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Nichiryoku Co., Ltd. (JP:7578)
:7578
Japanese Market
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Nichiryoku Co., Ltd. (7578) AI Stock Analysis

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JP:7578

Nichiryoku Co., Ltd.

(7578)

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Neutral 42 (OpenAI - 5.2)
Rating:42Neutral
Price Target:
¥63.00
▼(-45.22% Downside)
Action:Reiterated
Date:06/27/26
The score is held down primarily by weak financial performance—multi-year revenue decline, recent net losses, and negative operating/free cash flow—paired with bearish technicals (below all key moving averages and negative MACD). Valuation is not a clear support because the company is loss-making (negative P/E) and no dividend yield is available.
Positive Factors
Moderate leverage / equity cushion
Moderate debt relative to equity gives the company a structural buffer against short-term shocks and more time to execute turnaround actions. That balance-sheet cushion supports access to credit and reduces immediate insolvency risk, helping preserve strategic optionality over months.
Negative Factors
Multi-year revenue decline
Persistent top-line decline is a structural concern: shrinking revenue erodes scale, bargaining power and synergies, making it harder to absorb fixed costs and leverage high gross margins. Without sustained revenue stabilization, long-term competitiveness and margins remain at risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Moderate leverage / equity cushion
Moderate debt relative to equity gives the company a structural buffer against short-term shocks and more time to execute turnaround actions. That balance-sheet cushion supports access to credit and reduces immediate insolvency risk, helping preserve strategic optionality over months.
Read all positive factors

Nichiryoku Co., Ltd. (7578) vs. iShares MSCI Japan ETF (EWJ)

Nichiryoku Co., Ltd. Business Overview & Revenue Model

Company Description
Nichiryoku Co., Ltd. offers a comprehensive array of services within Japan's funeral and burial industries. Its operations include the development, marketing, and upkeep of cemeteries, as well as the full lifecycle of stone products—from sourcing ...
How the Company Makes Money
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Nichiryoku Co., Ltd. Financial Statement Overview

Summary
Overall financial quality is weak: revenue has been contracting for multiple years and results shifted from profits (2022–2024) to significant losses (2025–2026). Cash generation also turned negative with worsening operating cash flow and free cash flow in 2025–2026. The balance sheet shows only moderate leverage, providing some cushion, but shrinking equity/assets and ongoing cash burn are key risks.
Income Statement
22
Negative
Balance Sheet
58
Neutral
Cash Flow
18
Very Negative
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue1.71B2.24B2.85B3.22B2.98B
Gross Profit1.09B1.49B1.92B2.11B2.04B
EBITDA-655.53M-30.32M361.44M340.85M412.99M
Net Income-207.15M-271.01M279.61M118.06M129.23M
Balance Sheet
Total Assets5.08B7.48B8.07B8.91B9.47B
Cash, Cash Equivalents and Short-Term Investments253.26M107.06M282.91M670.05M1.13B
Total Debt1.45B2.22B2.44B3.30B4.07B
Total Liabilities2.16B2.89B3.21B4.37B5.15B
Stockholders Equity2.92B4.59B4.86B4.54B4.31B
Cash Flow
Free Cash Flow-459.21M-118.39M83.33M329.56M319.53M
Operating Cash Flow-459.21M-113.54M90.71M339.68M336.86M
Investing Cash Flow1.23B152.50M351.86M280.52M-181.00M
Financing Cash Flow-627.78M-214.80M-829.71M-663.15M-521.76M

Nichiryoku Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price115.00
Price Trends
50DMA
71.42
Positive
100DMA
85.07
Negative
200DMA
102.30
Negative
Market Momentum
MACD
1.01
Negative
RSI
69.11
Neutral
STOCH
70.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7578, the sentiment is Positive. The current price of 115 is above the 20-day moving average (MA) of 69.20, above the 50-day MA of 71.42, and above the 200-day MA of 102.30, indicating a neutral trend. The MACD of 1.01 indicates Negative momentum. The RSI at 69.11 is Neutral, neither overbought nor oversold. The STOCH value of 70.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7578.

Nichiryoku Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
¥1.98B7.107.32%33.11%
60
Neutral
¥10.59B38.385.06%
59
Neutral
¥17.61B21.612.53%6.31%-22.50%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
49
Neutral
¥3.60B-25.190.21%0.35%-497.77%
45
Neutral
¥1.95B-8.60-6.56%-522.16%
42
Neutral
¥1.38B-3.61-26.19%65.04%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7578
Nichiryoku Co., Ltd.
76.00
-45.00
-37.19%
JP:4331
Take and Give. Needs Co., Ltd.
735.00
-63.55
-7.96%
JP:4679
TAYA Co.,Ltd.
264.00
12.00
4.76%
JP:6571
QB Net Holdings Co., Ltd.
1,303.00
23.54
1.84%
JP:7372
Decollte Holdings Corporation
395.00
-51.00
-11.43%
JP:9439
M H GROUP LTD
231.00
19.00
8.96%
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: Jun 27, 2026