Naikai Zosen Corporation (7018) AI Stock Analysis

Naikai Zosen Corporation

(TSE/TYO:7018)

Select Model

Rating:76Outperform

Price Target:JPY 11,413.00▲(13.22% Upside)

Action:reiterated

Date:09/18/26

The overall score of 76 is primarily driven by the company's excellent financial health, particularly its pristine balance sheet and low debt. A very low P/E ratio further supports the valuation case. These strengths are tempered by a neutral technical picture, where the stock is in an uptrend but lacks strong momentum, and the inherent cash flow volatility of the project-based Aerospace & Defense industry.

Positive Factors

Improved revenue and profitabilityThe combination of strong revenue growth and wider operating and net margins indicates improved pricing, execution, and/or cost control. If sustained, this strengthens earnings capacity and provides more internal funding for operations, investment, and balance-sheet improvement over the coming quarters.

Negative Factors

Volatile cash-flow profileRepeated periods of negative operating and free cash flow make cash conversion less predictable than the latest annual result suggests. Working-capital swings or project timing effects can raise funding needs, complicate debt planning, and make sustained financial performance harder to forecast.

Naikai Zosen Corporation (7018) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 17.12B
Dividend Yield: 0.99%
Average Volume (3M): 30.36K
Price to Earnings (P/E): 6.1
Beta (1Y): 2.09
Revenue Growth: 19.40%
EPS Growth: 131.93%
Country: Japan
Employees: 600
Sector: General
Sector Strength: 55
Industry: Aerospace & Defense

Naikai Zosen Corporation Business Overview & Revenue Model

Company Description

Based in Japan, Naikai Zosen Corporation operates as a shipbuilding enterprise, constructing a diverse range of maritime vessels. Its extensive portfolio encompasses various passenger and cargo ships, including ferries, car carriers, container ships,...

How the Company Makes Money

Naikai Zosen makes money primarily by contracting to build ships for customers and recognizing revenue from those shipbuilding projects. Its core revenue stream is ship construction (newbuilding), where customers typically pay based on contract terms...

Naikai Zosen Corporation Financial Statement Overview

Summary

The company exhibits strong financial health, driven by an excellent balance sheet (Score: 92) with very low leverage and a robust income statement (Score: 78) showing consistent profitability. Cash flow (Score: 75) is solid but historically volatile, which is typical for the project-based industry. The overall financial foundation is a significant strength.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

75Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	49.41B	47.02B	44.65B	46.38B	37.62B	33.03B
Gross Profit	5.26B	4.39B	2.54B	4.26B	1.87B	1.56B
EBITDA	4.87B	3.98B	2.23B	4.00B	1.60B	1.28B
Net Income	2.79B	2.30B	1.02B	2.26B	737.00M	143.00M
Balance Sheet
Total Assets	48.91B	47.14B	42.49B	43.82B	40.20B	36.81B
Cash, Cash Equivalents and Short-Term Investments	19.59B	12.78B	4.70B	14.80B	9.31B	16.28B
Total Debt	2.18B	2.63B	5.68B	8.96B	9.41B	9.71B
Total Liabilities	34.64B	33.63B	31.63B	34.07B	32.77B	30.01B
Stockholders Equity	14.27B	13.51B	10.86B	9.74B	7.43B	6.79B
Cash Flow
Free Cash Flow	0	11.22B	-6.58B	5.96B	-7.88B	9.28B
Operating Cash Flow	0	12.46B	-5.38B	6.75B	-6.38B	10.78B
Investing Cash Flow	0	-3.25B	-1.20B	-824.00M	-249.00M	-1.68B
Financing Cash Flow	0	-3.12B	-3.44B	-528.00M	-359.00M	-278.00M

Naikai Zosen Corporation Technical Analysis

Technical Analysis SentimentNegative

Last Price10080.00

Price Trends

50DMA12369.60Negative

100DMA11228.60Negative

200DMA12662.38Negative

Market Momentum

MACD-608.09Positive

RSI33.33Neutral

STOCH30.82Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7018, the sentiment is Negative. The current price of 10080.00 is below the 20-day moving average (MA) of 11587.00, below the 50-day MA of 12369.60, and below the 200-day MA of 12662.38, indicating a bearish trend. The MACD of -608.09 indicates Positive momentum. The RSI at 33.33 is Neutral, neither overbought nor oversold. The STOCH value of 30.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7018.

Naikai Zosen Corporation Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7018 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7014	85Outperform	JPY 276.39B	11.33	18.77%	1.51%	6.53%	15.29%
JP:7022	85Outperform	JPY 10.55B	6.14	―	2.41%	11.81%	28.01%
JP:7018	76Outperform	JPY 17.12B	6.13	―	0.99%	19.40%	131.93%
JP:7003	74Outperform	JPY 348.55B	8.85	18.58%	2.08%	11.51%	125.19%
JP:6358	72Outperform	JPY 17.63B	10.38	―	5.33%	1.92%	96.75%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:6022	45Neutral	JPY 3.36B	30.07	―	1.18%	6.76%	11.97%

* General Sector Average

Performance Comparison

JP:7018 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7018	Naikai Zosen Corporation	10100.00	-6235.76	-38.17%
JP:7003	Mitsui E&S Holdings Co	3456.00	-2443.98	-41.42%
JP:7014	Namura Shipbuilding Co	3975.00	-861.89	-17.82%
JP:6022	Akasaka Diesels Ltd.	2535.00	-2765.00	-52.17%
JP:6358	Sakai Heavy Industries, Ltd.	2008.00	68.38	3.53%
JP:7022	Sanoyas Holdings Corporation	311.00	27.54	9.71%

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 18, 2026

Naikai Zosen Corporation AI Stock Analysis