NISHIO HOLDINGS CO. LTD. (9699) AI Stock Analysis

• Market Cap: ¥120.59B
• Dividend Yield: 2.8%
• Average Volume (3M): 39.56K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.70
• Revenue Growth: 8.89%
• EPS Growth: -3.00%
• Country: JP
• Employees: 4,726
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 74.74
• Shares Outstanding: 28,391,464
• 10 Day Avg. Volume: 42,630
• 30 Day Avg. Volume: 39,560
• PEG Ratio: 0.75
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 5.26
• 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: 80 Outperform
• Price Target: ¥5,169.00 ▲(13.73% Upside)

NISHIO HOLDINGS CO. LTD. scores well due to strong technical indicators and attractive valuation metrics. The financial performance is solid, though concerns about liquidity due to missing cash flow data slightly temper the overall score. The absence of earnings call and corporate events data did not impact the score calculation.

NISHIO HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

Nishio Rent All Co., Ltd. engages in the construction machinery rental business in Japan and internationally. It rents and sells lighting systems, unmanned construction support systems, asphalt finishers, motor graders, various rollers, small-sized compactors, generators, compressors, welders, and resistors for civil and road construction projects. The company also offers specialty equipment, such as tunneling work equipment, railroad tractors and battery motorized vehicles, construction wastewater treatment systems, shoring, quality assurance, and environmental protection equipment for civil work projects. In addition, it provides various aerial platforms, maintenance equipment, forklifts, tower cranes and work platforms, and unmanned transport vehicles for plant maintenance and building works; and equipment for exhibitions, and equipment and materials for outdoor events. Additionally, it undertakes the planning, manufacture, and sale of materials designed for indoor kids play facilities; and outdoor play equipment. The company also performs the operation, transport, leasing, and contracting of construction machinery; and designs and supervises the construction of electrical equipment, as well as offers parking lot and car maintenance services. It operates through 395 rental operation division; and 57 franchise operation chain stores in Japan. The company was incorporated in 1946 and is headquartered in Osaka, Japan.

How the Company Makes Money

NISHIO HOLDINGS generates revenue through multiple streams, primarily from the sale of electrical and electronic components, as well as through the provision of IT solutions and services. The company's revenue model is built on both direct product sales and long-term service contracts, which ensure ongoing support and maintenance for their clients. Key revenue streams include wholesale distribution to other businesses, retail sales to consumers, and consulting services related to IT infrastructure. Additionally, strategic partnerships with manufacturers and technology providers enhance their product offerings and market reach, contributing significantly to their earnings. The company's reputation for reliability and expertise in the electrical and electronics industry further bolsters its revenue potential.

NISHIO HOLDINGS CO. LTD. Financial Statement Overview

Summary

NISHIO HOLDINGS CO. LTD. maintains a strong financial posture with robust revenue and profit growth, complemented by solid margins. The balance sheet is stable with moderate leverage and good equity backing. However, the absence of current cash flow data raises concerns about liquidity management, which could impact financial flexibility in the short term.

Income Statement

NISHIO HOLDINGS CO. LTD. shows strong income statement metrics with a steady revenue growth of 8.4% from 2023 to 2024. The company achieved a solid gross profit margin of 40.83% and a net profit margin of 6.04% in TTM. The EBIT margin is 9.29% while the EBITDA margin stands at 21.66%, indicating operational efficiency. Overall, the income statement suggests a robust growth trajectory with strong profitability metrics.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.73, indicating moderate leverage. The return on equity is 9.39%, showing decent profitability for shareholders. The equity ratio is 44.83%, suggesting a strong equity base relative to total assets. While the balance sheet is healthy, the leverage could pose some risk if externally influenced factors increase liability costs.

Cash Flow

Cash flow analysis reveals challenges, with a noticeable absence of operating cash flow and free cash flow in the TTM, although previous annual free cash flows were positive and showed growth. The free cash flow to net income ratio for 2023 was 1.83, suggesting efficient cash conversion in the past. However, the current lack of cash flow data could affect liquidity evaluations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	213.56B	199.00B	185.66B	170.63B	161.75B	151.23B
Gross Profit	85.93B	80.90B	74.18B	68.25B	64.63B	60.46B
EBITDA	52.94B	52.87B	48.38B	45.91B	43.07B	39.02B
Net Income	11.77B	11.60B	10.29B	9.17B	8.83B	6.43B
Balance Sheet
Total Assets	300.98B	290.68B	272.57B	261.70B	248.93B	224.73B
Cash, Cash Equivalents and Short-Term Investments	57.71B	49.83B	43.04B	47.71B	47.62B	33.48B
Total Debt	99.80B	95.21B	92.34B	93.72B	87.76B	73.48B
Total Liabilities	163.49B	156.37B	148.17B	144.92B	138.15B	121.69B
Stockholders Equity	135.50B	132.16B	122.24B	114.57B	107.22B	99.72B
Cash Flow
Free Cash Flow	12.76B	21.18B	12.56B	12.69B	16.95B	9.53B
Operating Cash Flow	14.71B	29.55B	24.41B	21.32B	21.60B	21.19B
Investing Cash Flow	-2.24B	-9.39B	-11.79B	-9.15B	-5.59B	-12.05B
Financing Cash Flow	-4.65B	-13.50B	-17.70B	-12.08B	-1.97B	-7.30B

NISHIO HOLDINGS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4545.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9699, the sentiment is Neutral. The current price of 4545 is above the 20-day moving average (MA) of 4346.00, above the 50-day MA of 4235.56, and above the 200-day MA of 4028.23, indicating a neutral trend. The MACD of 73.25 indicates Negative momentum. The RSI at 49.87 is Neutral, neither overbought nor oversold. The STOCH value of 54.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9699.

NISHIO HOLDINGS CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9699	―	¥120.59B	10.52	―	2.80%	8.89%	-3.00%
9619	―	¥47.48B	6.98	―	3.70%	7.39%	-46.08%
9991	―	¥47.12B	9.33	―	3.83%	-9.58%	13.22%
9763	―	¥11.25B	8.55	―	3.95%	9.16%	6.01%
7081	―	¥12.73B	7.14	―	3.38%	1.58%	28.43%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2445	―	¥16.63B	15.83	―	3.98%	0.02%	-36.92%

NISHIO HOLDINGS CO. LTD. Corporate Events

Nishio Holdings Announces Major Shareholder Change

NISHIO HOLDINGS CO., LTD. announced a significant change in its major shareholders as Nishio Trading YK plans to transfer 3,060,000 shares to Sanko Kihan Co., Ltd. This transaction will alter the shareholder rankings, placing Sanko Kihan as the second-largest shareholder with 11.03% of voting rights. The change is not expected to impact the company’s consolidated financial results.

The most recent analyst rating on (JP:9699) stock is a Buy with a Yen4686.00 price target. To see the full list of analyst forecasts on NISHIO HOLDINGS CO. LTD. stock, see the JP:9699 Stock Forecast page.

Sanko Kihan Acquires Significant Stake in Nishio Holdings

Nishio Holdings Co., Ltd. has announced that Sanko Kihan Co., Ltd. will acquire a significant portion of its shares from Nishio Trading YK. This acquisition, which constitutes more than 5% of voting rights, is classified as an act equivalent to a tender offer under Japanese financial regulations. The transaction involves 3,060,000 shares, representing 11.03% of voting rights, and is intended for long-term holding by Sanko Kihan, an asset management company with close ties to Nishio Holdings’ leadership.

The most recent analyst rating on (JP:9699) stock is a Buy with a Yen4686.00 price target. To see the full list of analyst forecasts on NISHIO HOLDINGS CO. LTD. stock, see the JP:9699 Stock Forecast page.

NISHIO HOLDINGS Reports Increased Sales and Profits Amidst Declining Comprehensive Income

NISHIO HOLDINGS CO., LTD. reported its consolidated financial results for the nine months ending June 30, 2025, showing an increase in net sales by 9.8% and operating profit by 6.3% compared to the previous year. Despite the growth in sales and profits, comprehensive income decreased by 15.5%, indicating potential challenges in maintaining profit margins. The company forecasts continued growth for the fiscal year ending September 30, 2025, with expected increases in net sales and profits, although at a slower rate than the previous period.