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Nippon Sharyo
(7102)
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Rating:71Outperform
Price Target:
¥3,851.00
▲(0.03% Upside)
Action:Upgraded
Date:10/29/26
The score is driven primarily by improving fundamentals (stronger profitability and a healthier balance sheet) and a very low P/E valuation. These positives are tempered by uneven cash-flow history and a mixed technical picture with the stock trading below several key moving averages and only modest momentum signals.
Positive Factors
Profitability improvement
The sharp increase in net income, alongside higher EBIT and EBITDA, indicates materially stronger operating performance. If this improvement persists, it can strengthen internal funding capacity, support investment in railway programs, and provide a more resilient earnings base over the next several quarters.
Negative Factors
Volatile cash generation
Cash generation has varied sharply across recent years, including negative operating cash flow and deep negative free cash flow periods. Even with the 2026 recovery, this pattern reduces confidence in recurring cash conversion and may constrain the company’s ability to fund projects consistently.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability improvement
The sharp increase in net income, alongside higher EBIT and EBITDA, indicates materially stronger operating performance. If this improvement persists, it can strengthen internal funding capacity, support investment in railway programs, and provide a more resilient earnings base over the next several quarters.
Read all positive factors
Nippon Sharyo (7102) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥48.93B
Dividend Yield1.47%
Average Volume (3M)52.29K
Price to Earnings (P/E)4.3
Beta (1Y)0.98
Revenue Growth4.14%
EPS Growth23.26%
CountryJP
Employees2,176
SectorIndustrials
Sector Strength72
IndustryRailroads
Share Statistics
EPS (TTM)901.02
Shares Outstanding14,675,012
10 Day Avg. Volume98,380
30 Day Avg. Volume52,290
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.60
Price to Sales (P/S)0.50
P/FCF Ratio11.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nippon Sharyo Business Overview & Revenue Model
Company Description
Nippon Sharyo, Ltd. engages in the railway vehicles, construction machinery, transportation equipment and steel structures, engineering, and other businesses in Japan, the United States, Asia, and internationally. The company offers electric train...
How the Company Makes Money
Nippon Sharyo primarily makes money by manufacturing and selling railway rolling stock and related transportation equipment under customer contracts. Its main revenue stream is the delivery of completed rail vehicles (e.g., commuter and intercity ...
Nippon Sharyo Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 100.40B | 99.97B | 96.34B | 88.06B | 97.97B | 94.02B |
| Gross Profit | 20.82B | 19.58B | 15.84B | 14.08B | 12.54B | 13.29B |
| EBITDA | 15.14B | 14.16B | 10.96B | 8.95B | 7.26B | 9.08B |
| Net Income | 13.00B | 11.66B | 6.42B | 5.38B | 3.12B | 5.23B |
Balance Sheet | ||||||
| Total Assets | 153.31B | 152.56B | 131.16B | 136.40B | 124.36B | 132.87B |
| Cash, Cash Equivalents and Short-Term Investments | 3.18B | 5.09B | 3.44B | 3.91B | 3.57B | 29.31B |
| Total Debt | 30.36B | 32.60B | 36.47B | 39.54B | 43.31B | 54.06B |
| Total Liabilities | 68.87B | 70.31B | 66.51B | 74.17B | 73.24B | 84.85B |
| Stockholders Equity | 84.44B | 82.25B | 64.65B | 62.23B | 50.96B | 47.87B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 4.46B | -1.38B | -4.51B | 5.42B | 11.95B |
| Operating Cash Flow | 0.00 | 8.00B | 1.45B | -2.48B | 7.15B | 14.51B |
| Investing Cash Flow | 0.00 | -1.21B | -1.72B | -1.44B | -1.58B | -2.64B |
| Financing Cash Flow | 0.00 | -4.61B | -3.56B | -4.00B | -11.43B | -3.57B |
Nippon Sharyo Technical Analysis
Negative
3850.00
Price Trends
3599.44
Negative
3482.89
Negative
3591.32
Negative
Market Momentum
-8.67
Positive
39.83
Neutral
9.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7102, the sentiment is Negative. The current price of 3850 is above the 20-day moving average (MA) of 3579.25, above the 50-day MA of 3599.44, and above the 200-day MA of 3591.32, indicating a bearish trend. The MACD of -8.67 indicates Positive momentum. The RSI at 39.83 is Neutral, neither overbought nor oversold. The STOCH value of 9.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7102.
Nippon Sharyo Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥16.10B | 8.56 | ― | 2.14% | 31.63% | ― | |
78 Outperform | ¥29.60B | 8.14 | ― | 4.66% | -2.59% | 19.88% | |
74 Outperform | ¥90.92B | 18.95 | ― | 0.90% | -2.20% | 16.26% | |
71 Outperform | ¥48.93B | 4.29 | 13.93% | 1.47% | 4.14% | 23.26% | |
70 Outperform | ¥64.90B | 9.95 | 13.32% | 4.00% | 10.53% | 30.30% | |
65 Neutral | ¥20.23B | 25.02 | ― | 1.46% | -3.16% | 76.05% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
JP:7102
Nippon Sharyo
3,390.00
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2.74%
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Nippon Sharyo Corporate Events
Nippon Sharyo Corrects Credits in Medium-Term Plan Materials
Oct 29, 2026
Nippon Sharyo has issued a correction to materials related to its recently announced medium-term business plan for fiscal years 2026 to 2030. The company clarified that the changes are limited to adding proper copyright and credit notices to photo...
Nippon Sharyo Launches “Next Stage 2030” Plan With Ambitious 2030 Profit Targets
Oct 27, 2026
Nippon Sharyo has unveiled a new medium-term business plan, “Next Stage 2030,” marking its 130th anniversary as a strategic inflection point and targeting consolidated net sales of ¥130 billion and operating profit of ¥15 bil...
Nippon Sharyo Lifts Full‑Year Earnings Forecast on Stronger Margins
Oct 27, 2026
Nippon Sharyo has sharply upgraded its consolidated forecast for the fiscal year ending March 31, 2027, now expecting net sales of ¥113 billion and profit attributable to owners of parent of ¥9.6 billion, both above earlier guidance. The...
Nippon Sharyo Posts Strong First-Half Revenue, Raises Dividend But Cuts Profit Outlook
Oct 27, 2026
Nippon Sharyo reported consolidated net sales of ¥47.96 billion for the six months ended September 30, 2026, up 3% year on year, with operating profit climbing 34.5% to ¥5.43 billion and ordinary profit rising 35.3% to ¥5.77 billion...
Nippon Sharyo Restructures Executive Roles to Bolster Overseas Business
Sep 29, 2026
Nippon Sharyo has approved changes to the responsibilities of several executive officers effective October 1, 2026, in a move designed to strengthen its overseas business. The reshuffle particularly affects roles within the Corporate Planning and ...
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.