Free Cash Flow StrengthNOVAC's very strong free cash flow (FCF/net income ~0.99) and solid operating cash conversion provide durable internal funding. Over the next 2–6 months this reduces refinancing risk, supports steady dividends, funds R&D/capex, and gives flexibility to absorb shocks without raising costly external capital.

Low Leverage And Strong Equity BaseExtremely low net leverage (D/E ~0.02) and a high equity ratio (~70%) create durable financial flexibility. This structure supports counter-cyclical investments, preserves borrowing capacity for strategic opportunities, and lowers solvency risk, strengthening the company through industry cycles.

Diversified B2B Industrial Exposure And Long-term ContractsNOVAC's exposure to telecom, automotive and consumer electronics plus long-term contracts and partnerships smooths order visibility and reduces single-market cyclicality. Combined with R&D investment, this structural model supports product differentiation and more predictable revenue streams over a multi-month horizon.

Bears Say

Revenue DeclineA sustained revenue decline (~-11.6% last year) is a structural concern: shrinking top line reduces operational leverage, constrains reinvestment and heightens reliance on cost controls. If the trend persists, it could erode scale advantages and weaken competitive positioning over the medium term.

Thin Profit MarginsLow gross and net margins leave little buffer against input cost increases or pricing pressure. Thin profitability constrains the firm's ability to fund innovation, absorb demand shocks, and improve returns, making long-term margin recovery essential for durable earnings growth.

Modest Return On EquityROE around 3.15% indicates limited efficiency in converting equity into returns. Persistently low ROE can signal suboptimal capital allocation or low asset turnover, limiting shareholder value creation and reducing attractiveness to growth-focused investors over the next several months.

5079 FAQ

What was NOVAC CO., LTD.’s price range in the past 12 months?

NOVAC CO., LTD. lowest stock price was ¥2330.00 and its highest was ¥2940.00 in the past 12 months.

What is NOVAC CO., LTD.’s market cap?

NOVAC CO., LTD.’s market cap is ¥14.96B.

When is NOVAC CO., LTD.’s upcoming earnings report date?

The company’s upcoming earnings report date is not yet available.

How were NOVAC CO., LTD.’s earnings last quarter?

Currently, no data Available

Is NOVAC CO., LTD. overvalued?

According to Wall Street analysts NOVAC CO., LTD.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does NOVAC CO., LTD. pay dividends?

NOVAC CO., LTD. pays a Semiannually dividend of ¥60 which represents an annual dividend yield of 4.49%. See more information on NOVAC CO., LTD. dividends here

What is NOVAC CO., LTD.’s EPS estimate?

NOVAC CO., LTD.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does NOVAC CO., LTD. have?

NOVAC CO., LTD. has 5,202,800 shares outstanding.

What happened to NOVAC CO., LTD.’s price movement after its last earnings report?

Currently, no data Available

Which hedge fund is a major shareholder of NOVAC CO., LTD.?

Currently, no hedge funds are holding shares in JP:5079

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

NOVAC CO., LTD.

Novac Co., Ltd. engages in the civil engineering and construction general contracting business in Japan. It maintains and repairs public facilities, tenant buildings, condominiums, etc. The company is also involved in the design and construction supervision of architectural projects and buildings; and landscaping and greening contracting businesses. Novac Co., Ltd. was incorporated in 1965 and is headquartered in Himeji, Japan.