Nisshinbo Holdings (3105) AI Stock Analysis

• Market Cap: ¥207.49B
• Dividend Yield: 2.73%
• Average Volume (3M): 744.20K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.77
• Revenue Growth: 3.35%
• EPS Growth: 810.44%
• Country: JP
• Employees: 18,630
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 14.91
• Shares Outstanding: 169,328,840
• 10 Day Avg. Volume: 817,310
• 30 Day Avg. Volume: 744,196
• PEG Ratio: -0.09
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 40.19
• 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): 68.65
• Revenue Forecast (FY): ¥498.25B

• Rating: 70 Outperform
• Price Target: ¥1,291.00 ▼(-1.41% Downside)

Nisshinbo Holdings' overall stock score reflects a balance of strengths and challenges. The stable financial position and positive technical indicators are significant strengths. However, declining revenue and cash flow issues pose risks. The fair valuation and attractive dividend yield add to the stock's appeal.

Positive Factors

Operational Efficiency

The improvement in EBIT margin indicates enhanced operational efficiency, which can lead to better profitability and competitive positioning.

Balance Sheet Health

A strong equity base relative to total assets provides financial stability and flexibility, supporting long-term growth and resilience.

Cash Generation

Improved cash generation relative to profits enhances the company's ability to fund operations and invest in growth opportunities.

Negative Factors

Revenue Decline

A decline in revenue growth can indicate weakening market demand or competitive pressures, impacting long-term business prospects.

Free Cash Flow Challenges

Negative free cash flow growth limits the company's ability to reinvest in the business and may constrain future expansion efforts.

Volatile Profit Margins

Volatility in profit margins can indicate inconsistent cost management or market conditions, affecting predictable earnings growth.

Nisshinbo Holdings Business Overview & Revenue Model

Company Description

Nisshinbo Holdings Inc., together with its subsidiaries, engages in the wireless and communications, micro devices, automobile brakes, precision instruments, chemicals, textiles, and real estate businesses worldwide. The company offers wireless communication equipment, including disaster-prevention systems and surveillance systems; mobile communication equipment for shipping and automobiles; power-supply and energy equipment focusing on environment friendliness and energy conservation, and ultrasound sensors; and micro devices, which include CMOS operational amplifiers, SAW filters, and MEMS microphones. It also manufactures and supplies friction materials, such as disc pads and brake linings, and drum and disc brakes for use in compact cars, ordinary passenger cars, sports cars, large trucks, and buses, as well as for repairs and tests in garages and dealers; and molding products, precision parts, and system equipment, as well as electronic brake systems. In addition, the company manufactures and supplies rigid polyurethane foam/wastewater treatment carriers; carbodilite, a high-performance resin additive; bipolar plates for fuel cells; and amorphous carbon products, as well as shirts, uniforms, mobilons/elastomers, and oikos products. Further, it redevelops unused plant sites; leases office and commercial facilities; and sells housing lots. The company was incorporated in 1907 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nisshinbo Holdings generates revenue through multiple key streams, primarily from the sale of textiles, electronic components, and industrial products. The textiles division produces functional fabrics and materials used in various applications, contributing significantly to the company's earnings. The electronics segment, which includes semiconductors and precision parts, serves a growing demand in the tech industry, bolstering revenue. Additionally, Nisshinbo engages in strategic partnerships and collaborations with other firms to enhance their product offerings and market reach, further supporting their revenue growth. The company's focus on R&D and innovative solutions also plays a critical role in attracting clients and increasing sales.

Nisshinbo Holdings Financial Statement Overview

Summary

Nisshinbo Holdings shows mixed financial performance. Improved profit margins and operational efficiency are offset by declining revenue and cash flow challenges. The balance sheet is stable with a strong equity base and manageable leverage.

Income Statement

Nisshinbo Holdings shows a mixed performance on the income statement. The gross profit margin improved from 21.2% in 2023 to 22.1% in 2024, indicating better cost management. However, the net profit margin is volatile, moving from a loss in 2023 to a 2.1% profit in 2024. Revenue growth is negative, declining by 8.6% in 2024 compared to 2023, which is a concern. The EBIT margin improved from 2.3% in 2023 to 3.4% in 2024, while the EBITDA margin increased significantly from 1.6% to 8.7%, showing improvement in operational efficiency.

Balance Sheet

The balance sheet of Nisshinbo Holdings reflects a stable financial position. The debt-to-equity ratio slightly increased from 0.86 in 2023 to 0.81 in 2024, indicating a manageable level of leverage. Return on equity improved significantly from -8% in 2023 to 3.8% in 2024, showing a return to profitability. The equity ratio stands at 39.6%, indicating a healthy capital structure with a strong equity base relative to total assets.

Cash Flow

Cash flow analysis reveals some challenges for Nisshinbo Holdings. The operating cash flow to net income ratio improved from -1.17 in 2023 to 2.76 in 2024, indicating better cash generation relative to profits. However, free cash flow growth is negative, which suggests challenges in generating excess cash after investments. The free cash flow to net income ratio is low at 0.34 in 2024, indicating limited free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	509.44B	494.75B	541.21B	516.09B	510.64B	457.05B
Gross Profit	121.88B	109.33B	119.37B	115.35B	115.48B	91.62B
EBITDA	58.37B	52.80B	8.93B	54.65B	48.54B	45.12B
Net Income	12.84B	10.28B	-20.05B	19.74B	24.82B	13.54B
Balance Sheet
Total Assets	621.89B	679.96B	672.22B	616.27B	604.80B	581.20B
Cash, Cash Equivalents and Short-Term Investments	57.00B	50.41B	52.50B	45.17B	44.94B	50.55B
Total Debt	170.81B	217.19B	216.04B	146.38B	131.38B	150.33B
Total Liabilities	327.43B	382.51B	395.64B	337.78B	332.17B	339.14B
Stockholders Equity	266.87B	269.45B	250.64B	263.82B	259.18B	229.02B
Cash Flow
Free Cash Flow	0.00	3.52B	-1.78B	-2.81B	19.72B	17.99B
Operating Cash Flow	0.00	28.37B	23.51B	19.59B	39.83B	42.59B
Investing Cash Flow	0.00	-20.86B	-46.51B	-11.69B	-16.77B	-6.32B
Financing Cash Flow	0.00	-8.75B	25.39B	-8.89B	-30.82B	-24.23B

Nisshinbo Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1309.50
• 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:3105, the sentiment is Positive. The current price of 1309.5 is above the 20-day moving average (MA) of 1282.27, above the 50-day MA of 1241.82, and above the 200-day MA of 1029.62, indicating a bullish trend. The MACD of 19.71 indicates Negative momentum. The RSI at 58.85 is Neutral, neither overbought nor oversold. The STOCH value of 66.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3105.

Nisshinbo Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5393	79 Outperform	¥449.41B	14.39	13.63%	1.95%	-1.33%	9.21%
3106	77 Outperform	¥138.97B	12.28	―	2.66%	-1.63%	67.13%
8014	73 Outperform	¥100.77B	10.37	―	3.74%	-2.33%	-16.42%
8020	73 Outperform	¥293.98B	10.29	―	3.13%	1.50%	9.82%
3105	70 Outperform	¥207.49B	10.03	8.35%	2.73%	3.35%	810.44%
3401	65 Neutral	¥258.27B	9.63	-20.43%	3.72%	-8.20%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Nisshinbo Holdings Corporate Events

Nisshinbo Holdings Completes Early Retirement Program Amid Restructuring

Nisshinbo Holdings has successfully completed an early retirement incentive program as part of its restructuring efforts in the wireless and communications sector. The program, which targeted Japan Radio Co., Ltd. and its subsidiaries, resulted in 431 applicants, exceeding the initial target of 400 positions. This initiative is expected to lead to annual personnel cost savings of approximately ¥3.0 billion starting from the fiscal year ending December 2026, despite incurring a one-time extraordinary loss of ¥3.2 billion.

Nisshinbo Holdings Reports Strong Financial Performance for Nine Months Ending September 2025

Nisshinbo Holdings reported a significant improvement in its financial performance for the nine months ending September 30, 2025, with a notable increase in net sales and profits compared to the previous year. The company’s strong financial results reflect its effective strategies and market positioning, which have positively impacted its operations and stakeholder confidence.