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NOVAC CO., LTD. (JP:5079)
:5079
Japanese Market
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NOVAC CO., LTD. (5079) AI Stock Analysis

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JP:5079

NOVAC CO., LTD.

(5079)

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Neutral 63 (OpenAI - Gpt-5.6Sol)
Rating:63Neutral
Price Target:
¥2,788.00
▼(-1.66% Downside)
Action:Reiterated
Date:09/13/26
The score is held back primarily by financial quality risk—especially sharply negative 2026 operating/free cash flow and the step-up in debt—despite improved 2026 growth and profitability. Technicals are neutral-to-slightly constructive with limited momentum confirmation. Valuation is a relative positive, supported by a moderate P/E and a strong dividend yield.
Positive Factors
Strong 2026 revenue rebound
The sharp 2026 revenue rebound indicates renewed demand and improved business activity after a weaker period. If sustained, stronger sales can support operating leverage, provide resources for project execution, and reinforce NOVAC’s market position over the next several quarters.
Negative Factors
Sharply negative operating and free cash flow
Large negative operating and free cash flow weaken the company’s ability to fund projects, dividends, and investment from internally generated cash. Because cash flow was also negative in 2024 and is described as highly volatile, funding needs may remain a material risk over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong 2026 revenue rebound
The sharp 2026 revenue rebound indicates renewed demand and improved business activity after a weaker period. If sustained, stronger sales can support operating leverage, provide resources for project execution, and reinforce NOVAC’s market position over the next several quarters.
Read all positive factors

NOVAC CO., LTD. (5079) vs. iShares MSCI Japan ETF (EWJ)

NOVAC CO., LTD. Business Overview & Revenue Model

Company Description
Novac Co., Ltd. operates in the civil engineering and construction general contracting business in Japan. It maintains and repairs public facilities, tenant buildings, condominiums, etc. It also involved in the design and construction supervision ...

NOVAC CO., LTD. Financial Statement Overview

Summary
Income statement shows a strong 2026 rebound (revenue +28.5% YoY) and improved net margin (~3.3%), but profitability remains well below 2021–2023 levels and results are cyclical. Balance sheet leverage is still moderate (debt-to-equity ~0.23) but debt rose sharply in 2026, reducing flexibility. Cash flow is the key drag: 2026 operating cash flow (~-¥5.8B) and free cash flow (~-¥6.2B) were sharply negative, raising near-term funding risk alongside higher debt.
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
34
Negative
BreakdownTTMApr 2025Apr 2024Apr 2024Apr 2023Apr 2022
Income Statement
Total Revenue27.51B35.36B27.51B34.43B31.95B35.37B
Gross Profit2.40B3.70B2.40B2.27B4.01B4.40B
EBITDA917.91M1.95B917.91M873.49M2.66B3.01B
Net Income573.39M1.18B573.39M287.40M2.05B2.11B
Balance Sheet
Total Assets25.96B32.14B25.96B29.51B28.22B28.99B
Cash, Cash Equivalents and Short-Term Investments7.53B4.63B7.53B5.52B14.50B11.86B
Total Debt433.41M4.37B433.41M1.81B9.12M15.53M
Total Liabilities7.77B13.37B7.77B11.13B9.41B11.42B
Stockholders Equity18.19B18.76B18.19B18.38B18.81B17.57B
Cash Flow
Free Cash Flow0.00-6.21B4.30B-10.05B3.04B886.09M
Operating Cash Flow0.00-5.84B4.35B-9.96B5.05B894.45M
Investing Cash Flow0.00-379.69M-81.62M-87.28M-1.58B417.70M
Financing Cash Flow0.003.32B-2.26B1.08B-830.62M1.42B

NOVAC CO., LTD. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2835.00
Price Trends
50DMA
2592.64
Negative
100DMA
2552.88
Positive
200DMA
2645.50
Negative
Market Momentum
MACD
0.22
Positive
RSI
47.24
Neutral
STOCH
34.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5079, the sentiment is Negative. The current price of 2835 is above the 20-day moving average (MA) of 2614.35, above the 50-day MA of 2592.64, and above the 200-day MA of 2645.50, indicating a bearish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 47.24 is Neutral, neither overbought nor oversold. The STOCH value of 34.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5079.

NOVAC CO., LTD. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥17.30B6.901.25%11.22%499.52%
71
Outperform
¥12.93B12.055.59%19.40%150.32%
68
Neutral
¥17.14B7.313.72%-7.50%122.97%
63
Neutral
¥13.34B12.414.63%18.51%60.79%
63
Neutral
¥12.77B8.154.02%-0.13%-22.25%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5079
NOVAC CO., LTD.
2,590.00
-23.11
-0.88%
JP:1826
Sata Construction Co., Ltd.
1,073.00
-60.45
-5.33%
JP:1914
Japan Foundation Engineering Co., Ltd.
807.00
170.52
26.79%
JP:1966
Takada Corporation
1,741.00
204.03
13.27%
JP:5918
Takigami Steel Construction Co., Ltd.
7,900.00
700.17
9.72%
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: Sep 13, 2026