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IT services and network-equipment maker: biometrics/AI systems, telecom infrastructure and public-sector IT for Japan.
IT services and network-equipment maker: biometrics/AI systems, telecom infrastructure and public-sector IT for Japan.
Earns from long-running contracts to build and run systems for ministries, police, airports and companies in Japan, with maintenance and support following each installation. It bought Avaloq, Swiss banking software, and KMD, Danish public-sector software, around 2020-21 to build services abroad.
In one line: A smaller Japanese IBM/Cisco hybrid.
Moat: narrow (installed base, IP / patents, customer qualification). Long-standing government/public-safety IT incumbent with a leading biometrics patent portfolio.
Headquarters: Tokyo, Japan · Founded: 1899 · Employees: 101,800
Size Nec (6701.T) is a Japan Information Technology company (Information Technology Services) with a market value of $36.3B, the 43rd largest of 1,379 Japan companies the cockpit tracks. Shares closed at ¥4,317 on 6 Nov 2026.
Performance Over six months the shares gained 5.3%, against +26.5% for the median peer and +1.8% for the Japan market (cap-weighted) — 8th lowest of 21 in its peer set.
Growth Revenue grew 7.4% over the last twelve months (peer median +10.5%); the operating margin is 11.6% (peer median 15.1%).
Valuation It trades at 18.6× forward earnings against a peer median of 17.1× (9th most expensive of 21).
Price implies For today's price to make sense, revenue must grow about 5% a year for seven years (Req g). Recent delivered growth is +4%, so the hurdle is +2 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 3.9 points above its cost of capital (7.1% WACC).
Credit Nec has 1 bond outstanding ($500M), rated A- by the agencies and trading like BBB+ at a weighted spread of 82 bp.
Next results Next results expected around 1 Feb 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | ¥3.77T | ¥3.58T | ¥3.42T | ¥3.48T | ¥3.31T |
| Revenue growth | — | +5% | -2% | +5% | — |
| Gross profit | ¥1.28T | ¥1.18T | ¥1.06T | ¥1.01T | ¥958B |
| EBITDA | ¥590B | ¥575B | ¥442B | ¥380B | ¥349B |
| Net income | ¥314B | ¥270B | ¥175B | ¥150B | ¥114B |
| Free cash flow | ¥179B | ¥368B | ¥218B | ¥196B | ¥95.7B |
| Capital expenditure | ¥122B | ¥91.6B | ¥151B | ¥99.8B | ¥77.7B |
| Total debt | ¥775B | ¥489B | ¥666B | ¥574B | ¥608B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Nec 6701.T | $36.3B | +5% | +7% | 12% | 18.6× | 5.5% |
| Fujitsu 6702.T | $35.4B | +1% | +4% | 10% | 18.0× | 4.1% |
| Hitachi 6501.T | $130B | -7% | +14% | 12% | 20.9× | 9.5% |
| Telefonaktiebolaget LM Ericsson Sponsored ADR ERIC | $36.7B | -14% | +4% | 14% | 15.5× | -1.6% |
| Nokia NOKIA.HE | $44.3B | -37% | +4% | 14% | 19.2× | 17.4% |
| IBM IBM | $232B | +6% | +7% | 21% | 18.8× | 7.6% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | 6701.T | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -12.4% | +10.0% | 7th lowest of 21 |
| 6-month return | +5.3% | +26.5% | 8th lowest of 21 |
| Distance from 52-week high | -29.9% | -22.9% | 6th lowest of 21 |
| Revenue growth (TTM) | +7.4% | +10.5% | 6th lowest of 21 |
| Operating margin | 11.6% | 15.1% | 9th lowest of 21 |
| Forward P/E | 18.6× | 17.1× | 9th most expensive of 21 |
| Growth the price implies (Req g, 7 yrs) | 5.5% | 6.9% | 9th least demanding of 19 |
| Growth delivered (Del g) | +3.7% | +9.0% | 3rd lowest of 19 |
| Hurdle (Req g minus delivered) | +1.8 pp | -1.9 pp | 5th most demanding of 19 |
| ROIC minus cost of capital | +3.9 pp | +8.0 pp | 7th lowest of 19 |
| EV / EBITDA | 10.4× | 13.1× | 6th cheapest of 16 |
| Net debt / EBITDA | 0.6× | -0.6× | 6th most indebted of 18 |
| Bond spread | 82 bp | 103 bp | tightest of 6 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Nec 6701.T | Japan | $36.3B | +5% | +7% | 12% | 18.6× | 5.5% | +3.7% |
| Fujitsu 6702.T | Japan | $35.4B | +1% | +4% | 10% | 18.0× | 4.1% | -0.5% |
| HCL Technologies HCLTECH.NS | India | $41.4B | +22% | +13% | 18% | 19.5× | 11.8% | +11.5% |
| Cognizant CTSH | United States | $28.9B | +26% | +5% | -1% | 10.5× | 0.8% | +4.9% |
| Workday WDAY | United States | $46.5B | +51% | +14% | 13% | 16.0× | 19.7% | +17.3% |
| Infosys INFY.NS | India | $50.7B | +2% | +6% | 21% | 15.5× | 6.6% | +12.2% |
| HP Inc. HPQ | United States | $25.7B | +27% | +9% | 7% | 9.5× | -7.0% | -0.4% |
| Capgemini CAP.PA | France | $24.1B | +31% | +6% | 11% | 10.4× | -0.1% | +7.2% |
| Credo Technology CRDO | United States | $22.7B | -36% | +165% | 32% | 16.5× | 47.4% | +86.8% |
| Rubrik RBRK | United States | $21.9B | +70% | +42% | -18% | 215.0× | 36.2% | +27.7% |
| Wipro WIPRO.NS | India | $20.7B | 0% | +8% | 16% | 14.9× | 9.0% | +8.4% |
| Nomura Research Institute 4307.T | Japan | $20.2B | +40% | +8% | 19% | 26.4× | 0.7% | +8.2% |
| Hygon Information Technology 688041.SS | China | $66.0B | -36% | +59% | 19% | 100.6× | n/a | n/a |
| CDW CDW | United States | $19.6B | +51% | +11% | 7% | 12.9× | 2.6% | +4.0% |
| Tech Mahindra TECHM.NS | India | $19.0B | +26% | +14% | 14% | 23.9× | 20.3% | +8.5% |
| CGI GIB-A.TO | Canada | $17.2B | +27% | +6% | 17% | 12.2× | -12.0% | +5.5% |
| OBIC 4684.T | Japan | $16.6B | +46% | +13% | 67% | 30.3× | 4.6% | +10.0% |
| Fortinet FTNT | United States | $87.3B | +4% | +20% | 33% | 31.6× | 22.4% | +21.3% |
| Tata Consultancy Services TCS.NS | India | $95.7B | +4% | +10% | 25% | 16.2× | 12.0% | +10.2% |
| Cloudflare NET | United States | $95.7B | +37% | +34% | -8% | 168.8× | n/a | n/a |
| CACI International CACI | United States | $13.6B | +27% | +10% | 10% | 17.6× | 7.3% | +9.6% |
Nec has 1 bond outstanding with $500M face value. The agencies rate it A-; its bonds trade like BBB+. Weighted yield 5.46%, a spread of 82 bp over government bonds.