6701:TSENEC Corporation Analysis
Data as of 2026-07-23 - not real-time
¥4,240.00
Latest Price
6/10Risk
Risk Level: Medium
Executive Summary
NEC Corporation is trading just above its short‑term moving average with a neutral RSI and a modestly bullish MACD histogram, indicating limited short‑term momentum. The stock is priced well above its discounted cash‑flow estimate, suggesting it is currently overvalued despite a forward price‑to‑earnings multiple that is attractive relative to peers.
The company benefits from a strong cash position, low leverage, and a sustainable dividend payout, while recent recognition in the Gartner Emerging Market Quadrant underscores growth potential in AI‑driven services. However, high 30‑day volatility and declining volume add caution to the upside, and the overall market sentiment is in an "Extreme Greed" phase, which could amplify price swings.
The company benefits from a strong cash position, low leverage, and a sustainable dividend payout, while recent recognition in the Gartner Emerging Market Quadrant underscores growth potential in AI‑driven services. However, high 30‑day volatility and declining volume add caution to the upside, and the overall market sentiment is in an "Extreme Greed" phase, which could amplify price swings.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- price hovering near short‑term support levels
- neutral momentum indicators
- decreasing trading volume
Medium Term
1–3 yearsNeutral
Model confidence: 7/10
Key Factors
- sustainable dividend yield
- strong cash generation and low debt ratio
- recognition in AI services market
Long Term
> 3 yearsPositive
Model confidence: 8/10
Key Factors
- robust balance sheet and free cash flow
- potential upside from expanding AI and networking solutions
- low beta indicating defensive characteristics
Key Metrics & Analysis
Financial Health
Revenue Growth5.30%
Profit Margin7.54%
P/E Ratio20.9
ROE12.56%
ROA5.12%
Debt/Equity21.44
P/B Ratio2.6
Op. Cash Flow¥438.5B
Free Cash Flow¥239.4B
Industry P/E33.4
Technical Analysis
TrendNeutral
RSI51.0
Support¥3,682.00
Resistance¥4,525.00
MA 20¥4,225.10
MA 50¥4,121.82
MA 200¥4,712.74
MACDBullish
VolumeDecreasing
Fear & Greed Index88.04
Valuation
Fair Value¥3,033.22
Target Price¥6,074.17
Upside/Downside43.26%
GradeOvervalued
TypeValue
Dividend Yield0.92%
Risk Assessment
Beta0.25
Volatility45.17%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.