Nireco Corporation (6863) AI Stock Analysis

• Market Cap: ¥13.54B
• Dividend Yield: 4.75%
• Average Volume (3M): 26.84K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.98
• Revenue Growth: 4.80%
• EPS Growth: 32.85%
• Country: JP
• Employees: 450
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 14.26
• Shares Outstanding: 7,750,159
• 10 Day Avg. Volume: 15,050
• 30 Day Avg. Volume: 26,836
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,303.00
• Price Target Upside: 15.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥2,303.00 ▲(15.21% Upside)

Nireco Corporation's strong financial performance is the most significant factor, supported by robust revenue growth, profitability, and financial stability. The stock's attractive valuation further enhances its appeal, with a low P/E ratio and high dividend yield. Technical analysis indicates a positive short-term trend, contributing to the overall favorable outlook.

Nireco Corporation Business Overview & Revenue Model

Company Description

Nireco Corporation provides process control, Web control, and inspection systems in Japan. The company offers control and measuring systems, including electro-hydraulic actuators, eddy current level meters, edge position control systems, and automatic marking systems for steel and non-ferrous metal production lines. It also provides Web control products, which include edge position control systems, tension control systems, automatic register control systems, printing quality inspection systems, and gluing control systems. In addition, the company offers inspection systems, such as defect inspection systems for plain surfaces, pouch packaging inspection systems, analyzers, and fruit and vegetable quality analysis systems, as well as fish selectors. Further, it provides laser devices and optical components. The company was formerly known as Nippon Regulator Co., Ltd. and changed its name to Nireco Corporation in November 1984. Nireco Corporation was founded in 1931 and is headquartered in Hachioji, Japan.

How the Company Makes Money

Nireco Corporation generates revenue through the sale of its precision control equipment and systems to various industries, including automotive, electronics, and industrial manufacturing. The company offers products ranging from control devices and inspection systems to monitoring instruments, which are crucial for ensuring optimal performance and quality in production processes. Key revenue streams include direct product sales, aftermarket services such as maintenance and repairs, and customized solutions tailored to specific industrial needs. Additionally, Nireco may engage in partnerships or collaborations that enhance its product offerings and market reach, contributing to its earnings.

Nireco Corporation Financial Statement Overview

Summary

Nireco Corporation exhibits strong financial health with robust revenue growth, improved profitability, low financial leverage, and strong cash generation. The income statement, balance sheet, and cash flow analysis all reflect a stable and efficient financial position.

Income Statement

Nireco Corporation demonstrates strong financial performance with a consistent increase in total revenue over the years. The Gross Profit Margin saw a slight increase from 36.1% in 2024 to 41.8% in 2025, indicating improved cost management. The Net Profit Margin also improved significantly from 10.3% to 14.5%, reflecting enhanced profitability. The EBIT and EBITDA Margins show steady growth, confirming operational efficiency gains. Overall, the income statement reflects robust growth and profitability.

Balance Sheet

The company maintains a strong financial position with a low Debt-to-Equity Ratio of 0.008 in 2025, indicating low financial leverage. The Return on Equity (ROE) increased from 6.4% in 2024 to 9.3% in 2025, showing improved returns on shareholders' equity. The Equity Ratio remains high at 86.7%, indicating a strong equity base relative to total assets. The balance sheet reflects financial stability and low risk due to minimal reliance on debt.

Cash Flow

Nireco Corporation's cash flow statements show a positive trajectory with an increase in Free Cash Flow from 287 million in 2024 to 1,157 million in 2025, indicating strong cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 0.83, suggesting efficient cash conversion from net income. The Free Cash Flow to Net Income Ratio of 0.74 indicates strong cash flow relative to net income. Overall, the cash flow position is strong, with significant growth in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.76B	10.76B	9.86B	9.16B	8.12B	7.90B
Gross Profit	4.50B	4.50B	3.93B	3.59B	2.92B	2.86B
EBITDA	2.39B	2.39B	1.82B	1.54B	944.46M	880.78M
Net Income	1.56B	1.56B	1.01B	860.53M	406.15M	432.55M
Balance Sheet
Total Assets	19.35B	19.35B	18.57B	17.00B	16.15B	15.32B
Cash, Cash Equivalents and Short-Term Investments	4.82B	4.82B	4.38B	4.41B	4.83B	4.68B
Total Debt	142.70M	142.70M	170.00M	234.48M	404.19M	253.14M
Total Liabilities	2.56B	2.56B	2.75B	2.40B	2.30B	1.80B
Stockholders Equity	16.77B	16.77B	15.81B	14.59B	13.84B	13.52B
Cash Flow
Free Cash Flow	0.00	1.16B	287.35M	-80.29M	634.15M	925.57M
Operating Cash Flow	0.00	1.30B	892.35M	135.71M	849.15M	1.14B
Investing Cash Flow	0.00	-325.40M	-449.61M	-91.69M	-359.52M	-285.64M
Financing Cash Flow	0.00	-514.47M	-431.38M	-476.89M	-393.04M	-409.86M

Nireco Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1999.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6863, the sentiment is Positive. The current price of 1999 is above the 20-day moving average (MA) of 1982.85, above the 50-day MA of 1991.42, and above the 200-day MA of 1764.14, indicating a bullish trend. The MACD of 0.47 indicates Positive momentum. The RSI at 53.60 is Neutral, neither overbought nor oversold. The STOCH value of 39.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6863.

Nireco Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6863	80 Outperform	¥13.54B	10.13		4.75%	4.80%	32.85%
6850	79 Outperform	22.78B	12.03	9.06%	2.60%	9.88%	11.83%
6858	71 Outperform	6.54B	13.18	2.92%	2.57%	13.34%	-74.02%
6853	69 Neutral	19.22B	18.14	5.88%	3.13%	2.10%	4.70%
6866	68 Neutral	85.29B	14.43	0.00%	3.20%	7.11%	7.49%
6864	66 Neutral	9.61B	26.47	3.59%	2.34%	4.03%	-2.88%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%