NIPPN Corporation (2001) AI Stock Analysis

• Market Cap: ¥195.36B
• Dividend Yield: 2.79%
• Average Volume (3M): 492.89K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.32
• Revenue Growth: 1.83%
• EPS Growth: -39.02%
• Country: JP
• Employees: 3,829
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 54.45
• Shares Outstanding: 84,727,165
• 10 Day Avg. Volume: 303,030
• 30 Day Avg. Volume: 492,893
• PEG Ratio: -1.11
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -122.17
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥2,455.00 ▲(3.06% Upside)

NIPPN Corporation's strong financial performance and attractive valuation are significant strengths, making it a compelling investment in the packaged foods industry. However, technical indicators suggest caution due to potential bearish momentum. Improving cash flow management could further enhance its financial position.

Positive Factors

Revenue Growth

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

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and low risk, providing flexibility for future investments and growth opportunities.

Profitability

Strong gross profit margins reflect efficient operations and cost control, which are crucial for sustaining profitability in competitive markets.

Negative Factors

Cash Flow Challenges

Negative free cash flow suggests liquidity constraints, which could limit the company's ability to invest in growth and manage financial obligations.

Net Profit Margin Decline

A declining net profit margin may indicate rising costs or pricing pressures, potentially impacting long-term profitability and shareholder returns.

Earnings Per Share Decline

A significant decline in EPS growth suggests challenges in maintaining earnings performance, which could affect investor confidence and stock valuation.

NIPPN Corporation Business Overview & Revenue Model

Company Description

Nippn Corporation engages in flour milling business in Japan and internationally. The company manufactures and sells food products, including premixes, such as donut, cake, and bread mixes, as well as tempura flours, karaage mixes, etc.; corn products comprising corn grits, cornmeal, etc.; health food products that include wheat germ oil, gingko leaf extract, chlorella, etc.; and wheat flour and premixes for home use. It also provides pasta, which comprises spaghetti, macaroni, etc.; and pasta sauces, whole peeled tomatoes, olive oil, dried noodles, and rice flours, as well as other frozen ingredients and foods, including donut dough, pie dough, non-dairy whip, etc. In addition, the company offers deli food products, such as boxed lunches, snacks, etc.; take-out foods; health food products for health and beauty; functional ingredients; and cosmetics. Further, it is involved in the biotechnology, pet care products, machinery sales, and other businesses. The company was founded in 1896 and is headquartered in Tokyo, Japan.

How the Company Makes Money

NIPPN Corporation generates revenue primarily through the sale of flour and food products. Its key revenue streams include wholesale distribution to food manufacturers, retail sales through supermarkets and convenience stores, and direct sales to restaurants and food service operators. The company has established significant partnerships with various stakeholders in the food supply chain, enabling it to secure consistent demand for its products. Additionally, NIPPN invests in research and development to innovate and expand its product line, which helps attract new customers and enter new markets, further enhancing its earnings potential.

NIPPN Corporation Financial Statement Overview

Summary

NIPPN Corporation demonstrates strong financial health with robust revenue growth and stable profitability. The balance sheet is solid with low leverage, but challenges in generating positive free cash flow indicate potential liquidity constraints.

Income Statement

NIPPN Corporation has demonstrated solid growth with a consistent increase in revenue over the years. The Gross Profit Margin for the latest year stands at 23.83%, indicating effective cost management. The Net Profit Margin slightly decreased to 6.02% from 6.58% a year ago, primarily due to a slight reduction in net income. The Revenue Growth Rate was robust at 2.59% year-over-year, showing a positive trajectory. EBIT and EBITDA Margins were healthy at 5.23% and 11.69%, respectively. Overall, the company maintains strong profitability with stable margins.

Balance Sheet

The balance sheet of NIPPN Corporation is strong with a Debt-to-Equity Ratio of 0.24, indicating low leverage and a solid financial structure. The Return on Equity (ROE) is slightly reduced at 10.22%, reflecting strong returns to shareholders. The Equity Ratio stands at 60.67%, showing a robust capital structure with a majority funded by equity. Overall, the company demonstrates financial stability and low risk due to prudent financial management.

Cash Flow

The cash flow statement shows a decline in Free Cash Flow, which turned negative, indicating potential challenges in cash management. The Operating Cash Flow to Net Income Ratio is 0.76, suggesting a moderate conversion of income to cash. The Free Cash Flow to Net Income Ratio is negative, highlighting a concern in generating free cash flow from operations. While the cash flow from operations remains positive, the negative free cash flow points to cash expenditure in capital investments impacting liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	413.13B	410.88B	400.51B	365.52B	321.32B	288.32B
Gross Profit	101.21B	97.92B	94.00B	80.07B	74.93B	68.34B
EBITDA	41.18B	48.04B	46.85B	25.10B	24.25B	22.35B
Net Income	20.00B	24.76B	26.37B	10.26B	9.33B	8.64B
Balance Sheet
Total Assets	407.80B	399.23B	386.69B	344.61B	325.87B	308.02B
Cash, Cash Equivalents and Short-Term Investments	45.42B	44.95B	45.59B	36.81B	34.06B	37.49B
Total Debt	47.44B	57.03B	61.23B	64.13B	68.71B	70.18B
Total Liabilities	141.72B	152.74B	158.41B	152.00B	147.17B	138.89B
Stockholders Equity	259.16B	242.26B	224.34B	188.91B	174.31B	164.44B
Cash Flow
Free Cash Flow	0.00	-1.39B	2.87B	7.22B	1.32B	-1.02B
Operating Cash Flow	0.00	18.77B	24.02B	15.05B	11.97B	14.80B
Investing Cash Flow	0.00	-7.81B	-9.49B	-5.03B	-10.10B	-12.59B
Financing Cash Flow	0.00	-10.53B	-7.24B	-8.40B	-4.28B	2.55B

NIPPN Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2382.00
• 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:2001, the sentiment is Positive. The current price of 2382 is above the 20-day moving average (MA) of 2357.25, above the 50-day MA of 2287.52, and above the 200-day MA of 2209.34, indicating a bullish trend. The MACD of 26.35 indicates Negative momentum. The RSI at 54.98 is Neutral, neither overbought nor oversold. The STOCH value of 74.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2001.

NIPPN Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2001	70 Outperform	¥195.36B	9.54	7.71%	2.79%	1.83%	-39.02%
2602	67 Neutral	¥169.50B	7.09	12.56%	3.44%	3.80%	63.03%
2811	66 Neutral	¥230.62B	19.82	―	2.11%	3.69%	-50.13%
2613	65 Neutral	¥65.06B	12.69	―	3.79%	-3.91%	-25.32%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2296	62 Neutral	¥298.99B	19.69	―	2.61%	6.54%	15.08%
2607	59 Neutral	¥307.66B	31.64	―	1.45%	20.02%	―

NIPPN Corporation Corporate Events

NIPPN Corporation Announces Share Buyback Plan

NIPPN Corporation announced the acquisition of 101,200 of its own shares at a total cost of 239,187,495 yen, as resolved in the Board of Directors meeting on October 14, 2025. This move is part of a larger plan to acquire up to 2,200,000 shares, aiming to enhance shareholder value and optimize capital structure.

NIPPN Corporation Reports First Half FY2026 Financial Results with Strategic Expansion

NIPPN Corporation reported its consolidated financial results for the first half of FY2026, showing a slight increase in net sales and operating income compared to the previous year, despite a significant drop in profit attributable to owners of the parent. The company has also expanded its scope of consolidation by including HATANAKA FOODS Co., Ltd., indicating a strategic move to enhance its market presence. The financial outlook for the full year remains cautiously optimistic, with a modest growth forecast in net sales and operating income.

NIPPN Corporation Reports First Half FY2026 Financial Results with Increased Sales

NIPPN Corporation reported a 1.5% increase in net sales for the first half of fiscal 2026, driven by inbound tourism consumption and strategic marketing efforts. Despite rising costs, operating income rose by 3.1%, but profit attributable to owners decreased by 34% due to extraordinary gains from the previous year. The company maintains its full-year financial forecast and dividend plans.

NIPPN Corporation Sets Price for Secondary Share Offering

NIPPN Corporation has announced the determination of the selling price for its secondary offering of shares, set at ¥2,186 per share, with a total selling price amounting to ¥10,718,395,200. This move is part of a broader strategy to strengthen its market position and financial standing, potentially impacting stakeholders by influencing the company’s stock liquidity and market perception.

NIPPN Corporation Corrects Share Acquisition Notice

NIPPN Corporation announced a correction to its previously disclosed notice regarding the acquisition of its own shares. The correction involves an adjustment in the number of outstanding and treasury stocks as of September 30, 2025. This move reflects the company’s ongoing efforts to manage its equity structure effectively, which may impact shareholder value and market perception.

NIPPN Corporation Announces Secondary Share Offering

NIPPN Corporation has announced a secondary offering of 4,903,200 shares of its common stock, as resolved by its Board of Directors. The offering, involving major sellers like Yakult Honsha and Mitsui Sumitomo Insurance, aims to be conducted through purchase and subscription by underwriters, with the final selling price to be determined based on market conditions. This move could impact the company’s market positioning by potentially increasing liquidity and shareholder base.

NIPPN Corporation Announces Share Buyback Plan

NIPPN Corporation announced a resolution by its Board of Directors to acquire up to 2.61% of its own shares, totaling a maximum of 2,200,000 shares, to improve shareholder returns and capital efficiency. This move is also intended to mitigate the impact of a secondary offering of ordinary shares, with the acquisition to be conducted via market purchases on the Tokyo Stock Exchange between November 25, 2025, and March 31, 2026.

NIPPN Corporation Completes Auditor Review of Q1 FY2026 Financials

NIPPN Corporation announced the completion of an independent auditor’s review of its consolidated financial results for the first quarter of FY2026. The review was conducted in connection with a secondary offering of shares, and there were no changes to the financial statements previously disclosed. The company’s financial results showed a slight increase in net sales and operating income, but a significant drop in profit attributable to owners of the parent, reflecting a challenging market environment.