Nippon RAD Inc. (4736) AI Stock Analysis

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Nippon RAD Inc.

(TSE/TYO:4736)

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Rating:46Neutral

Price Target:JPY 564.00▲(5.62% Upside)

Action:reiterated

Date:11/04/26

The overall score is 46, reflecting significant operational headwinds. The primary concern is the sharp decline in profitability and cash flow generation, which overshadows the company's strong, debt-free balance sheet. Technical weakness and a high P/E ratio further weigh on the score, suggesting the stock faces fundamental and market-related challenges.

Positive Factors

Very Low LeverageExtremely low leverage gives Nippon RAD financial flexibility because limited debt service reduces pressure on operating cash flow. Steady equity growth further supports resilience, allowing the company to fund operations and pursue opportunities without relying heavily on refinancing or additional borrowing.

Negative Factors

Revenue ContractionThe recent revenue decline indicates weaker demand, project activity, or customer spending and reduces operating leverage across the business. If the contraction persists, Nippon RAD may have less scale to absorb fixed personnel and operating costs, making recovery in earnings more difficult.

Nippon RAD Inc. (4736) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 2.83B
Dividend Yield: 1.88%
Average Volume (3M): 5,188
Price to Earnings (P/E): 36.2
Beta (1Y): 0.69
Revenue Growth: -10.61%
EPS Growth: -78.50%
Country: Japan
Employees: 299
Sector: Technology
Sector Strength: 61
Industry: Information Technology Services

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 service...

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) cu...

Nippon RAD Inc. Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is exceptionally strong with virtually no debt and a high equity ratio (Score 85). However, this is offset by a weak income statement showing declining revenue and collapsing margins (Score 35) and poor cash flow generation with low earnings quality (Score 30). The overall trend is one of operational deterioration despite financial stability.

Income Statement

35Negative

Balance Sheet

85Very Positive

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	3.94B	4.13B	4.36B	3.98B	3.56B	3.31B
Gross Profit	802.72M	906.19M	1.10B	933.33M	696.99M	607.25M
EBITDA	134.67M	262.72M	390.34M	317.99M	133.09M	87.32M
Net Income	77.70M	164.94M	417.17M	327.92M	140.68M	19.11M
Balance Sheet
Total Assets	4.69B	4.95B	4.99B	4.32B	4.11B	4.03B
Cash, Cash Equivalents and Short-Term Investments	1.95B	1.96B	2.18B	2.25B	2.49B	2.68B
Total Debt	18.00M	22.19M	2.13M	3.04M	123.93M	244.81M
Total Liabilities	1.20B	1.42B	1.60B	1.39B	1.49B	1.49B
Stockholders Equity	3.48B	3.53B	3.39B	2.93B	2.62B	2.54B
Cash Flow
Free Cash Flow	46.49M	146.80M	-56.63M	362.49M	-13.67M	188.47M
Operating Cash Flow	62.47M	164.57M	139.30M	375.68M	1.99M	194.13M
Investing Cash Flow	-105.12M	-329.22M	-183.49M	-436.82M	-3.41M	-292.52M
Financing Cash Flow	-59.64M	-57.42M	-26.01M	-172.72M	-186.21M	-146.90M

Nippon RAD Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price534.00

Price Trends

50DMA588.34Negative

100DMA591.07Negative

200DMA590.18Negative

Market Momentum

MACD-19.79Positive

RSI36.06Neutral

STOCH22.77Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4736, the sentiment is Negative. The current price of 534.00 is below the 20-day moving average (MA) of 584.60, below the 50-day MA of 588.34, and below the 200-day MA of 590.18, indicating a bearish trend. The MACD of -19.79 indicates Positive momentum. The RSI at 36.06 is Neutral, neither overbought nor oversold. The STOCH value of 22.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4736.

Nippon RAD Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:4736 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4421	75Outperform	JPY 2.70B	11.84	―	3.19%	5.77%	-7.65%
JP:4068	63Neutral	JPY 3.31B	28.76	―	―	5.55%	15.63%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JP:3839	59Neutral	JPY 5.10B	86.25	―	1.62%	1.74%	-72.72%
JP:4416	55Neutral	JPY 1.65B	21.61	―	―	23.07%	2166.40%
JP:4198	54Neutral	JPY 2.65B	187.39	―	5.38%	-3.90%	-84.36%
JP:4736	46Neutral	JPY 2.78B	36.19	―	1.88%	-10.61%	-78.50%

* Technology Sector Average

Performance Comparison

JP:4736 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4736	Nippon RAD Inc.	534.00	-141.11	-20.90%
JP:3839	ODK Solutions Company, Ltd.	619.00	18.35	3.06%
JP:4068	Basis Corporation	1751.00	-48.00	-2.67%
JP:4198	TENDA Co., Ltd.	404.00	-167.33	-29.29%
JP:4416	True Data Inc.	345.00	-420.00	-54.90%
JP:4421	D.I.System Co.,Ltd.	899.00	-55.00	-5.76%

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 04, 2026

Nippon RAD Inc. AI Stock Analysis