Nisshinbo Holdings (3105) AI Stock Analysis

• Market Cap: ¥263.39B
• Dividend Yield: 2.73%
• Average Volume (3M): 744.20K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.80
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥1,715.00 ▲(30.82% Upside)

Overall score reflects mixed financial performance (improving margins and balance sheet stability but declining revenue and weak free cash flow), balanced by reasonable valuation. Technicals show a strong uptrend, but overbought momentum indicators raise near-term pullback risk.

Positive Factors

Profitability Recovery

Restoration of profitability and a positive ROE indicate the company has moved back from prior losses to generate returns on equity. This improves financial resilience, reduces reliance on external capital, and creates a firmer base for reinvestment and strategic initiatives over the medium term.

Healthy Capital Structure

A nearly 40% equity ratio and moderate leverage provide balance sheet flexibility to fund operations and capex, absorb cyclical shocks, and pursue strategic investments. This structural strength lowers bankruptcy risk and supports sustained operations over multiple quarters.

Improving Margins

Rising gross and EBITDA margins signal better cost control and operational efficiency, which can sustainably boost operating cash flow even if sales stall. Structural margin gains enhance long-term profitability and provide scope to invest in higher-return segments or buffer margin pressure.

Negative Factors

Declining Revenue

A double-digit revenue decline undermines scale economics and may indicate weakening demand or competitive pressure. Persistent top-line contraction can erode market position, limit pricing power, and make it harder to cover fixed costs, pressuring margins and strategic flexibility.

Weak Free Cash Flow

Low FCF relative to earnings and negative FCF growth constrain the company's ability to fund capex, reduce debt, or raise dividends from internal sources. Over time this raises dependency on external financing and limits capacity for organic investment or opportunistic M&A.

Earnings Volatility

Large swings from loss to modest profit show earnings sensitivity to cyclicality or cost swings. Such volatility reduces predictability of future cash flows and complicates capital allocation, making it harder to plan consistent dividends, buybacks, or long-term investments.

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

Mixed fundamentals: margins improved and profitability recovered (net margin to 2.1%, ROE to 3.8%), and leverage looks manageable with a solid equity ratio (39.6%). However, revenue fell 8.6% YoY and free cash flow generation is weak (FCF to net income 0.34, negative FCF growth), limiting the score.

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: 1311.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1311 is below the 20-day moving average (MA) of 1428.47, below the 50-day MA of 1339.82, and above the 200-day MA of 1093.38, indicating a bullish trend. The MACD of 66.54 indicates Negative momentum. The RSI at 85.58 is Negative, neither overbought nor oversold. The STOCH value of 95.98 is Negative, 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	¥541.21B	16.86	13.63%	1.95%	-1.33%	9.21%
3106	77 Outperform	¥156.92B	13.41	―	2.66%	-1.63%	67.13%
8014	73 Outperform	¥104.71B	10.22	―	3.74%	-2.33%	-16.42%
8020	73 Outperform	¥343.93B	12.08	―	3.13%	1.50%	9.82%
3105	68 Neutral	¥263.39B	12.36	8.35%	2.73%	3.35%	810.44%
3401	65 Neutral	¥304.27B	-3.74	-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 Lifts 2025 Profit Outlook on Strong Communications Business Despite Slight Sales Cut

Nisshinbo Holdings has raised its full-year 2025 profit outlook while slightly trimming its sales forecast, reflecting a stronger-than-expected performance in its Wireless and Communications business. Although net sales are now projected to come in just below the previous estimate due to weaker demand in the Micro Devices segment, large-scale projects for municipal disaster prevention and marine communications at Japan Radio Group and rising demand from mobile phone carriers at KOKUSAI DENKI Electric are driving higher sales and profitability in communications. As a result, operating profit, ordinary profit and profit attributable to owners of parent are all expected to significantly exceed earlier forecasts, supported by both increased communications-related revenues and reductions in fixed costs, underscoring the group’s improving earnings structure and the growing importance of its communications operations to overall performance.

The most recent analyst rating on (JP:3105) stock is a Hold with a Yen1531.00 price target. To see the full list of analyst forecasts on Nisshinbo Holdings stock, see the JP:3105 Stock Forecast page.

Nisshinbo to Cut 560 Jobs in Micro Devices Restructuring via Early Retirement Program

Nisshinbo Holdings has approved the implementation of an early retirement incentive program at its subsidiary Nisshinbo Micro Devices Inc. and related Japanese subsidiaries as part of a broader restructuring of its Micro Devices business. The program, targeting 560 positions out of about 2,750 employees and open to staff aged 45 and older, will run from April to June 2026, offering special retirement benefits and reemployment support. The move is aimed at overhauling the business and cost structure to restore short-term performance and build a more resilient base capable of weathering fluctuations in the semiconductor market, with the associated costs to be booked as extraordinary losses in the fiscal year ending December 2026.

The most recent analyst rating on (JP:3105) stock is a Buy with a Yen1291.00 price target. To see the full list of analyst forecasts on Nisshinbo Holdings stock, see the JP:3105 Stock Forecast page.

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.

The most recent analyst rating on (JP:3105) stock is a Buy with a Yen1291.00 price target. To see the full list of analyst forecasts on Nisshinbo Holdings stock, see the JP:3105 Stock Forecast page.

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.

The most recent analyst rating on (JP:3105) stock is a Buy with a Yen1291.00 price target. To see the full list of analyst forecasts on Nisshinbo Holdings stock, see the JP:3105 Stock Forecast page.