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Nadex Co., Ltd. (7435) AI Stock Analysis

JP:7435

Nadex Co., Ltd.

(TSE/TYO:7435)

Select Model
Rating:68Neutral
Price Target:JPY 1,546.00â–²(22.12% Upside)
Action:downgraded
Date:09/17/26

The score is primarily supported by solid financial footing driven by very low leverage, alongside a reasonable valuation and dividend yield. Offsetting this, earnings and cash-flow consistency has been uneven and near-term technical signals are soft (negative MACD and below the 20-day average), which moderates the overall rating.

Positive Factors
Conservative Balance SheetNear-zero leverage and a growing equity base give Nadex financial resilience and flexibility. A conservative balance sheet can support continued customer investment, absorb cyclical changes in manufacturing demand, and reduce the burden of interest costs while management allocates capital for longer-term growth.
Negative Factors
Limited Revenue GrowthBroadly flat revenue suggests Nadex has not yet demonstrated sustained top-line expansion across its manufacturing customer base. The slight 2026 decline may constrain operating leverage and reduce the resources available for investment, making future earnings improvement more dependent on mix, pricing, or cost control.

Nadex Co., Ltd. (7435) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%JP:7435+31.96%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 10.00B
Dividend Yield
2.61%
Average Volume (3M)
19.31K
Price to Earnings (P/E)
12.8
Beta (1Y)
0.47
Revenue Growth
3.05%
EPS Growth
183.57%
Country
Japan
Employees
731
Sector
Industrials
Sector Strength
63
Industry
Industrial - Machinery

Nadex Co., Ltd. Business Overview & Revenue Model

Company Description

Nadex Co., Ltd., a Japanese company founded in 1950 and based in Nagoya, primarily specializes in the design, production, distribution, and setup of welding equipment for both domestic and international markets. The company offers a diverse range of...

How the Company Makes Money

Nadex primarily makes money through the sale and distribution of industrial products to manufacturing customers. Its core revenue stream is product sales (and related services) across categories such as cutting tools, tooling, machine tools, factory...

Nadex Co., Ltd. Financial Statement Overview

Summary

Strong balance sheet strength (very low leverage and growing equity) supports overall financial health, but operating results are uneven. Revenue has been broadly flat and profitability has swung materially (peak in 2023, weaker 2024–2025, improving in 2026 but still below prior highs). Cash flow is improved recently with positive free cash flow in 2025–2026, yet the sharp 2024 cash flow shortfall reduces confidence in consistency.

Income Statement

63Positive

Balance Sheet

86Very Positive

Cash Flow

58Neutral
Financial statement breakdown
BreakdownTTMApr 2025Apr 2024Apr 2023Apr 2022Apr 2022
Income Statement
Total Revenue38.65B36.84B36.89B34.39B34.58B36.16B
Gross Profit7.60B7.28B6.91B7.00B6.66B7.68B
EBITDA1.94B2.02B1.43B1.86B2.24B2.66B
Net Income800.97M659.72M251.79M813.95M935.09M1.31B
Balance Sheet
Total Assets37.96B32.02B30.78B31.29B29.90B29.91B
Cash, Cash Equivalents and Short-Term Investments4.75B4.76B3.63B4.48B4.87B5.13B
Total Debt1.22B95.81M352.30M1.53B1.27B736.37M
Total Liabilities17.15B11.43B11.85B11.84B12.56B11.09B
Stockholders Equity20.30B20.15B18.62B19.31B17.23B18.69B
Cash Flow
Free Cash Flow02.21B1.63B-167.25M439.60M503.82M
Operating Cash Flow02.77B2.03B41.56M920.69M729.85M
Investing Cash Flow0-762.67M-1.05B-638.40M-855.88M153.88M
Financing Cash Flow0-977.45M-1.90B-369.61M-607.15M-937.18M

Nadex Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price1266.00

Price Trends

50DMA1299.60Negative
100DMA1255.42Positive
200DMA1146.24Positive

Market Momentum

MACD-20.56Positive
RSI47.80Neutral
STOCH25.78Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7435, the sentiment is Positive. The current price of 1266.00 is below the 20-day moving average (MA) of 1285.23, below the 50-day MA of 1299.60, and above the 200-day MA of 1146.24, indicating a neutral trend. The MACD of -20.56 indicates Positive momentum. The RSI at 47.80 is Neutral, neither overbought nor oversold. The STOCH value of 25.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7435.

Nadex Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

JP:7435 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6402JP:640276OutperformJPY 8.71B7.51―4.72%4.59%34.39%
JP:5367JP:536769NeutralJPY 13.82B14.06―2.25%18.36%94.42%
JP:7435JP:743568NeutralJPY 10.51B12.84―2.61%3.05%183.57%
JP:6408JP:640866NeutralJPY 6.60B3.63―2.27%-2.81%186.98%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
JP:3444JP:344451NeutralJPY 10.67B44.96―1.13%14.30%31.61%
JP:6495JP:649544NeutralJPY 5.19B60.49―1.98%9.69%29.00%

* Industrials Sector Average

Performance Comparison

0%100%200%300%JP:7435JP:3444JP:5367JP:6402JP:6408JP:6495Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7435 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7435Nadex Co., Ltd.1266.00301.7331.29%
JP:3444KIKUCHI SEISAKUSHO CO., LTD.883.00533.13152.38%
JP:5367Nikkato Corporation1158.00616.99114.04%
JP:6402Kanematsu Engineering Co., Ltd.1567.00111.577.67%
JP:6408Ogura Clutch Co., Ltd.4410.00884.5325.09%
JP:6495Miyairi Valve Mfg.Co., Ltd.101.00-11.95-10.58%

Nadex Co., Ltd. Corporate Events

Nadex Swings Back to Profit and Lifts Dividend on Strong Sales Growth

Sep 8, 2026

Nadex Co., Ltd. reported robust consolidated results for the three months ended July 31, 2026, with net sales rising 23.4% year on year to ¥9.57 billion and a return to profitability, posting ¥95 million in operating profit and ¥12 mil...

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 17, 2026