Nitto Fuji Flour Milling Co., Ltd. (2003) AI Stock Analysis

• Market Cap: ¥60.65B
• Dividend Yield: 4.04%
• Average Volume (3M): 4.46K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.44
• Revenue Growth: 1.21%
• EPS Growth: -14.59%
• Country: JP
• Employees: 822
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 31.90
• Shares Outstanding: 9,384,728
• 10 Day Avg. Volume: 4,150
• 30 Day Avg. Volume: 4,456
• PEG Ratio: -1.06
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 25.46
• 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: 71 Outperform
• Price Target: ¥7,724.00 ▲(11.62% Upside)

Nitto Fuji Flour Milling Co., Ltd. has a solid financial foundation with a strong balance sheet and stable income. However, the company faces challenges in cash flow management and recent revenue pressures. Technical indicators suggest mixed signals with potential for upward momentum, while valuation metrics indicate a fair to slightly overvalued stock. The attractive dividend yield provides a positive aspect for income-focused investors.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low debt and high equity ratio indicates financial stability, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Revenue Growth

Consistent revenue growth, despite recent declines, suggests a resilient business model with potential for recovery and expansion in the food manufacturing sector.

Efficient Operations

Healthy EBIT and EBITDA margins demonstrate operational efficiency, which is crucial for maintaining profitability and competitive advantage in the long term.

Negative Factors

Profit Margin Pressure

Decreasing net profit margins suggest challenges in maintaining profitability, which could impact long-term financial health if not addressed through strategic adjustments.

Cash Flow Management

Declining free cash flow growth indicates potential liquidity issues, which could limit the company's ability to fund operations and growth initiatives without strategic cash management.

Liquidity Concerns

Addressing liquidity concerns is crucial for maintaining operational flexibility and financial stability, especially in a competitive and fluctuating market environment.

Nitto Fuji Flour Milling Co., Ltd. Business Overview & Revenue Model

Company Description

Nitto Fuji Flour Milling Co., Ltd. is a prominent player in the flour milling and processing industry, established in 2003. The company specializes in producing a wide range of flour products, catering to various sectors including bakery, confectionery, and food manufacturing. With a commitment to quality and innovation, Nitto Fuji provides both traditional and specialty flours, meeting the diverse needs of its customers across domestic and international markets.

How the Company Makes Money

Nitto Fuji Flour Milling Co., Ltd. generates revenue primarily through the sale of its flour products to bakeries, restaurants, and food manufacturers. Key revenue streams include bulk flour sales, specialty flour offerings, and value-added products such as pre-mixed baking ingredients. The company benefits from strategic partnerships with food distributors and retailers, which help expand its market reach. Additionally, Nitto Fuji focuses on maintaining high product quality and customer satisfaction, allowing it to foster long-term relationships with clients and secure repeat business.

Nitto Fuji Flour Milling Co., Ltd. Financial Statement Overview

Summary

Nitto Fuji Flour Milling Co., Ltd. displays a solid financial position with stable income and a strong balance sheet, though cash flow management requires attention. The firm has maintained efficient operations, yet recent revenue and profit margin pressures suggest a need for strategic focus on growth and profitability improvement. Overall, the company is well-positioned in its industry, but it should address liquidity to ensure continued stability.

Income Statement

The company's gross profit margin has been stable over the years, with a slight decrease in the most recent period. Net profit margin decreased from the previous year, indicating some pressure on profitability. Revenue has shown growth, but recent figures indicate a slight decline, suggesting the need for strategic adjustments. EBIT and EBITDA margins remained relatively healthy, reflecting efficient operations.

Balance Sheet

The company's balance sheet is strong, characterized by low debt levels and a high equity ratio. The debt-to-equity ratio is favorable, indicating conservative financial management. Return on equity showed a slight decline, but it remains at a commendable level, reflecting effective use of shareholder funds. Overall, the company's financial stability remains robust.

Cash Flow

Cash flow from operations is consistent, but there is a noticeable decline in free cash flow growth due to increasing capital expenditures. The operating cash flow to net income ratio demonstrates good cash conversion, while the free cash flow to net income ratio is slightly strained, reflecting pressure on liquidity management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	72.67B	72.34B	72.60B	69.54B	59.34B	56.54B
Gross Profit	17.28B	17.21B	16.59B	15.93B	14.48B	14.36B
EBITDA	7.17B	6.94B	7.33B	7.11B	5.70B	6.43B
Net Income	3.21B	3.55B	4.24B	3.96B	3.71B	3.54B
Balance Sheet
Total Assets	63.26B	62.95B	64.24B	60.94B	55.87B	52.38B
Cash, Cash Equivalents and Short-Term Investments	1.45B	1.20B	1.56B	1.10B	1.73B	1.32B
Total Debt	421.00M	420.00M	400.00M	500.00M	503.00M	503.00M
Total Liabilities	14.28B	13.52B	14.57B	15.39B	14.12B	12.73B
Stockholders Equity	48.91B	49.35B	49.62B	45.50B	41.70B	39.61B
Cash Flow
Free Cash Flow	0.00	2.39B	3.21B	-377.00M	508.00M	2.63B
Operating Cash Flow	0.00	5.05B	6.50B	2.24B	2.17B	3.67B
Investing Cash Flow	0.00	-2.19B	-2.98B	-2.82B	-1.56B	-207.00M
Financing Cash Flow	0.00	-2.28B	-1.69B	-1.49B	-1.44B	-1.32B

Nitto Fuji Flour Milling Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6920.00
• 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:2003, the sentiment is Positive. The current price of 6920 is above the 20-day moving average (MA) of 6863.00, below the 50-day MA of 6956.17, and above the 200-day MA of 6876.63, indicating a bullish trend. The MACD of 10.10 indicates Negative momentum. The RSI at 54.32 is Neutral, neither overbought nor oversold. The STOCH value of 75.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2003.

Nitto Fuji Flour Milling Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1379	75 Outperform	¥57.92B	11.04	―	2.48%	5.74%	76.28%
2874	74 Outperform	¥72.42B	15.92	―	1.75%	4.41%	-41.73%
2003	71 Outperform	¥60.65B	17.74	―	4.04%	1.21%	-14.59%
2004	71 Outperform	¥99.92B	10.23	―	3.67%	-2.01%	-29.88%
2292	70 Neutral	¥79.80B	14.26	―	3.71%	4.55%	79.33%
2938	63 Neutral	¥55.37B	27.89	―	0.32%	4.70%	-2.58%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%