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Nichiryoku Co., Ltd. (7578) AI Stock Analysis

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JP:7578

Nichiryoku Co., Ltd.

(TSE/TYO:7578)

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Rating:41Neutral
Price Target:JPY 51.00â–¼(-3.77% Downside)
Action:reiterated
Date:10/31/26

The score is driven primarily by weak financial performance, with recent years showing losses, declining revenue, and negative operating/free cash flow. Technicals further reinforce downside risk as the stock is in a strong downtrend with very weak momentum. Valuation does not offset these risks because the negative P/E reflects ongoing losses and dividend support is not indicated in the provided data.

Positive Factors
Moderate LeverageModerate leverage provides some financial resilience because debt is not excessive relative to the equity base. This can preserve borrowing capacity and reduce balance-sheet pressure while management works to stabilize earnings and cash generation over the coming quarters.
Negative Factors
Revenue Contraction and LossesMulti-year revenue contraction combined with a shift into sizable losses signals weakening business performance rather than a temporary earnings fluctuation. Continued top-line pressure reduces operating leverage, limits reinvestment capacity, and makes a durable recovery dependent on stabilizing demand.

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

-60%-40%-20%0%20%40%JP:7578-56.91%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 977.94M
Dividend Yield
―
Average Volume (3M)
115.77K
Price to Earnings (P/E)
-2.5
Beta (1Y)
0.37
Revenue Growth
-26.19%
EPS Growth
65.04%
Country
Japan
Employees
140
Sector
General
Sector Strength
55
Industry
Personal Products & Services

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 and...

Nichiryoku Co., Ltd. Financial Statement Overview

Summary

Overall financial quality is weak. The income statement shows a sharp shift from profits (2022–2024) to sizable losses (2025–2026) alongside multi-year revenue contraction. Cash flow has also turned materially negative, with operating and free cash flow both negative and worsening into 2026. The balance sheet offers some cushion with moderate leverage, but shrinking assets/equity and ongoing cash burn are key risks.

Income Statement

22Negative

Balance Sheet

58Neutral

Cash Flow

18Very Negative
Financial statement breakdown
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 SentimentNegative
Last Price53.00

Price Trends

50DMA70.94Negative
100DMA71.88Negative
200DMA92.18Negative

Market Momentum

MACD-4.44Positive
RSI23.61Positive
STOCH14.65Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7578, the sentiment is Negative. The current price of 53.00 is below the 20-day moving average (MA) of 63.35, below the 50-day MA of 70.94, and below the 200-day MA of 92.18, indicating a bearish trend. The MACD of -4.44 indicates Positive momentum. The RSI at 23.61 is Positive, neither overbought nor oversold. The STOCH value of 14.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7578.

Nichiryoku Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7578 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7372JP:737279OutperformJPY 2.06B7.26――7.32%33.11%
JP:6571JP:657159NeutralJPY 16.84B20.58―3.22%6.31%-22.50%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:4331JP:433150NeutralJPY 12.25B44.02―6.05%――
JP:9439JP:943949NeutralJPY 3.34B-23.23―0.19%0.35%-497.77%
JP:4679JP:467943NeutralJPY 1.95B-8.53――-5.68%-15204.69%
JP:7578JP:757841NeutralJPY 1.01B-2.51――-26.19%65.04%

* General Sector Average

Performance Comparison

-50%-25%0%25%50%JP:7578JP:4331JP:4679JP:6571JP:7372JP:9439Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7578 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7578Nichiryoku Co., Ltd.53.00-70.00-56.91%
JP:4331Take and Give. Needs Co., Ltd.843.0076.139.93%
JP:4679TAYA Co.,Ltd.262.0027.0011.49%
JP:6571QB Net Holdings Co., Ltd.1241.00-72.33-5.51%
JP:7372Decollte Holdings Corporation404.00-70.00-14.77%
JP:9439M H GROUP LTD213.00-10.00-4.48%
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: Oct 31, 2026