NEC Corporation (6701.T) stock analysis

In our weekly check, NEC Corporation is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 3, red flags: 2.

About NEC Corporation

NEC Corporation is a Technology company (Information Technology Services) based in Japan, listed on JPX as 6701.T.

What our checks show for 6701.T

Red flags

• The stock has fallen as much as 86% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 10.3 years.

Warning signs

• Revenue grew only 3.6% a year over the last 3 years.
• The net margin is only 8.2%: little room if costs rise.
• The price swings a lot: 48.6% annual volatility. Expect large ups and downs.

Strengths

• Net debt is only 0.3x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 22.1 times over.
• The net margin rose by 3.5 points over 5 years, to 8.2%.
• The gross margin is 33.5% and has risen by 4 points: pricing power is holding.
• Analysts expect earnings per share to grow about 11% a year over the next years.
• Earnings per share grew 38.6% a year over the last 3 years.

Next earnings report: 2026-10-28

Similar companies

6702.T · TCS.BO · HCLTECH.NS · 4307.T · TECHM.NS

Questions

What grade does NEC Corporation (6701.T) have?

In our weekly check, NEC Corporation is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 3, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 6701.T stock?

This week's biggest flags for NEC Corporation: Deep past fall, Slow recovery after falls, Weak revenue growth. In total 5 of 25 checks show a warning or a red flag.

What does NEC Corporation do?

NEC Corporation is a Technology company (Information Technology Services) based in Japan, listed on JPX as 6701.T.

When does NEC Corporation report earnings next?

The next earnings report is expected on 2026-10-28. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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