | -57.57M | -57.42M | -26.01M | -172.72M | -186.21M | -146.90M |
Nippon RAD Inc. Technical Analysis
Neutral
646.00
Price Trends
595.68
Positive
594.00
Positive
593.76
Positive
Market Momentum
4.49
Positive
47.52
Neutral
18.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4736, the sentiment is Neutral. The current price of 646 is above the 20-day moving average (MA) of 610.55, above the 50-day MA of 595.68, and above the 200-day MA of 593.76, indicating a neutral trend. The MACD of 4.49 indicates Positive momentum. The RSI at 47.52 is Neutral, neither overbought nor oversold. The STOCH value of 18.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥2.80B | 12.19 | ― | 3.07% | 5.77% | -7.65% | |
73 Outperform | ¥1.90B | 24.14 | ― | ― | 23.07% | 2166.40% | |
64 Neutral | ¥5.15B | 46.50 | ― | 1.59% | 1.74% | -72.72% | |
63 Neutral | ¥3.43B | 30.17 | ― | ― | 5.55% | 15.63% | |
63 Neutral | ¥3.16B | 24.86 | ― | 1.67% | -6.80% | -67.57% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | ¥2.85B | 200.94 | ― | 5.12% | -3.90% | -84.36% |
* Technology Sector Average
JP:4736
Nippon RAD Inc.
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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.