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NIPPON GAS Co (8174) AI Stock Analysis

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JP:8174

NIPPON GAS Co

(TSE/TYO:8174)

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Rating:65.6Neutral
Price Target:JPY 934.00â–²(2.08% Upside)
Action:reiterated
Date:10/31/26

The overall score is driven by a strong valuation, anchored by an exceptional dividend yield, and a solid financial performance marked by improving margins. However, the score is significantly weighed down by weak technicals, with the stock in a clear downtrend and showing bearish momentum across multiple indicators.

Positive Factors
Revenue GrowthVery strong trailing revenue growth indicates expanding business activity and customer demand. If sustained, this scale can support better operating leverage, strengthen the company’s distribution position, and provide a broader base for recurring LPG and related service revenue.
Negative Factors
Weak Cash ConversionOperating cash flow consistently trailing accounting earnings suggests that reported profits are not fully translating into cash in each period. This weakens earnings quality, can constrain internally funded growth, and makes financial performance more sensitive to working-capital movements.

NIPPON GAS Co (8174) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%JP:8174-4.62%EWJ+15.69%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 288.73B
Dividend Yield
7.63%
Average Volume (3M)
1.22M
Price to Earnings (P/E)
20.7
Beta (1Y)
0.12
Revenue Growth
7.75%
EPS Growth
9.01%
Country
Japan
Employees
1,764
Sector
Utilities
Sector Strength
66
Industry
Regulated Gas

NIPPON GAS Co Business Overview & Revenue Model

Company Description

Nippon Gas Co., Ltd. is primarily engaged in the distribution and sale of liquefied petroleum (LP) gas and natural gas across Japan. Its operations are organized into distinct LP Gas, Electricity, and City Gas business segments. Through pipeline netw...

How the Company Makes Money

NIPPON GAS primarily makes money by selling LPG to end customers. Revenue is generated through recurring consumption-based sales of LPG delivered to households and businesses, with earnings influenced by customer volumes, usage levels, and the spread...

NIPPON GAS Co Financial Statement Overview

Summary

Solid financial profile with improving profitability and a conservative balance sheet. Net margin expansion and strong ROE are key strengths, though thin utility margins and volatile cash flow growth temper the score.

Income Statement

78Positive

Balance Sheet

72Positive

Cash Flow

65Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue217.87B208.48B200.06B194.36B207.94B162.55B
Gross Profit75.55B66.27B63.29B62.48B58.30B54.81B
EBITDA28.46B31.93B28.35B26.49B26.78B26.47B
Net Income14.28B14.81B11.55B10.82B10.57B9.97B
Balance Sheet
Total Assets150.75B163.59B156.07B159.56B154.93B153.90B
Cash, Cash Equivalents and Short-Term Investments17.58B23.93B19.81B18.99B13.05B17.02B
Total Debt50.82B49.96B46.94B47.19B40.58B45.94B
Total Liabilities85.05B96.11B88.61B86.83B80.63B82.00B
Stockholders Equity65.13B66.98B67.45B72.72B74.30B71.89B
Cash Flow
Free Cash Flow15.58B22.14B22.15B17.36B15.10B13.32B
Operating Cash Flow22.48B28.19B27.92B23.44B19.59B20.69B
Investing Cash Flow-7.17B-7.16B-8.81B-9.19B-7.58B-8.79B
Financing Cash Flow-11.35B-16.68B-18.39B-8.71B-16.07B-7.41B

NIPPON GAS Co Technical Analysis

Technical Analysis SentimentNeutral
Last Price915.00

Price Trends

50DMA947.14Negative
100DMA941.48Negative
200DMA942.30Negative

Market Momentum

MACD-17.74Negative
RSI51.38Neutral
STOCH63.81Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8174, the sentiment is Neutral. The current price of 915.00 is above the 20-day moving average (MA) of 903.35, below the 50-day MA of 947.14, and below the 200-day MA of 942.30, indicating a neutral trend. The MACD of -17.74 indicates Negative momentum. The RSI at 51.38 is Neutral, neither overbought nor oversold. The STOCH value of 63.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8174.

NIPPON GAS Co Peers Comparison

Overall Rating

UnderperformOutperform
Sector (66)

Financial Indicators

JP:8174 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:9543JP:954378OutperformJPY 100.93B10.617.33%3.21%2.03%-22.02%
JP:9532JP:953270OutperformJPY 2.21T18.136.91%2.12%0.88%-27.81%
JP:9531JP:953169NeutralJPY 2.16T11.3211.52%1.80%3.63%14.06%
JP:9533JP:953368NeutralJPY 453.62B25.383.73%1.79%-2.49%-30.83%
Sector *66Neutral$17.65B18.105.60%3.62%6.62%11.55%
JP:8174JP:817466NeutralJPY 288.73B20.7022.07%7.63%7.75%9.01%
JP:9536JP:953662NeutralJPY 101.73B9.918.87%2.42%-5.67%20.75%

* Utilities Sector Average

Performance Comparison

0%20%40%JP:8174JP:9532JP:9533JP:9531JP:9536JP:9543Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:8174 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:8174NIPPON GAS Co915.00-58.29-5.99%
JP:9532Osaka Gas Co 5905.00803.7615.76%
JP:9533TOHO GAS Co 1256.0060.115.03%
JP:9531TOKYO GAS Co 6660.00620.0910.27%
JP:9536SAIBU GAS HOLDINGS CO. LTD.2897.001047.6856.65%
JP:9543SHIZUOKA GAS CO. LTD.1387.00263.2523.43%

NIPPON GAS Co Corporate Events

Nippon Gas Edges Past Profit Targets on Strong LP and City Gas Demand

Oct 29, 2026

Nippon Gas reported first-half results for the fiscal year ending March 2027 broadly in line with its plan, with gross profit slightly above target and operating income surpassing expectations. LP gas and city gas outperformed thanks to cooler summer...

Nippon Gas Grows Sales but Profit Slips as It Raises Payouts and Splits Stock

Oct 29, 2026

Nippon Gas reported consolidated net sales of ¥97.6 billion for the six months to 30 September 2026, up 10.6% year on year, but operating income fell 12.0% to ¥4.4 billion and profit attributable to owners declined 15.6% to ¥2.9 billion. Despite the...

Nippon Gas Pauses September Buybacks Amid Ongoing Share Repurchase and Stock Split

Oct 1, 2026

Nippon Gas has reported that it did not repurchase any of its own common shares in September 2026, despite an ongoing buyback authorization allowing market purchases on the Tokyo Stock Exchange. This pause comes during a board-approved program of up...

Nippon Gas Completes Treasury Stock Disposal for Employee RSU Plan

Sep 24, 2026

Nippon Gas Co., Ltd. has completed the payment procedures for the disposal of 12,000 shares of its treasury stock under a restricted stock unit plan for employees of the NICIGAS Group. The shares, allocated to 40 employees at a disposal price of ¥2,9...

Nippon Gas Reports Progress on Share Buyback Ahead of Stock Split

Sep 1, 2026

Nippon Gas Co., Ltd. reported progress on its ongoing share repurchase program, stating it bought back 40,600 common shares for a total of 112,732,500 yen between August 1 and August 31, 2026 through market purchases on the Tokyo Stock Exchange. This...

Nippon Gas Announces 3-for-1 Stock Split and Boosts Shareholder Returns

Aug 28, 2026

Nippon Gas Co., Ltd. (NICIGAS), a Japanese gas utilities provider listed on the Tokyo Stock Exchange Prime Market, supplies gas and related energy services to customers across Japan and actively uses capital markets tools, including share splits, rep...

Nippon Gas to Dispose of Treasury Shares for Employee RSU Plan

Aug 27, 2026

Nippon Gas Co. has approved the disposal of 12,000 shares of its treasury stock to employees under its Restricted Stock Unit plan, with a payment date of September 24, 2026 and a disposal price set at ¥2,973 per share, matching the prior day’s closin...

Nippon Gas Reports Early Progress on Share Buyback Program

Aug 3, 2026

Nippon Gas Co., Ltd. reported progress on its share repurchase program, buying back 1,000 common shares for approximately 2.8 million yen via market purchases on the Tokyo Stock Exchange between July 1 and July 31, 2026. This activity reflects the co...

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