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Nakanishi
(7716)
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Rating:60Neutral
Price Target:
¥1,528.00
▼(-22.87% Downside)
Action:Reiterated
Date:09/30/26
The score is anchored by solid fundamentals—strong long-term revenue growth, healthy balance sheet flexibility, and robust recent cash generation—offset by elevated earnings risk from the 2025 net loss. Technicals are currently weak (below key moving averages with negative momentum), and valuation is a major headwind given the very high P/E despite a ~4% dividend yield.
Positive Factors
Sustained Revenue Growth
The substantial multi-year expansion in revenue indicates that Nakanishi has continued to grow its customer base and product demand across its precision-instrument businesses. A larger revenue base can support operating investment, broaden market reach, and provide a durable foundation for future cash generation.
Negative Factors
2025 Net Loss and Earnings Volatility
The swing to a net loss weakens confidence in the consistency and quality of Nakanishi’s earnings, even though core operating profit remained positive. Persistent below-the-line pressure or volatility could reduce retained capital and make future profitability less predictable over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
The substantial multi-year expansion in revenue indicates that Nakanishi has continued to grow its customer base and product demand across its precision-instrument businesses. A larger revenue base can support operating investment, broaden market reach, and provide a durable foundation for future cash generation.
Read all positive factors
Nakanishi (7716) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥253.11B
Dividend Yield2.02%
Average Volume (3M)530.80K
Price to Earnings (P/E)105.3
Beta (1Y)0.64
Revenue Growth14.87%
EPS Growth-55.19%
CountryJP
Employees2,204
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)13.81
Shares Outstanding184,436,400
10 Day Avg. Volume752,630
30 Day Avg. Volume530,796
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)1.45
Price to Sales (P/S)2.04
P/FCF Ratio13.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,762.50Price Target Upside-11.03% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)82.67
Revenue Forecast (FY)¥94.44B
Nakanishi Business Overview & Revenue Model
Company Description
Nakanishi Inc. operates as an international producer and supplier of an extensive array of goods for the dental, industrial, and medical markets. Their comprehensive dental offerings feature turbines, clinical micromotors, contra-angles, in additi...
How the Company Makes Money
Nakanishi makes money mainly by selling precision rotary products and supporting equipment into two core end markets: (1) Dental/medical and (2) Industrial/manufacturing. In the dental/medical business, revenue is generated from sales of high-spee...
Nakanishi Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 89.22B | 81.18B | 77.04B | 59.69B | 48.67B | 44.86B |
| Gross Profit | 48.99B | 44.59B | 40.39B | 34.15B | 30.39B | 26.60B |
| EBITDA | 13.07B | 9.29B | 19.59B | 32.27B | 19.40B | 15.80B |
| Net Income | 2.24B | -2.40B | 8.58B | 22.80B | 12.47B | 10.10B |
Balance Sheet | ||||||
| Total Assets | 174.55B | 160.16B | 158.30B | 140.77B | 102.64B | 94.46B |
| Cash, Cash Equivalents and Short-Term Investments | 56.90B | 62.80B | 47.11B | 32.65B | 38.19B | 41.75B |
| Total Debt | 33.88B | 26.77B | 18.73B | 11.67B | 480.80M | 100.00M |
| Total Liabilities | 52.54B | 46.08B | 37.10B | 27.60B | 11.61B | 11.54B |
| Stockholders Equity | 122.01B | 114.07B | 121.19B | 113.15B | 91.02B | 82.92B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 12.26B | 10.48B | 2.93B | 4.29B | 10.20B |
| Operating Cash Flow | 0.00 | 16.65B | 15.30B | 8.56B | 7.76B | 11.97B |
| Investing Cash Flow | 0.00 | -8.68B | -7.94B | -19.15B | -6.31B | -4.15B |
| Financing Cash Flow | 0.00 | 679.15M | 598.51M | 3.41B | -6.11B | -3.97B |
Nakanishi Technical Analysis
Negative
1981.00
Price Trends
1541.67
Negative
1519.33
Negative
1373.19
Positive
Market Momentum
-20.32
Positive
39.42
Neutral
41.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7716, the sentiment is Negative. The current price of 1981 is above the 20-day moving average (MA) of 1497.30, above the 50-day MA of 1541.67, and above the 200-day MA of 1373.19, indicating a neutral trend. The MACD of -20.32 indicates Positive momentum. The RSI at 39.42 is Neutral, neither overbought nor oversold. The STOCH value of 41.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7716.
Nakanishi Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥146.99B | 21.86 | ― | 2.75% | 9.94% | 10.50% | |
78 Outperform | ¥892.29B | 28.49 | 19.88% | 1.43% | 21.16% | 156.97% | |
70 Outperform | ¥2.20T | 28.64 | 10.21% | 3.00% | 7.80% | -27.73% | |
68 Neutral | ¥81.50B | 13.33 | ― | 2.67% | 6.53% | 52.32% | |
60 Neutral | ¥253.11B | 105.32 | 1.89% | 2.02% | 14.87% | -55.19% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | ¥215.12B | 15.41 | 5.35% | 2.35% | 2.68% | 144.20% |
* Healthcare Sector Average
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Nakanishi Corporate Events
Nakanishi Completes ¥4 Billion Share Buyback to Boost Capital Efficiency
Aug 18, 2026
Nakanishi Inc. has completed a share repurchase program designed to enable a more flexible capital policy and deliver shareholder returns in line with its mid-term management plan. The buyback underscores management’s focus on balancing grow...
Nakanishi Sets Terms for ¥4 Billion Share Buyback via ToSTNeT-3
Aug 17, 2026
Nakanishi Inc. has set the specific terms for a share buyback using the Tokyo Stock Exchange’s ToSTNeT-3 off-auction system, placing a consigned purchase order at 8:45 a.m. on August 18, 2026, at the prior day’s closing price of JPY 3,...
Nakanishi Announces 2-for-1 Stock Split, Articles Amendment and Dividend Forecast Revision
Aug 7, 2026
Nakanishi Inc. will conduct a 2-for-1 stock split of its common shares, effective October 1, 2026, aiming to boost share liquidity and broaden its investor base by halving the investment unit. The split will double the number of outstanding shares...
Nakanishi Expands Share Buyback Limit After Upward Earnings Revision
Aug 7, 2026
Nakanishi Inc. has expanded its share repurchase authorization, raising the maximum number of shares to be bought back from 1.5 million to 2 million, equivalent to up to 2.41% of outstanding shares excluding treasury stock. The ceiling on repurcha...
Nakanishi Lifts Full-Year Outlook After Strong First-Half Beat
Aug 7, 2026
Nakanishi Inc. reported that its net sales and profits for the first half of the fiscal year ending December 31, 2026, significantly exceeded earlier forecasts, driven by robust demand across its dental, DCI, surgical and industrial businesses, im...
Nakanishi Delivers Strong First-Half 2026 Earnings and Raises Full-Year Forecasts
Aug 7, 2026
Nakanishi Inc. reported robust consolidated results for the first half of 2026, with net sales climbing 20.5% year-on-year to ¥47.2 billion and operating income surging 32.0% to ¥10.0 billion. Ordinary income more than doubled and profit...
Nakanishi Leaves Share Buyback Authorization Untapped Through July 2026
Aug 3, 2026
Nakanishi Inc. reported that, under its ongoing share repurchase program authorized in February 2026, it acquired no common shares during the period from July 1 to July 31, 2026, resulting in zero repurchase cost for the month. As of July 31, the ...
Nakanishi Reports No Share Buybacks Yet Under 2026 Repurchase Program
Jul 1, 2026
Nakanishi Inc. reported the status of its ongoing share repurchase program authorized by its board in February 2026, which permits buybacks of up to 1.5 million common shares, or 1.81% of outstanding stock, for a maximum of JPY 2.5 billion through...
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.