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Nippon Sharyo, Ltd (NPPSF) Fair Value & Analysis

Industrials · US · Market cap $414M

NS Nippon Sharyo, Ltd logo Nippon Sharyo, Ltd NPPSF · US
Price$21.04
Fair Value$32.09
Upside+52.5%
Quality56/100
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Mixed Growth
Solidly profitable · 11.7% net margin
Low debt · negative free cash flow
1.49% dividend yield
Ranks above peers (8/10)
Moderate moat 59/100
Evidence: High Range $22.46 – $32.09 Share as image

Fair value as of: Jul 19, 2026

From 13 valuation models · updated 22 days ago

A solid business, screening 53% undervalued on our models.

What matters now

  • The price is below even our cautious bear case ($22.46). The market is more pessimistic than our downside scenario.
  • Solid quality (56/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

$29.10 $21.04 Fair Value $32.09 Mar 2021 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range $21.04 – $29.10 · fair‑value band $22.46 – $32.09 · the $21.04 price screens below the $32.09 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

Nippon Sharyo, Ltd (NPPSF) currently trades at $21.04, while our model-based Fair Value estimate is $32.09, implying the stock looks roughly 52.5% undervalued today. The Quality Score stands at 56/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Nippon Sharyo, Ltd generated revenue of $100.0B at a net margin of 11.7%. Revenue grew 10.5% year over year. It earns a return on equity of 15.9%. Net debt stands at $31.1B. Fundamentals as of Jul 19, 2026

Our scenario range runs from $22.46 (bear case) to $32.09 (bull case); at $21.04, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 28% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -28% fair-value upside, at 53%, NPPSF screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
ROIC Compounder $16.34 $21.38 $25.59 72
Growth-Adj P/E $52.87 $75.52 $98.18 68
P/E Multiple $74.87 $99.82 $124.78 63
All 13 models by family
DCF Models
Owner Earnings $16.78 $27.09 $45.75 31
Earnings-Based
Graham-Dodd $32.32 $48.80 $58.04 54
EPV $16.34 $21.38 $25.59 59
Multiples
P/E Multiple $74.87 $99.82 $124.78 63
P/S Multiple $60.61 $80.81 $101.01 58
P/B Multiple $60.61 $80.81 $101.01 55
EV/EBIT $44.86 $66.70 $88.54 53
EV/EBITDA $47.52 $70.24 $92.97 54
EV/Revenue $26.10 $46.14 $66.18 43
Asset-Based
NCAV (Graham) $23.95 $32.09 $47.90 50
Economic Profit
Residual Income $39.49 $42.80 $51.08 61
ROIC Compounder $16.34 $21.38 $25.59 72
Growth Earnings
Growth-Adj P/E $52.87 $75.52 $98.18 68

Widest divergence: Growth Earnings ($75.52) versus Earnings-Based ($21.38). Highest evidence: ROIC Compounder (72).

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Key figures & financial health

Revenue (TTM) $100.0B
Revenue growth (YoY) +10.5%
Net margin 11.7%
Return on equity 15.9%
Free cash flow −$1.4B FY2025
P/E ratio 4.2
More key figures
Operating margin 15.4%
EPS (TTM) $5.04
Dividend yield 1.5%
EPS growth (YoY) +26.1%
Net debt $31.1B FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 50 · Market factors (momentum, volatility) 28

Profitability 38
Margins and returns on capital today
Quality Growth 61
Are margins and returns improving?
Cashflow 8
Earnings quality: real cash, not paper profit
Fin. Strength 58
Balance sheet, leverage, solvency risk
Investment 81
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 8
Price trend over the last 3–12 months (market factor)
52W Momentum 2
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Nippon Sharyo, Ltd. engages in the railway vehicles, construction machinery, transportation equipment and steel structures, engineering, and other businesses in Japan, the United States, Asia, and internationally.

Full company description

Nippon Sharyo, Ltd. engages in the railway vehicles, construction machinery, transportation equipment and steel structures, engineering, and other businesses in Japan, the United States, Asia, and internationally. The company offers electric trains, diesel railcars, hybrid cars, and passenger cars; and bullet, intercity and express, suburban and commuter, and exported train, as well as metro and subway, AGT, LRV, and monorail. It also provides pile drivers, full rotary tubing equipment, earth drills, obstacle removal machines; pilling, soil stabilizing, mini piling, earth drilling rigs, as well as casing rotator and crawler crane; and tank trucks, tank trailers, tank containers, storage tanks, large land vehicle carriers, unmanned guided vehicles, and freight cars. In addition, the company manufactures, sells, and erects new road and railway bridges, as well as machinery and equipment for railway operators, agricultural plants, and paper-related equipment; and provides repairs and maintenance of existing bridges. The company was incorporated in 1896 and is headquartered in Nagoya, Japan. Nippon Sharyo, Ltd. is a subsidiary of Central Japan Railway Company.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Nippon Sharyo, Ltd reported revenue of $96.3B in FY2025 versus $99.4B in FY2021, a compound −0.8%/yr. Reported net income was $6.4B in FY2025, compounding −5.2%/yr from FY2021.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
$96.3B
Latest YoY
+9.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.8%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.4%
Avg. growth/yr (11Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−2.3%
Revenue −0.8%/yr
FY21 $99.4B
FY22 $94.0B
FY23 $98.0B
FY24 $88.1B
FY25 $96.3B
Net income −5.2%/yr
FY21 $7.9B
FY22 $5.2B
FY23 $3.1B
FY24 $5.4B
FY25 $6.4B

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Cite: Fair Value Calculator (2026). "Nippon Sharyo, Ltd Fair Value". https://www.fairvalue-calculator.com/stock/NPPSF

Peer Group

Railroads · 111 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 56 · Above median
Fair Value upside +53% · Top 25%
Return on equity (TTM) 16% · Top 25%
Return on assets 5% · Top 25%
Net margin (TTM) 12% · Above median
Operating margin (TTM) 15% · Above median
Revenue growth 11% · Above median
Dividend yield (TTM) 1.5% · Below median
Debt / equity 0.49× · Higher than median

Valuation Multiples vs Railroads median · lower = cheaper

P/E (TTM) 4.2× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 28
FUTURE 53 · sector 20
PAST 64 · sector 31
HEALTH 76 · sector 88
DIVIDEND 30 · sector 41

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Railroads stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
Union Pacific Corporation UNP $301.75 $144.60 -52%
CSX Corporation CSX $49.41 $12.85 -74%
Canadian Pacific Kansas City Limited CP $92.91 $35.00 -62%
Canadian National Railway Company CNI $128.22 $92.63 -28%
Norfolk Southern Corporation NSC $327.47 $117.90 -64%
Westinghouse Air Brake Technologies Corporation WAB $259.71 $144.80 -44%
Beijing-Shanghai High-Speed Railway Co 601816 ¥4.82 ¥5.65 +17%
CRRC Corporation 601766 ¥5.65 ¥9.53 +69%
Daqin Railway Co 601006 ¥4.85 ¥6.24 +29%
Hyundai Rotem Company 064350 167,700 KRW 125,182 KRW -25%

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Frequently asked questions

Is Nippon Sharyo, Ltd (NPPSF) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of $32.09 versus a price of $21.04, about +53% (undervalued).
What is the fair value of NPPSF?
Our model-based fair value for Nippon Sharyo, Ltd is $32.09 (as of Jul 19, 2026), built from audited fundamentals. The current price is $21.04.
What is the quality score of NPPSF?
Nippon Sharyo, Ltd has a Quality Score of 56/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Nippon Sharyo, Ltd (NPPSF)?
Nippon Sharyo, Ltd reported trailing-twelve-month revenue of about $100.0B (latest available figure, as of Jul 19, 2026).
What is the net profit margin of NPPSF?
The net profit margin of Nippon Sharyo, Ltd is about 11.7%, meaning it keeps roughly 11.7% of revenue as net income. Based on the latest reported figures.
Does Nippon Sharyo, Ltd pay a dividend?
Nippon Sharyo, Ltd currently shows a dividend yield of about 1.49% relative to its recent price (as of Jul 19, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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