Naikai Zosen Corporation (7018) AI Stock Analysis

2 Followers

Naikai Zosen Corporation

(TSE/TYO:7018)

Select Model

Rating:70Outperform

Price Target:JPY 10,285.00▲(10.00% Upside)

Action:reiterated

Date:11/06/26

The overall score of 70 is primarily driven by exceptional fundamental health and a deeply discounted valuation, though it is heavily weighed down by current bearish price action. Naikai Zosen boasts impressive deleveraging, solid revenue growth, and an exceptionally low P/E ratio of 4.9, making it highly attractive from a value and fundamental standpoint. However, investors must weigh these strengths against pronounced negative technical momentum, as the stock is in a steep downtrend with high volatility.

Positive Factors

Improving profitability and revenue growthThe shift from losses in 2021 to solid profitability in 2024–2026, alongside 13.6% revenue growth in 2026, indicates materially stronger execution. Expanded margins can improve reinvestment capacity and provide a more durable earnings base if operating performance remains consistent.

Negative Factors

Volatile operating and free cash flowRepeated negative cash-flow years make forecasting and capital planning less predictable, even after the latest rebound. The stated volatility suggests working-capital swings or project timing effects, which can weaken liquidity visibility and make strong annual cash generation harder to sustain.

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

Market Cap: JPY 14.08B
Dividend Yield: 1.07%
Average Volume (3M): 31.07K
Price to Earnings (P/E): 4.9
Beta (1Y): 2.09
Revenue Growth: 14.26%
EPS Growth: 40.11%
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 presents a robust financial profile marked by strong revenue growth and vastly improved profitability. A standout strength is its deleveraged balance sheet, with the debt-to-equity ratio plunging to 0.19. While cash flows are inherently lumpy due to project-based cycles, recent impressive free cash flow highlights strong underlying cash-generating potential.

Income Statement

82Very Positive

Balance Sheet

92Very Positive

Cash Flow

68Positive

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 Price9350.00

Price Trends

50DMA12233.60Negative

100DMA11243.30Negative

200DMA12582.87Negative

Market Momentum

MACD-703.94Positive

RSI28.79Positive

STOCH17.78Positive

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 9350.00 is below the 20-day moving average (MA) of 11100.50, below the 50-day MA of 12233.60, and below the 200-day MA of 12582.87, indicating a bearish trend. The MACD of -703.94 indicates Positive momentum. The RSI at 28.79 is Positive, neither overbought nor oversold. The STOCH value of 17.78 is Positive, 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 279.52B	9.82	18.77%	1.59%	6.53%	15.29%
JP:7022	78Outperform	JPY 9.81B	5.14	―	2.69%	11.81%	28.01%
JP:6358	72Outperform	JPY 17.44B	10.17	―	5.31%	1.92%	96.75%
JP:7018	70Outperform	JPY 17.26B	4.90	―	1.07%	14.26%	40.11%
JP:7003	60Neutral	JPY 346.84B	7.71	18.58%	2.16%	11.51%	125.19%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:6022	53Neutral	JPY 3.20B	26.34	―	1.24%	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	9350.00	-5794.10	-38.26%
JP:7003	Mitsui E&S Holdings Co	3341.00	-2080.71	-38.38%
JP:7014	Namura Shipbuilding Co	3780.00	-548.52	-12.67%
JP:6022	Akasaka Diesels Ltd.	2423.00	-2877.00	-54.28%
JP:6358	Sakai Heavy Industries, Ltd.	2016.00	89.69	4.66%
JP:7022	Sanoyas Holdings Corporation	279.00	13.25	4.99%

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: Nov 06, 2026

Naikai Zosen Corporation AI Stock Analysis