Nihonwasou Holdings, Inc. (2499) AI Stock Analysis

• Market Cap: ¥3.31B
• Dividend Yield: 3.86%
• Average Volume (3M): 12.21K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.16
• Revenue Growth: -1.18%
• EPS Growth: 2.31%
• Country: JP
• Employees: 155
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 5.19
• Shares Outstanding: 9,134,000
• 10 Day Avg. Volume: 15,120
• 30 Day Avg. Volume: 12,210
• PEG Ratio: 0.13
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 8.52
• 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: 80 Outperform
• Price Target: ¥426.00 ▲(17.68% Upside)

Nihonwasou Holdings, Inc. scores well due to its strong financial performance and attractive valuation. The technical analysis supports a positive outlook with bullish momentum. While the balance sheet's high debt levels are a concern, the company's effective cost management and cash flow improvements mitigate this risk.

Positive Factors

Cash Flow Improvement

Improved cash flow management enhances liquidity, allowing the company to reinvest in its operations and reduce financial risk, supporting long-term growth.

Profit Margin Expansion

Higher profit margins indicate better cost control and operational efficiency, which can lead to sustainable profitability and competitive advantage.

Revenue Growth

Consistent revenue growth suggests a strong market position and demand for the company's offerings, supporting long-term business expansion.

Negative Factors

High Debt Levels

High debt levels can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Decline in Revenue Growth Rate

A slowdown in revenue growth rate may indicate challenges in maintaining market share or demand, affecting future growth prospects.

Debt Risk

Elevated debt levels increase financial risk, potentially leading to higher interest expenses and limiting strategic flexibility in adverse conditions.

Nihonwasou Holdings, Inc. Business Overview & Revenue Model

Company Description

Nihonwasou Holdings, Inc. engages in the management of Nihonwasou, Ito no Takumi Center, Nihonwasou Gijutsuin, Kimono Refresh Center, etc. It also provides educational guidance for kimono and sewing; brokerage of sales contracts for japanese clothes and accessories; tailoring and sewing of kimonos; and Kimono maintenance and sales promotion agency services. In addition, the company researches, develops, and sells kimono accessories. The company was founded in 1986 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nihonwasou Holdings generates revenue through multiple streams, primarily from its hospitality services, including room bookings at its ryokans and dining services at its restaurants. The company profits from both direct sales to customers and partnerships with travel agencies that promote its offerings. Additionally, catering services for events and corporate functions contribute to its revenue. Seasonal promotions and packages are often utilized to boost sales during peak tourism periods. The company's commitment to quality and unique experiences helps to maintain customer loyalty and drive repeat business, further enhancing its financial performance.

Nihonwasou Holdings, Inc. Financial Statement Overview

Summary

Nihonwasou Holdings, Inc. demonstrates a robust financial performance with notable improvements in profitability and cash flow. The income statement shows effective cost management and improved margins. The balance sheet is stable but has high debt levels, and cash flow analysis indicates strong liquidity management.

Income Statement

The company's income statement shows a solid gross profit margin of approximately 91.3% in 2024, indicating effective cost management. The net profit margin improved significantly from 3.8% in 2023 to 6.3% in 2024, reflecting better profitability. Revenue growth from 2023 to 2024 was 4.4%, showing a positive trajectory despite a decline from 2022 levels. EBIT and EBITDA margins increased to 10.2% and 10.7%, respectively, suggesting improved operational efficiency.

Balance Sheet

The balance sheet presents a stable financial position with a debt-to-equity ratio of 1.26 in 2024, indicating moderate leverage. Return on equity improved to 8.2%, reflecting better utilization of equity capital. The equity ratio of 38.9% suggests a balanced capital structure. However, the company's debt levels remain relatively high, posing a potential risk.

Cash Flow

Cash flow analysis reveals a strong recovery in free cash flow, moving from negative in 2023 to positive in 2024, indicating better liquidity management. The operating cash flow to net income ratio improved significantly, showing enhanced cash generation relative to profits. Free cash flow to net income also became positive, underscoring improved cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.64B	4.70B	4.50B	4.77B	5.06B	4.55B
Gross Profit	4.24B	4.30B	4.10B	4.38B	4.54B	3.95B
EBITDA	513.47M	484.61M	352.72M	445.57M	485.29M	205.64M
Net Income	301.50M	296.47M	172.00M	236.71M	270.88M	94.37M
Balance Sheet
Total Assets	8.89B	9.34B	9.21B	8.80B	8.96B	8.91B
Cash, Cash Equivalents and Short-Term Investments	2.33B	2.75B	2.67B	2.81B	2.87B	2.63B
Total Debt	4.29B	4.58B	4.70B	4.51B	4.44B	4.82B
Total Liabilities	5.29B	5.71B	5.75B	5.41B	5.66B	5.78B
Stockholders Equity	3.60B	3.63B	3.46B	3.40B	3.30B	3.13B
Cash Flow
Free Cash Flow	0.00	327.71M	-185.00M	12.14M	726.64M	417.80M
Operating Cash Flow	0.00	343.06M	-179.00M	27.24M	751.69M	419.79M
Investing Cash Flow	0.00	-46.20M	-25.19M	-26.18M	-47.97M	40.68M
Financing Cash Flow	0.00	-245.74M	65.00M	-76.25M	-482.49M	-167.43M

Nihonwasou Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 362.00
• 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:2499, the sentiment is Positive. The current price of 362 is above the 20-day moving average (MA) of 359.94, above the 50-day MA of 358.12, and above the 200-day MA of 335.05, indicating a bullish trend. The MACD of 2.10 indicates Negative momentum. The RSI at 64.54 is Neutral, neither overbought nor oversold. The STOCH value of 40.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2499.

Nihonwasou Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2499	80 Outperform	¥3.31B	13.96	―	3.86%	-1.18%	2.31%
7863	76 Outperform	¥3.02B	15.60	―	4.01%	-2.33%	-68.46%
5587	66 Neutral	¥3.06B	15.11	―	―	28.85%	58.77%
7793	66 Neutral	¥3.72B	11.47	―	2.05%	―	―
9165	64 Neutral	¥3.37B	13.23	―	2.73%	10.65%	-3.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7831	46 Neutral	¥1.41B	-2.29	―	2.35%	-1.42%	-151.32%