NAKANO CORPORATION1827

Why the market may be pricing it low

• Retained earnings are explicitly earmarked for balance-sheet strength and capex, not signaled as available for active shareholder returns.

  内部留保資金については、財務体質の強化、設備投資などに活用し、企業体質と競争力の一層の強化に取り組んでいくDividend policy

• The company flags shrinking domestic demand, surging material costs and worker shortages as key risks, framing core earnings as hostage to external conditions.

  建設市場の想定を上回る縮小や主要資材価格の急激な上昇、技能労働者の著しい減少等、事業環境に変化が生じた場合、今後の業績に影響を及ぼす可能性があるRisk factors

What could close the gap

• The company raised its dividend 8 yen above prior guidance, stating this was to enhance shareholder returns beyond the original plan.

  従前の計画より株主還元の充実を図るため、直近の配当予想より８円増配し、１株当たり38円の配当を行うこととしたDividend policy

• The mid-term plan states concrete steps on M&A, DX and human-capital investment are being advanced, a possible shift in capital deployment.

  事業成長と収益力の更なる向上に向け、Ｍ＆ＡやＤＸの推進、人的資本への投資等について具体的な実行を進めていくManagement policy

How a buyer could still lose (value trap)

• Southeast Asia operating profit jumped from about 1 million yen to 2.447 billion yen, driven by progress on one large project—a potentially non-recurring surge.

  Based on the figures below

• Core domestic construction operating profit fell 14.9% year-on-year due to rising material costs, meaning core profitability actually deteriorated.

  Based on the figures below

Financial quality (Piotroski F-score)

• ✓Profitable (ROA > 0)
• ✓Positive operating cash flow
• ✓ROA up on last year
• ✓Cash flow exceeds net profit
• ✗Leverage down on last year
• ✗Current ratio up on last year
• ✓No new shares issued
• ✓Gross margin up on last year
• ✓Asset turnover up on last year

Scored out of the checks with data, scaled to 9. Compares the latest year with the year before.

Figures

Sales

¥138.1bn

Operating profit

¥5.4bn

Net profit

¥4.4bn

Operating cash flow

¥10.4bn

Cash

¥31.0bn

Debt

¥0.1bn

Equity

¥51.4bn

Annual report for the year to 2026-03-31