Nireco Corporation (6863) AI Stock Analysis

Nireco Corporation

(TSE/TYO:6863)

Select Model

Rating:80.5Outperform

Price Target:JPY 1,161.00▲(12.17% Upside)

Action:reiterated

Date:09/30/26

The overall score of 80.5 is primarily supported by the company's outstanding financial health, marked by a virtually debt-free balance sheet and strong cash flows. The high dividend yield of nearly 6% adds significant value. While the stock's technical trend is strongly positive, overbought signals introduce a note of caution, slightly moderating the overall assessment.

Positive Factors

Very Low LeverageThe very low debt burden gives Nireco substantial financial flexibility to fund equipment development, customer projects, and strategic investments without relying heavily on external financing. Continued equity growth also strengthens resilience and supports the company’s ability to manage cyclical industrial demand.

Negative Factors

Recent Margin CompressionThe recent decline in EBIT and net margins indicates that earnings quality is under pressure despite continued revenue growth. If higher costs, less favorable mix, or greater expenses persist, Nireco may convert incremental sales into profit less efficiently and face reduced capacity for reinvestment.

Nireco Corporation (6863) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 21.90B
Dividend Yield: 6.67%
Average Volume (3M): 93.16K
Price to Earnings (P/E): 16.2
Beta (1Y): 0.94
Revenue Growth: 9.71%
EPS Growth: -3.36%
Country: Japan
Employees: 533
Sector: Technology
Sector Strength: 61
Industry: Hardware, Equipment & Parts

Nireco Corporation Business Overview & Revenue Model

Company Description

Nireco Corporation, headquartered in Hachioji, Japan, and established in 1931 (operating as Nippon Regulator Co., Ltd. until its name change in November 1984), specializes in advanced industrial automation. The company provides a comprehensive suite...

How the Company Makes Money

Nireco makes money primarily by selling industrial equipment and systems used for measurement, inspection, and process control in customer production environments. Key revenue typically comes from (1) one-time sales of hardware (e.g., inspection/meas...

Nireco Corporation Financial Statement Overview

Summary

The company's financial health is strong, driven by an exceptionally robust, nearly debt-free balance sheet (Score 92) and solid cash flow generation (Score 85). The income statement shows consistent profitability and revenue growth, though a slight deceleration in top-line growth and minor margin softening prevent a higher score.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	11.02B	11.02B	10.76B	9.86B	9.16B	8.12B
Gross Profit	4.43B	4.43B	4.50B	3.93B	3.59B	2.92B
EBITDA	2.02B	2.25B	2.39B	1.82B	1.54B	944.46M
Net Income	1.44B	1.44B	1.56B	1.01B	860.53M	406.15M
Balance Sheet
Total Assets	20.59B	20.59B	19.35B	18.57B	17.00B	16.15B
Cash, Cash Equivalents and Short-Term Investments	5.11B	5.11B	4.82B	4.38B	4.41B	4.83B
Total Debt	548.28M	548.28M	142.70M	170.00M	234.48M	404.19M
Total Liabilities	3.52B	3.52B	2.68B	2.75B	2.40B	2.30B
Stockholders Equity	17.07B	17.07B	16.65B	15.81B	14.59B	13.84B
Cash Flow
Free Cash Flow	0	1.64B	1.16B	287.35M	-80.29M	634.15M
Operating Cash Flow	0	1.86B	1.30B	892.35M	135.71M	849.15M
Investing Cash Flow	0	776.48M	-325.40M	-449.61M	-91.69M	-359.52M
Financing Cash Flow	0	-1.51B	-514.47M	-431.38M	-476.89M	-393.04M

Nireco Corporation Technical Analysis

Technical Analysis SentimentNegative

Last Price1035.00

Price Trends

50DMA1026.69Negative

100DMA965.71Positive

200DMA844.70Positive

Market Momentum

MACD-1.96Positive

RSI45.45Neutral

STOCH59.72Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6863, the sentiment is Negative. The current price of 1035.00 is below the 20-day moving average (MA) of 1064.10, above the 50-day MA of 1026.69, and above the 200-day MA of 844.70, indicating a neutral trend. The MACD of -1.96 indicates Positive momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 59.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6863.

Nireco Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

JP:6863 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6863	81Outperform	JPY 21.50B	16.15	―	6.67%	9.71%	-3.36%
JP:6859	78Outperform	JPY 94.85B	15.54	―	2.71%	8.67%	11.23%
JP:6866	78Outperform	JPY 120.91B	15.44	―	2.48%	16.76%	35.84%
JP:6853	71Outperform	JPY 18.86B	19.14	―	2.91%	2.51%	0.17%
JP:6874	69Neutral	JPY 19.05B	9.53	―	3.96%	-3.24%	-10.28%
JP:6858	66Neutral	JPY 8.30B	9.75	―	3.65%	15.62%	50.30%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

JP:6863 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6863	Nireco Corporation	1020.00	431.09	73.20%
JP:6853	Kyowa Electronic Instruments Co., Ltd.	739.00	64.11	9.50%
JP:6858	Ono Sokki Co., Ltd.	740.00	167.72	29.31%
JP:6859	Espec Corp.	4240.00	842.42	24.79%
JP:6866	Hioki E.E.Corporation	8860.00	3080.71	53.31%
JP:6874	Kyoritsu Electric Corporation	2270.00	-183.41	-7.48%

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 30, 2026

Nireco Corporation AI Stock Analysis