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

Nagawa Co., Ltd.

(TSE/TYO:9663)

Select Model

Rating:72Outperform

Price Target:JPY 5,783.00▲(19.85% Upside)

Action:upgraded

Date:08/17/26

The score is primarily driven by strong financial performance—solid growth and profitability alongside a fortress-like, near debt-free balance sheet—partly offset by historically uneven free-cash-flow conversion. Technical signals are neutral-to-mildly positive but not strong on a long-term basis, and valuation appears fair with a modest dividend yield.

Positive Factors

Near-debt-free balance sheetMinimal leverage reduces refinancing and interest-burden risk, giving Nagawa flexibility to invest, maintain operations through downturns, and absorb demand volatility without materially weakening financial stability.

Negative Factors

Volatile free cash flow conversionUneven conversion of accounting earnings into cash suggests working-capital or investment demands can materially affect liquidity. Although recent recovery is encouraging, recurring volatility may constrain reinvestment and shareholder returns.

Nagawa Co., Ltd. (9663) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 74.78B
Dividend Yield: 2.07%
Average Volume (3M): 31.69K
Price to Earnings (P/E): 15.4
Beta (1Y): 0.68
Revenue Growth: 2.98%
EPS Growth: 23.62%
Country: Japan
Employees: 552
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Nagawa Co., Ltd. Business Overview & Revenue Model

Company Description

NAGAWA Co., Ltd. is a Japanese firm primarily involved in the modular building sector, encompassing the manufacturing, sale, and rental of its "Super House" brand unit homes, as well as the design and construction of buildings using system module arc...

How the Company Makes Money

Nagawa generates revenue primarily through (1) sales of prefabricated/unit buildings and related products and (2) rental of prefabricated buildings and units, typically including delivery, installation, and eventual removal or relocation as part of t...

Nagawa Co., Ltd. Financial Statement Overview

Summary

Strong overall fundamentals: steady revenue growth and solid profitability (net margins ~10–12% recently; mid-teens EBIT margins), supported by an exceptionally conservative balance sheet with effectively no debt. The main constraint is cash-flow quality—operating cash flow has been volatile and free cash flow was negative in 2023–2024 before recovering in 2025–2026—plus some gross margin volatility that could affect earnings consistency.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

60Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	33.97B	35.38B	35.29B	32.58B	31.65B	30.59B
Gross Profit	9.47B	9.14B	9.50B	9.33B	9.36B	9.23B
EBITDA	8.77B	11.24B	10.23B	8.25B	7.88B	7.64B
Net Income	3.23B	4.44B	4.21B	3.13B	3.13B	3.02B
Balance Sheet
Total Assets	67.33B	79.33B	69.76B	66.88B	58.81B	55.90B
Cash, Cash Equivalents and Short-Term Investments	8.19B	14.88B	11.43B	7.17B	10.87B	12.80B
Total Debt	0	0	0	0	0	0
Total Liabilities	7.12B	10.08B	8.45B	7.07B	5.32B	4.89B
Stockholders Equity	60.20B	69.25B	61.67B	59.81B	53.48B	51.01B
Cash Flow
Free Cash Flow	0	2.02B	2.48B	-765.00M	-961.00M	1.06B
Operating Cash Flow	0	2.66B	4.39B	1.14B	524.00M	2.20B
Investing Cash Flow	0	2.00B	1.41B	-3.81B	-1.43B	-3.25B
Financing Cash Flow	0	-1.71B	-1.53B	-1.03B	-1.02B	-377.00M

Nagawa Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price4825.00

Price Trends

50DMA4944.00Negative

100DMA4983.75Negative

200DMA5327.08Negative

Market Momentum

MACD-28.86Negative

RSI48.09Neutral

STOCH13.53Positive

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 4825.00 is above the 20-day moving average (MA) of 4801.75, below the 50-day MA of 4944.00, and below the 200-day MA of 5327.08, indicating a neutral trend. The MACD of -28.86 indicates Negative momentum. The RSI at 48.09 is Neutral, neither overbought nor oversold. The STOCH value of 13.53 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:9663 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:1939	83Outperform	JPY 103.65B	12.10	―	4.42%	6.91%	84.84%
JP:1852	80Outperform	JPY 68.38B	12.32	―	5.37%	-4.26%	11.07%
JP:9663	72Outperform	JPY 75.71B	15.40	―	2.07%	2.98%	23.62%
JP:1882	71Outperform	JPY 77.30B	20.64	―	5.83%	-3.89%	-22.30%
JP:1976	70Outperform	JPY 77.27B	13.85	―	4.26%	-4.58%	-23.98%
JP:1799	68Neutral	JPY 68.14B	11.38	―	4.77%	7.89%	1.09%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:9663 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9663	Nagawa Co., Ltd.	4825.00	-1068.85	-18.14%
JP:1799	Daiichi Kensetsu Corporation	3355.00	-28.63	-0.85%
JP:1852	Asanuma Corporation	856.00	29.38	3.55%
JP:1882	Toa Road Corporation	1544.00	71.15	4.83%
JP:1939	Yondenko Corporation	2149.00	797.92	59.06%
JP:1976	Meisei Industrial Co., Ltd.	1644.00	54.90	3.45%

Nagawa Co., Ltd. Corporate Events

Nagawa Co. Delivers Strong Q1 Earnings but Plans Dividend Cut

Jul 27, 2026

Nagawa Co., Ltd. reported non-consolidated net sales of ¥8.58 billion for the three months ended June 30, 2026, up 7.1% year on year, with operating profit rising 31.9% to ¥982 million and profit increasing 23.6% to ¥918 million, lifti...

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: Aug 17, 2026

Nagawa Co., Ltd. AI Stock Analysis