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Nareru Group Inc. (9163) AI Stock Analysis

JP:9163

Nareru Group Inc.

(TSE/TYO:9163)

Select Model
Rating:72Outperform
Price Target:JPY 2,584.00â–²(13.68% Upside)
Action:reiterated
Date:09/12/26

The score is driven primarily by healthy financial performance (growth, improving leverage, and strong cash conversion) and supportive valuation (low P/E and high dividend yield). Offsetting these positives, technical indicators show muted momentum and the financials flag recent margin compression and less steady free-cash-flow growth.

Positive Factors
Sustained Revenue GrowthMeaningful multi-year revenue expansion indicates sustained demand and increasing business scale rather than reliance on a single reporting period. Continued top-line growth can support operating investment, broaden the company’s market presence, and provide a foundation for durable earnings generation over the next several quarters.
Negative Factors
Margin CompressionThe decline in gross and net margins shows that recent revenue growth is carrying more cost pressure than in earlier periods. If this normalization persists, incremental sales may produce less profit, limiting operating leverage and making future earnings growth more dependent on renewed efficiency improvements.

Nareru Group Inc. (9163) vs. iShares MSCI Japan ETF (EWJ)

-10%-5%0%5%10%15%20%25%JP:9163+5.94%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 19.90B
Dividend Yield
5.06%
Average Volume (3M)
24.07K
Price to Earnings (P/E)
9.9
Beta (1Y)
0.42
Revenue Growth
7.28%
EPS Growth
-13.19%
Country
Japan
Employees
4,283
Sector
Industrials
Sector Strength
63
Industry
Specialty Business Services

Nareru Group Inc. Business Overview & Revenue Model

Company Description

Nareru Group Inc., together with its subsidiaries, provides engineer outsourcing services for the construction industry in Japan. The company offers engineer dispatching services, construction DX consulting, architectural drawing for the construction...

Nareru Group Inc. Financial Statement Overview

Summary

Strong multi-year revenue growth and solid profitability, supported by improving leverage (lower debt-to-equity) and good cash conversion (FCF closely tracking net income). The main constraint on the score is recent margin compression and slightly softer TTM net income/ROE versus prior peaks, plus some volatility in free cash flow growth.

Income Statement

74Positive

Balance Sheet

78Positive

Cash Flow

70Positive
Financial statement breakdown
BreakdownTTMOct 2025Oct 2024Oct 2023Oct 2022Oct 2021
Income Statement
Total Revenue25.46B24.16B21.61B17.99B14.54B12.13B
Gross Profit6.19B5.95B5.68B4.92B3.99B3.10B
EBITDA3.13B3.15B3.36B2.70B2.24B1.64B
Net Income2.00B2.09B2.19B1.74B1.24B1.04B
Balance Sheet
Total Assets24.14B24.58B23.62B22.51B20.16B19.25B
Cash, Cash Equivalents and Short-Term Investments4.24B4.82B4.52B4.08B2.28B2.16B
Total Debt4.92B5.62B6.15B6.61B7.28B8.26B
Total Liabilities9.15B10.10B10.18B10.33B10.22B10.61B
Stockholders Equity15.00B14.48B13.44B12.18B9.93B8.63B
Cash Flow
Free Cash Flow2.13B2.24B2.30B2.27B1.49B1.07B
Operating Cash Flow2.24B2.30B2.31B2.31B1.55B1.08B
Investing Cash Flow-291.87M-197.64M-6.38M22.05M-176.44M-1.01B
Financing Cash Flow-1.99B-1.92B-1.87B-536.63M-1.25B158.22M

Nareru Group Inc. Technical Analysis

Technical Analysis SentimentNeutral
Last Price2273.00

Price Trends

50DMA2305.61Negative
100DMA2251.27Positive
200DMA2238.67Positive

Market Momentum

MACD-8.61Positive
RSI44.11Neutral
STOCH-13.08Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9163, the sentiment is Neutral. The current price of 2273.00 is below the 20-day moving average (MA) of 2296.59, below the 50-day MA of 2305.61, and above the 200-day MA of 2238.67, indicating a neutral trend. The MACD of -8.61 indicates Positive momentum. The RSI at 44.11 is Neutral, neither overbought nor oversold. The STOCH value of -13.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9163.

Nareru Group Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

JP:9163 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:1960JP:196080OutperformJPY 25.64B7.62―3.89%-7.45%106.09%
JP:1867JP:186779OutperformJPY 17.61B7.39―4.44%20.01%12.28%
JP:9163JP:916372OutperformJPY 19.90B9.94―5.06%7.28%-13.19%
JP:6540JP:654070OutperformJPY 16.00B13.12―5.11%-3.83%-35.10%
JP:9233JP:923367NeutralJPY 20.12B12.38―3.96%1.71%20.61%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%

* Industrials Sector Average

Performance Comparison

0%20%JP:9163JP:1867JP:1960JP:6540JP:9233Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:9163 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:9163Nareru Group Inc.2273.00123.745.76%
JP:1867UEKI CORPORATION2704.00292.5312.13%
JP:1960Sanyo Engineering & Construction Inc.1673.00318.8323.54%
JP:6540SEMBA CORP1486.00-316.67-17.57%
JP:9233Asia Air Survey Co., Ltd.1112.00-9.75-0.87%

Nareru Group Inc. Corporate Events

Nareru Group Outlines Q3 2026 Results and 2030 Growth Plan

Sep 11, 2026

Nareru Group Inc. has released materials for its third‑quarter results for the fiscal year ending October 2026, framed under its long‑term vision “Change and Growth 2030.” The briefing focuses on an overview of quarterly perfo...

Nareru Group Posts Higher Revenue but Softer Profits, Affirms 2026 Outlook and Dividend Plan

Sep 11, 2026

Nareru Group Inc. reported consolidated revenue of ¥19,229 million for the nine months ended July 31, 2026, a 7.3% year-on-year increase, while operating profit slipped 2.6% to ¥2,203 million and profit attributable to owners declined 5.4%...

Nareru Group Posts Strong July Utilization and Rising Contract Prices Across Engineering Units

Aug 20, 2026

Nareru Group Inc. reported July 2026 KPIs showing stable, high utilization of engineers across its construction solutions subsidiary World Corporation and IT solutions arm ATJC. Both businesses continued to dispatch the majority of their engineering...

Nareru Group posts strong utilization across construction and IT staffing units in June 2026

Jul 16, 2026

Nareru Group Inc. reported June 2026 key performance indicators for its construction and IT solutions units, showing stable engineer deployment and high utilization. In the Construction Solutions Business under World Corporation, total engineers stoo...

Nareru Group Posts Solid May Utilization and Rising Unit Prices Across Engineering Units

Jun 16, 2026

Nareru Group Inc. reported May 2026 KPIs showing stable operating metrics in its construction solutions unit, World Corporation, with 3,786 total engineers and 3,408 active, resulting in a utilization ratio of 90.5% excluding trainees and 90.0% inclu...

Nareru Group Maintains Interim Dividend, Reaffirms Stable Payout Policy

Jun 12, 2026

Nareru Group Inc. has approved an interim dividend of 55 yen per share, with a record date of April 30, 2026, and a total payout of approximately 481 million yen, to be paid on July 1, 2026. This interim dividend matches the prior year’s payout...

Nareru Group Frames H1 FY2026 Results Around ‘Change and Growth 2030’

Jun 12, 2026

Nareru Group Inc. has released materials for its financial results briefing covering the first half of the fiscal year ending October 2026, structured around an overview of performance, key performance indicators, and progress of growth initiatives....

Nareru Group lifts sales but posts lower profit, keeps guidance and dividends steady

Jun 12, 2026

Nareru Group Inc. reported revenue of ¥12.67 billion for the six months ended April 30, 2026, a 7.4% year-on-year increase, but saw operating profit fall 11.8% to ¥1.35 billion and profit attributable to owners decline 14.5% to ¥930 mi...

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: Sep 12, 2026