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Naikai Zosen Corporation (JP:7018)
:7018
Japanese Market
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Naikai Zosen Corporation (7018) AI Stock Analysis

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JP:7018

Naikai Zosen Corporation

(7018)

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Outperform 74 (OpenAI - Gpt-5.6Sol)
Rating:74Outperform
Price Target:
¥15,546.00
▲(9.79% Upside)
Action:Upgraded
Date:09/08/26
The score is driven primarily by improved financial performance (stronger profitability and a de-risked balance sheet), tempered by historically volatile cash flows. Technicals add support due to a clear uptrend and strong momentum, while valuation contributes positively via a low P/E, partially offset by a modest dividend yield.
Positive Factors
Profitability and revenue growth
The shift from losses in 2021 to solid profitability in 2024–2026 indicates a substantial improvement in operating performance. Recent revenue growth combined with wider margins suggests stronger pricing, execution, or cost control, supporting more durable earnings capacity over the next several quarters.
Negative Factors
Volatile cash flows
Repeated negative cash-flow years indicate that cash conversion is not consistently predictable, even though the latest period was strong. Working-capital swings or project timing effects can make funding needs harder to forecast and may temporarily constrain investment or deleveraging.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability and revenue growth
The shift from losses in 2021 to solid profitability in 2024–2026 indicates a substantial improvement in operating performance. Recent revenue growth combined with wider margins suggests stronger pricing, execution, or cost control, supporting more durable earnings capacity over the next several quarters.
Read all positive factors

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

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 shi...
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 te...

Naikai Zosen Corporation Financial Statement Overview

Summary
Financials have improved materially: the company moved from losses (2021) to solid profitability by 2024–2026, with strong 2026 revenue growth (+13.6%) and margin expansion. The balance sheet is meaningfully de-risked with sharply lower leverage and higher equity, but cash flow remains inconsistent across years (negative in 2021, 2023, and 2025), which raises forecasting risk despite very strong 2026 cash generation.
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
63
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue49.41B47.02B44.65B46.38B37.62B33.03B
Gross Profit5.26B4.39B2.54B4.26B1.87B1.56B
EBITDA4.87B3.98B2.23B4.00B1.60B1.28B
Net Income2.79B2.30B1.02B2.26B737.00M143.00M
Balance Sheet
Total Assets48.91B47.14B42.49B43.82B40.20B36.81B
Cash, Cash Equivalents and Short-Term Investments19.59B12.78B4.70B14.80B9.31B16.28B
Total Debt2.18B2.63B5.68B8.96B9.41B9.71B
Total Liabilities34.64B33.63B31.63B34.07B32.77B30.01B
Stockholders Equity14.27B13.51B10.86B9.74B7.43B6.79B
Cash Flow
Free Cash Flow0.0011.22B-6.58B5.96B-7.88B9.28B
Operating Cash Flow0.0012.46B-5.38B6.75B-6.38B10.78B
Investing Cash Flow0.00-3.25B-1.20B-824.00M-249.00M-1.68B
Financing Cash Flow0.00-3.12B-3.44B-528.00M-359.00M-278.00M

Naikai Zosen Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14160.00
Price Trends
50DMA
11092.40
Positive
100DMA
10886.70
Positive
200DMA
13121.16
Positive
Market Momentum
MACD
594.25
Negative
RSI
64.92
Neutral
STOCH
84.19
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7018, the sentiment is Positive. The current price of 14160 is above the 20-day moving average (MA) of 12333.00, above the 50-day MA of 11092.40, and above the 200-day MA of 13121.16, indicating a bullish trend. The MACD of 594.25 indicates Negative momentum. The RSI at 64.92 is Neutral, neither overbought nor oversold. The STOCH value of 84.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7018.

Naikai Zosen Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥333.76B13.6818.77%1.23%6.53%15.29%
77
Outperform
¥11.50B6.952.12%10.14%39.52%
74
Outperform
¥22.55B8.080.30%19.40%131.93%
72
Outperform
¥19.02B11.215.02%1.92%96.75%
60
Neutral
¥432.36B10.9818.58%1.61%11.51%125.19%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
54
Neutral
¥3.85B34.521.03%6.76%11.97%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7018
Naikai Zosen Corporation
13,880.00
5,051.74
57.22%
JP:7003
Mitsui E&S Holdings Co
4,500.00
308.20
7.35%
JP:7014
Namura Shipbuilding Co
5,080.00
1,838.73
56.73%
JP:6022
Akasaka Diesels Ltd.
2,905.00
-530.00
-15.43%
JP:6358
Sakai Heavy Industries, Ltd.
2,160.00
92.06
4.45%
JP:7022
Sanoyas Holdings Corporation
344.00
94.99
38.14%
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 08, 2026