# NEPON Inc.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 有価証券報告書－第79期(2025/04/01－2026/03/31) (S100YN9E)
> Page: https://vizora.meequs.com/en/company/nepon
> Retrieved: 2026-09-30T20:24:27.022Z

## Company

Nepon, founded in 1948, is a company in Housing Equipment & Building Materials listed on TSE Standard. It has 247 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | NEPON Inc. |
| Ticker | 7985 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/7985.T) |
| Listing | TSE Standard |
| Head office | 神奈川県厚木市上古沢411番地 |
| Representative (per filing) | 代表取締役社長兼CEO 福田 晴久 |
| Founded | Jun 1948 |
| Share capital | ¥601.4M |
| Employees (consolidated) | 247 |
| Average salary (parent only) | ¥5.3M |
| Fiscal year end | March |
| Website | www.nepon.co.jp (https://www.nepon.co.jp/) |
| Corporate number | 7011001018214 |
| EDINET | E02385 |
| Industries (Vizora) | Housing Equipment & Building Materials, Industrial Machinery |

> Profile source: annual securities report (S100YN9E, filed 2026-06-30). As of filing

## Five-axis industry profile

Primary industry: Industrial Machinery (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 9.5 | 110 |
| Profitability | 7 | 122 |
| Cash conversion | 95.3 | 116 |
| Efficiency | 95.5 | 122 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 94% of Nepon's sales come from Thermal component, with Sanitary equipment and Other making up much of the rest.
- Out of every ¥100 of sales, about ¥1 is left as operating profit.
- Revenue changed +1.9% from the prior year, operating profit +99.2%.

## Company structure

- Segment revenue mix: Thermal component 93.7%、Sanitary equipment 6.3%、Other 0.0%
- Revenue → net income: ¥7417643000 → ¥37737000
- Net income → operating cash flow: ¥37737000 → ¥385755000（difference ¥348018000）
- Main uses of operating cash flow: CapEx ¥140548000 / dividends ¥6000 / buybacks ¥53000
- Change in cash: ¥82217000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥7.42B |  |
| Operating income | ¥70.6M | Margin 1.0% |
| Net income | ¥37.7M | Margin 0.5% |
| Free cash flow | ¥245.2M |  |
| Largest business | Thermal component | of segment revenue 93.7% |
| Employees (consolidated) | 247 |  |
| EPS | ¥30.6 |  |
| Book value per share | ¥2489.57 |  |
| Equity ratio | 41.5% |  |
| Shares outstanding | 962,948 |  |
| Treasury shares | 5,400 |  |
| Shareholders | 1,301 |  |
| Average salary (parent only) | ¥5.3M | Filing company only |
| Cash ratio | 9.6% | Cash ÷ revenue 7.6% |
| Vs. industry median margin | -6.6 pp | Industrial Machinery |
| ROE | 1.6% | Derived from disclosed figures |
| ROA | 0.6% | Derived from disclosed figures |

## Notable figures

- FY2026, operating cash flow is 10.2× net income
- FY2026, buybacks were 8.8× dividends
- FY2026, employees -5% while operating income rose 99%

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥7257550000 | ¥7417643000 | +2.2% |
| Operating income | ¥246411000 | ¥70597000 | -71.3% |
| Operating margin | 3.4% | 1.0% | -2.4 pp |
| Employees | 270 people | 247 people | -8.5% |
| Cash and equivalents | ¥516055000 | ¥565590000 | +9.6% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 熱機器 → 熱機器 | 92.7% |
| 衛生機器 → 衛生機器 | 6.3% |
| 衛生機器 → 事業再編・廃止 | 0.5% |
| その他 → その他 | 0.0% |
| その他 → 事業再編・廃止 | 0.5% |
| 新設・再編 → 熱機器 | 1.0% |

Segment revenue source references: 6 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Thermal component | 5 years | +0.7% | ¥6949647000 | 15.2% | 2 |
| Sanitary equipment | 5 years | -1.2% | ¥466854000 | 26.0% | 2 |
| Other | 5 years | -49.5% | ¥1140000 | 30.9% | 2 |

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 7,418 | 100.0% | S100YN9E |
| Cost of revenue | 4,873 | 65.7% | S100YN9E |
| Gross profit | 2,545 | 34.3% | S100YN9E |
| SG&A | 2,474 | 33.4% | S100YN9E |
| Operating income | 71 | 1.0% | S100YN9E |
| Ordinary income | 79 | 1.1% | S100YN9E |
| Pretax income | 63 | 0.8% | S100YN9E |
| Income tax | 25 | 0.3% | S100YN9E |
| Net income | 38 | 0.5% | S100YN9E |
| Net income attributable to owners | 38 | 0.5% | S100YN9E |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 66 |
| SG&A | 33 |
| Operating income | 1 |
| (Ref.) Net income | 1 |

### Margin funnel

Gross margin 34.3% → Operating margin 1.0% → Net margin 0.5%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +1.9%; Core profit growth: +99.2%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 51.50×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 7,277 | 7,418 | 140 | +1.9% |
| Gross profit | 2,519 | 2,545 | 26 | +1.0% |
| Operating income | 35 | 71 | 35 | +99.2% |
| Net income attributable to owners | -284 | 38 | 321 | — |
| Operating cash flow | 171 | 386 | 215 | +125.7% |
| Free cash flow | 38 | 245 | 207 | +548.7% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 8,234 | 253 | 3.1% | 189 | 698 | 556 | S100LTIG |
| FY ending Mar 2021 | 7,258 | 246 | 3.4% | 168 | 82 | -44 | S100OJYP |
| FY ending Mar 2022 | 7,485 | 255 | 3.4% | 219 | 446 | 181 | S100R88W |
| FY ending Mar 2023 | 7,993 | 388 | 4.9% | 285 | -10 | -285 | S100TW0O |
| FY ending Mar 2024 | 7,774 | 35 | 0.4% | 65 | 218 | 58 | S100W6SF |
| FY ending Mar 2025 | 7,277 | 35 | 0.5% | -284 | 171 | 38 | S100YN9E |
| FY ending Mar 2026 | 7,418 | 71 | 1.0% | 38 | 386 | 245 | S100YN9E |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥30M |
| Operating income per employee (consolidated) | ¥285.8K |
| Net income per employee (consolidated) | ¥152.8K |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 252 | 251 | 247 | 259 | 247 |
| Average salary (parent company) | ¥5.4M | ¥5.3M | ¥5.5M | ¥5.3M | ¥5.3M |
| Average age (parent company) | 43.0 years | 43.0 years | 43.7 years | 43.9 years | 43.6 years |
| Average tenure (parent company) | 15.4 years | 14.7 years | 15.1 years | 15.4 years | 14.3 years |

Year over year: Employees (consolidated) -4.6% · Revenue (consolidated) +1.9%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Thermal component | 6,950 | 93.7% | 1,055 | 15.2% |
| Sanitary equipment | 467 | 6.3% | 122 | 26.0% |
| Other | 1 | 0.0% | 0 | 30.9% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Thermal component | 93.7% | 89.6% | -4.0 | 15.2% |
| Sanitary equipment | 6.3% | 10.3% | 4.0 | 26.0% |
| Other | 0.0% | 0.0% | 0.0 | 30.9% |

Segment → industry: Sanitary equipment → Housing Equipment & Building Materials / Thermal component → Industrial Machinery

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 386 | 5.2% | S100YN9E |
| Capital expenditure | 141 | 1.9% | S100YN9E |
| Free cash flow | 245 | 3.3% | 算出 |
| Investing cash flow | -120 | -1.6% | S100YN9E |
| Financing cash flow | -185 | -2.5% | S100YN9E |
| Dividends paid | 0 | 0.0% | S100YN9E |
| Share buyback | 0 | 0.0% | S100YN9E |
| Change in cash | 82 | 1.1% | S100YN9E |
| Cash and equivalents | 566 | 7.6% | S100YN9E |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 359 | 459 | 455 | 483 | 566 | S100TW0O, S100W6SF, S100YN9E |
| Total assets | 6,585 | 7,220 | 6,904 | 6,068 | 5,888 | S100R88W, S100TW0O, S100W6SF, S100YN9E |
| Net assets | 2,356 | 2,609 | 2,627 | 2,377 | 2,443 | S100TW0O, S100W6SF, S100YN9E |
| Share capital | 601 | 601 | 601 | 601 | 601 | S100R88W, S100TW0O, S100W6SF, S100YN9E |
| Trade receivables | 2,332 | 2,440 | 2,155 | 1,987 | 1,836 | S100R88W, S100TW0O, S100W6SF, S100YN9E |
| Property, plant and equipment | 1,194 | 1,174 | 1,116 | 1,033 | 960 | S100R88W, S100TW0O, S100W6SF, S100YN9E |
| Intangible assets excluding goodwill | 113 | 108 | 159 | 177 | 214 | S100R88W, S100TW0O, S100W6SF, S100YN9E |
| Investment securities | 68 | 73 | 91 | 80 | 149 | S100R88W, S100TW0O, S100W6SF, S100YN9E |
| Current assets | 4,622 | 5,282 | 4,989 | 4,578 | 4,360 | S100R88W, S100TW0O, S100W6SF, S100YN9E |
| Current liabilities | 2,607 | 2,992 | 2,887 | 2,638 | 2,599 | S100R88W, S100TW0O, S100W6SF, S100YN9E |
| Trade payables | 644 | 541 | 279 | 313 | 251 | S100R88W, S100TW0O, S100W6SF, S100YN9E |
| Short-term borrowings | 650 | 1,050 | 1,250 | 1,500 | 1,550 | S100R88W, S100TW0O, S100W6SF, S100YN9E |
| Long-term borrowings | 661 | 695 | 433 | 200 | 40 | S100R88W, S100TW0O, S100W6SF, S100YN9E |
| Total liabilities | 4,228 | 4,611 | 4,277 | 3,691 | 3,444 | S100R88W, S100TW0O, S100W6SF, S100YN9E |
| Equity attributable to owners of parent | 2,320 | 2,569 | 2,576 | 2,312 | 2,349 | S100R88W, S100TW0O, S100W6SF, S100YN9E |
| Retained earnings | 1,577 | 1,826 | 1,833 | 1,569 | 1,606 | S100R88W, S100TW0O, S100W6SF, S100YN9E |
| Treasury stock | -9 | -9 | -9 | -9 | -9 | S100R88W, S100TW0O, S100W6SF, S100YN9E |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 10% | S100YN9E |
| Receivables | 31% | S100YN9E |
| Property, plant and equipment | 16% | S100YN9E |
| Intangibles and goodwill | 4% | S100YN9E |
| Investment securities | 2% | S100YN9E |
| Other assets | 37% | S100YN9E |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Trade payables | 4% | S100YN9E |
| Other liabilities | 54% | S100YN9E |
| Equity | 42% | S100YN9E |
| Other liabilities | 0% | S100YN9E |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 6,585 | 7,220 | 6,904 | 6,068 | 5,888 |
| Equity | 2,356 | 2,609 | 2,627 | 2,377 | 2,443 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 359 | 459 | 455 | 483 | 566 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 12.9% | S100YN9E |
| Fixed assets ÷ total assets | 16.3% | S100YN9E |
| Goodwill ÷ parent equity | — | —, S100YN9E |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 9.6% |
| Cash ÷ revenue | 7.6% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 546.4% |
| Cash vs. profit gap | 348 JPY mn (of net income 922.2%) |
| Shareholder returns / net income | 0.2% |
| Shareholder returns / FCF | 0.0% |
| Shareholder payments — dividends / net income | 0.0% |
| Shareholder payments — dividends / FCF | 0.0% |
| CapEx intensity (capex ÷ revenue) | 1.9% |
| Investing CF relative to operating CF | 31.1% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 2.9% | 1.14× | 3.3% | 2.84× | 9.4% | S100R88W |
| 2023 | 3.6% | 1.16× | 4.1% | 2.82× | 11.7% | S100TW0O |
| 2024 | 0.8% | 1.10× | 0.9% | 2.75× | 2.5% | S100W6SF |
| 2025 | — | —× | -4.4% | —× | — | S100YN9E |
| 2026 | 0.5% | 1.24× | 0.6% | 2.57× | 1.6% | S100YN9E |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 福田 晴久 | Major shareholder | 12.6% | 2026-03-31 |
| 佐藤商事株式会社 | Major shareholder | 12.5% | 2026-03-31 |
| ネポン共栄会 | Major shareholder | 8.4% | 2026-03-31 |
| 住田 誠司 | Major shareholder | 5.0% | 2026-03-31 |
| 株式会社三井住友銀行 | Major shareholder | 5.0% | 2026-03-31 |
| 日興通信株式会社 | Major shareholder | 2.6% | 2026-03-31 |
| 鈴木 愛子 | Major shareholder | 2.5% | 2026-03-31 |
| ネポン社員持株会 | Major shareholder | 2.4% | 2026-03-31 |
| 東京ソフト株式会社 | Major shareholder | 2.4% | 2026-03-31 |
| 名井 明 | Major shareholder | 1.5% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第79期(2025/04/01－2026/03/31) | S100YN9E | 2026-06-30 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YN9E,, |
| 有価証券報告書－第78期(2024/04/01－2025/03/31) | S100W6SF | 2025-06-26 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W6SF,, |
| 有価証券報告書－第77期(2023/04/01－2024/03/31) | S100TW0O | 2024-06-27 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TW0O,, |
| 有価証券報告書－第76期(2022/04/01－2023/03/31) | S100R88W | 2023-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R88W,, |
| 有価証券報告書－第75期(令和3年4月1日－令和4年3月31日) | S100OJYP | 2022-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OJYP,, |
| 有価証券報告書－第74期(令和2年4月1日－令和3年3月31日) | S100LTIG | 2021-06-29 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LTIG,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).