Board meeting puts potential Nakanishi stock split in focus
Nakanishi (TSE:7716) has called a board meeting for 7 August 2026 to consider a two for one stock split of its common shares, drawing fresh attention to the stock’s recent performance and liquidity profile.
See our latest analysis for Nakanishi.
Nakanishi’s share price has been strong in the lead up to the board meeting, with a 1 month share price return of 8.17%, a 90 day gain of 17.62%, and a year to date rise of 62.66%. Over longer periods, the picture is more mixed, with a 1 year total shareholder return of 71.15%, a 3 year total shareholder return that has declined 4.51%, and a 5 year total shareholder return of 55.45%. This suggests that recent momentum is building from a softer medium term base.
If this stock split has you thinking about where else momentum could be building, you can broaden your search using the 7 healthcare AI stocks.
Nakanishi looks like a solid healthcare equipment business, with dental and surgical products generating revenue of ¥85,125.36m and net income of ¥1,141.75m. After the recent share price surge, is that quality already fully priced in today?
Price to sales of 3.2x for Nakanishi: Is it justified?
At recent prices around ¥3,245, Nakanishi is described as expensive on a P/S of 3.2x compared with several benchmarks that sit closer to the low 1x range.
The P/S ratio compares the company’s market value with its revenue. For a healthcare equipment group like Nakanishi, this helps show how much investors are paying for each yen of current sales, rather than focusing on earnings that can be affected by one off items.
Here, the market is paying 3.2x Nakanishi’s revenue. That is higher than the JP Medical Equipment industry average of 1.7x and also above the peer average of 1.4x. It also sits above an estimated fair P/S level of 2.4x that the SWS fair ratio suggests the stock could gravitate toward if sentiment cools.
Explore the SWS fair ratio for Nakanishi
Result: Price-to-sales of 3.2x (OVERVALUED)
However, Nakanishi’s relatively high P/S multiple and the planned stock split decision at the 7 August 2026 board meeting could both become pressure points if sentiment cools.
Find out about the key risks to this Nakanishi narrative.
Another view on Nakanishi’s valuation
The SWS DCF model points to a value of ¥3,220.01 per share for Nakanishi, which is slightly below the current price of ¥3,245. On this view the stock appears a touch overvalued rather than clearly cheap. This raises the question of how much weight to place on recent momentum.
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Nakanishi for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 18 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
If the mixed signals around Nakanishi leave you undecided, it makes sense to review the numbers yourself and decide where you stand. To help frame that view, take a closer look at the 1 key reward and 3 important warning signs.
Looking for more ideas beyond Nakanishi?
If Nakanishi has sharpened your focus on valuation and momentum, it is worth widening your search to other stocks that match your preferred style and risk level.
- Target potential value opportunities early by scanning 18 high quality undervalued stocks that combine quality fundamentals with more modest pricing.
- Strengthen the defensive side of your portfolio by reviewing 56 resilient stocks with low risk scores that score well on stability and resilience.
- Spot future standouts before the crowd by checking the screener containing 63 high quality undiscovered gems that already show solid financial underpinnings.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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