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Nippon Signal Company, Limited (6741) AI Stock Analysis
Nippon Signal Company, Limited
(TSE/TYO:6741)
The score is driven primarily by strong financial fundamentals (high profitability and low leverage, tempered by weaker cash-flow consistency) and a very attractive valuation (low P/E with a solid dividend). Technicals also support the outlook with an established uptrend and positive momentum.
Nippon Signal Company, Limited (6741) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 110.46B
- Dividend Yield
- 3.39%
- Average Volume (3M)
- 181.21K
- Price to Earnings (P/E)
- 8.2
- Beta (1Y)
- 0.85
- Revenue Growth
- 10.43%
- EPS Growth
- 66.86%
- Country
- Japan
- Employees
- 3,066
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Electrical Equipment & Parts
Nippon Signal Company, Limited Business Overview & Revenue Model
Company Description
Nippon Signal Co., Ltd., founded in Tokyo, Japan, in 1928, is a prominent developer and provider of critical infrastructure technologies. The company specializes in a broad range of systems, including railway signaling and communications-based train...
How the Company Makes Money
The company makes money mainly by providing signaling and safety systems and related services to railway operators and public/industrial infrastructure customers. A core revenue stream is the sale and installation of railway signaling equipment and s...
Nippon Signal Company, Limited Financial Statement Overview
Summary
Strong profitability and improving returns supported by a conservatively levered balance sheet (Income Statement 82; Balance Sheet 86). The main drag is cash-flow quality/consistency (Cash Flow 64), where profits have not consistently converted to cash despite a recent TTM rebound.
Income Statement
82Very PositiveBalance Sheet
86Very PositiveCash Flow
64Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 119.56B | 114.04B | 106.86B | 98.54B | 85.42B | 85.02B |
| Gross Profit | 31.60B | 28.92B | 25.21B | 21.17B | 19.55B | 19.14B |
| EBITDA | 21.91B | 20.54B | 14.41B | 10.46B | 8.46B | 8.80B |
| Net Income | 13.52B | 11.59B | 8.50B | 5.35B | 4.08B | 4.50B |
Balance Sheet | ||||||
| Total Assets | 155.48B | 172.22B | 166.24B | 165.29B | 146.02B | 134.09B |
| Cash, Cash Equivalents and Short-Term Investments | 19.25B | 10.96B | 11.29B | 11.80B | 8.41B | 6.40B |
| Total Debt | 44.00M | 15.51B | 19.21B | 18.71B | 17.53B | 11.95B |
| Total Liabilities | 42.31B | 57.88B | 63.61B | 68.47B | 56.66B | 47.34B |
| Stockholders Equity | 113.16B | 114.34B | 102.62B | 96.82B | 89.35B | 86.74B |
Cash Flow | ||||||
| Free Cash Flow | 12.38B | 2.62B | 1.81B | 4.15B | 25.00M | 301.00M |
| Operating Cash Flow | 17.56B | 7.87B | 5.78B | 6.77B | 1.72B | 2.10B |
| Investing Cash Flow | -1.92B | -2.73B | -4.50B | -2.98B | -3.60B | -2.34B |
| Financing Cash Flow | -8.78B | -6.55B | -1.60B | -338.00M | 3.91B | -6.75B |
Nippon Signal Company, Limited Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6741, the sentiment is Neutral. The current price of 1771.00 is below the 20-day moving average (MA) of 1844.75, below the 50-day MA of 1814.34, and above the 200-day MA of 1640.01, indicating a neutral trend. The MACD of 7.96 indicates Positive momentum. The RSI at 41.98 is Neutral, neither overbought nor oversold. The STOCH value of 19.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6741.
Nippon Signal Company, Limited Peers Comparison
Overall Rating
- JP:674182Outperform
JP:900981Outperform
JP:902272Outperform
JP:902166Neutral
JP:902064Neutral
JP:900760Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:6741 | 82Outperform | JPY 110.46B | 8.17 | ― | 3.39% | 10.43% | 66.86% |
| JP:9009 | 81Outperform | JPY 719.48B | 13.47 | 9.18% | 1.62% | 4.15% | -26.13% |
| JP:9022 | 72Outperform | JPY 3.75T | 6.95 | 10.57% | 0.84% | 4.99% | 6.51% |
| JP:9021 | 66Neutral | JPY 1.41T | 11.93 | 9.82% | 3.27% | 6.41% | -2.64% |
| JP:9020 | 64Neutral | JPY 4.11T | 17.32 | 8.23% | 2.28% | 8.51% | 9.19% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| JP:9007 | 60Neutral | JPY 626.01B | 17.22 | 6.99% | 3.43% | 2.63% | -13.44% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:6741 | Nippon Signal Company, Limited | 1771.00 | 554.71 | 45.61% | |
| JP:9022 | Central Japan Railway Company | 3951.00 | 215.23 | 5.76% | |
| JP:9020 | East Japan Railway Company | 3638.00 | -32.61 | -0.89% | |
| JP:9009 | Keisei Electric Railway Co | 1417.00 | 210.86 | 17.48% | |
| JP:9007 | Odakyu Electric Railway Co | 1749.50 | 175.95 | 11.18% | |
| JP:9021 | West Japan Railway Company | 3086.00 | 26.72 | 0.87% |
Nippon Signal Company, Limited Corporate Events
Nippon Signal Swings Back to Profit as Quarterly Sales Jump 30%
Nippon Signal reported a sharp year-on-year rebound in earnings for the quarter ended June 30, 2026, with net sales up 30.4% to ¥23.55 billion and profit attributable to owners of parent swinging from a loss to ¥1.52 billion. Operating prof...
Nippon Signal to End Capital Alliance with Nagoya Electric, Retain Business Ties
Nippon Signal has agreed with Nagoya Electric Works to terminate their capital and business alliance first signed in 2015, which was aimed at expanding sales channels, product offerings, and overseas cooperation in transportation and road management....
Nippon Signal Completes Treasury Share Disposal for Restricted Stock Compensation
Nippon Signal Co., Ltd. has completed the payment procedures for the disposal of a portion of its treasury shares under a restricted stock compensation scheme for management. The transaction, originally announced in June, involves common shares alloc...
Nippon Signal to Grant Restricted Stock to Executives via Treasury Share Disposal
Nippon Signal has approved the disposal of 40,863 treasury shares as restricted stock, valued at approximately ¥63.8 million, to three directors and ten executive officers as part of a newly introduced equity-based compensation plan. The move al...
Nippon Signal boosts full-year profits on AFC-driven sales growth
Nippon Signal reported a solid rise in non-consolidated results for the fiscal year ended March 31, 2026, with net sales climbing 5.6% to ¥87,948 million and ordinary profit up 27.2% to ¥9,547 million. Net profit surged 44.3% to ¥10,05...
Nippon Signal to Introduce Restricted Stock Plan for Executives
Nippon Signal Co., Ltd. has approved the introduction of a restricted stock compensation plan for its directors, excluding audit committee members and outside directors, as part of an overhaul of its executive pay system. The plan is designed to more...
Nippon Signal Raises Year-End Dividend, Signals Stronger Shareholder Returns
Nippon Signal Co., Ltd. has approved a year-end dividend of 43 yen per share for the fiscal year ended March 31, 2026, up from 33 yen in the previous period, bringing the total annual dividend to 56 yen per share. The total payout will reach 2,681 mi...
Nippon Signal boosts profits, raises dividend as assets and equity strengthen
Nippon Signal reported consolidated net sales of ¥114.1 billion for the year to March 31, 2026, up 6.7% year on year, with operating profit rising 18.1% to ¥11.7 billion and profit attributable to owners of the parent jumping 36.3% to ¥...
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: Aug 05, 2026