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NEC

TYO:6701 · JP3733000008
IT ServicesXX-Large

360

79
EV / EBIT43
Price / Owner Earnings63
Owner Earnings Yield63
Dividend Yield45
Price/Sales45
EV / Gross Profit66
Price/Book69
Return on Capital25
Cash Return on Capital54
Return on Equity28
EBIT Margin42
Gross Profitability51
Cash Conversion64
Accruals86
Owner Earnings Margin54
Sales growth22
Profit Growth71
Long-Term EPS Growth91
Owner Earnings Growth96
Reinvestment53
Price momentum58
Debt load50
Refinancing53
Debt Payback100
Liquidity47
Analyst ratings94
Opinion Changes50
Price Target Upside92
Market mood67
Value Creation16/20strong value creator
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

NEC generates returns well above its cost of capital, the foundation of durable shareholder value.

Profile

CountryJapan
IndustryIT Services
SizeXX-Large
TypePublic Company
ExchangeTSE
Founded1899
Employees4,326
Websitejpn.nec.com
ISINJP3733000008
Last UpdateApr 2, 2026
Indices
Nikkei 225 (Japan)TOPIX 100 (Japan)
Themes
Enterprise Voip and TelephonyCloud InfrastructureProcess AutomationNetwork SecurityOptical InfrastructureData Centers and FacilitiesNetwork BackboneCloud ManagementSoftware DevelopmentBig DataCommunication HardwareInformation TechnologySecurityTelecommunicationsVirtualization

Description

NEC Corporation provides information and communication technology solutions. Business Segments The company’s business is organized into several key segments, each addressing specific markets and customer needs with a comprehensive portfolio of prod…

Analysis

Middle-of-the-road

NEC Corporation sits in the middle of our grid: average quality, average price, no obvious signal in either direction.

On valuation, the picture is attractive. The owner-earnings multiple stands at 13.6×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 1% a year, against analyst forecasts of 20%. The price, in other words, assumes less than the experts do.

Growth is solid; the safety picture is adequate. The company scores 16/20 on our value-creation score: strong value creator.

No flags apply to this company at this time: accounts, balance sheet, and cash quality all pass. A clean bill of health is meaningful, not just the absence of a warning. This analysis describes numbers; it is not investment advice.

360° rank · history

1007550250
65
2023202420252026

All-time high

81

Jan 2024

All-time low

30

Jan 2023

Average rank

63

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
45
78
91
95
Price/Earnings
60
69
87
86
Price/Book
69
80
92
95
Dividend Yield
45
39
62
67
Value (overall)
53
51
96
90

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →