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Nagase Brothers, Inc. (9733) AI Stock Analysis

JP:9733

Nagase Brothers, Inc.

(TSE/TYO:9733)

Select Model
Rating:74Outperform
Price Target:JPY 2,734.00â–²(21.46% Upside)
Action:reiterated
Date:10/16/26

The score is driven primarily by solid financial performance with improving 2026 profitability, stronger free cash flow, and a healthier leverage trend. Technicals are constructive with price above major moving averages and a positive MACD, though overbought RSI increases near-term volatility risk. Valuation is a positive contributor due to the high dividend yield paired with a moderate P/E.

Positive Factors
Revenue GrowthSteady multi-year revenue expansion, together with an acceleration in 2026, indicates continued customer demand and business development. This provides a durable base for operating leverage, supports reinvestment, and strengthens the company’s ability to compound earnings over the next several quarters.
Negative Factors
Profitability Below Prior PeaksAlthough profitability recovered in 2026, margins remain below the company’s stronger 2022–2023 performance. This suggests that mix, costs, or reinvestment pressures may still constrain earnings conversion, limiting the durability of profit growth if revenue expansion moderates.

Nagase Brothers, Inc. (9733) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%30%JP:9733+8.00%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 53.75B
Dividend Yield
9.33%
Average Volume (3M)
18.24K
Price to Earnings (P/E)
17.6
Beta (1Y)
0.34
Revenue Growth
7.53%
EPS Growth
-0.73%
Country
Japan
Employees
1,628
Sector
General
Sector Strength
55
Industry
Education & Training Services

Nagase Brothers, Inc. Business Overview & Revenue Model

Company Description

Nagase Brothers Inc. is a Japanese enterprise delivering a broad spectrum of educational services. The company oversees various institutions, including high schools, preparatory academies, junior high schools, business schools, elementary schools, an...

Nagase Brothers, Inc. Financial Statement Overview

Summary

Financials are solid with improving trends: revenue grew steadily through 2026 with an acceleration (~11% YoY), profitability rebounded in 2026 (net margin ~6.2% vs ~3.5% in 2025), and cash generation strengthened (FCF ~¥7.9B). Balance sheet leverage is improving (debt-to-equity ~0.78 in 2026). Offsetting this, profitability has been volatile versus 2022–2023 peaks and cash flow has been historically uneven (notably weak in 2024).

Income Statement

73Positive

Balance Sheet

70Positive

Cash Flow

67Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue64.68B64.18B55.26B52.99B52.35B49.41B
Gross Profit16.10B15.88B13.80B13.72B14.76B15.27B
EBITDA9.67B9.71B8.10B7.58B7.98B7.87B
Net Income3.54B3.98B1.96B2.60B4.00B3.44B
Balance Sheet
Total Assets92.64B97.88B90.11B88.29B78.10B76.56B
Cash, Cash Equivalents and Short-Term Investments15.36B20.85B18.57B26.47B19.53B21.47B
Total Debt36.75B28.65B30.06B35.73B26.28B28.95B
Total Liabilities65.80B60.93B58.93B59.52B51.66B53.45B
Stockholders Equity26.84B36.95B31.17B28.77B26.45B23.11B
Cash Flow
Free Cash Flow07.95B6.75B2.76B2.93B4.63B
Operating Cash Flow010.55B8.20B4.10B4.80B5.79B
Investing Cash Flow0-6.78B-7.78B-1.98B-2.97B-5.56B
Financing Cash Flow0-3.98B-8.31B4.75B-3.82B-720.00M

Nagase Brothers, Inc. Technical Analysis

Technical Analysis SentimentNegative
Last Price2251.00

Price Trends

50DMA2273.17Negative
100DMA2254.73Negative
200DMA2333.60Negative

Market Momentum

MACD7.46Positive
RSI43.91Neutral
STOCH15.55Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9733, the sentiment is Negative. The current price of 2251.00 is below the 20-day moving average (MA) of 2291.30, below the 50-day MA of 2273.17, and below the 200-day MA of 2333.60, indicating a bearish trend. The MACD of 7.46 indicates Positive momentum. The RSI at 43.91 is Neutral, neither overbought nor oversold. The STOCH value of 15.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9733.

Nagase Brothers, Inc. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:9733 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:4718JP:471886OutperformJPY 52.03B19.34―2.36%7.90%7.66%
JP:9733JP:973374OutperformJPY 65.44B17.63―9.33%7.53%-0.73%
JP:4714JP:471472OutperformJPY 49.97B25.34―3.40%4.45%40.72%
JP:9795JP:979569NeutralJPY 37.65B12.51―3.99%3.63%7.07%
JP:9470JP:947068NeutralJPY 44.39B12.12―2.84%7.30%12.44%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:4668JP:466855NeutralJPY 16.25B21.14―4.12%4.87%-51.32%

* General Sector Average

Performance Comparison

0%20%40%JP:9733JP:4668JP:4714JP:4718JP:9470JP:9795Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:9733 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:9733Nagase Brothers, Inc.2251.00179.578.67%
JP:4668Meiko Network Japan Co., Ltd.704.0026.663.94%
JP:4714Riso Kyoiku Co., Ltd.294.00106.5256.81%
JP:4718Waseda Academy Co., Ltd.2759.00447.7619.37%
JP:9470Gakken Holdings Co., Ltd.1020.0021.252.13%
JP:9795Step Co., Ltd.2281.00-57.42-2.46%
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: Oct 16, 2026