Nihon Enterprise Co., Ltd. (4829) AI Stock Analysis

Nihon Enterprise Co., Ltd.

(TSE/TYO:4829)

Select Model

Rating:55Neutral

Price Target:JPY 105.00▲(5.00% Upside)

Action:reiterated

Date:10/29/26

The overall score is constrained by weak valuation and bearish technicals. The extremely high P/E ratio is a significant risk given the company's stagnant revenue and declining margins. Technical trends are negative with the stock trading below key moving averages. These weaknesses are partially mitigated by a fortress-like balance sheet with zero debt and consistent free cash flow generation, which provide financial stability.

Positive Factors

Very low leverage and strong equity baseThe near-elimination of debt materially strengthens financial resilience and reduces interest and refinancing burdens. A sizable, stable equity base gives Nihon Enterprise flexibility to withstand operating volatility, fund digital-service initiatives, and preserve strategic options over the next several quarters.

Negative Factors

Volatile and recently stagnant revenueThe reversal from strong growth to a sharp 2025 decline and flat 2026 sales signals an inconsistent demand and expansion trajectory. Sustained revenue stagnation could limit operating leverage, reduce reinvestment capacity, and make future earnings recovery more dependent on execution.

Nihon Enterprise Co., Ltd. (4829) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 3.85B
Dividend Yield: 3.00%
Average Volume (3M): 1.22M
Price to Earnings (P/E): 75.2
Beta (1Y): 0.58
Revenue Growth: -1.73%
EPS Growth: 111.13%
Country: Japan
Employees: 225
Sector: General
Sector Strength: 55
Industry: Software - Application

Nihon Enterprise Co., Ltd. Business Overview & Revenue Model

Company Description

Nihon Enterprise Co.,Ltd., established in 1989 and headquartered in Tokyo, Japan, focuses on the creation, development, and management of diverse digital content for smartphones and other multi-device platforms. Its consumer-facing offerings include...

Nihon Enterprise Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is a major strength with zero debt and high equity, but the income statement shows stagnant revenue and declining margins. Strong cash flow generation partially offsets weak profitability, resulting in a neutral-to-slightly-positive score.

Income Statement

35Negative

Balance Sheet

85Very Positive

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	4.38B	4.47B	4.44B	4.70B	4.21B	4.02B
Gross Profit	1.49B	1.54B	1.64B	1.72B	1.69B	1.69B
EBITDA	170.58M	199.10M	178.88M	371.94M	289.66M	227.29M
Net Income	51.12M	65.84M	21.69M	209.27M	103.19M	71.63M
Balance Sheet
Total Assets	5.36B	5.64B	5.59B	5.95B	5.72B	5.66B
Cash, Cash Equivalents and Short-Term Investments	3.14B	3.97B	3.86B	4.42B	4.34B	4.22B
Total Debt	20.68M	0	17.74M	182.66M	183.40M	207.12M
Total Liabilities	655.33M	744.63M	696.42M	884.86M	791.40M	771.19M
Stockholders Equity	4.61B	4.73B	4.74B	4.92B	4.79B	4.76B
Cash Flow
Free Cash Flow	286.70M	286.70M	157.99M	262.12M	264.12M	-6.89M
Operating Cash Flow	289.94M	289.94M	157.99M	272.04M	268.68M	11.69M
Investing Cash Flow	-81.96M	-81.96M	-436.04M	-74.92M	-47.97M	-96.56M
Financing Cash Flow	-128.08M	-128.08M	-286.24M	-108.62M	-108.91M	-435.71M

Nihon Enterprise Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price100.00

Price Trends

50DMA107.78Negative

100DMA106.29Negative

200DMA111.51Negative

Market Momentum

MACD-0.54Positive

RSI43.23Neutral

STOCH4.96Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4829, the sentiment is Negative. The current price of 100.00 is below the 20-day moving average (MA) of 106.40, below the 50-day MA of 107.78, and below the 200-day MA of 111.51, indicating a bearish trend. The MACD of -0.54 indicates Positive momentum. The RSI at 43.23 is Neutral, neither overbought nor oversold. The STOCH value of 4.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4829.

Nihon Enterprise Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:4829 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4060	72Outperform	JPY 6.63B	23.91	―	0.81%	37.13%	-7.58%
JP:5033	66Neutral	JPY 7.96B	47.67	―	―	7.04%	-67.36%
JP:4397	61Neutral	JPY 6.01B	15.80	―	―	23.50%	2.72%
JP:4484	58Neutral	JPY 4.48B	46.26	―	0.72%	20.67%	-37.51%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4829	55Neutral	JPY 3.93B	75.19	―	3.00%	-1.73%	111.13%
JP:4074	52Neutral	JPY 6.28B	-27.49	―	―	-8.74%	-144.28%

* General Sector Average

Performance Comparison

JP:4829 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4829	Nihon Enterprise Co., Ltd.	100.00	-6.13	-5.78%
JP:4060	rakumo Inc.	1106.00	0.04	<0.01%
JP:4074	LaKeel,Inc	808.00	-216.00	-21.09%
JP:4397	TeamSpirit, Inc.	357.00	-150.00	-29.59%
JP:4484	Lancers, Inc.	278.00	-10.10	-3.51%
JP:5033	Nulab Inc.	1220.00	457.00	59.90%

Nihon Enterprise Co., Ltd. Corporate Events

Nihon Enterprise Posts Wider Loss Amid Decline in Quarterly Sales

Oct 9, 2026

Nihon Enterprise reported weaker consolidated results for the first quarter of the fiscal year ending May 2027, with net sales declining 8.2% year on year to ¥993 million and an operating loss widening to ¥40 million. Ordinary profit fell i...

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: Oct 29, 2026

Nihon Enterprise Co., Ltd. AI Stock Analysis