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

0 Followers

Nakabayashi Co., Ltd.

(TSE/TYO:7987)

Select Model

Rating:68Neutral

Price Target:JPY 580.00▲(9.02% Upside)

Action:reiterated

Date:11/12/26

The score is driven primarily by improving financial performance (profitability and cash flow recovery alongside lower leverage) and strong valuation support (low P/E and solid dividend yield). These positives are partially offset by weaker technical momentum (below key moving averages and negative MACD) and softer recent revenue trend.

Positive Factors

Profitability RecoveryThe return to positive EBIT and net income after the 2023 loss indicates the business has regained operating traction. If maintained, the improved margin base can support internal reinvestment and make earnings less dependent on external financing over the coming quarters.

Negative Factors

Revenue DeclineThe 2026 revenue decline shows that improved profitability has not yet been matched by top-line expansion. Without renewed sales growth, the current earnings recovery has a narrower foundation and may be harder to extend, limiting operating leverage and longer-term expansion capacity.

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

Market Cap: JPY 14.59B
Dividend Yield: 4.14%
Average Volume (3M): 62.56K
Price to Earnings (P/E): 5.6
Beta (1Y): 0.54
Revenue Growth: -0.27%
EPS Growth: 41.12%
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...

Nakabayashi Co., Ltd. Financial Statement Overview

Summary

Financials indicate a recovery: profitability returned in 2026 (positive EBIT and net margin) and leverage improved (debt-to-equity down to ~0.34). Offsetting this, revenue declined (~2.1% YoY in 2026) and earnings/cash flow have been volatile across 2023–2026, limiting confidence in durability.

Income Statement

62Positive

Balance Sheet

70Positive

Cash Flow

64Positive

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 Price532.00

Price Trends

50DMA544.12Negative

100DMA551.28Negative

200DMA561.92Negative

Market Momentum

MACD-5.09Negative

RSI47.29Neutral

STOCH73.29Neutral

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 532.00 is below the 20-day moving average (MA) of 534.00, below the 50-day MA of 544.12, and below the 200-day MA of 561.92, indicating a bearish trend. The MACD of -5.09 indicates Negative momentum. The RSI at 47.29 is Neutral, neither overbought nor oversold. The STOCH value of 73.29 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:7914	76Outperform	JPY 41.57B	8.38	―	4.89%	-0.61%	48.02%
JP:7987	68Neutral	JPY 13.75B	5.61	―	4.14%	-0.27%	41.12%
JP:3948	63Neutral	JPY 6.72B	19.78	―	4.29%	0.32%	67.81%
JP:7916	57Neutral	JPY 5.51B	31.31	―	2.72%	-3.93%	11.47%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7919	55Neutral	JPY 3.49B	5.32	―	3.79%	-1.46%	43.56%
JP:7805	54Neutral	JPY 3.05B	9.09	―	2.12%	-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.	532.00	7.20	1.37%
JP:3948	Hikari Business Form Co., Ltd.	1166.00	-90.45	-7.20%
JP:7805	PRINTNET INC.	614.00	-29.35	-4.56%
JP:7914	Kyodo Printing Co., Ltd.	1637.00	249.45	17.98%
JP:7916	Mitsumura Printing Co., Ltd.	1835.00	245.40	15.44%
JP:7919	Nozaki Insatsu Shigyo Co., Ltd.	203.00	17.76	9.59%

Nakabayashi Co., Ltd. Corporate Events

Nakabayashi Posts Lower Q1 Profit but Affirms Dividend and Full-Year Growth Outlook

Sep 1, 2026

Nakabayashi reported consolidated net sales of ¥14.1 billion for the three months ended June 30, 2026, a slight 1.0% decline year on year, with operating profit down 5.1% to ¥527 million and profit attributable to owners of parent falling 24.1% to ¥4...

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: Nov 12, 2026

Nakabayashi Co., Ltd. AI Stock Analysis