Nareru Group Inc. (9163) AI Stock Analysis

• Market Cap: ¥21.15B
• Dividend Yield: 4.93%
• Average Volume (3M): 62.90K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.50
• Revenue Growth: 14.48%
• EPS Growth: 12.10%
• Country: JP
• Employees: 3,812
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 58.44
• Shares Outstanding: 8,749,349
• 10 Day Avg. Volume: 55,570
• 30 Day Avg. Volume: 62,896
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: ¥2,534.00 ▲(12.17% Upside)

Nareru Group Inc. has a strong financial performance with robust growth and profitability, which is the most significant factor in its overall score. However, bearish technical indicators suggest weak market momentum, which negatively impacts the stock score. The valuation is favorable with a low P/E ratio and high dividend yield, providing a balance between growth and income potential.

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 management services, architectural drawing for the construction and plant industries; and recruitment services, as well as operates a human resource matching platform for the construction industry. It also dispatches engineers for the IT industry and offers system engineering services. The company was founded in 2008 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nareru Group Inc. generates revenue through multiple streams, including service contracts for software development, subscription fees for its cloud solutions, and consulting services in IT strategy and implementation. Key revenue streams include project-based contracts with corporate clients, ongoing maintenance and support agreements, and licensing fees for proprietary software products. The company has established significant partnerships with major technology firms, enabling it to leverage advanced technologies and expand its market reach, contributing to its overall earnings. Additionally, Nareru Group may benefit from government contracts and grants aimed at promoting technological advancements in various sectors.

Nareru Group Inc. Financial Statement Overview

Summary

Nareru Group Inc. presents a strong financial profile with robust revenue and profit growth, efficient operations, and a solid balance sheet. The company effectively manages its leverage while maintaining strong cash flow generation, positioning it well for future growth and stability in the Engineering & Construction industry.

Income Statement

Nareru Group Inc. demonstrates strong revenue growth with a 20.1% increase from the previous year. The gross profit margin stands at 27.5%, and the net profit margin is 10.1%, indicating solid profitability. EBIT and EBITDA margins are healthy at 14.4% and 15.6%, respectively, showcasing efficient operations. Overall, the company shows robust growth and profitability trends.

Balance Sheet

The company maintains a stable financial position with a debt-to-equity ratio of 0.46, indicating moderate leverage. The return on equity is strong at 16.3%, reflecting effective use of equity to generate profits. The equity ratio is 56.9%, suggesting a solid equity base relative to total assets. The balance sheet reflects a healthy financial structure with manageable debt levels.

Cash Flow

Nareru Group Inc. shows a consistent free cash flow growth rate of 1.6% and a strong operating cash flow to net income ratio of 1.06, indicating efficient cash generation from operations. The free cash flow to net income ratio is 1.05, highlighting the company's ability to convert earnings into free cash flow effectively. The cash flow statement suggests strong cash generation and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.20B	21.61B	17.99B	14.54B	12.13B
Gross Profit	6.20B	5.94B	5.17B	4.23B	3.32B
EBITDA	3.59B	3.37B	2.77B	2.28B	1.99B
Net Income	2.35B	2.19B	1.74B	1.24B	1.04B
Balance Sheet
Total Assets	23.73B	23.62B	22.51B	20.16B	19.25B
Cash, Cash Equivalents and Short-Term Investments	5.07B	4.57B	4.09B	2.28B	2.23B
Total Debt	5.68B	6.15B	6.61B	7.28B	8.26B
Total Liabilities	9.76B	10.18B	10.33B	10.22B	10.61B
Stockholders Equity	13.97B	13.44B	12.18B	9.93B	8.63B
Cash Flow
Free Cash Flow	2.82B	2.29B	2.26B	1.48B	1.05B
Operating Cash Flow	2.89B	2.31B	2.31B	1.55B	1.08B
Investing Cash Flow	-87.42M	-6.38M	22.05M	-176.44M	-1.01B
Financing Cash Flow	-1.74B	-1.87B	-536.63M	-1.25B	158.22M

Nareru Group Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2259.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9163, the sentiment is Negative. The current price of 2259 is below the 20-day moving average (MA) of 2342.73, below the 50-day MA of 2336.77, and below the 200-day MA of 2274.93, indicating a bearish trend. The MACD of -16.23 indicates Positive momentum. The RSI at 37.61 is Neutral, neither overbought nor oversold. The STOCH value of -5.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9163.

Nareru Group Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9768	―	¥24.99B	12.02	―	2.57%	2.09%	-13.85%
1948	―	¥24.72B	8.36	―	3.62%	14.48%	122.79%
1828	―	¥25.59B	9.58	―	3.67%	-5.11%	30.22%
9233	―	¥20.62B	15.26	―	3.77%	6.32%	-26.18%
9163	―	¥21.15B	9.07	―	4.93%	14.48%	12.10%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1826	―	¥17.05B	30.36	―	5.54%	4.96%	152.04%

Nareru Group Inc. Corporate Events

Nareru Group Secures Financial Stability with New Agreements

Nareru Group Inc. has announced the conclusion of a commitment line agreement and a special overdraft agreement to secure working capital and enhance financial stability. The agreements involve major financial institutions such as Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Bank, and Mizuho Bank, with a combined borrowing limit of 2,000 million yen. The impact on the company’s financial results for the fiscal year ending October 2025 is expected to be minor.

The most recent analyst rating on (JP:9163) stock is a Buy with a Yen2683.00 price target. To see the full list of analyst forecasts on Nareru Group Inc. stock, see the JP:9163 Stock Forecast page.

Nareru Group Inc. Receives Dividends from Subsidiaries

Nareru Group Inc. announced it will receive a total of 1,100,000 thousand yen in dividends from its subsidiaries, World Corporation Co., Ltd. and ATJC Co., Ltd. This transaction will be recorded as operating revenue in the company’s non-consolidated financial statements for the fiscal year ending October 2025, with no impact on the consolidated financial results.

The most recent analyst rating on (JP:9163) stock is a Buy with a Yen2683.00 price target. To see the full list of analyst forecasts on Nareru Group Inc. stock, see the JP:9163 Stock Forecast page.

Nareru Group Inc. Reports August 2025 KPIs for Construction and IT Solutions

Nareru Group Inc. has released its key performance indicators for August 2025, highlighting the performance of its construction and IT solution businesses. The data reveals a stable number of engineers and a consistent utilization ratio, although there is a slight decline in the utilization rate over the months. The turnover rate remains relatively high, indicating potential challenges in employee retention. These metrics are crucial for stakeholders to assess the company’s operational efficiency and market positioning.

The most recent analyst rating on (JP:9163) stock is a Buy with a Yen2665.00 price target. To see the full list of analyst forecasts on Nareru Group Inc. stock, see the JP:9163 Stock Forecast page.

Nareru Group Inc. Reports Positive Financial Growth for Nine Months Ending July 2025

Nareru Group Inc. reported a year-on-year increase in revenue and profit for the nine months ended July 31, 2025, with revenue rising 13.4% and profit increasing by 7.4%. The company’s financial position remains strong with a slight increase in total equity and a stable forecast for the fiscal year ending October 31, 2025, indicating positive growth and stability for stakeholders.

The most recent analyst rating on (JP:9163) stock is a Buy with a Yen2665.00 price target. To see the full list of analyst forecasts on Nareru Group Inc. stock, see the JP:9163 Stock Forecast page.

Nareru Group Inc. Reports July 2025 KPIs, Shows Workforce Growth

Nareru Group Inc. has released its key performance indicators for July 2025, highlighting a steady increase in the number of total and active engineers in both its construction and IT solution businesses. Despite a slight decrease in utilization ratios, the company maintains a strong workforce with a low turnover rate, indicating stable operations and a solid market position.

The most recent analyst rating on (JP:9163) stock is a Buy with a Yen2665.00 price target. To see the full list of analyst forecasts on Nareru Group Inc. stock, see the JP:9163 Stock Forecast page.