Nippon Aqua Co., Ltd. (1429) AI Stock Analysis

• Market Cap: ¥28.95B
• Dividend Yield: 3.79%
• Average Volume (3M): 68.25K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.43
• Revenue Growth: 16.35%
• EPS Growth: 27.66%
• Country: JP
• Employees: 612
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): 13.75
• Shares Outstanding: 34,760,000
• 10 Day Avg. Volume: 63,090
• 30 Day Avg. Volume: 68,246
• PEG Ratio: -1.60
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 0.80
• P/FCF Ratio: -34.71
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥945.00 ▲(4.77% Upside)

Nippon Aqua Co., Ltd. has a balanced financial performance with strong revenue growth and profitability, though recent cash flow issues need attention. The technical analysis suggests potential bearish momentum, but valuation metrics are favorable with a reasonable P/E ratio and attractive dividend yield. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability and expansion.

Profitability

Sustained profitability margins suggest efficient operations and cost management, which are crucial for enduring competitive advantage and shareholder value.

Sustainable Practices

Focus on sustainability and technology enhances brand reputation and compliance with environmental regulations, crucial for long-term industry leadership.

Negative Factors

Cash Flow Challenges

Negative cash flow can limit investment in growth opportunities and strain liquidity, posing risks to financial health if not addressed.

Return on Equity Decline

Declining return on equity may indicate challenges in generating shareholder returns, potentially impacting investor confidence and capital raising.

Net Income Decline

A decline in net income could signal operational inefficiencies or market challenges, affecting future profitability and investment capacity.

Nippon Aqua Co., Ltd. Business Overview & Revenue Model

Company Description

Nippon Aqua Co., Ltd. manufactures and sells building materials in Japan. It offers energy-saving products, such as AQUA FOAM, an on-site spray polyurethane foam insulation material; heat insulating sheets; spacers; A1 and B type for buildings; and AQUA FOAM NEO materials. The company also develops, manufactures, and sells merchandise related for energy saving housing. It offers its products for detached houses and buildings. The company was incorporated in 2004 and is headquartered in Tokyo, Japan. Nippon Aqua Co., Ltd. operates as a subsidiary of Hinokiya Group Co.,Ltd.

How the Company Makes Money

Nippon Aqua generates revenue primarily through the sale of seafood products, which include both live and processed aquatic goods. The company has established a robust supply chain that allows it to efficiently bring its products to market, leveraging partnerships with local fisheries and distributors. Additionally, Nippon Aqua may earn income through value-added services such as processing, packaging, and logistics, which enhance the appeal of its products to retailers and consumers. The company may also engage in research and development partnerships aimed at improving aquaculture techniques, potentially leading to grants or funding that can supplement its revenue streams.

Nippon Aqua Co., Ltd. Financial Statement Overview

Summary

Nippon Aqua Co., Ltd. shows solid growth and profitability in its income statement with consistent revenue increases and effective cost management. The balance sheet is stable, but recent pressures on return on equity and cash flow challenges, particularly negative free cash flow, highlight the need for careful cash management.

Income Statement

Nippon Aqua Co., Ltd. has demonstrated consistent revenue growth over the years, with a notable increase from 2020 to 2024. Gross profit margins and EBIT margins have remained healthy, although there was a slight decline in EBIT margin in the most recent year. The company’s net profit margin is solid, reflecting effective cost management. However, there was a drop in net income from 2023 to 2024.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, which indicates a balanced approach to leveraging. The equity ratio suggests a strong equity base relative to total assets, which is a positive sign of financial stability. However, the return on equity has seen fluctuations, with a recent decline, which could indicate challenges in generating returns for shareholders.

Cash Flow

Nippon Aqua's cash flow position is mixed, with negative free cash flow in the latest year due to increased capital expenditures and a negative operating cash flow. The free cash flow to net income ratio is concerning, indicating potential strain in cash generation compared to reported earnings. Despite these challenges, the company has previously demonstrated strong operating cash flows, reflecting potential for recovery.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.14B	30.27B	28.34B	25.67B	23.90B	21.87B
Gross Profit	7.45B	6.86B	6.72B	5.78B	4.74B	5.31B
EBITDA	3.10B	2.86B	3.17B	2.59B	1.65B	2.08B
Net Income	2.01B	1.84B	2.00B	1.55B	953.80M	1.34B
Balance Sheet
Total Assets	23.28B	24.07B	20.39B	21.97B	18.28B	16.02B
Cash, Cash Equivalents and Short-Term Investments	1.78B	2.26B	2.03B	2.68B	1.93B	1.65B
Total Debt	4.42B	4.53B	2.45B	6.11B	3.28B	2.48B
Total Liabilities	13.07B	13.53B	11.09B	14.00B	10.33B	8.38B
Stockholders Equity	10.21B	10.55B	9.30B	7.97B	7.95B	7.64B
Cash Flow
Free Cash Flow	0.00	-698.84M	3.70B	-586.70M	164.93M	7.98M
Operating Cash Flow	0.00	-516.52M	4.02B	-297.74M	520.50M	694.19M
Investing Cash Flow	0.00	-338.41M	-385.20M	-293.25M	-355.36M	-609.20M
Financing Cash Flow	0.00	1.08B	-4.28B	1.34B	109.78M	-311.39M

Nippon Aqua Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 902.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1429, the sentiment is Positive. The current price of 902 is above the 20-day moving average (MA) of 876.90, above the 50-day MA of 887.34, and above the 200-day MA of 829.33, indicating a bullish trend. The MACD of 5.46 indicates Negative momentum. The RSI at 60.89 is Neutral, neither overbought nor oversold. The STOCH value of 87.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1429.

Nippon Aqua Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5288	80 Outperform	¥54.24B	10.37	―	3.25%	9.50%	77.72%
5285	67 Neutral	¥19.75B	8.48	―	3.10%	18.19%	27.62%
5287	67 Neutral	¥2.97B	12.07	―	2.00%	-3.03%	-14.50%
1429	64 Neutral	¥28.95B	14.33	22.09%	3.79%	16.35%	27.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5271	54 Neutral	¥3.01B	12.37	―	3.85%	0.29%	-45.50%
5269	49 Neutral	¥18.35B	-144.52	―	3.24%	-3.73%	-143.19%

Nippon Aqua Co., Ltd. Corporate Events

Nippon Aqua Announces Treasury Share Disposal for Employee Incentives

Nippon Aqua Co., Ltd. has announced a plan to dispose of 350,000 treasury shares as restricted stock compensation to 200 employees. This initiative is designed to incentivize employees and align their interests with the company’s long-term value creation goals. The shares will be allocated under a five-year restriction period, with specific conditions for lifting these restrictions, thereby strengthening employee retention and engagement.

Nippon Aqua Co., Ltd. Reports Strong Financial Growth and Market Expansion

Nippon Aqua Co., Ltd. reported strong financial results for the nine months ending September 30, 2025, with significant growth in net sales and ordinary profit. The company’s strategy to expand market share in the Single-family Homes Division has been successful, leading to increased orders from large-scale builders and new major clients. In the Waterproofing Division, the company has seen robust demand for non-residential renovation projects and new multi-dwelling housing construction, contributing to its diversified business portfolio. Despite some delays in design changes and construction decisions, Nippon Aqua is focused on improving profitability and construction efficiency to achieve its full-year plan.

Nippon Aqua Co., Ltd. Reports Strong Financial Growth for 2025

Nippon Aqua Co., Ltd. reported a significant increase in its financial performance for the nine months ending September 30, 2025, with net sales rising by 16.7% and profits showing a notable improvement compared to the previous year. This positive trend highlights the company’s strong market position and effective business strategies, suggesting potential benefits for stakeholders and a promising outlook for the fiscal year ending December 31, 2025.