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Nakabayashi Co., Ltd. (JP:7987)
:7987
Japanese Market
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Nakabayashi Co., Ltd. (7987) AI Stock Analysis

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JP:7987

Nakabayashi Co., Ltd.

(7987)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
¥611.00
▲(4.44% Upside)
Action:Reiterated
Date:08/11/26
The score is driven primarily by improving financial performance (profitability and cash flow recovery plus reduced leverage), supported by attractive valuation (low P/E and ~3.9% dividend yield). These positives are tempered by mixed technical signals and the company’s recent history of revenue softness and financial volatility.
Positive Factors
Profitability Recovery
The return to operating and net profitability improves internal funding capacity and indicates that the business can generate earnings after its weaker period. Sustaining these margins would strengthen resilience across its product and document-service operations.
Negative Factors
Revenue Contraction
Declining revenue indicates that the recovery is not yet being supported by broad top-line expansion. Continued softness in stationery, office products, or document services could limit operating leverage and make future profit improvement more dependent on cost control.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Recovery
The return to operating and net profitability improves internal funding capacity and indicates that the business can generate earnings after its weaker period. Sustaining these margins would strengthen resilience across its product and document-service operations.
Read all positive factors

Nakabayashi Co., Ltd. (7987) vs. iShares MSCI Japan ETF (EWJ)

Nakabayashi Co., Ltd. Business Overview & Revenue Model

Company Description
Nakabayashi Co., Ltd. is a multifaceted enterprise operating both within Japan and globally, with key activities spanning business process optimization, consumer-focused products, office equipment, energy generation, and other ventures. Its busine...
How the Company Makes Money
Nakabayashi makes money primarily through (1) product sales and (2) document-related services. On the product side, it generates revenue by manufacturing and selling stationery and office supplies (such as notebooks/paper goods, filing products, a...

Nakabayashi Co., Ltd. Financial Statement Overview

Summary
Financials indicate a recovery: profitability returned in 2026 (EBIT margin ~4.7%, net margin ~3.1%) and leverage improved (debt-to-equity down to ~0.34). Cash flow also turned positive with 2026 free cash flow ~¥2.67B. Offsetting this are soft revenue momentum (2026 revenue down ~2.1% YoY) and multi-year volatility in earnings and cash flow, which lowers confidence in durability.
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
64
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue61.45B61.60B62.77B61.04B61.58B63.12B
Gross Profit16.24B15.96B15.34B14.42B14.57B16.03B
EBITDA4.28B4.37B3.40B2.24B2.32B3.63B
Net Income1.79B1.93B1.99B877.00M-665.00M1.02B
Balance Sheet
Total Assets52.55B54.08B56.58B57.97B57.70B58.23B
Cash, Cash Equivalents and Short-Term Investments5.78B6.80B7.74B7.21B7.87B8.10B
Total Debt9.55B11.12B13.72B15.03B15.76B13.63B
Total Liabilities21.15B23.13B27.20B29.84B30.85B29.72B
Stockholders Equity31.22B30.79B28.72B27.44B26.20B26.86B
Cash Flow
Free Cash Flow0.002.67B1.95B-341.00M-1.51B1.04B
Operating Cash Flow0.003.24B2.79B1.33B-87.00M2.23B
Investing Cash Flow0.00257.00M-396.00M-1.13B-1.33B-283.00M
Financing Cash Flow0.00-3.83B-1.97B-1.42B1.07B-299.00M

Nakabayashi Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price585.00
Price Trends
50DMA
568.78
Positive
100DMA
568.99
Positive
200DMA
571.55
Negative
Market Momentum
MACD
-0.06
Positive
RSI
50.13
Neutral
STOCH
54.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7987, the sentiment is Positive. The current price of 585 is above the 20-day moving average (MA) of 571.65, above the 50-day MA of 568.78, and above the 200-day MA of 571.55, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 50.13 is Neutral, neither overbought nor oversold. The STOCH value of 54.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7987.

Nakabayashi 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
73
Outperform
¥45.02B11.173.71%-1.79%10.53%
66
Neutral
¥14.78B8.683.79%-2.31%-25.42%
66
Neutral
¥3.70B9.221.70%1.54%0.12%
65
Neutral
¥3.88B7.963.69%-3.57%-2.36%
63
Neutral
¥6.69B17.254.39%1.99%114.51%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
¥5.88B32.422.72%-3.93%11.47%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7987
Nakabayashi Co., Ltd.
571.00
19.54
3.54%
JP:3948
Hikari Business Form Co., Ltd.
1,168.00
-40.50
-3.35%
JP:7805
PRINTNET INC.
731.00
18.00
2.52%
JP:7914
Kyodo Printing Co., Ltd.
1,741.00
264.03
17.88%
JP:7916
Mitsumura Printing Co., Ltd.
1,900.00
473.84
33.22%
JP:7919
Nozaki Insatsu Shigyo Co., Ltd.
227.00
39.90
21.32%

Nakabayashi Co., Ltd. Corporate Events

Nakabayashi Lifts Profit Margins Despite Lower Sales, Keeps Dividend and Forecasts Steady Growth
Jun 2, 2026
Nakabayashi Co., Ltd. reported consolidated net sales of ¥61.6 billion for the year ended March 31, 2026, down 1.9% year on year, while operating profit surged 60.9% to ¥2.88 billion and ordinary profit rose 45.4% to ¥3.22 billion. ...
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: Aug 11, 2026