Nagawa Co., Ltd. (9663) AI Stock Analysis

• Market Cap: ¥98.69B
• Dividend Yield: 0.95%
• Average Volume (3M): 17.01K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 0.74
• Revenue Growth: 2.84%
• EPS Growth: 29.92%
• Country: JP
• Employees: 533
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 47.54
• Shares Outstanding: 16,357,214
• 10 Day Avg. Volume: 24,880
• 30 Day Avg. Volume: 17,013
• PEG Ratio: 0.64
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 2.67
• P/FCF Ratio: 37.92
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ―

Nagawa Co., Ltd. achieves a solid overall score due to its strong financial performance marked by stable profitability and a robust balance sheet with no debt. However, challenges in cash flow management and a relatively high P/E ratio impact the score. Technical indicators suggest potential bearish momentum with some overbought conditions, tempering the positive aspects of the company's financial health.

Nagawa Co., Ltd. Business Overview & Revenue Model

Company Description

Nagawa Co., Ltd. (9663) is a Japanese company primarily engaged in the construction and manufacturing industries. The company specializes in the design, manufacture, and sale of prefabricated buildings and related services. Nagawa Co., Ltd. serves a diverse clientele, including commercial, industrial, and residential sectors, providing high-quality, customizable building solutions that cater to various customer needs.

How the Company Makes Money

Nagawa Co., Ltd. generates revenue through the sale and leasing of prefabricated buildings. The company's revenue model includes direct sales to customers across multiple sectors, such as commercial enterprises, government agencies, and residential customers. Additionally, Nagawa offers leasing services for temporary structures, which provides a steady stream of recurring income. The company's ability to customize solutions and offer high-quality products enhances its competitive edge, attracting a wide range of clients. Strategic partnerships with construction firms and suppliers may also play a role in the company's revenue generation, although specific partnerships are not detailed in available data.

Nagawa Co., Ltd. Financial Statement Overview

Summary

Nagawa Co., Ltd. demonstrates strong revenue growth and profitability with solid margins, underpinned by a robust balance sheet with no debt and significant equity. Despite these strengths, the company faces challenges in cash flow management, which could impact future growth if not addressed. Overall, the company is well-positioned in the Engineering & Construction industry, with a need to enhance cash flow efficiency.

Income Statement

Nagawa Co., Ltd. shows consistent revenue growth with a 2.91% increase from 2023 to 2024. The gross profit margin stands at a strong 40.41%, and the net profit margin is healthy at 9.57%. The EBIT and EBITDA margins are also robust at 13.02% and 24.33% respectively. These metrics indicate efficient operations and solid profitability, although a slight decrease in net income from 2023 suggests room for improvement.

Balance Sheet

The company maintains a highly stable financial position with no debt and a strong equity base, as reflected by a debt-to-equity ratio of 0. The equity ratio is a substantial 89.32%, indicating a low risk of financial distress. Return on equity stands at 5.22%, which is modest but reflects stable returns given the equity base. The company's focus on equity financing enhances its financial stability.

Cash Flow

Nagawa Co., Ltd. faces challenges in cash flow management, with a negative free cash flow and a decrease in operating cash flow. The operating cash flow to net income ratio is 0.37, indicating cash flow generation issues relative to net income. However, the free cash flow to net income ratio has improved slightly, showing potential for recovery. Addressing cash flow constraints will be crucial for sustaining long-term growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.97B	35.29B	32.58B	31.65B	30.59B	29.38B
Gross Profit	13.41B	13.50B	13.16B	12.86B	12.52B	11.93B
EBITDA	8.20B	8.46B	7.93B	7.57B	7.50B	7.34B
Net Income	3.23B	4.21B	3.12B	3.13B	3.02B	3.04B
Balance Sheet
Total Assets	67.33B	69.76B	66.88B	58.81B	55.90B	53.41B
Cash, Cash Equivalents and Short-Term Investments	8.19B	11.43B	7.17B	10.87B	12.80B	14.22B
Total Debt	0.00	0.00	0.00	1.30B	1.10B	587.00M
Total Liabilities	7.12B	8.08B	7.15B	5.33B	4.89B	5.34B
Stockholders Equity	60.20B	61.67B	59.73B	53.48B	51.01B	48.07B
Cash Flow
Free Cash Flow	1.92B	2.48B	-765.00M	-961.00M	1.06B	2.72B
Operating Cash Flow	1.92B	4.39B	1.14B	524.00M	2.20B	3.15B
Investing Cash Flow	0.00	1.41B	-3.81B	-1.43B	-3.25B	-3.15B
Financing Cash Flow	0.00	-1.53B	-1.03B	-1.02B	-377.00M	-351.00M

Nagawa Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6290.00
• 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:9663, the sentiment is Negative. The current price of 6290 is below the 20-day moving average (MA) of 6706.00, below the 50-day MA of 6667.80, and below the 200-day MA of 6384.34, indicating a bearish trend. The MACD of -63.56 indicates Positive momentum. The RSI at 33.36 is Neutral, neither overbought nor oversold. The STOCH value of 1.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9663.

Nagawa Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1884	79 Outperform	¥107.91B	14.94	―	2.39%	4.84%	62.58%
1870	77 Outperform	¥91.03B	11.93	―	3.79%	27.51%	11.09%
1890	75 Outperform	¥163.43B	18.30	―	5.06%	0.57%	26.93%
9663	70 Outperform	¥98.69B	23.58	―	0.95%	2.84%	29.92%
1720	69 Neutral	¥111.70B	13.87	―	3.60%	11.42%	26.72%
1762	69 Neutral	¥100.73B	16.08	―	2.61%	6.90%	-25.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%