Nakabohtec Corrosion Protecting Co., Ltd. (1787) AI Stock Analysis

• Market Cap: ¥13.18B
• Dividend Yield: 5.14%
• Average Volume (3M): 513.00
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.30
• Revenue Growth: 9.55%
• EPS Growth: 44.98%
• Country: JP
• Employees: 265
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 252.39
• Shares Outstanding: 2,602,500
• 10 Day Avg. Volume: 450
• 30 Day Avg. Volume: 513
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 68 Neutral
• Price Target: ―

Nakabohtec Corrosion Protecting Co., Ltd. scores well in financial performance due to strong profitability and a robust balance sheet. However, technical analysis indicates potential bearish momentum, and cash flow management needs improvement. While the valuation is reasonable with a good dividend yield, these factors combined suggest a moderate outlook for the stock.

Positive Factors

Balance Sheet Health

A strong balance sheet with zero debt and a high equity ratio provides financial stability and flexibility, supporting long-term growth and resilience against economic fluctuations.

Revenue Growth

Steady revenue growth indicates effective market penetration and demand for corrosion protection services, suggesting sustained business expansion opportunities.

Profitability

Strong profit margins reflect efficient cost management and pricing power, enabling the company to maintain profitability and invest in future growth initiatives.

Negative Factors

Cash Flow Management

Inconsistent cash flow management can lead to liquidity challenges, affecting the company's ability to invest in growth and manage operational expenses effectively.

Market Saturation

Modest revenue growth may indicate limited market expansion opportunities, necessitating innovation or diversification to sustain long-term growth.

Cash Flow Volatility

Volatile cash flow can impact financial planning and stability, potentially hindering the company's ability to fund strategic initiatives and respond to market changes.

Nakabohtec Corrosion Protecting Co., Ltd. Business Overview & Revenue Model

Company Description

Nakabohtec Corrosion Protecting Co.,Ltd. provides survey, analysis, design, engineering, work supervision, and material supply services for protecting metallic structures from corrosion in Japan. It offers cathodic protection work, painting corrosion protection, coating anti-corrosion work, electrolytic iron ion, antifouling, and corrosive environment survey; and construction services, including civil engineering works, electrical works, scaffolding works, steel structure works, pavement works, dredging works, waterproofing works, and water supply facility works. The company was formerly known as Nakagawa corrosion Industrial Co., Ltd. and changed its name to Nakabohtec Corrosion Protecting Co.,Ltd. in 1991. Nakabohtec Corrosion Protecting Co.,Ltd. was incorporated in 1951 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nakabohtec Corrosion Protecting Co., Ltd. generates revenue primarily through the sale of its corrosion protection services and products. Key revenue streams include contracting with industries that require anti-corrosion solutions, such as the construction of bridges, ships, and oil rigs. The company may also engage in long-term maintenance contracts to ensure the continued efficacy of its corrosion protection measures. Additionally, strategic partnerships with industrial clients and government entities help drive sales and expand its market presence. Factors such as advancements in protective technology and increased infrastructure development contribute to the company's earnings.

Nakabohtec Corrosion Protecting Co., Ltd. Financial Statement Overview

Summary

Nakabohtec Corrosion Protecting Co., Ltd. demonstrates strong financial health with high profitability and excellent balance sheet stability due to zero debt. However, cash flow management could be improved to ensure consistent liquidity and support future growth. The company is well-positioned within the metal fabrication industry, but should focus on enhancing cash flow operations and exploring new growth avenues.

Income Statement

Nakabohtec Corrosion Protecting Co., Ltd. shows strong financial performance with a consistent increase in revenue, achieving a TTM (Trailing-Twelve-Months) revenue of 14.4 billion JPY. The gross profit margin stands at 24.7%, and the net profit margin is 6.5%, reflecting solid profitability. The company's EBIT and EBITDA margins are 9.1% and 9.8% respectively, indicating efficient operational performance. However, revenue growth has been modest, suggesting potential saturation in market demand.

Balance Sheet

The balance sheet is robust with a high equity ratio of 72.9% and zero debt, showcasing financial stability and low leverage. The return on equity is 11.6%, indicating efficient utilization of shareholders' equity to generate profits. The strong stockholders' equity base of 8.1 billion JPY supports the company's growth and financial health.

Cash Flow

Cash flow analysis shows areas for improvement, as the operating cash flow to net income ratio is unavailable in the TTM period. Despite this, previous periods indicate healthy free cash flow generation, although there are fluctuations in free cash flow growth, which could signal volatility in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.73B	14.73B	13.78B	14.16B	12.91B	13.01B
Gross Profit	3.78B	3.73B	3.37B	3.42B	3.08B	3.28B
EBITDA	1.62B	1.62B	1.29B	1.44B	1.16B	1.36B
Net Income	1.05B	1.05B	834.90M	899.25M	763.79M	901.47M
Balance Sheet
Total Assets	12.15B	12.15B	11.33B	11.42B	10.86B	11.25B
Cash, Cash Equivalents and Short-Term Investments	3.92B	3.92B	3.93B	3.42B	3.33B	3.02B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	3.42B	3.42B	3.03B	3.41B	3.22B	3.80B
Stockholders Equity	8.73B	8.73B	8.30B	8.01B	7.64B	7.45B
Cash Flow
Free Cash Flow	0.00	570.91M	1.15B	638.07M	1.22B	-121.42M
Operating Cash Flow	0.00	692.50M	1.23B	822.74M	1.33B	-7.17M
Investing Cash Flow	0.00	-114.20M	-89.36M	-185.32M	-224.24M	-122.57M
Financing Cash Flow	0.00	-590.64M	-628.15M	-544.42M	-800.57M	-627.04M

Nakabohtec Corrosion Protecting Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5350.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1787, the sentiment is Positive. The current price of 5350 is above the 20-day moving average (MA) of 5338.00, above the 50-day MA of 5343.00, and above the 200-day MA of 4968.57, indicating a bullish trend. The MACD of 4.70 indicates Negative momentum. The RSI at 52.20 is Neutral, neither overbought nor oversold. The STOCH value of 48.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1787.

Nakabohtec Corrosion Protecting Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5644	80 Outperform	¥11.75B	5.84		3.45%	0.52%	-3.96%
5922	76 Outperform	¥17.32B	9.56		3.08%	2.75%	-9.49%
3435	73 Outperform	¥10.02B	9.28		2.99%	-0.77%	-23.54%
1787	68 Neutral	¥13.18B	12.81		5.14%	9.55%	44.98%
3447	65 Neutral	¥12.12B	10.63		3.62%	30.25%	104.29%
5852	64 Neutral	¥23.20B	―		3.05%	5.53%	68.16%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%