Nippon Active Value Fund Plc (NAVF) AI Stock Analysis

• Market Cap: £353.69M
• Dividend Yield: 0.01%
• Average Volume (3M): 171.69K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.64
• Revenue Growth: 5.16%
• EPS Growth: -29.70%
• Country: UK
• Employees: N/A
• Sector: Financial
• Sector Strength: 73
• Industry: Asset Management
• EPS (TTM): 0.14
• Shares Outstanding: 189,141,710
• 10 Day Avg. Volume: 122,739
• 30 Day Avg. Volume: 171,693
• PEG Ratio: -0.24
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.55K
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 83 Outperform
• Price Target: ―

Nippon Active Value Fund Plc exhibits strong financial health with impressive growth in revenue and profit margins. The technical analysis supports a bullish outlook, with positive market momentum indicators. Valuation metrics suggest the stock is undervalued, offering potential upside. Recent corporate events reinforce the strategic direction and successful performance in the Japanese market. Overall, the company presents a compelling investment opportunity with a score of 83.

Nippon Active Value Fund Plc Business Overview & Revenue Model

Company Description

Nippon Active Value Fund Plc (NAVF) is a UK-based investment company focused on investing in undervalued small-cap Japanese companies. The fund primarily targets businesses with strong balance sheets and significant growth potential, aiming to unlock shareholder value through active engagement with management. NAVF operates within the financial services sector, leveraging its expertise in equity investments to optimize returns for its shareholders.

How the Company Makes Money

Nippon Active Value Fund Plc generates revenue through the appreciation of its investment portfolio, primarily consisting of equity holdings in Japanese small-cap companies. The fund seeks to enhance shareholder value by actively engaging with the management of its portfolio companies, promoting strategic initiatives that can lead to operational improvements and market revaluation. NAVF's earnings are driven by capital gains realized from selling appreciated securities, as well as any dividends received from its investments. The company also benefits from management fees charged to investors based on the net asset value of the fund, which contribute to its revenue stream.

Nippon Active Value Fund Plc Financial Statement Overview

Summary

Nippon Active Value Fund Plc demonstrates strong financial performance with robust growth in revenue and profitability. It benefits from a debt-free balance sheet and high ROE, indicating efficient equity management. However, the cash flow stability is mixed, with a potential gap between earnings and cash generation needing attention. Overall, the company is financially sound with excellent growth potential.

Income Statement

The company shows strong profitability with gross and net profit margins consistently near 100%, indicating efficient cost management. Revenue has grown significantly over recent years, with a notable growth of 3.35% from 2023 to 2024. However, the absence of EBITDA data limits a full profitability analysis.

Balance Sheet

The balance sheet is robust with no debt, highlighting financial stability. The equity ratio is exceptionally high, reflecting a strong equity base. ROE is impressive at 13.28% for 2024, showcasing efficient use of equity. However, a slight increase in liabilities should be monitored.

Cash Flow

Cash flow stability is mixed; free cash flow has improved, moving from negative to positive in 2024. The operating cash flow to net income ratio is low, indicating a potential gap between earnings and cash generation. Nevertheless, the positive free cash flow is a good sign of financial health.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.12M	49.47M	6.46M	27.33M	14.88M
Gross Profit	47.92M	49.47M	6.46M	27.33M	14.88M
EBITDA	51.28M	0.00	0.00	0.00	0.00
Net Income	48.53M	47.56M	5.09M	26.27M	13.99M
Balance Sheet
Total Assets	366.75M	320.46M	159.26M	156.27M	117.26M
Cash, Cash Equivalents and Short-Term Investments	19.89M	22.26M	31.74M	15.81M	12.64M
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.31M	523.00K	517.00K	418.00K	122.00K
Stockholders Equity	365.44M	319.94M	158.75M	155.85M	116.99M
Cash Flow
Free Cash Flow	1.79M	-1.28M	3.98M	-539.00K	-1.97M
Operating Cash Flow	1.79M	-1.28M	3.98M	-539.00K	-1.97M
Investing Cash Flow	-1.13M	-121.83M	14.15M	-8.89M	-88.38M
Financing Cash Flow	-3.03M	113.63M	-2.20M	12.60M	103.00M

Nippon Active Value Fund Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 205.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NAVF, the sentiment is Positive. The current price of 205 is above the 20-day moving average (MA) of 201.55, above the 50-day MA of 195.86, and above the 200-day MA of 187.09, indicating a bullish trend. The MACD of 3.26 indicates Negative momentum. The RSI at 75.07 is Negative, neither overbought nor oversold. The STOCH value of 82.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:NAVF.

Nippon Active Value Fund Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NAVF	83 Outperform	£353.69M	7.99	14.16%	0.01%	5.16%	-29.70%
SDR	74 Outperform	£6.03B	14.72	9.48%	7.71%	0.72%	7.66%
CLIG	69 Neutral	£174.28M	12.38	11.92%	4.53%	0.27%	1.47%
JUP	67 Neutral	£630.26M	9.95	8.03%	3.51%	0.37%	―
Sector *	64 Neutral	$6.53B	11.09	7.19%	5.09%	23.85%	5.18%
POLR	64 Neutral	£456.95M	13.08	26.12%	13.38%	18.08%	22.78%

Nippon Active Value Fund Plc Corporate Events

Nippon Active Value Fund Reports Strong 2024 Performance Amid Strategic Investments

Nippon Active Value Fund Plc has released its annual report for 2024, showcasing a notable increase in net assets to £365.4 million and a net asset value per share rise of 15.2%. The company continues to benefit from strategic investments in undervalued Japanese companies, leveraging regulatory changes in Japanese corporate governance to enhance shareholder value. The fund’s activist approach, focusing on improving corporate governance and capital allocation, aligns with recent regulatory emphasis on profitability and liquidity, potentially increasing the success of activist proposals and market liquidity.

Nippon Active Value Fund Reacts to Fuji Media Report

Nippon Active Value Fund’s investment advisor, Rising Sun Management, has responded to a report by a Third-Party Committee regarding Fuji Media Holdings and Fuji Television. This reaction, which will be available on NAVF’s website, highlights the fund’s active engagement in its investments, potentially impacting its strategic positioning and stakeholder interests.

Nippon Active Value Fund Releases February 2025 Factsheet

Nippon Active Value Fund plc announced the availability of its Monthly Factsheet for February 2025 on its website. This release provides stakeholders with insights into the company’s performance and strategic focus, potentially impacting investor decisions and market perception of NAVF’s positioning in the investment sector.

Nippon Active Value Fund Releases January 2025 Factsheet

Nippon Active Value Fund plc announced the availability of its Monthly Factsheet as of January 31, 2025, on its website. This update provides stakeholders with insights into the fund’s performance and strategic positioning, reinforcing its commitment to transparency and informed investment decisions.

Nippon Active Value Fund Celebrates 5th Anniversary with 103% Gain

Nippon Active Value Fund Plc has marked its 5th anniversary with a cumulative investment gain of 103%, showcasing its strong performance in the Japanese market. The fund’s strategy of targeting undervalued small and mid-cap Japanese companies has been successful, benefiting from Japan’s corporate governance reforms and economic growth. This approach has not only provided diversification for British investors but also capitalized on compelling valuations and a growing wave of activism in Japan, leading to enhanced shareholder returns.