DB:NR7

Stock Analysis Report

Nomura Research Institute

Executive Summary

Nomura Research Institute, Ltd. engages in consulting, financial information technology (IT) solutions, industrial IT solutions, and IT platform services businesses primarily in Japan.

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.

Share Price & News

How has Nomura Research Institute's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

6.0%

DB:NR7

3.6%

DE IT

0.8%

DE Market


1 Year Return

28.9%

DB:NR7

-17.5%

DE IT

-10.9%

DE Market

NR7 outperformed the IT industry which returned -17.7% over the past year.

NR7 outperformed the Market in Germany which returned -9.7% over the past year.


Share holder returns

NR7IndustryMarket
7 Day6.0%3.6%0.8%
30 Day21.2%-5.5%-5.9%
90 Day18.5%-7.5%-2.9%
1 Year31.1%28.9%-17.1%-17.5%-8.1%-10.9%
3 Year109.9%97.9%156.6%150.3%10.4%0.9%
5 Year195.2%168.6%310.4%292.7%25.4%8.0%

Price Volatility Vs. Market

How volatile is Nomura Research Institute's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Nomura Research Institute undervalued based on future cash flows and its price relative to the stock market?

22.31x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Nomura Research Institute's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Nomura Research Institute's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Nomura Research Institute is good value based on earnings compared to the DE IT industry average.

Nomura Research Institute is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

Nomura Research Institute is poor value based on expected growth next year.


Price Based on Value of Assets

Nomura Research Institute is good value based on assets compared to the DE IT industry average.


Next Steps

Future Growth

How is Nomura Research Institute expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Nomura Research Institute's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).

Nomura Research Institute's earnings are expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).

Nomura Research Institute's revenue growth is positive but not above the Germany market average.

Nomura Research Institute's earnings growth is positive but not above the Germany market average.

Nomura Research Institute's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Nomura Research Institute is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Nomura Research Institute performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Nomura Research Institute's year on year earnings growth rate has been positive over the past 5 years.

Nomura Research Institute's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Nomura Research Institute's 1-year earnings growth is negative, it can't be compared to the DE IT industry average.


Return on Equity

Nomura Research Institute has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Nomura Research Institute used its assets more efficiently than the DE IT industry average last year based on Return on Assets.


Return on Capital Employed

Nomura Research Institute has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Nomura Research Institute's financial position?


Financial Position Analysis

Nomura Research Institute is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Nomura Research Institute's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Nomura Research Institute's level of debt (13.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (19.1% vs 13.6% today).

Debt is well covered by operating cash flow (173.5%, greater than 20% of total debt).

Nomura Research Institute earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 4.6x debt.


Next Steps

Dividend

What is Nomura Research Institute's current dividend yield, its reliability and sustainability?

1.72%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Nomura Research Institute before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Nomura Research Institute's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.48%).

Nomura Research Institute's dividend is below the markets top 25% of dividend payers in Germany (4.18%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.1x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Nomura Research Institute's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average board tenure


CEO

Shingo Konomoto (59yo)

3.3yrs

Tenure

0

Mr. Shingo Konomoto has been President and Chief Executive Officer of Nomura Research Institute, Ltd. since April 1, 2016. Mr. Konomoto serves as Chairman of the Board at Nomura Research Institute, Ltd. si ...


CEO Compensation Analysis

Shingo's remuneration is lower than average for companies of similar size in Germany.

Shingo's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

2.7yrs

Average Tenure

63yo

Average Age

The average tenure for the Nomura Research Institute board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Harumi Saitou

    Senior Executive Managing Director

    • Tenure: 0.0yrs
  • Shingo Konomoto (59yo)

    Chairman

    • Tenure: 3.3yrs
  • Tatsuya Watahiki

    Senior Executive Managing Director

    • Tenure: 0.0yrs
  • Masaki Takimoto

    Senior Executive Managing Director

    • Tenure: 0.0yrs
  • Hajime Ueda

    Senior Executive Managing Director

    • Tenure: 0.0yrs
  • Hiroshi Funakura (56yo)

    Senior Executive Managing Director

    • Tenure: 0.0yrs
  • Ayumu Ueno (59yo)

    Senior Executive VP & Director

    • Tenure: 4.2yrs
  • Takuhito Sakata

    Senior Corporate Managing Director

    • Tenure: 0.0yrs
  • Fumihiko Sagano

    Senior Corporate Managing Director

    • Tenure: 0.0yrs
  • Yoshio Murata

    Senior Executive Managing Director

    • Tenure: 3.3yrs

Board Members

  • Hideaki Omiya (73yo)

    Outside Director

    • Tenure: 1.2yrs
  • Tadashi Shimamoto (65yo)

    Director

    • Tenure: 18.2yrs
    • Compensation: JP¥109.00m
  • Shingo Konomoto (59yo)

    Chairman

    • Tenure: 3.3yrs
  • Masatoshi Matsuzaki (69yo)

    Outside Independent Director

    • Tenure: 3.2yrs
  • Ayumu Ueno (59yo)

    Senior Executive VP & Director

    • Tenure: 4.2yrs
  • Yutaka Harada (59yo)

    Full-Time Audit & Supervisory Board Member

    • Tenure: 3.2yrs
  • Yoshio Usumi (61yo)

    Director

    • Tenure: 2.2yrs
  • Yasuo Fukami

    Senior Executive Managing Director & Representative Director

    • Tenure: 0.2yrs
  • Hironori Momose

    Vice Chairman

    • Tenure: 0.2yrs
  • Miwako Doi (65yo)

    Outside Independent Director

    • Tenure: 4.2yrs

Company Information

Nomura Research Institute, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nomura Research Institute, Ltd.
  • Ticker: NR7
  • Exchange: DB
  • Founded: 1965
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: JP¥1.442t
  • Listing Market Cap: JP¥12.263b
  • Shares outstanding: 700.44m
  • Website: https://www.nri.com

Number of Employees


Location

  • Nomura Research Institute, Ltd.
  • Otemachi Financial City Grand Cube
  • 1-9-2 Otemachi
  • Tokyo
  • 100-0004
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4307TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYDec 2001
NR7DB (Deutsche Boerse AG)YesCommon StockDEEURDec 2001
NURA.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 2001
NRIL.YOTCPK (Pink Sheets LLC)ADR NEWUSUSDFeb 2009

Biography

Nomura Research Institute, Ltd. engages in consulting, financial information technology (IT) solutions, industrial IT solutions, and IT platform services businesses primarily in Japan. The Consulting segme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 21:07
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.