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Nareru Group Inc. (9163) AI Stock Analysis

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JP:9163

Nareru Group Inc.

(TSE/TYO:9163)

Select Model
Rating:70Outperform
Price Target:JPY 2,277.00▲(10.86% Upside)
Action:reiterated
Date:11/03/26

The score is primarily supported by strong financial health, especially the improved balance sheet, solid growth, and attractive valuation. However, weak technical momentum and recent pressure on margins, profits, and cash-flow consistency materially reduce the overall score.

Positive Factors
Sustained Revenue GrowthMeaningful multi-year revenue expansion indicates the company has been scaling its business rather than relying only on temporary gains. Continued top-line growth can support operating leverage, broaden its market position, and provide a durable base for reinvestment over the next several quarters.
Negative Factors
Margin CompressionFalling gross and net margins show that recent revenue growth is producing less profit per unit of sales than earlier periods. If this normalization persists, it can limit earnings growth, reduce operating leverage, and make future results more sensitive to cost pressure.

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

-5%0%5%10%15%20%25%30%JP:9163-2.88%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 17.98B
Dividend Yield
5.60%
Average Volume (3M)
31.76K
Price to Earnings (P/E)
9.0
Beta (1Y)
0.52
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 overall financial condition: the balance sheet is particularly healthy due to sustained deleveraging and rising equity, while revenue growth and cash conversion remain solid. Margin compression, softer recent profit growth, and less consistent cash-flow momentum prevent a higher score.

Income Statement

78Positive

Balance Sheet

88Very Positive

Cash Flow

82Very Positive
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 SentimentNegative
Last Price2054.00

Price Trends

50DMA2258.85Negative
100DMA2246.32Negative
200DMA2230.15Negative

Market Momentum

MACD-70.68Positive
RSI30.68Neutral
STOCH17.44Positive

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 2054.00 is below the 20-day moving average (MA) of 2183.79, below the 50-day MA of 2258.85, and below the 200-day MA of 2230.15, indicating a bearish trend. The MACD of -70.68 indicates Positive momentum. The RSI at 30.68 is Neutral, neither overbought nor oversold. The STOCH value of 17.44 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

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

JP:9163 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:1867JP:186779OutperformJPY 17.60B6.85―4.44%16.39%10.98%
JP:1960JP:196075OutperformJPY 28.16B8.24―3.54%-0.81%34.55%
JP:9163JP:916370OutperformJPY 17.98B8.98―5.60%7.28%-13.19%
JP:6540JP:654067NeutralJPY 15.63B13.01―5.24%4.79%-20.77%
JP:9233JP:923367NeutralJPY 19.65B12.09―4.05%1.71%20.61%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%

* Industrials Sector Average

Performance Comparison

-10%0%10%20%30%JP:9163JP:1867JP:1960JP:6540JP:9233Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:9163 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:9163Nareru Group Inc.2054.00-81.95-3.84%
JP:1867UEKI CORPORATION2703.00169.756.70%
JP:1960Sanyo Engineering & Construction Inc.1837.00439.1231.41%
JP:6540SEMBA CORP1451.00-198.49-12.03%
JP:9233Asia Air Survey Co., Ltd.1086.00-23.22-2.09%

Nareru Group Inc. Corporate Events

Nareru Group Cuts 2026 Forecast After ATJC Sale, Refocuses on Construction DX

Oct 30, 2026

Nareru Group Inc. has cut its full-year forecast for the year ending October 31, 2026, reflecting the completed sale of subsidiary ATJC Co., Ltd. and softer-than-planned performance in its Construction Solutions Business. Revenue from continuing oper...

Nareru Group Books Loss as It Completes Sale of ATJC Subsidiary

Oct 30, 2026

Nareru Group Inc. has completed the transfer of all shares in its consolidated subsidiary ATJC Co., Ltd. to SecureSoft, Inc., resulting in ATJC’s removal from the group’s consolidation scope. The final transfer price was set at 1,144 million yen afte...

Nareru Group Posts Strong Engineer Utilization in Construction and IT Units

Oct 19, 2026

Nareru Group Inc. reported detailed September 2026 KPIs for its World Corporation construction solutions unit, showing total engineers in the mid‑3,700s and active engineer utilization consistently above 90 percent, excluding trainees. Contract unit...

Nareru Group boosts non-consolidated earnings with ¥1 billion subsidiary dividend

Oct 15, 2026

Nareru Group Inc., a TSE Growth Market-listed company, derives part of its non-consolidated earnings from dividends paid by its consolidated subsidiaries under Japanese GAAP. Its structure, including World Corporation Co., Ltd., makes parent-only fin...

Nareru Group Sells ATJC to SecureSoft to Refocus on Construction DX

Oct 15, 2026

Nareru Group Inc. has agreed to transfer all shares of its consolidated subsidiary ATJC Co., Ltd., which runs an IT engineer dispatch and DX consulting business with about 400 engineers, to SecureSoft, Inc. as part of a portfolio reorganization. Whil...

Nareru Group Posts Strong Engineer Utilization and Rising Contract Prices in August KPIs

Sep 16, 2026

Nareru Group Inc. has released preliminary key performance indicators for August 2026, detailing operational metrics for its World Corporation construction solutions unit and ATJC IT solutions business. The disclosure provides investors with visibili...

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 performance, major key perfor...

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% to ¥1,512...

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...

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 03, 2026