Low Financial Leverage / Strong LiquidityA low debt-to-equity profile and stronger equity ratio provide durable financial flexibility for cyclical auto demand. This balance sheet strength supports continued capex, working capital needs, and dividend/return policies without relying on costly external financing, improving long-term resilience.

Improving Gross And EBITDA MarginsSustained improvement in gross and EBITDA margins signals better operational efficiency and product mix (higher-value engineered parts). Structurally higher margins enhance cash generation and reinvestment capacity, making earnings less sensitive to raw-material swings over the medium term.

Recurring OEM B2B Revenue ModelA model tied to OEM and tiered supply contracts creates predictable, repeatable revenue from vehicle production cycles. Long-term OEM relationships and model-specific parts foster stickiness, scale advantages, and visibility into future volumes, supporting steady manufacturing utilization.

Bears Say

Decline In Operating And Free Cash FlowA decline in operating and free cash flow reduces internal funding for capex, dividends, or strategic investments. If persistent, weaker cash conversion can force reliance on external financing or constrain growth investments, eroding the balance sheet cushion despite current low leverage.

Recent Negative Revenue GrowthNegative top-line growth indicates waning demand or lost volume versus prior periods. For a parts supplier, sustained revenue contraction can weaken scale economics, pressurize margins, and reduce bargaining power with OEMs, making long-term margin recovery and investment harder.

Modest And Slipping Profitability MetricsA slipping net margin and only modest ROE limit the company’s ability to generate high returns on capital. Persistently muted profitability reduces retained earnings for reinvestment, constraints growth initiatives, and may cap long-term shareholder compounding unless margins sustainably rebound.

5161 FAQ

What was Nishikawa Rubber Co., Ltd.’s price range in the past 12 months?

Nishikawa Rubber Co., Ltd. lowest stock price was ¥1070.00 and its highest was ¥3945.00 in the past 12 months.

What is Nishikawa Rubber Co., Ltd.’s market cap?

Nishikawa Rubber Co., Ltd.’s market cap is ¥133.23B.

When is Nishikawa Rubber Co., Ltd.’s upcoming earnings report date?

Nishikawa Rubber Co., Ltd.’s upcoming earnings report date is Feb 12, 2026 which is in 8 days.

How were Nishikawa Rubber Co., Ltd.’s earnings last quarter?

Nishikawa Rubber Co., Ltd. released its earnings results on Nov 13, 2025. The company reported ¥74.04 earnings per share for the quarter, beating the consensus estimate of N/A by ¥74.04.

Is Nishikawa Rubber Co., Ltd. overvalued?

According to Wall Street analysts Nishikawa Rubber Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Nishikawa Rubber Co., Ltd. pay dividends?

Nishikawa Rubber Co., Ltd. pays a Semiannually dividend of ¥90 which represents an annual dividend yield of 5.78%. See more information on Nishikawa Rubber Co., Ltd. dividends here

What is Nishikawa Rubber Co., Ltd.’s EPS estimate?

Nishikawa Rubber Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Nishikawa Rubber Co., Ltd. have?

Nishikawa Rubber Co., Ltd. has 37,000,000 shares outstanding.

What happened to Nishikawa Rubber Co., Ltd.’s price movement after its last earnings report?

Nishikawa Rubber Co., Ltd. reported an EPS of ¥74.04 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -0.62%.

Which hedge fund is a major shareholder of Nishikawa Rubber Co., Ltd.?

Currently, no hedge funds are holding shares in JP:5161

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

Nishikawa Rubber Co., Ltd.

Nishikawa Rubber Co., Ltd. manufactures and sells rubber and sealing products in Japan and internationally. It offers automotive-related products, such as insulators for electrical parts; hood, lamp, waist, and door hole seals; sunroof, trunklid, roofside, door mounted, drip, body mounted, convertible header, and convertible roofside weatherstrips. The company also provides housing-related products, including joint gaskets, backup seals, door seals, and other seals for water-proofing, fire-protection, dust-proofing, noise insulation, barrier-free, energy-saving applications, etc.; and civil engineering-related products, such as AN joint I, Excel joints, and ANB flexible joints for sewage works and water-swelling sponge applications. Nishikawa Rubber Co., Ltd. was founded in 1934 and is headquartered in Hiroshima, Japan.