Skip to main content
TipRanks
Go Ultimate75% OFF

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

0 Followers
JP:7578

Nichiryoku Co., Ltd.

(TSE/TYO:7578)

Select Model
Rating:38Underperform
Price Target:JPY 43.00â–¼(-2.27% Downside)
Action:reiterated
Date:10/31/26

The overall score is very low, driven primarily by a severe deterioration in financial performance, including declining revenues, net losses, and negative cash flows. Technical analysis confirms a strong downtrend with oversold conditions, and the negative P/E ratio with no dividend yield offers no valuation support. The company faces significant operational and market headwinds.

Positive Factors
Moderate LeverageModerate leverage and a meaningful equity base provide some financial resilience relative to a more highly indebted company. This cushion can help preserve operating flexibility and reduce balance-sheet pressure while management works to stabilize earnings and cash generation.
Negative Factors
Revenue ContractionMulti-year revenue contraction signals weakening business scale and makes it harder to absorb fixed operating costs. Continued top-line declines can constrain investment, reduce operating leverage, and prolong the path back to sustainable profitability unless the trend stabilizes.

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

-80%-60%-40%-20%0%20%40%JP:7578-63.93%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 884.84M
Dividend Yield
―
Average Volume (3M)
133.59K
Price to Earnings (P/E)
-2.1
Beta (1Y)
0.55
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

Financial performance is severely challenged. Revenue has declined sharply for three consecutive years, gross margins are eroding, and the company has posted net losses in two of the last three years. Operating cash flow has turned deeply negative, indicating cash burn. The balance sheet shows reduced debt, but equity has dropped significantly due to losses, weakening the company's financial foundation.

Income Statement

15Very Negative

Balance Sheet

25Negative

Cash Flow

10Very 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 Price44.00

Price Trends

50DMA66.08Negative
100DMA68.75Negative
200DMA88.79Negative

Market Momentum

MACD-6.26Positive
RSI24.74Positive
STOCH29.17Neutral

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 44.00 is below the 20-day moving average (MA) of 53.65, below the 50-day MA of 66.08, and below the 200-day MA of 88.79, indicating a bearish trend. The MACD of -6.26 indicates Positive momentum. The RSI at 24.74 is Positive, neither overbought nor oversold. The STOCH value of 29.17 is Neutral, 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 2.14B7.20――7.32%33.11%
JP:6571JP:657159NeutralJPY 16.99B20.83―3.18%6.31%-22.50%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:4331JP:433150NeutralJPY 12.02B63.56―6.13%――
JP:9439JP:943949NeutralJPY 3.34B-22.57―0.19%15.08%-402.27%
JP:4679JP:467941NeutralJPY 1.94B-8.40――-5.68%-15204.69%
JP:7578JP:757838UnderperformJPY 904.50M-2.09――-26.19%65.04%

* General Sector Average

Performance Comparison

-50%0%50%JP:7578JP:4331JP:4679JP:6571JP:7372JP:9439Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7578 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7578Nichiryoku Co., Ltd.44.00-81.00-64.80%
JP:4331Take and Give. Needs Co., Ltd.832.00107.9914.92%
JP:4679TAYA Co.,Ltd.263.0031.0013.36%
JP:6571QB Net Holdings Co., Ltd.1256.00-43.78-3.37%
JP:7372Decollte Holdings Corporation401.00-47.00-10.49%
JP:9439M H GROUP LTD207.00-15.00-6.76%
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