NEC (NIPNF) Risk Assessment

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

NIPNF NEC Corp NIPNF
75 GF Score
Price $27.03
GF Value $17.69
Valuation Significantly Overvalued
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What is NEC Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of NEC is: Low Risk: Strong fundamentals, worth long-term holding.

NEC  (OTCPK:NIPNF) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

NEC Risk Assessment Related Terms

NIPNF vs IBM, ACN, FISV: Risk Assessment Comparison

For the Information Technology Services subindustry, NEC's Risk Assessment, along with its competitors' market caps and Risk Assessment data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

NEC Risk Assessment vs Software Industry

For the Software industry and Technology sector, NEC's Risk Assessment distribution charts can be found below:

* The bar in red indicates where NEC's Risk Assessment falls into.


NIPNF
75GF Score
NEC Corp NIPNF
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Is NEC (NIPNF) Overvalued in 2026?

Based on GuruFocus' analysis, NEC stock appears to be overvalued. The current stock price of $27.03 is trading 52.8% above its estimated GF Value™ of $17.69. GuruFocus considers NEC to be Significantly Overvalued.

Key valuation signals for NIPNF:

  • Risk Assessment:
  • GF Value™: $17.69 vs. price of $27.03 (52.8% above fair value)
  • GF Score™: 75/100

No single metric tells the full story. See the NIPNF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

NEC Business Description

Address 7-1, Shiba 5-chome, Minato-ku, Tokyo, JPN, 108-8001
NEC Corp is engaged in IT services, networks, social infrastructure, and solutions. The company operates through three segments: IT Services, Social Infrastructure, and Others. The IT Services segment provides system integration, consulting, maintenance, outsourcing, cloud services, system equipment, and software services. The Social Infrastructure segment offers network infrastructure, including core networks, mobile base stations, optical transmission systems, and marine systems, along with telecom software, OSS/BSS solutions, aerospace and defense system integration, and maintenance. The Others segment covers the development, manufacturing, and sales of system equipment. It generates the majority of its revenue from the IT Services segment.
75GF Score

Get the complete analysis for NIPNF

Risk Assessment is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$27.03
Price
$17.69
GF Value