# Nippon Signal Company,Limited: 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143期(2025/04/01－2026/03/31) (S100YAO1)
> Page: https://vizora.meequs.com/en/company/nippon-signal
> Retrieved: 2026-09-30T22:18:23.757Z

## Company

Nippon Signal, founded in 1928, is a company in Electrical Equipment listed on TSE Prime. It has 3,066 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | Nippon Signal Co., Ltd. |
| Ticker | 6741 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/6741.T) |
| Listing | TSE Prime |
| Head office | 東京都千代田区丸の内一丁目5番1号 新丸の内ビルディング内 |
| Representative (per filing) | 代表取締役社長 後藤 隆一 |
| Founded | Dec 1928 |
| Share capital | ¥10B |
| Employees (consolidated) | 3,066 |
| Average salary (parent only) | ¥8.6M |
| Fiscal year end | March |
| Website | www.signal.co.jp (https://www.signal.co.jp/) |
| Corporate number | 9010001110631 |
| EDINET | E01769 |
| Industries (Vizora) | Electrical Equipment |

> Profile source: annual securities report (S100YAO1, filed 2026-06-15). As of filing

## Five-axis industry profile

Primary industry: Electrical Equipment (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 43.8 | 24 |
| Profitability | 68.8 | 24 |
| Cash conversion | 37 | 23 |
| Efficiency | 18 | 25 |

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 52% of Nippon Signal's sales come from Traffic and transportation infrastructure division, with ICT solutions division making up much of the rest.
- Out of every ¥100 of sales, about ¥10 is left as operating profit.
- Revenue changed +6.7% from the prior year, operating profit +18.1%.

## Company structure

- Segment revenue mix: Traffic and transportation infrastructure division 51.9%、ICT solutions division 48.1%
- Revenue → net income: ¥114071000000 → ¥11594000000
- Net income → operating cash flow: ¥11594000000 → ¥7874000000（difference ¥-3720000000）
- Main uses of operating cash flow: CapEx ¥6294000000 / dividends ¥2864000000 / buybacks —
- Change in cash: ¥-1380000000
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 | ¥114.1B |  |
| Operating income | ¥11.7B | Margin 10.3% |
| Net income | ¥11.6B | Margin 10.2% |
| Free cash flow | ¥1.58B |  |
| Largest business | Traffic and transportation infrastructure division | of segment revenue 51.9% |
| Employees (consolidated) | 3,066 |  |
| EPS | ¥161.19 |  |
| Book value per share | ¥1477.76 |  |
| Equity ratio | 66.4% |  |
| Shares outstanding | 68,339,704 |  |
| Treasury shares | 5,968,700 |  |
| Shareholders | 14,130 |  |
| Average salary (parent only) | ¥8.6M | Filing company only |
| Cash ratio | 6.3% | Cash ÷ revenue 9.6% |
| Vs. industry median margin | +1.8 pp | Electrical Equipment |
| ROE | 12.3% | Derived from disclosed figures |
| ROA | 6.9% | Derived from disclosed figures |

## Notable figures

- FY2026, one segment accounts for 67% of positive segment profit

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥92755000000 | ¥114071000000 | +23.0% |
| Operating income | ¥5713000000 | ¥11701000000 | +104.8% |
| Operating margin | 6.2% | 10.3% | +4.1 pp |
| Employees | 2,984 people | 3,066 people | +2.7% |
| Cash and equivalents | ¥13250000000 | ¥10894000000 | -17.8% |

### 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 |
| --- | ---: |
| 交通運輸インフラ事業 → 交通運輸インフラ事業 | 51.9% |
| 交通運輸インフラ事業 → 事業再編・廃止 | 3.3% |
| ICTソリューション事業 → ICTソリューション事業 | 44.8% |
| 新設・再編 → ICTソリューション事業 | 3.3% |

Segment revenue source references: 4 (derived)

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

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 114,071 | 100.0% | S100YAO1 |
| Cost of revenue | 85,112 | 74.6% | S100YAO1 |
| Gross profit | 28,958 | 25.4% | S100YAO1 |
| SG&A | 17,256 | 15.1% | S100YAO1 |
| Operating income | 11,701 | 10.3% | S100YAO1 |
| Ordinary income | 13,024 | 11.4% | S100YAO1 |
| Pretax income | 16,472 | 14.4% | S100YAO1 |
| Income tax | 4,878 | 4.3% | S100YAO1 |
| Net income | 11,594 | 10.2% | S100YAO1 |
| Net income attributable to owners | 11,594 | 10.2% | S100YAO1 |

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

| Part | JPY |
| --- | ---: |
| Cost of revenue | 75 |
| SG&A | 15 |
| Operating income | 10 |
| (Ref.) Net income | 10 |

### Margin funnel

Gross margin 25.4% → Operating margin 10.3% → Net margin 10.2%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +6.7%; Core profit growth: +18.1%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 2.68×
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 | 106,859 | 114,071 | 7,212 | +6.7% |
| Gross profit | 25,679 | 28,958 | 3,279 | +12.8% |
| Operating income | 9,906 | 11,701 | 1,795 | +18.1% |
| Net income attributable to owners | 8,503 | 11,594 | 3,091 | +36.4% |
| Operating cash flow | 5,783 | 7,874 | 2,091 | +36.2% |
| Free cash flow | 903 | 1,580 | 677 | +75.0% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 111,675 | 8,912 | 8.0% | 6,584 | 9,160 | 6,907 | S100LP5R |
| FY ending Mar 2021 | 92,755 | 5,713 | 6.2% | 4,916 | 1,145 | -1,717 | S100OCP7 |
| FY ending Mar 2022 | 85,047 | 5,390 | 6.3% | 4,503 | 2,099 | -199 | S100R2EO |
| FY ending Mar 2023 | 85,456 | 5,112 | 6.0% | 4,075 | 1,715 | -904 | S100TMU5 |
| FY ending Mar 2024 | 98,536 | 6,824 | 6.9% | 5,346 | 6,771 | 2,859 | S100VX5P |
| FY ending Mar 2025 | 106,859 | 9,906 | 9.3% | 8,503 | 5,783 | 903 | S100YAO1 |
| FY ending Mar 2026 | 114,071 | 11,701 | 10.3% | 11,594 | 7,874 | 1,580 | S100YAO1 |

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

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥37.2M |
| Operating income per employee (consolidated) | ¥3.8M |
| Net income per employee (consolidated) | ¥3.8M |

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) | 3,009 | 2,987 | 2,946 | 2,921 | 3,066 |
| Average salary (parent company) | ¥7.4M | ¥7.5M | ¥7.5M | ¥8M | ¥8.6M |
| Average age (parent company) | 42.0 years | 42.0 years | 43.0 years | 43.0 years | 43.0 years |
| Average tenure (parent company) | 18.0 years | 18.0 years | 19.0 years | 19.0 years | 18.0 years |

Year over year: Employees (consolidated) +5.0% · Revenue (consolidated) +6.7%

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

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Traffic and transportation infrastructure division | 59,171 | 51.9% | 5,185 | 8.8% |
| ICT solutions division | 54,900 | 48.1% | 10,562 | 19.2% |

### 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 |
| --- | ---: | ---: | ---: | ---: |
| Traffic and transportation infrastructure division | 51.9% | 32.9% | -18.9 | 8.8% |
| ICT solutions division | 48.1% | 67.1% | 18.9 | 19.2% |

Segment → industry: ICT solutions division → Electrical Equipment / Traffic and transportation infrastructure division → Electrical Equipment

## 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 | 7,874 | 6.9% | S100YAO1 |
| Capital expenditure | 6,294 | 5.5% | S100YAO1 |
| Free cash flow | 1,580 | 1.4% | 算出 |
| Investing cash flow | -2,725 | -2.4% | S100YAO1 |
| Financing cash flow | -6,547 | -5.7% | S100YAO1 |
| Dividends paid | 2,864 | 2.5% | S100YAO1 |
| Change in cash | -1,380 | -1.2% | S100YAO1 |
| Cash and equivalents | 10,894 | 9.6% | S100YAO1 |

## 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 | 6,344 | 8,365 | 11,760 | 11,248 | 10,894 | S100TMU5, S100VX5P, S100YAO1 |
| Total assets | 134,086 | 146,019 | 165,295 | 166,240 | 172,224 | S100R2EO, S100TMU5, S100VX5P, S100YAO1 |
| Net assets | 86,740 | 89,351 | 96,821 | 102,623 | 114,336 | S100TMU5, S100VX5P, S100YAO1 |
| Share capital | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | S100R2EO, S100TMU5, S100VX5P, S100YAO1 |
| Property, plant and equipment | 16,611 | 16,310 | 17,125 | 18,734 | 20,779 | S100R2EO, S100TMU5, S100VX5P, S100YAO1 |
| Intangible assets excluding goodwill | 1,900 | 2,079 | 2,876 | 3,059 | 3,022 | S100R2EO, S100TMU5, S100VX5P, S100YAO1 |
| Investment securities | 23,435 | 24,571 | 29,043 | 28,282 | 28,106 | S100R2EO, S100TMU5, S100VX5P, S100YAO1 |
| Current assets | 86,657 | 97,302 | 110,641 | 110,198 | 113,220 | S100R2EO, S100TMU5, S100VX5P, S100YAO1 |
| Current liabilities | 37,037 | 46,577 | 57,809 | 54,019 | 49,524 | S100R2EO, S100TMU5, S100VX5P, S100YAO1 |
| Trade payables | 10,367 | 11,087 | 13,397 | 11,743 | 10,572 | S100R2EO, S100TMU5, S100VX5P, S100YAO1 |
| Short-term borrowings | 11,782 | 17,515 | 18,700 | 19,200 | 15,500 | S100R2EO, S100TMU5, S100VX5P, S100YAO1 |
| Total liabilities | 47,345 | 56,668 | 68,473 | 63,616 | 57,888 | S100R2EO, S100TMU5, S100VX5P, S100YAO1 |
| Equity attributable to owners of parent | 76,821 | 79,212 | 82,874 | 89,257 | 99,007 | S100R2EO, S100TMU5, S100VX5P, S100YAO1 |
| Retained earnings | 65,806 | 68,198 | 71,860 | 78,243 | 87,993 | S100R2EO, S100TMU5, S100VX5P, S100YAO1 |
| Treasury stock | -6,570 | -6,571 | -6,571 | -6,571 | -6,571 | S100R2EO, S100TMU5, S100VX5P, S100YAO1 |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 6% | S100YAO1 |
| Property, plant and equipment | 12% | S100YAO1 |
| Intangibles and goodwill | 2% | S100YAO1 |
| Investment securities | 16% | S100YAO1 |
| Other assets | 64% | S100YAO1 |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Trade payables | 6% | S100YAO1 |
| Other liabilities | 28% | S100YAO1 |
| Equity | 66% | S100YAO1 |

### 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 | 134,086 | 146,019 | 165,295 | 166,240 | 172,224 |
| Equity | 86,740 | 89,351 | 96,821 | 102,623 | 114,336 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 6,344 | 8,365 | 11,760 | 11,248 | 10,894 |

## 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) | 18.2% | S100YAO1 |
| Fixed assets ÷ total assets | 12.1% | S100YAO1 |
| Goodwill ÷ parent equity | — | —, S100YAO1 |

### 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) | 6.3% |
| Cash ÷ revenue | 9.6% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 67.3% |
| Cash vs. profit gap | -3,720 JPY mn (of net income -32.1%) |
| Shareholder returns / net income | — |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 24.7% |
| Shareholder payments — dividends / FCF | 181.3% |
| CapEx intensity (capex ÷ revenue) | 5.5% |
| Investing CF relative to operating CF | 34.6% |

## 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 | 5.3% | 0.63× | 3.4% | 1.75× | 5.9% | S100R2EO |
| 2023 | 4.8% | 0.61× | 2.9% | 1.80× | 5.2% | S100TMU5 |
| 2024 | 5.4% | 0.63× | 3.4% | 1.92× | 6.6% | S100VX5P |
| 2025 | 8.0% | 0.64× | 5.1% | 1.93× | 9.9% | S100YAO1 |
| 2026 | 10.2% | 0.67× | 6.9% | 1.80× | 12.3% | S100YAO1 |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 日本マスタートラスト信託銀行株式会社（信託口） | Major shareholder | 12.0% | 2026-03-31 |
| 富国生命保険相互会社 | Major shareholder | 7.7% | 2026-03-31 |
| 日本信号取引先持株会 | Major shareholder | 5.7% | 2026-03-31 |
| 日本信号グループ社員持株会 | Major shareholder | 5.0% | 2026-03-31 |
| 株式会社みずほ銀行 | Major shareholder | 3.5% | 2026-03-31 |
| 株式会社日本カストディ銀行（信託口） | Major shareholder | 3.4% | 2026-03-31 |
| 西日本旅客鉄道株式会社 | Major shareholder | 3.3% | 2026-03-31 |
| 株式会社三菱ＵＦＪ銀行 | Major shareholder | 2.2% | 2026-03-31 |
| GOVERNMENT OF NORWAY（常任代理人シティバンク、エヌ・エイ東京支店） | Major shareholder | 2.1% | 2026-03-31 |
| 東海旅客鉄道株式会社 | Major shareholder | 1.5% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 有価証券報告書－第143期(2025/04/01－2026/03/31) | S100YAO1 | 2026-06-15 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YAO1,, |
| 有価証券報告書－第142期(2024/04/01－2025/03/31) | S100VX5P | 2025-06-16 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100VX5P,, |
| 有価証券報告書－第141期(2023/04/01－2024/03/31) | S100TMU5 | 2024-06-21 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TMU5,, |
| 有価証券報告書－第140期(2022/04/01－2023/03/31) | S100R2EO | 2023-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R2EO,, |
| 有価証券報告書－第139期(令和3年4月1日－令和4年3月31日) | S100OCP7 | 2022-06-24 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OCP7,, |
| 有価証券報告書－第138期(令和2年4月1日－令和3年3月31日) | S100LP5R | 2021-06-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LP5R,, |

## 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).