Nakabayashi Co., Ltd. (7987) AI Stock Analysis

Nakabayashi Co., Ltd.

(TSE/TYO:7987)

Select Model

Rating:74Outperform

Price Target:JPY 634.00▲(19.62% Upside)

Action:reiterated

Date:08/11/26

Nakabayashi scores 74, reflecting a solid financial foundation with improving profitability, strong cash flow, and a healthy balance sheet. The attractive valuation (low P/E, high dividend yield) adds support. Technical indicators are neutral, showing some near-term weakness but oversold conditions. The primary risk is stagnant revenue growth, but cost discipline and financial strength mitigate downside.

Positive Factors

Profitability RecoveryThe 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 ContractionDeclining 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.

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

Market Cap: JPY 14.38B
Dividend Yield: 4.15%
Average Volume (3M): 59.23K
Price to Earnings (P/E): 8.1
Beta (1Y): 0.54
Revenue Growth: -2.31%
EPS Growth: -25.42%
Country: Japan
Employees: 2,004
Sector: General
Sector Strength: 55
Industry: Specialty Business Services

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 business...

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, and...

Nakabayashi Co., Ltd. Financial Statement Overview

Summary

Nakabayashi's financials show improving profitability (net margin 3.1%, operating margin 4.7%) and strong cash flow generation (FCF ¥2.67B). The balance sheet is healthy with low debt (debt/equity 0.35). However, revenue has been stagnant, declining 1.9% in the latest year. Overall, the company is financially stable with room for top-line growth.

Income Statement

68Positive

Balance Sheet

78Positive

Cash Flow

82Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	61.45B	61.60B	62.77B	61.04B	61.58B	63.12B
Gross Profit	16.24B	15.96B	15.34B	14.42B	14.57B	16.03B
EBITDA	4.28B	4.37B	3.40B	2.24B	2.32B	3.63B
Net Income	1.79B	1.93B	1.99B	877.00M	-665.00M	1.02B
Balance Sheet
Total Assets	52.55B	54.08B	56.58B	57.97B	57.70B	58.23B
Cash, Cash Equivalents and Short-Term Investments	5.78B	6.80B	7.74B	7.21B	7.87B	8.10B
Total Debt	9.55B	11.12B	13.72B	15.03B	15.76B	13.63B
Total Liabilities	21.15B	23.13B	27.20B	29.84B	30.85B	29.72B
Stockholders Equity	31.22B	30.79B	28.72B	27.44B	26.20B	26.86B
Cash Flow
Free Cash Flow	0	2.67B	1.95B	-341.00M	-1.51B	1.04B
Operating Cash Flow	0	3.24B	2.79B	1.33B	-87.00M	2.23B
Investing Cash Flow	0	257.00M	-396.00M	-1.13B	-1.33B	-283.00M
Financing Cash Flow	0	-3.83B	-1.97B	-1.42B	1.07B	-299.00M

Nakabayashi Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price530.00

Price Trends

50DMA548.82Negative

100DMA552.21Negative

200DMA563.32Negative

Market Momentum

MACD-5.91Positive

RSI38.91Neutral

STOCH21.18Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7987, the sentiment is Negative. The current price of 530.00 is below the 20-day moving average (MA) of 538.15, below the 50-day MA of 548.82, and below the 200-day MA of 563.32, indicating a bearish trend. The MACD of -5.91 indicates Positive momentum. The RSI at 38.91 is Neutral, neither overbought nor oversold. The STOCH value of 21.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7987.

Nakabayashi Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7987 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7987	74Outperform	JPY 13.69B	8.06	―	4.15%	-2.31%	-25.42%
JP:7914	73Outperform	JPY 42.68B	10.64	―	4.82%	-1.79%	10.53%
JP:3948	63Neutral	JPY 6.73B	17.29	―	4.27%	1.99%	114.51%
JP:7916	57Neutral	JPY 5.60B	31.21	―	2.73%	-3.93%	11.47%
JP:7919	56Neutral	JPY 3.56B	5.37	―	3.72%	-1.46%	43.56%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7805	54Neutral	JPY 3.24B	9.66	―	1.99%	-1.49%	-24.51%

* General Sector Average

Performance Comparison

JP:7987 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7987	Nakabayashi Co., Ltd.	530.00	-24.65	-4.44%
JP:3948	Hikari Business Form Co., Ltd.	1171.00	-55.72	-4.54%
JP:7805	PRINTNET INC.	653.00	18.49	2.91%
JP:7914	Kyodo Printing Co., Ltd.	1661.00	229.59	16.04%
JP:7916	Mitsumura Printing Co., Ltd.	1829.00	359.06	24.43%
JP:7919	Nozaki Insatsu Shigyo Co., Ltd.	207.00	24.66	13.52%

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. Pro...

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

Nakabayashi Co., Ltd. AI Stock Analysis