Nippon Signal Co (TSE:6741) 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.

TSE:6741 Nippon Signal Co Ltd TSE:6741
89 GF Score
Price 円1,890.00
GF Value 円1,300.94
Valuation Significantly Overvalued
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What is Nippon Signal Co 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 Nippon Signal Co is: Moderate Risk: Sensitive, better choose undervalued stock.

Nippon Signal Co  (TSE:6741) 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.

Nippon Signal Co Risk Assessment Related Terms

TSE:6741 vs VRT, BE: Risk Assessment Comparison

For the Electrical Equipment & Parts subindustry, Nippon Signal Co'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.

Nippon Signal Co Risk Assessment vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Nippon Signal Co's Risk Assessment distribution charts can be found below:

* The bar in red indicates where Nippon Signal Co's Risk Assessment falls into.


TSE:6741
89GF Score
Nippon Signal Co Ltd TSE:6741
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Is Nippon Signal Co (TSE:6741) Overvalued in 2026?

Based on GuruFocus' analysis, Nippon Signal Co stock appears to be overvalued. The current stock price of 円1,890.00 is trading 45.3% above its estimated GF Value™ of 円1,300.94. GuruFocus considers Nippon Signal Co to be Significantly Overvalued.

Key valuation signals for TSE:6741:

  • Risk Assessment:
  • GF Value™: 円1,300.94 vs. price of 円1,890.00 (45.3% above fair value)
  • GF Score™: 89/100

No single metric tells the full story. See the TSE:6741 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Nippon Signal Co Business Description

Other Exchanges F6N:Germany
Address 1-5-1, Marunouchi, Chiyoda-ku, Tokyo, JPN, 100-6513
Nippon Signal Co Ltd is a Japanese technology company. Its products and services fall into the following categories: railway signal systems, traffic information systems, automatic fare collection, or AFR, systems, and parking information systems. The railway signal systems division provides automatic train supervision systems, relay interlocking equipment, level-crossing systems, and LED information boards. The traffic information systems division offers universal traffic management systems, local controllers, and LED traffic signal lights. The AFR system division offers comprehensive network systems to automate station operations. The parking information systems division offers car parking systems and bicycle lock systems.
89GF Score

Get the complete analysis for TSE:6741

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

円1,890.00
Price
円1,300.94
GF Value